Rudy Giuliani: Newly Uncovered Business Dealings Raise Serious Questions about Giuliani's Trustworthiness

June 19, 2007 -- Two new reports today about Rudy Giuliani's business dealings raise serious questions about whether or not he can actually keep his so-called "commitments." After promising last week to "impose accountability in Washington," The New York Times revealed today that Giuliani has not been forthcoming about his actual role in negotiating on behalf of the makers of OxyContin, which admitted to misleading the public about the risks of the drug. Giuliani in fact played "the central role" in talks with federal prosecutors on behalf of the drug maker. [The New York Times, 6/19/07]

Not only was Giuliani hired by the makers of OxyContin, records show that his firm was hired by the federal government which was trying to crack down on the drug. Specifically, Rudy Giuliani lobbied the Drug Enforcement Administration to pull back on restricting the widely prescribed OxyContin and protect the company's bottom line. At the same time, the Justice Department paid Giuliani-Kerik $1.1 million to help crack down on prescription drug abuse. [Washington Post, 3/31/07, ABCNews.com, 5/10/07; New York Times, 2/22/04]

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In another report out today, Newsday reports Rudy Giuliani did not show up for a single meeting of the Iraq Study Group because it "conflicted with his lucrative speaking tour that garnered him $11.4 million in 14 months." Newsday pointed out that "when the group's report came out last December, Giuliani offered a different reason why he quit, saying he didn't think it was right for an active presidential candidate to take part in such an 'apolitical' panel." [Newsday, 6/19/07]

"How can voters trust Rudy Giuliani to fulfill his campaign promises when he can't be trusted to honor his commitments and attempts to hide the truth about his business dealings?" said DNC Communications Director Karen Finney. "The more we learn about Rudy's real record, the clearer it is that his primary commitments have been to making money and furthering his political ambitions."

Giuliani's Connections To Disgraced Drug Company Run Deep
Giuliani Compensation Secret, But His Reputation Was For Sale

Firm Cited His Reputation For Integrity As Reason For Hire. "'We certainly need a spokesperson that has the reputation and integrity Mr. Giuliani has for this issue,' said Robin Hogen, a Purdue Pharma spokesman." [New York Post, 5/30/02]

* Firm Saw Giuliani As "Rock Star" In New Lobbying Strategy. ''We had to switch over to using more political consultants,'' explained Robin Hogen, a Purdue spokesman, in a speech he made to public relations executives in March 2002, three months after Mr. Giuliani was hired, but before the hiring was publicly disclosed. ''We're about to announce next week bringing on a sort of rock star in that area.'' [New York Times, 2/22/04]

* Compensation Secret. "Purdue officials would not disclose how much Mr. Giuliani had been paid, but said they were pleased with his firm's work." [New York Times, 2/22/04]

Giuliani's Work Slowed Federal Regulatory Action

Hired To Lobby Against Drug Restrictions. Giuliani was hired "to help persuade the federal government not to curtail access to what came to be called 'hillbilly heroin.'" [New Republic, 9/6/04]

Drug Agency Blamed Problems On Company's Marketing. "The federal government was becoming concerned. Asa Hutchinson, then the administrator of the Drug Enforcement Administration, told Congress that Purdue's aggressive marketing and promotion had helped cause the widespread abuse of OxyContin. By 2001, the drug agency advocated allowing only specialized pain management doctors, instead of all general practitioners, to prescribe the drug, and requiring that it be distributed only through special centralized pharmacies, moves that would have cut Purdue's sales." [New York Times, 2/22/04]

The New York Times Found Giuliani Had Real Impact For Firm In Blocking Regulation. In his book "Painkiller," New York Times reporter Barry Meier wrote that "with Giuliani now in the mix, the pace of DEA's investigation into Purdue's OxyContin plant in New Jersey slowed as Hutchinson repeatedly summoned division officials to his office to explain themselves and their reasons for continuing the inquiry." The New York Times also reported that "In September 2003, [the company] won its bid to hold off restrictions on the sale of OxyContin. No government action has yet been taken against the company for lapses at its New Jersey plant, which the company says is more secure because of Giuliani Partners' involvement." [ABCNews.com, 5/10/07; New York Times, 2/22/04]

Conflict Of Interest: Working Both Sides Of Same Issue.

* Giuliani-Kerik Paid By Pharma To Lobby Justice Department Against Sale Restrictions. "Last year, when drug-maker Purdue Pharma wanted the federal government to help block illegal sales of its popular painkiller, it turned to Giuliani and his firm." According to a profile of Giuliani in New York magazine, Giuliani and Kerik arranged for a meeting between the company's executives and ex-Rep. Asa Hutchinson (R-Ark.), who was the head of the Drug Enforcement Agency at the time. "The mayor and I just met with Asa Hutchinson, his staff, and the people from Purdue," Kerik told the magazine. "We don't want Purdue put in a position where it winds up being taken over by the courts." [Washington Post, 3/31/07]

* At Same Time, Giuliani-Kerik Got Justice Department Contract To Help Crack Down On OxyContin. "At the same time, the Justice Department paid Giuliani-Kerik $1.1 million to conduct a management review of the organized-crime drug task force, whose responsibilities included stemming illegal use of OxyContin." [Washington Post, 3/31/07]

* Giuliani Said There Was No Conflict. Mr. Giuliani said he sees no chance for a conflict in the multiple ways he is involved in the matter, since his company was not involved in making decisions on law enforcement matters. "It was all disclosed," he said, sitting in his wood-paneled offices 24 floors above Times Square. "It's two different areas of expertise." [New York Times, 2/22/04]

ABC FINDS POTENTIAL QUID PRO QUO

"Kerik told New York Magazine at the time that Giuliani had raised $15,000 in donations for a 'traveling museum operated by the DEA.' Some officials told ABC News there were questions inside the agency of whether the donations were an attempt to influence the DEA." [ABCNews, 5/10/07]

IRONY: As Mayor, He Cracked Down On Precscription Drugs
As Mayor, Giuliani Favored Stricter Controls On Prescription Drugs Being Used Recreationally. In 1998, Giuliani announced a crack-down on black market, non-prescription use of Viagra in New York City. He said "I really think people should be very careful with this until it has been tested completely and everyone understands what the purpose of it is. This is a prescription drug for a good reason." [New York Post 5/2/98]

IRONY: For Another Client, Giuliani Reported That Prescription Drugs Were *NOT* Safe
Giuliani Partners Had Multi-Million Contract With PhRMA. Giuliani was a paid consultant to the Pharmaceutical Research and Manufacturers of America, the drug maker trade group that is fighting drug importation proposals in Congress. Giuliani Partners was hired by Pharmaceutical Research and Manufacturers of America (PhRMA) to study the safety of reimported prescription drugs. The National Journal reported, "Giuliani Partners, industry lobbyists said, has a one-year deal with PhRMA that was valued at a few million dollars." [National Journal, 3/13/04]

Giuliani Testified To Congress That Imported Drugs Were Dangerous. Speaking before the US Senate on the probe's conclusions in April 2005, Giuliani parroted the talking points of the special interests paying his consulting firm. "It is pretty much right now a wide open system," Giuliani told senators. The report asserted safety and security risks "far outweigh any alleged benefits for US residents." The report also said, "It is not difficult to imagine a scenario in which terrorist groups could use this system to finance their operations or, worse, as a vehicle of attack." Giuliani also touted the report's findings to the public. His report was focused on the inability to ensure the integrity and safety of prescription drugs. [Contemporary Pediatrics, 5/1/05; Tulsa World (Oklahoma), 6/18/04; Biotech Business Week, 7/15/06; United Press International, 4/26/04]

IRONY: Giuliani Oversaw DEA In 1980s
In the 1980s, Giuliani oversaw the Drug Enforcement Administration at the Department of Justice. [Associated Press, 3/22/07]

Source: DNC