McAuliffe Claims He Knew Nothing About Telergy's Financial Struggles

Today, the Republican Party of Virginia is reminding voters of another instance of Terry McAuliffe's long history of manufactured unfamiliarity with problems swirling around him and despicable tactics implemented on his behalf.

 

"Ignorance is bliss for Terry McAuliffe, even when it's manufactured," said Virginia Republican Party Chairman Pat Mullins.  "The idea that he was unaware of efforts by his most prominent surrogates to intimidate NVTC's TechPAC board members is just as unbelievable as his supposed unfamiliarity concerning the financial mess left behind at Telergy.  Ken Cuccinelli can fight for Virginia because he's been honest with Virginia. Sadly, Terry McAuliffe cannot say the same."

 

Background ...

 

In 1999, McAuliffe Was Put On Telergy's Board & Paid $1.2 Million For Using His Political Connections To Lure Investments

 

"Telergy, A Promising Information-Technology Firm In McAuliffe's Native Syracuse, N.Y., That Went Bust After The Internet Boom, Put McAuliffe On Its Board Of Directors In 1999."(Bob Lewis, "Investment Questions Dog McAuliffe In Va. Gov Race," The Associated Press, 5/28/09) 

 

  • After McAuliffe Was Placed On Telergy's Board, Gary Winnick Invested $40 Million In The Company While McAuliffe Received $1.2 Million For His Assistance In Luring Investments. "Shortly afterward, Winnick invested $40 million. Telergy paid McAuliffe $1.2 million for his help." (Bob Lewis, "Investment Questions Dog McAuliffe In Va. Gov Race," The Associated Press, 5/28/09)

In August 2001, McAuliffe Announced He Had Resigned From Telergy's Board As It Initiated Its First Round Of Layoffs

 

In August 2001, Telegry Laid Off 150 Workers. "Telergy Inc., a fast growing telecommunications company that attracted high-profile investors, has laid off 150 employees in five locations because of a slowdown in the nation's technology sector... Most of the job cuts - 130 - occurred at the company's suburban Syracuse headquarters. The other 20 people were at offices in Albany, Buffalo, New York City and Providence, R.I." ("Tech Bust Hits Telegry, 150 Lose Jobs," The Associated Press, 8/9/01)

 

In August 2001, McAuliffe Resigned From Telergy's Board Claiming That He Was "Not Aware Of What Specific Financial Issues Telegry Faces.""Former company director Terry McAuliffe, chairman of the Democratic National Committee, said during a visit to Syracuse Friday that he resigned from Telergy's board about two weeks ago and is not aware of what specific financial issues Telergy faces. In general, McAuliffe said, Telergy suffers from a nationwide downturn that has hurt most telecom companies."  (Rick Moriarity and Tim Knauss, "Florida Company Owned $47,000 By Telergy," The Post-Standard, 8/18/01) 

 

 

Laid Off Workers Received No Severance, But Founders & Executives Received Large Payments

 

 "The 448 Telergy Employees Laid Off In August And September Got No Severance Payments, But The Founders Of Telergy And Its Former President Were Paid About $375,000 Each When They Resigned Under Pressure In August, Telergy Officials Said Wednesday."  (Tim Knauss, "Telergy Founders Share $1.5 M Nothing For Laid-Off Workers," The Post-Standard, 12/6/01) 

 

  • "Payments To Company Founders Brian, Kevin And William Kelly And To Former President J. Patrick Barrett Totaled About $1.5 Million, Telergy Lawyer Phil Greenberg Said During A Meeting Of Telergy Creditors Wednesday At The Federal Building In Syracuse." (Tim Knauss, "Telergy Founders Share $1.5 M Nothing For Laid-Off Workers," The Post-Standard, 12/6/01)

In December 2011, Telergy Declared Bankruptcy

 

In December 2001, Telergy Filed For Chapter 11 Bankruptcy. "The meeting, part of Telergy's Chapter 11 bankruptcy proceeding, drew about 10 of Telergy's several hundred creditors to the James M. Hanley Federal Building. Company officials have asked to convert the bankruptcy case from a reorganization to a liquidation." (Tim Knauss, "Telergy Founders Share $1.5 M Nothing For Laid-Off Workers," The Post-Standard, 12/6/01) 

 

  • "Judge Stephen Gerling Will Conduct A Hearing Monday In Utica To Determine Whether Telergy Should Reorganize Or Be Shut Down And Liquidated In A Chapter 7 Proceeding." (Tim Knauss, "Telergy Founders Share $1.5 M Nothing For Laid-Off Workers," The Post-Standard, 12/6/01)
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