THE CASE AGAINST TERRY MCAULIFFE

Terry McAuliffe Supports ObamaCare And Its Devastating Consequences For Virginia
McAuliffe Voiced Support For ObamaCare And Called For It To Extend Further To Include A Public Option McAuliffe Supported The Passage Of ObamaCare, Saying President Obama Went In, Dealt With Healthcare; Passed It. We Are Better Off Today Than We Were Before. MCAULIFFE: President Obama went in, dealt with healthcare; passed it. It was tough. We may not have agreed with all parts of it. We didnt get everything we wanted. I happen to have been a big supporter of the public option, but you know what? We are better off today than we were before. (Terry McAuliffe Rallies The Arlington Young Dems, YouTube,
10/22/10)

McAuliffe Supported The Senate Finance Committee Version Of ObamaCare. MCAULIFFE: The CBO, bipartisan nonpartisan came out the other day and said that the bill that Senator Baucus got through his committee actually would lower the deficit. (CNNs American Morning, 10/20/09) McAuliffe Supports A Public Option. MCAULIFFE: I do. Listen, Ive been a big pusher for the public option from day one. I commend Senator Reid. This is why hes the majority leader. He has done his magic inside. But my best guesstimate from talkin g to folks is we still probably need three or four votes. Everybody who is watching your show tonight, we have now got to really double up our efforts, because we still need help. We have to have it. We have the opt out. Theres no excuses now. We dont want an ad in. We dont want that. We dont want a trigger. Lets get this thing done. (MSNBCs The Ed Show, 10/27/09)
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McAuliffe Supports A Public Option, As A Business Person, Because He Wants The Government To Give Competition To The Private Sector. MCAULIFFE: Yes. As Ive said before. Ive been a big supporter of the public option. I come at it that weve got to cover, get every American in the system. I come at it as a business person also. I think if you get everyone in the system, you spread out the costs. I like competition. I would love to see a public option in there, some kind of an exchange, a co-op, however we want to call it, to give competition to the private sector, to hold them accountable, so they cant unilaterally d eny people coverage. They cant increase the premiums. (CNNs American Morning, 10/20/09) ObamaCare Will Cost The University Of Virginia Over $7 Million In 2014 In 2014 Alone, ObamaCare Will Cost The University Of Virginia $7.3 Million. Provisions of the federal Affordable Care Act are projected to add $7.3 million to the cost of the University health plan in 2014 alone. Federal health care reform will create new costs related to the individual mandate that requires all Americans to have health care coverage (or pay a penalty). (McGregor McCance, University
Employees Will See Significant Changes to Health Plan This Year, UVA Today, 8/21/13)

The University Could Face Millions More In Taxes Due To ObamaCares Tax On Cadillac Health Plans. In future years, U.Va. could face millions more in taxes through the act if the cost of its plans passes certain thresholds. (McGregor McCance, University
Employees Will See Significant Changes to Health Plan This Year, UVA Today, 8/21/13)

University Of Virginia Vice President And Chief Human Resources Officer Susan Carkeek: Ironically, by providing generous benefits, the University becomes exposed to a federal excise tax known as the Cadillac tax. (McGregor McCance, University Employees Will
See Significant Changes to Health Plan This Year, UVA Today, 8/21/13)

Without Changes, ObamaCare Would Have Increased Employee Premiums By 12 To 13 Percent In 2013. If the University made no changes to address rising costs or the impact of the Affordable Care Act, employee premiums would have risen a projected 12 percent to 13 percent this year. (McGregor McCance, University Employees Will See Significant Changes to Health Plan This Year, UVA Today, 8/21/13)

Terry McAuliffe Has Promised Billions In New Spending With No Way To Pay For It
McAuliffe Has Promised Billions In New Spending With No Realistic Way To Pay For It
McAuliffe Promise Higher Teacher Pay1 Increased Funds To Make College More Affordable2 Better Retirement Benefits For Teachers3 Higher Spending On K-12 Education4 Increased Research Funds For Virginia Universities5 Increased Spending On The Tourism Sector6 Increased Spending On InnerCity Passenger Rail7 Expanding Rail Service To More Places In Virginia8 Funding For Expanded Rural Healthcare Delivery9 Cost $700 Million Per Year $225 Million Per Year ? ? ? ? $250 Million Per Year Plus ? ? How He Pays For Them No Funding Source No Funding Source No Funding Source No Funding Source No Funding Source No Funding Source No Funding Source No Funding Source No Funding Source

Todd Allen Wilson, McAuliffe Promises Teacher Pay Raises If Elected, Daily Press, 4/11/13 Terry McAuliffe, Remarks At The Virginia21 Google Hangout, 7/10/13 3 Terry McAuliffe, Remarks At A Campaign Event, Manassas, VA, 5/25/13 4 Terrys Platform: Keeping Virginia Competitive In A Global Economy, Terry McAuliffe For Governor, Accessed 8/27/13 5 Tonia Moxley, McAuliffe, Former UVa Professor Criticize Cuccinelli During VT Campaign Stop, The Roanoke Times, 6/1/13 6 Ibid IV 7 Ibid IV 8 Ibid IV
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Increased Funding For Mental Health Services10

No Funding Source

UNFUNDED PROMISE: Terry McAuliffe Has Called For Higher Teacher Pay And Better Retirement Benefits For Teachers McAuliffe Told The Virginia Education Association (VEA) That He Will Work To Raise Teacher Pay. Terry McAuliffe, the Democratic nominee for governor, told members of the Virginia Education Association Thursday that if elected he would work to raise teachers pay. As governor Ill make sure that your pay reflects the work that you do, McAuliffe said, drawing a standing ovation from the roughly 700 delegates to the VEAs annual conference. (Todd Allen Wilson, McAuliffe Promises Teacher Pay Raises If Elected, Daily Press [Hampton Roads,
VA], 4/11/13)

McAuliffe At The VEA Convention: And I think its a disgrace that in Virginia you take average pay of Virginians and match that against teacher pay, you know where we rank, were fiftieth out of fifty states. You do a great job and you should never be fiftieth in anything. Were the eighth most wealthy state in the United States of America and you do a great job and you look at the results on math and science and reading. Were always in the top ten. But your pay is not in the top ten, youre in the fiftieth. As governor, Ill make sure that your pay reflects the work that you do, ladies and gentlemen. (Terry McAuliffe, Remarks At The Virginia Education Association Convention,
Hampton, VA, 4/11/13)

McAuliffe At VEA: When Im Governor, youre gonna get your benefits and youre gonna get the pay that you deserve, ladies and gentlemen. (Terry McAuliffe, Remarks At The Virginia Education Association Convention, Hampton, VA, 4/11/13) The VEA Endorsed McAuliffe. The Virginia Education Associations political arm endorsed Democratic candidate Terry McAuliffe for governor during its annual convention in Hampton, which concluded Saturday. (Michael Alison Chandler, Virginia Teachers Pledge
Support For McAuliffe; Cuccinelli Declines Invitation, The Washington Post, 4/15/13)

At An Office Opening In Manassas, Virginia, McAuliffe Called For Raising Teacher Pay To The National Average. MCAULIFFE: Youve gotta have an education system that is training our students for the future workforce. And thats what I f ocus on. We gotta start paying our teachers what theyre worth. We gotta quite demonizing teachers, which happens every day. And most of youve heard me talk about this. In Virginia, if you take average Virginia pay to average teacher pay, do you know where we r ank among the fifty states. Were fiftieth, were dead last. Now, I want to keep the best teachers, I want to recruit the best teachers. But we cant be fiftieth out of fifty, were the eighth wealthiest state in United States of America. We take retirement benefits away from o ur teachers, we dont give them the pay that they deserve. So as Governor, I want to make sure we pay our teachers the national average, in order for us to get the best possible teachers. (Terry McAuliffe, Remarks At A Campaign Event, Manassas, VA, 5/25/13)

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Ibid IV Ibid IV 4

In His Platform, Terry McAuliffe Calls For Paying Our Teachers Properly. Our teachers have seen their salaries and benefits decline significantly, in real terms, over the past several years. Paying our teachers properly is the only proven way to attract and retain the highest quality educators. (Terrys Platform: Putting Jobs First, Terry McAuliffe For Governor, Accessed 7/1/13) According To The National Education Association (NEA), There Are Over 100,000 Public School Teachers In Virginia According To The NEA, Virginia Employed 103,908 Public School Teachers For 2011-2012. (Rankings &Estimates: Rankings Of The
States 2012 And Estimates Of School Statistics 2013, National Education Association, December 2012, page 17)

NOTE: According to the NEA, in 2011-2012 Virginias average teacher pay was $48,703 and the average teacher pay in the United States was $55,418. This means McAuliffe is promising to close an average $6,715 pay gap. This would equal a $700 million increase in spending per year. UNFUNDED PROMISE: Terry McAuliffe Promised The Funds Necessary For Everybody To Afford To Go To College McAuliffe Promised The Necessary Funds For Everybody To Go To College. MCAULIFFE: But I will ensure as Governor, I promise ya, that were gonna have the necessary funds we need so that everybody can afford to go to college and its not such an exorbitant cost. (Terry McAuliffe, Remarks At The Virginia21 Google Hangout, 7/10/13) McAuliffe Has Called For Closing An Alleged $1,908 Funding Gap For Community College Students, Which Would Lead To Nearly $900 Million In New Spending Over 4 Years McAuliffe Called For Increasing Community College Funding To Eliminate An Alleged Funding Gap Of $1,900, From $2,500 To $4,400. He added those programs need new funding. We have cut the community colleges, he said. From 2008, the commonwealths contribution was about $4,400 per student. It has dropped today to $2,500 per student. (Ray Reed, McAuliffe Makes Campaign
Stops At CVCC, B&W, The News & Advance, 6/24/13)

A Graphic From McAuliffes Website Shows He Plans To Close A $1,908 Funding Gap:

(Terry McAuliffe For Governor, Accessed 9/3/13)

NOTE: According to the Virginia Community College System (VCCS), the Annual Full-Time Equivalent enrollment in Virginias Community Colleges is 123,651 for 2012-2013. According to a spokesman for VCCS, about 95% of the students are from Virginia. Based on these numbers, Virginia would experience $224,129,802.60 in new spending in a year and almost $900,000,000 in new spending over 4 years. UNFUNDED PROMISE: McAuliffe Has Pledged To Push For Expansion Of Light Rail To The Norfolk Naval Station And Virginia Beach Oceanfront, Which Would Cost The State $250 Million The Virginian-Pilot: Terry McAuliffe, The Democratic Candidate For Governor, Pledged Monday To Push For Expansion Of Light Rail To Norfolk Naval Station And The Virginia Beach Oceanfront. (Bill Sizemore, McAuliffe: Extend Light Rail To
Naval Base, Oceanfront, The Virginian-Pilot, 9/24/13)

A Study From Hampton Roads Transit Says This Would Cost The State $250 Million And Virginia Beach $250 Million. An estimate from Hampton Roads Transit last week pegged the total cost of an eastward expansion to the Oceanfront at more than $1 billion. The standard funding model for light-rail projects includes a 25 percent state share in addition to 50 percent from the federal government and 25 percent from the locality. (Bill Sizemore, McAuliffe: Extend Light Rail To Naval Base, Oceanfront, The Virginian-Pilot, 9/24/13)

The Washington Post Editorial Board Said McAuliffes Only Funding Scheme Wont Work McAuliffe Cites $500 Million In Savings From The Medicaid Expansion. But he went further in citing net savings of more than $500 million, even after subtracting the estimated net cost of $137.5 million over 10 years. (Michael Martz, Candidates Using Funny Math On
Medicaid, Richmond Times-Dispatch, 8/11/13)

NOTE: This Number Is Over 10 Years, While The Above Numbers On Teacher Pay And Community Colleges Are Per Year.

This Number Reflects Increased Tax Revenue From Increased Employment Caused By The Medicaid Expansion And State Savings On State Employee Health Plans. That reflected $519 million in income and sales tax revenue that might be generated by expanded employment because of the federal investment, as well as $170 million in potential savings on state employee health insurance premiums. (Michael Martz, Candidates Using Funny Math On Medicaid, Richmond Times-Dispatch, 8/11/13) These Numbers Come From A Liberal Think-Tank. The numbers came from a report by the Commonwealth Institute for Fiscal Analysis, a liberal think-tank in Richmond that strongly supports Medicaid expansion. (Michael Martz, Candidates Using Funny Math On Medicaid,
Richmond Times-Dispatch, 8/11/13)

Counting On [Medicaid Expansion] As A Revenue Source Poses Several Problems. Some economists argue that states that expand their Medicaid system will reap a revenue windfall even beyond the direct federal support. One reason: States would no longer have to pick up the tab for emergency-room care for those who are newly covered by Medicaid. Another: The increased Medicaid spending would generate jobs and, therefore, income-tax revenue. Counting on this program as a revenue source to fund a broad economic agenda poses several problems. (Editorial, Medicaids No Cure-All For McAuliffes Budget Plan, The Washington Post, 9/20/13) The Washington Post: Expanding Medicaid Is Not A Sustainable Or Realistic Way To Finance McAuliffes Proposed Spending Increases. Expanding Medicaid is the right thing to do. But it is not a sustainable or realistic way to finance new spending in other areas. (Editorial, Medicaids No Cure-All For McAuliffes Budget Plan, The Washington Post, 9/20/13) When MSNBCs Chuck Todd Asked McAuliffe For A Price Tag For His Plans, McAuliffe Would Not Answer When Asked Directly, Terry McAuliffe Wouldnt Give A Price Tag On His Spending Plan. MSNBCs CHUCK TODD: When-- when you get your six-second response, Mr. McAuliffe, you didnt give us a price tag. Why cant you-- youve been runnin for governor for four years. Why cant you give us a price tag on what you want to-- what spending you want to expand? Whats the price tag? MCAULIFFE: Well, Ill-- Ill tell you what Id love to spend it on. But-- first of all, I-- I want pre-K, early childhood development. I think thats very important. I talk about what we need to do on teacher pay. We need accountability. Ive called for a total reform of the SOLs. They dont work in their present form. We dont have accountability. Our students are being taught to memorize. Teachers are being taught to take tests and how to give tests. Thats-- thats not right. Thats not how you build the cognitive mind, creative reasoning. We need to be involved in the process early to make sure that we have progress-based data, not these memorization tests. I talk about the community colleges. We need to invest. But Chuck, the key is going to be the Medicaid expansion. I have said this. My opponent doesnt want it. I want it. And its bipartisan. The Fairfax Chamber. Theres Jim Corcoran in the front row. The Fairfax Chamber supports the Medicaid expansion. The Virginia Chamber of Commerce supports the Medicaid expansion. So does Lieutenant Governor
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Bill Bolling. This is bipartisan mainstream. We are gonna bring back to Virginia, over the course of the next seven years, $21 billion of our money that were payin in. Why would we not bring that back TODD: Okay, so-- so you dont have a price tag? MCAULIFFE: and it will createwait, let me finish. This Medicaids very important. TODD: I know, I know. Wereweretimes up. MCAULIFFE: 33,000 new jobs created, Chuck. This is so important for Virginia TODD: II just want to clarify, no price tag? MCAULIFFE: Its a priority. What TODD: Theres no-- theres no cost to it. You dont have a number? MCAULIFFE: This is why its important. Determine first how much you have. Then you can do it to your priorities. (Terry McAuliffe, Remarks At A Gubernatorial Debate, McLean, VA,
9/25/13)

Terry McAuliffe Does Not Have The Experience To Be Virginias Governor

McAuliffe Doesnt Know The Power Of The Governors Office In Virginia McAuliffe Told Supporters That As Governor He Would Issue A Guidance Opinion. Democrat Terry McAuliffe is telling supporters that as Virginia governor he would issue a guidance opinion that would exempt existing abortion clinics from complying with strict new health and safety standards. The only problem: State officials say there is no such thing as a guidance opinion and that governors have no such formal authority. (David Sherfinski, Terry McAuliffe Vows To Use Mysterious Guidance Opinion To Help Virginia Abortion Clinics, The Washington
Times, 9/18/13)

McAuliffe: I Can Give A Guidance Opinion To The Board Of Health To Grandfather In Those Remaining Clinics To Keep Them Open. But I will issue whats called a guidance opinion by mid-March, he said. I can give a guidance opinion to the Board of Health to grandfather in those remaining clinics to keep them open. Thats why this election is so important, an d I will do that. (David Sherfinski, Terry McAuliffe Vows To Use Mysterious Guidance Opinion To Help Virginia Abortion Clinics, The Washington Times, 9/18/13) VIDEO: McAuliffe: As governor, I would, early on in the administration, I would offer a guidance letter, which I would have the ability to do, called the guidance documents to interpret this legislation so that we could indeed grandfather in the existing womens health centers. So I would do that very quickly to do that. (Terry McAuliffe, Remarks At The CNU Gubernatorial Forum, Newport News, VA, 9/17/13)

Laws In Virginia Do Not Grant The Governor The Authority To Issue Such An Opinion. The only problem: State officials say there is no such thing as a guidance opinion and that governors have no such formal authority. (David Sherfinski, Terry McAuliffe Vows To Use
Mysterious Guidance Opinion To Help Virginia Abortion Clinics, The Washington Times, 9/18/13)

A Spokeswoman For The Virginia Department Of Health Said She Cannot Recall The Board Ever Receiving A Guidance Opinion From A Governor. Maribeth Brewster, a spokeswoman for the Virginia Department of Health, said she cannot recall the board ever receiving a guidance opinion from a governor. (David Sherfinski, Terry McAuliffe Vows To Use Mysterious Guidance Opinion To Help
Virginia Abortion Clinics, The Washington Times, 9/18/13)

McAuliffe Doesnt Know Much About Virginias Government In March 2013, McAuliffe Wouldnt Name Any Sitting Cabinet Members, Saying He Maybe Could, Maybe Couldnt. In a recent interview, McAuliffe wouldnt give specific responses when asked about technical aspects of legislative and governors office operations. Asked if he could name the positions in the governors Cabinet, for instance, McAuliffe said: Maybe could, maybe couldnt. Thats not what Im going to do here today because thats not what Im talking about. (Julian Walker, McAuliffe Faces Cuccinelli, Inexperience In Race, The
Virginian-Pilot, 3/13/13)

In 2009, McAuliffe Repeatedly Mispronounced The Name Of A Virginia State Representative. On a radio show Tuesday night, Terry McAuliffe mispronounced the last name of defeated 5th district Rep. Virgil H. Goode Jr., calling the Republican veteran Virgil Good. (Tyler Whitley, McAuliffe Perceived As Outsider, Richmond Times-Dispatch, 1/4/09)
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McAuliffe Doesnt Know Much About The Issues McAuliffe: I Stay Away From Issues. Mr. McAuliffe says he uses his influence to get people together with Mr. Clinton or to recommend them for presidential appointments, but he never discusses substantive issues with the president or lobbies him. I stay away from issues, he said. (Jeff Gerth, Friendship Counts: Clintons Top Fund-Raiser Made Lots For Himself, Too, The New York Times, 12/12/99) McAuliffe Doesnt Know Much About How A Bill Becomes A Law McAuliffe: I Dont Know How To Get A Bill Through CongressI Couldnt Name You 20 Members. What could he do for me? McAuliffe asked in a recent interview about Clinton, suggesting he has everything he needs. He said he does not lobb y the president and knows little about legislation. I dont know how to get a bill through Congress, he said. I couldnt name you 20 members. (Fund-Raiser Also Clintons Personal Financial Backer, Orlando Sentinel, 9/5/99) McAuliffe Doesnt Know Much About The Documents He Signs Mr. McAuliffe Defers To His Lawyers And Bankers When It Comes To Documents. Ive Signed Thousands Of Documents, But Never Read Them. Some of his friends say McAuliffe Inc. is too invisible. Ive complained to him about his lack of infrastructure -- how can we get you a fax, said Ed Rogers, a Republican lobbyist who was one of Mr. McAuliffes sources of information during the impeachment of Mr. Clinton. Mr. McAuliffe defers to his lawyers and bankers when it comes to documents . Ive signed thousands of documents, but never read them, he said. (Jeff Gerth, Friendship Counts: Clintons Top Fund-Raiser Made Lots For Himself, Too, The New York
Times, 12/12/99)

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Terry McAuliffe Has Been Inconsistent On Supporting Coal And Offshore Oil Drilling
McAuliffe Flip-Flopped On Whether He Supports The Coal Industry And Now Supports President Obamas EPA Regulations That Will Devastate The Industry McAuliffe: We Have Got To Move Past Coal. As Governor, I Never Want Another Coal Plant Built. (Terry McAuliffe, Remarks At
A Democratic Primary Debate, Blacksburg, VA, 4/29/09)

Click To Watch

On May 8, 2013, McAuliffe Said, We Need To Make Sure We Do What We Need To, To Make Sure This Vital Industry [Coal] Continues To Grow. (David McGee, McAuliffe Talks Coal At Bristol Campaign Event, Bristol Herald-Courier, 5/8/13) PolitiFact Virginia Rated McAuliffes Change Of Position On Coal A Full Flop. Comparing all the statements, its clear McAuliffe is friendlier to coal now then he was four years ago, when he urged Virginia to move past coal. This year, unlike 2009, he is promising to help the industry grow, promising to promote coal exports to Asian markets and calling for an all of the above energy policy. McAuliffe does not mention coal in a 13-page agenda entitled Keeping Virginia Competitive in a Global Economy, or on campaign website site posts about his agendas on energy and jobs. In each of the postings, he talks up the need to create clean energy jobs -- particularly wind power. But McAuliffes words in Bristol ring loudly. We rate his new position on coal a Full Flop. (McAuliffe Blows
Hot And Cold On Coal, PolitiFact Virginia, 6/14/13)

McAuliffe Refused To Take A Position On The EPAs New Coal Power Plant Regulations. But when pressed for detail about his own views, McAuliffe often sticks to broad outlines. Four years after his first run for governor, the Democrat has backed away from his opposition to coal-fired power, and he has newly embraced offshore drilling. He has declined to say where he stands on new emissions standards that the EPA is due to release Friday. (Frederick Kunkle, McAuliffe Walks Tightrope On Energy Issues In The Virginia Governors Race, The
Washington Post, 9/19/13)

At A Press Availability, McAuliffe Said He Would Meet With Experts To Decide On The Coal Regulations, But Gave No Timeline. QUESTION: Mr. McAuliffe, back to the EPA. When Obama gave his speech, you said you wanted to wait to see the regulations. The regulations are out, now you say you still have to review them. How long do you need to review them until you have a firm position of whether they are the right thing or the wrong thing? MCAULIFFE: Well begin to look at them immediately. We want to get the experts in and all of us look at them together and make that decision. And, as you know, these are for new plants, as you know. And we have to take a look at them and very quickly we'll look at them. I've been out all day today. (Terry McAuliffe, Remarks At A Press Availability,
Fairfax, VA, 9/20/13)

After Two Weeks Of Dodging, McAuliffe Finally Announced His Support Of The New EPA Regulations. Terry McAuliffe said Tuesday that he supports new Environmental Protection Agency rules on carbon emissions, taking a clear stance for the first time on an issue that has become a key flashpoint in the Virginia governors race. The EPA unveiled guidelines two weeks ago that would
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limit the amount of carbon that future coal- and gas-fired plants can emit into the atmosphere, likely making it difficult for any new coal-powered plants to be built. (Ben Pershing, McAuliffe Says For First Time That He Supports EPA Rules On Coal-Fired Plants, The Washington Post, 10/1/13) McAuliffe Opposed Offshore Drilling Off Virginias Coasts But Now He Supports It McAuliffe Opposed Opening Offshore Oil Drilling Because It Would Risk The Tourism And Fishing Industries With A Potential Oil Spill, Without Producing A Significant Amount Of Oil And Jobs. PAYNTER: What is your view on Governor McDonnells plan to open up oil and gas drilling off the coast? MCAULIFFE: Ive talked about that, my big broad issue, Im for whatever we can do in the energy mix here to make energy more affordable for all of us and to make sure we have a constant su pply. Ive yet to see that there is a significant amount of oil. Every study that we have seen says that its not significant, but Im open to entertaining that we ought to look at everything. The big issue I always have in these, weve got a $9 billion a year tourism business in Virginia Beach, along the area. We cannot risk it like that Horizon well that had all those issues that destroyed the tourism, the fishing industry. We lost millions of dollars in Virginia Beach and were thousands of miles away from it, but we were impacted. What we can never have is a spill right there or well destroy a $9 billion industry. And my question is, how much oil can we get out, and the job creation will not be significant unlike turbines and wind, only because all the technology to go offshore drilling has already been developed. (Terry (Terry McAuliffe On Energy, WVPTs Politics Matters, Recorded: September 2011) McAuliffe Argued The Costs Outweighed The Benefits With Oil Drilling. MCAULIFFE: To me, like a business, its a cost ratio benefit analysis. I do not want to do anything that would jeopardize that tourism business down there, and to this day I dont see that weve shown but if you can come back to me, and if I were Governor, and you said, Yeah, we can create X number of jobs, the safety issues 100%, we got a lot of oil out there, of course you should look at that. (Terry McAuliffe On Energy, WVPTs Politics Matters, Recorded:
September 2011)

McAuliffe: I Do Not Support Drilling For Oil Off Our Coast. (Terry McAuliffe, Race To Richmond: Terry McAuliffe, The Washington Post, 5/20/09) McAuliffe: Yes, and Ive been consistent from the start of this campaign. There was bipartisan legislation passed, signed by Governor Kaine, promoted by Governor Kaine, that says no oil drilling, no oil drilling and limited exploration for natural gas. (Terry McAuliffe, Remarks At
A Democratic Primary Debate, Annandale, VA, 5/19/09)

However, On May 16, 2013, McAuliffe Said He Supports Responsible Off-Shore Drilling. Im for keeping Virginia as a right-to-work state, Im for responsible off-shore drilling, and I believe we both share a commitment to Virginia, said McAuliffe. (Jim
Nolan, Bolling Exit Clarifies Race For Governor, Richmond Times-Dispatch, 3/18/13)

The Washington Post: Terry McAuliffe Reverses Course, Backs Bill To Allow Oil Drilling In Virginia (Ben Pershing, Terry
McAuliffe Reverses Course, Backs Bill To Allow Oil Drilling Off Virginia Coast, The Washington Post, 5/22/13)

McAuliffe Reversed His 2009 Position On Offshore Oil Drilling. Democratic gubernatorial candidate Terry McAuliffe now supports exploring for oil off the coast of Virginia, reversing his position on an issue that both sides of the debate consider to be crucial to the commonwealths long-term energy future. When McAuliffe ran for governor in 2009 he said he would back exploratory drilling for natural gas only and did not support drilling for oil off our coast, a fact that Republicans cite often in
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arguing that the Democrat is on the wrong side of the issue. (Ben Pershing, Terry McAuliffe Reverses Course, Backs Bill To Allow Oil Drilling Off Virginia Coast, The
Washington Post, 5/22/13)

The Virginian-Pilot: His Revised Position On Offshore Drilling, First Noted By The Washington Post, Has Opened Him To Criticism That He's Inconsistent On Energy Policy. (Julian Walker, McAuliffes Shift On Coal, Offshore Drilling Attracts Critics, The Virginian-Pilot,
5/23/13)

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Terry McAuliffe Has A History Of Questionable Business Ties

McAuliffes Lobbying Firm Served As A Lobbyist For Turkey While It Was A Practitioner Of Torture From 1990-1994, McAuliffe, Kelly, Raffaelli, & Siemens Represented The Embassy Of The Republic Of Turkey Before Congress And U.S. Officials. General government relations services, including reporting on U.S. government policies and activities, representing the Embassy of Turkey before Congress and U.S. government agencies, and providing advice to the Embassy on various government relations matters. The provision of these services may require the registrant to contact from time to time byletter, telephone or in person, Members of Congress or U.S. government officials. (U.S. Department Of Justice, Foreign Agent Registration Act Filings, 8/29/90-2/28/94) In July 1991, A Turkish Man Was Found Dead With Broken Bones, A Fractured Skull, And Riddled With More Than A Dozen Bullet Wounds. He Had Been Taken From His Home By Several Armed Men Who Identified Themselves As Police Officers. President Bush lavishly praised President Turgut Ozal during his visit to Turkey in Ju ly 1991, the first by a U.S. president in more than 30 years. At a state dinner. Bush said. There has been no country as resolute as Turkey and no ally like President Ozal. Bush referred to Turkey as his second home. The same month that Bush was regale d by Ozal, the body of Vedat Aydin, a human rights worker, was discovered along a roadside in southeastern Turkey. His skull was fractured, his legs were broken, and his body was riddled with more than a dozen bullet wounds. He had been taken from his home by several armed men who identified themselves as police officers. No one was charged with his slaying. (Pamela Brogan, The Torturers Lobby, The Center For Public
Integrity, 1992)

A 1991 State Department Report On Human Rights Stated: Although Turkey Has Signed Several International Conventions Against Torture, It Has Not Succeeded In Reducing The Incidence Of Torture Of Persons In Police Custody. In 1991, torture was routine in Turkey. In particular, the Kurdish minority, which has been waging guerilla war against the Turkish government, has been targeted by the Turkish security forces. Villagers have been detained, arrested, tortured and killed. Although Turkey has signed several international conventions against torture, it has not succeeded in reducing the incidence of torture of persons in police custody, concluded the State Departments 1991 report on human rights. (Pamela Brogan, The Torturers Lobby, The Center For
Public Integrity, 1992)

The State Department Report Continued: Credible Reports Indicate That High-Pressure Cold Water Hoses, Electric Shocks, Beating Of The Genitalia, And Hanging By The Arms Are Methods Commonly Employed. The report added: Knowledgeable observers contended that most persons charged with or merely suspected ofpolitical crimes are tortured. Credible reports indicate that high-pressure cold water hoses, electric shocks, beating of the genitalia, and hanging by the arms are methods commonly employed. (Pamela Brogan, The Torturers Lobby, The Center For Public Integrity, 1992)

A Report By The European Parliament Last September Cited Turkey As A Country With Cases Of Death Caused By Torture. (Pamela Brogan, The Torturers Lobby, The Center For Public Integrity, 1992) A Report By Amnesty International Claimed That No Practical Or Legislative Steps Had Been Taken And The Already Large Volume Of Credible Torture Allegations Had, If Anything, Increased. Turkeys new government, led by
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Prime Minister Suleyman Demirel, has admitted that torture is a significant problem, but has done nothing to improve the situation. In April 1992, a report by Amnesty International titled Turkey: Torture, Extrajudicial Executions, Disappearances, said that no practical or legislative steps had been taken and the already large volume of credible torture allegations had, if anything, increased. The report added: Systematic practice of torture continues throughout Turkey. (Pamela Brogan, The Torturers Lobby, The Center For Public Integrity, 1992) McAuliffes Lobbying Firm Was Paid To Put A Positive Spin On Turkeys Torture Image In His 2007 Book, McAuliffe Criticized President George W. Bush For Condoning Torture Stating That Americans Had Every Reason To Be Afraid And Sickened. But the extremism of the Bush-Cheney years has given ordinary Americans every reason to be afraid and sickened: condoning torture, lying to Congress, making a habit of over-the-top secrecy and cronyism, handing important jobs to clownish amateurs who gave us the Hurricane Katrina mess (Brownie, youre doing a heck of a job), and the boondoggle of Iraq profiteering by U.S. contractors, and sending our soldiers into battle without body armor. Its a scandalous record and its un-American what they have done to this country with their trillion dollar war. (Terry McAuliffe, What A Party, 2007, p. 10) The Center Of Public Integritys Report, The Torturers Lobby, Specifically Cited McAuliffes Firm, McAuliffe, Kelly and Raffaelli, As Being Paid To Put A Positive Spin On Turkeys Image In The United States And To Lobby Members Of Congress And The Administration. Teaming up to represent the Republic of Turkey are the Washington lobbying firms of Thompson and Co., which has Republican connections, and McAuliffe, Kelly and Raffaelli, which has ties to the Democrats. The firms are being paid a joint fee of $500,000 in 1992 to put a positive spin on Turkeys image in the United States and to lobby Members of Congress and the administration...John Raffaelli, partner in McAuliffe, Kelly and Raffaelli, was counsel on tax and trade matters to Sen. Lloyd Bentsen (D-Tex.) from 1980 to 1984. Partner Ten-y McAuliffe was Finance Chairman for the 1984 presidential campaign of Rep. Richard A. Gephardt (D-Mo.) and Chief Campaign Fund-raiser for former President Jimmy Carter, now an outspoken human rights advocate. (Pamela Brogan, The Torturers Lobby, The Center For Public Integrity, 1992) In 1991, The Turkish Government Paid McAuliffe, Kelly And Raffaelli $200,000. For example, John Raffaelli, former tax and trade counsel to Sen. Lloyd Bentsen (D-Tex.), was hired by Turkey, which received $804 million in foreign aid during 1991. The Turkish government has been known to torture citizens who are merely suspected of political crimes. Raffaellis firm, McAuliffe, Kelly and Raffaelli, was paid $200,000 by the Turkish government during 1991. (Pamela Brogan, The Torturers Lobby, The Center For Public Integrity,
1992)

McAuliffe Said The Companys Work For Turkey Had To Do With A Longstanding Dispute Between Armenia And Turkey. The McAuliffe campaign said the companys work for Turkey had to do with a longstanding dispute between Armenia and Turkey over a period of history after World War I when the Ottoman Empire killed, by some estimates, more than 1 million Arme nians.
(Amy Gardner, McAuliffes Ties To Lobbyists, The Washington Post Virginia Politics, 3/26/09)

Every Year, Armenia Seeks Legislation In Congress Characterizing This Period As The Armenian Genocide, And Every Year, The Turkish Government Opposes The Legislation. (Amy Gardner, McAuliffes Ties To Lobbyists, The Washington Post Virginia
Politics, 3/26/09)

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McAuliffe Claimed That He Has Visited Turkey 18-19 Times, And Istanbul Is His Favorite City In The World. Turkey also expressed his admiration McAuliffe, I went to Turkey, 18-19 times. Istanbul my favorite city in the world. Two years ago, my family have been to visit. We had a great time. he said. (Exposure Time Candidate For Governor Of Virginia Terry McAuliffe, Zaman Amerika, 2/27/13) In February 2013, McAuliffe Spoke Before The Turkish Friendship Association. The next local elections, the Democratic Party, a member of Virginia gubernatorial candidate Terry McAuliffe, the American Turkish Friendship Association (Exposure time) visit. State Senator Dick Saslaw and Delegate Mark Sicklesda McAuliffeye friends accompanied him. (Exposure Time
Candidate For Governor Of Virginia Terry McAuliffe, Zaman Amerika, 2/27/13)

NOTE: These Two Bullets Have Been Translated From Turkish To English.

McAuliffe Invested In A Scheme Designed To Profit Off Of The Terminally Ill And Dying The Providence Journal Reported That McAuliffe Is Invested With Cranston, Rhode-Island Based Estate Planner Joseph Caramadre. Democratic candidate for governor in Virginia and ex-Democratic National Committee Chairman Terry McAuliffe; once state Supreme Court Justice Robert Flanders' previous law firm, and Msgr. Raymond B. Bastia, secretary for planning and financial services for the Roman Catholic Diocese of Providence, are among those who invested with Cranston estate planner Joseph Caramadre, according to list released by federal prosecutors Wednesday. (Katie Mulvaney, Democratic Candidate Va. Gov., Ex-RI Justices Law Firm
Among Caramadres Investors, The Providence Journal, 10/9/13)

Prosecutors Released The List Of Investors To Show The Investment Scheme That Used The Identities Of Terminally Ill People. Prosecutors released the list in their effort to prove that Caramadre and his former employee, Raymour Radhakrishnan, are caused more than $46 million in losses to insurance companies through an investment scheme that used the identities of terminally ill people. (Katie Mulvaney, Democratic Candidate Va. Gov., Ex-RI Justices Law Firm Among Caramadres Investors, The Providence Journal, 10/9/13) At Least Two Investors Were Fully Aware Of The Specific Nature Of Caramadres Investment Scheme. But at least some investors knew that they were betting on the lives of specific, dying individuals, according to two of them a former judge and a Hollywood producer. (Laura Vozzella, In Annuity Deal Tied To McAuliffe, 2 Investors Knew They Bet On Specific, Dying People, The Washington Post, 10/26/13) Former Rhode Island Supreme Court Justice Robert Flanders: There Was Certainly Full Disclosure To My Law Firm When We Chose To Invest In This. There was certainly full disclosure to my law firm when we chose to invest in this, said Robert G. Flanders Jr., a former Rhode Island Supreme Court justice who, for a time, defended Caramadre in a civil suit that insurers brought against him. (Laura Vozzella, In Annuity Deal Tied To McAuliffe, 2 Investors Knew They Bet On Specific, Dying People, The Washington Post, 10/26/13)

The McAuliffe Campaign Declined To Say Whether McAuliffe Similarly Knew Of The Basics Of The Investment. A campaign spokesman declined to say whether McAuliffe similarly knew of the basics of the investment. At the time that he inv ested, he was told Mr. Caramadre was a respected figure in his community and that he was led to believe that he was investing in a legitimate pooled annuity, campaign spokesman Josh Schwerin said in an e-mail. (Laura Vozzella, In Annuity Deal Tied To McAuliffe, 2 Investors Knew They Bet On Specific,
Dying People, The Washington Post, 10/26/13)

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The Sister Of The Terminally Ill Individual Whose Annuity McAuliffe Invested In Told The Washington Post: It Makes You Sick To Your Stomach That Human Beings Can Prey On Somebody Elses Illness. You think about it, it makes you sick to your stomach that human beings can prey on somebody elses illness, said the sister of the mechanic McAuliffe invested in. (Laura Vozzella, In Annuity Deal Tied To McAuliffe, 2 Investors Knew They Bet On Specific, Dying People, The Washington Post, 10/26/13) McAuliffe, Who Claims That He Refused To Disclose The Investment In His 2009 Statement Of Economic Interests On The Advice Of His Attorney, Refuses To Allow His Attorney To Provide The Rationale. McAuliffe did not list the investment on financial disclosure forms filed with the state during his 2009 campaign, when the investment was still active. His campaign said that was on the advice of his lawyer, Joseph Sandler, former staff counsel for the DNC. The campaign declined to say why Sandler thought the omission was appropriate. Sandler said he could not provide his rationale without permission from McAuli ffe.
(Laura Vozzella, In Annuity Deal Tied To McAuliffe, 2 Investors Knew They Bet On Specific, Dying People, The Washington Post, 10/26/13)

While McAuliffe Was Chairman Of Federal City National Bank, The Bank Gave Unsecure Loans To Democrat Candidates And Was Cited By Federal Regulators For Unsafe And Unsound Banking Practices In January 1988, McAuliffe Was Elected Chairman Of Federal City National Bank. Terence R. McAuliffe, a Syracuse native, has been elected chairman of the board of Federal City National Bank of Washington, D.C. The 30-year-old is one of the youngest individuals ever to be elected chairman of a federally chartered commercial bank. (Former Syracusan Named Chairman Of Federal Bank, The
Post-Standard, 1/18/88)

McAuliffe Was A Founding Director Of FCNB And Has Served On The Executive Committee Of The Bank Since Its Formation In 1985. (Former Syracusan Named Chairman Of Federal Bank, The Post-Standard, 1/18/88) McAuliffe Says His Goal As Chairman Is To Make Federal City National Bank One Of The Nations Most Innovative, Aggressive And Fiscally Sound Financial Institutions. (Former Syracusan Named Chairman Of Federal Bank, The Post-Standard,
1/18/88)

McAuliffe: During The Early Part Of The 91 Campaign, I Was Actually Chairman Of A Bank. Id Become Chairman Of A Bank Here In Washington I Think When I Was 29, 30 Years Old I Was Very Busy Doing That. (Life And Career Of Terry
McAuliffe, C-SPAN, 4/12/01)

In 1987, McAuliffe, Finance Chair For Richard Gephardts Presidential Campaign, Was The Chairman Of Federal City National Bank, Which Loaned $1.4 Million To Gephardts Campaign. In an effort to show that its transactions with Richard A. Gephardts Presidential campaign were legitimate, a Washington bank furnished documents today detailing $1.4 million in lo ans it made to the campaign last year. Terence R. McAuliffe, chairman of the Federal City National Bank, who is also national finance chairman of the Missouri Congressmans campaign, said he was providing the information to rebut an article published today in The New York Times. (Gephardt Papers Supplied By Bank, The New York Times, 2/14/88) Mr. McAuliffe Was Finance Director For Mr. Gephardts 1988 Presidential Campaign. The Committee Had Millions Of Dollars In Deposits And Loans With The Federal City Bank. (Jeff Gerth, Friendship Counts; Clintons Top Fund-raiser Made Lots
For Himself, Too, The New York Times, 12/12/99)

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The New York Times Reported Today That The Gephardt Campaign Last August Received A $125,000 Loan From The Federal City Bank That Was Unusual Because It Was Not Secured By Collateral. (Gephardt Papers Supplied By Bank, The New York
Times, 2/14/88)

McAuliffe Claimed, That If Given Another Opportunity, He Would Have Given The Loan To Gephardts Campaign Again. Mr. McAuliffe, who would not furnish loan documents to the Times on Friday, said he was given permission to do so today by the Gephardt campaign. Would I ever do this loan again? he asked. Yes, I would. (Gephardt Papers Supplied By Bank, The New York Times,
2/14/88)

McAuliffe Said Federal City Was Supported By A Lot Of Democratic-Party Type Accounts. The reasons for Federal Citys success lie partly in its connections. While the bank targets small business near Capitol Hill, it has also attracted labor unions, political action accounts, and a lot of Democratic-party-type accounts, Mr. McAuliffe said. (Bill Atkinson, From Politics To Banking; Terence McAuliffe,
American Banker, 10/6/91)

At The Bank, According To Public Records, Mr. McAuliffe Arranged Business-Related Loans That Helped Mr. [Tony] Coelho, Then The House Democratic Whip, And Jim Wright, Then The House Speaker. (Jeff Gerth, Friendship Counts;
Clintons Top Fund-raiser Made Lots For Himself, Too, The New York Times, 12/12/99)

In 1991, Federal City National Bank Had Been Cited By Federal Bank Examiners For Unsafe And Unsound Banking Practices And Had Signed Special Operating Agreements With Federal Regulators. Federal City National Bank of the District and George Washington National Bank of Alexandria have been cited by federal bank examiners for unsafe and unsound banking practices and have signed special operating agreements with federal regulators, the Office of the Comptroller of the Currency said yesterday. (Joeml Glenn Brenner, Comptroller Cites Two Banks In Area For Unsafe Practices, The Washington Post, 10/16/91) McAuliffe Was Chairman At The Time. I sit here misty-eyed, said Mr. McAuliffe, 34, chairman at Federal City National Bank and a national fund-raiser for presidential hopeful Richard Gephardt in 1988. Im dying to get back [into politics]. (Bill Atkinson, From
Politics To Banking; Terence McAuliffe, American Banker, 10/6/91)

Federal City Signed A Consent Order That Required The Bank To Improve Overall Operating Conditions And Review All Troubled Loans. According to the comptroller, Federal City signed a consent order Oct. 1 that requires it to improve overall operating conditions, hire an outside management consultant, review all troubled loans, update relevant information on borrowers, establish better procedures for tracking bad credit and raise more capital -- the cash and assets that investors provide as a cushion against losses. (Joeml Glenn Brenner, Comptroller Cites Two Banks In Area For Unsafe Practices, The Washington Post, 10/16/91) A Consent Order Is One Of The Most Severe Actions That Federal Regulators Can Take Against An Institution; It Is Enforceable In Court And Is Often The Regulators Last Resort Before Seizing A Bank And Shutting It Down.
(Joeml Glenn Brenner, Comptroller Cites Two Banks In Area For Unsafe Practices, The Washington Post, 10/16/91)

Federal City President John Rohrback, Who Joined The Bank Last Year, Said He Believes Federal City Will Succeed In Complying With The Order, Including The Need To Raise $ 1.5 Million To $ 2.3 Million In Capi tal. (Joeml
Glenn Brenner, Comptroller Cites Two Banks In Area For Unsafe Practices, The Washington Post, 10/16/91)

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Federal Examiners Forced The Bank To Add $ 3 Million To Its Reserve That Protects Against Anticipated Losses. The Addition Wiped Out Federal Citys Capital And Left The Bank In The Red. Following a review of the banks books in May 1991, federal examiners forced the bank to add $ 3 million to its reserve that protects against anticipated losses. The addition wiped out Federal Citys capital and left the bank in the red, Rohrback said. (Joeml Glenn Brenner, Comptroller Cites Two Banks In Area For Unsafe Practices, The
Washington Post, 10/16/91)

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Terry McAuliffes Company GreenTech Is Connected With Two Federal Investigations

The Department Of Homeland Security And The FBI Are Investigating Whether USCIS Director Alejandro Mayorkas Illegally Helped Gulf Coast Funds Management The Department Of Homeland Security Inspector General And The FBI Are Investigating USCIS Director Alejandro Mayorkas. President Barack Obama's choice to be the No. 2 official at the Homeland Security Department is under investigation for his role in helping a company secure an international investor visa for a Chinese executive, The Associated Press has learned. U.S. Citizenship and Immigration Services Director Alejandro Mayorkas, who has been nominated to be the department's No. 2 leader, was named by the DHS Inspector General's Office as a target in an ongoing investigation about the foreign investor program run by USCIS.
(Alicia Caldwell, Homeland Security Official Probed, The Associated Press, 7/23/13)

Gulf Coast Funds Management Is The Root Of The Complaint. The root of the complaint against Mayorkas is an allegation that he helped a financing company run by Anthony Rodham, the brother of former Secretary of State Hillary Rodham Clinton, win approval for an investor visa even after the application was denied and an appeal rejected. (Alicia Caldwell, Homeland Security Official Probed, The
Associated Press, 7/23/13)

Mayorkas, A Former U.S. Attorney In California, Previously Came Under Fire For His Involvement In The Commutation By President Bill Clinton Of The Prison Sentence Of The Son Of A Democratic Party Donor. (Alicia Caldwell,
Homeland Security Official Probed, The Associated Press, 7/23/13)

NOTE: There Is No Comment From Anthony Rodham Or Gulf Coast Funds. Anthony Rodham is president and CEO of Gulf Coast Funds Management LLC in McLean, Va. The firm is one of hundreds of Regional Centers that pool investments from foreig n nationals looking to invest in U.S. businesses or industries as part of the foreign investor visa program. There was no immediate response to an email sent to Gulf Coast requesting comment. (Alicia Caldwell, Homeland Security Official Probed, The Associated Press, 7/23/13) USCIS Employees Noted That GreenTech And Gulf Coast Funds Management Were Well Connected USCIS Employees Noted That GreenTech And Gulf Coast Funds Management Were Well Connected When Discussing How To Deal With The Firms, Noting The Principal Is The Brother Of Former First Lady And Senator And Current Secretary Of State Hillary Rodham Clinton. The Chairman Of Greentech Automotive Is Terence (Terry) McAuliffe... "The last note I would like to highlight, and not that I think it matters because it shouldn't impact how we do our job, but from a political standpoint this RC is well connected. The Principal is the brother of former First Lady and Senator and current Secretary of State Hillary Rodham Clinton. The Chairman of Greentech Automotive is Terence (Terry) McAuliffe who has worked for the DNC and both Clinton Presidential Campaigns. There is a long history with these cases which included an inquiry from Terry McAuliffe to the Secretary of Homeland Security when USCIS denied an amendment for Gulf Coast Funds Management, LLC a few years back. Needless to say, a lot of folks were involved with that inquiry. (USCIS Email, 11/19/12; Sen. Chuck Grassley, Letter To Secretary Janet Napolitano, p. 10-11)
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An Internal USCIS Email Noted That GreenTechs Regional Center Had 21 EB-5 Visas Held For Fraud Or National Security Reasons An Internal USCIS Email Dated March 12, 2013 Notes That The GreenTech Regional Center Had 21 Pending EB -5 Visa Applications, All Placed On A A Fraud/National Security Hold. GreenTech Regional Center: The Automotive Partnership NCE has 21 related pending 1-526 cases. There is a Fraud /National Security hold on all 21 of these cases. (Email To Alejandro
Mayorkas, 3/12/13; Sen. Chuck Grassley, Letter To Andrew Mayorkas, 7/24/13, p. 40)

Gulf Coast Management Funds Applied For An EB-5 Visa For An Executive With Huawei Technologies Zhenjun Zhang, A Vice President With Huawei Technologies, Applied For An EB-5 Visa Through Gulf Coast Funds Management. [REDACTED] and I are compiling the FinCEN batch request for the Gulf Coast cases you identified and I came across the investor Zhenjun (Richard) Zhang, associated with receipt number [REDACTED]. The record shows that he is currently the Vice President of Huawei Technologies Co. Ltd., Head of Product & Solutions Sales Dept., South East Asia Region. He indicates that the source of his investment capital is his income, dividends, and bonuses from Huawei Technologies." (USCIS Email, 2/7/13, p 19; Sen. Chuck Grassley,
Letter To Director Mueller, p. 19)

USCIS Officials Speculated That Other Huawei Executives Were Attempting To Obtain EB-5 Visas Through Other EB5 Regional Centers. "Based on this information, other Huawei executives may be filing under different regional centers outside City of Dallas." (USCIS Email, 2/7/13, p 19; Sen. Chuck Grassley, Letter To Director Mueller, p. 19) The SEC Is Investigating GreenTechs Conduct In Soliciting Foreign Investors The Washington Post Reported An Electric-Car Company Co-Founded By Virginia Gubernatorial Candidate Terry McAuliffe (D) Is Being Investigated By The Securities And Exchange Commission Over Its Conduct In Soliciting Foreign Investors An electric-car company co-founded by Virginia gubernatorial candidate Terry McAuliffe (D) is being investigated by the Securities and Exchange Commission over its conduct in soliciting foreign investors, according to law enforcement documents and company officials. (Tom Hamburger And Ben Pershing, Car Company With Ties To Terry McAuliffe Is Under SEC Investigation. The Washington Post, 8/2/13) In Early 2012, After Receiving Referrals Of Possible Fraud, The SEC Created Created An Informal Working Group To Investigate Companies That Might Be Luring Foreign Investors Into Fraudulent Investment Schemes. In early 2012, after getting referrals of possible fraud from immigration authorities, the SEC created an informal working group to investigate companies that might be luring foreign investors into fraudulent investment schemes, according to a person with direct knowledge of the complaints who asked not to be named because the matter isnt public. (Julie Bykowicz and Joshua Gallu, SEC Probe Of Foreign Visas Roils Virginia Governor
Race, Bloomberg, 8/9/13)

GreenTech And Gulf Coast Funds Received Subpoenas After Concerns Arose From A Promissory Note Appeared To Guarantee Investors Principal, A Violation Of An EB-5 Visa Requirement. GreenTech and Gulf Coast received subpoenas from investigators seeking a range of documents and bank records. The SEC raised concern about a GreenTech promissory note posted online that appeared to guarantee investors principal, according to the documents posted online by Grassley. Pledging to ret urn
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investors money if their visa application is denied isnt consistent with one of the EB-5 programs requirements: Project backers must bear some risk. (Julie Bykowicz and Joshua Gallu, SEC Probe Of Foreign Visas Roils Virginia Governor Race, Bloomberg, 8/9/13) Initially, McAuliffe Denied Any Knowledge Or Involvement Of The Investigation McAuliffe Has No Knowledge Of Any Investigation And Resigned As Chairman Of GreenTech In Late 2012 As He Began His Run For Governor, Although He Did Not Publicly Reveal That He Had Done So For Several Months. A spokesman for McAuliffes campaign said that the candidate has no knowledge of any investigation, which appears to have sta rted in early 2013, according to Homeland Security Department documents. McAuliffe resigned as chairman of GreenTech in late 2012 as he began his run for governor, although he did not publicly reveal that he had done so for several months. (Tom Hamburger And Ben Pershing, "Car
Company With Ties To Terry McAuliffe Is Under SEC Investigation. The Washington Post, 8/2/13)

The Investigation Centers Around A Promissory Note Which Violates The Terms Of The EB-5 Program GreenTech Allegedly Guaranteed Returns For Its Investors. The Securities and Exchange Commission is investigating the green car company founded by Virginia gubernatorial candidate Terry McAuliffe over concerns that it allegedly guaranteed returns for its investors. (David Sherfinski, SEC Investigating Company Co-Founded By Terry McAuliffe, The Washington Times, 8/12/13) GreenTech And Gulf Coast Funds Received Subpoenas After Concerns Arose From A Promissory Note Appeared To Guarantee Investors Principal, A Violation Of An EB-5 Visa Requirement. GreenTech and Gulf Coast received subpoenas from investigators seeking a range of documents and bank records. The SEC raised concern about a GreenTech promissory note posted online that appeared to guarantee investors principal, according to the documents posted online by Grassley. Pledging to return investors money if their visa application is denied isnt consistent with one of the EB-5 programs requirements: Project backers must bear some risk. (Julie Bykowicz and Joshua Gallu, SEC Probe Of Foreign Visas Roils Virginia Governor Race, Bloomberg, 8/9/13) The Note Said GreenTech Promises To Purchase Back The $500,000 In Stock Should The Company Not Go Public Within Five Years. The note says GreenTech would invest the persons $500,000 for a period of five years once the immigration petition has been approved. Alternatively, the note says, GreenTech promises to purchase back the $500,000 in stock bought by the investor if the company fails to go public in five years. (Julie Bykowicz and Joshua Gallu, SEC Probe Of Foreign Visas Roils Virginia Governor Race, Bloomberg, 8/9/13) McAuliffe Claims He Had No Role In The Solicitation Because It Was Something I Was Not Responsible For As Chairman. MCAULIFFE: From what has been reported, the investigation appears to be looking at a document allegedly prepared for potential investors something I was not responsible for as chairman. (Terry McAuliffe, Op-Ed, Setting The Record Straight On GreenTech, The Washington
Post, 8/16/13)

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Terry McAuliffe Has A History Of Denying Knowledge Of The Companies He Is Involved In

Despite Being The Former Chairman And Largest Individual Shareholder, McAuliffe Pled Ignorance To The SEC Investigation Into GreenTech McAuliffe Resigned As Chairman Of GreenTech On December 1, 2012. Virginia Democratic gubernatorial candidate Terry McAuliffe stepped down late last year as chairman of GreenTech Automotive, a company he founded and that he has pointed to as an example of his private-sector experience, according to documents obtained by POLITICO. In a letter dated December 1, GreenTech Automotive CEO Charles Wang wrote to McAuliffe to accept his resignation as chairman of the company. (Alexander Burns, Terry McAuliffe Left Car
Firm In December, Politico, 4/5/13)

Mr. McAuliffe Remains The Largest Individual GreenTech Shareholder, With A 25 Percent Stake. (Trip Gabriel, Hopefuls
Connections Jolt Bitter Virginia Race, The New York Times, 8/9/13)

On August 2, 2013, When Asked About The SEC Investigation Into GreenTech, McAuliffe Responded, I Left The Company In December Of Last Year. I Dont Know Anything About It. REPORTER: Okay, totally unrelated to agriculture, but I need to ask you about the SEC investigation into Greentech. [CROSSTALK] Do you have any comments about that? MCAULIFFE: I left the company in December of last year. I dont know anything about it. (Terry McAuliffe, Remarks At Press Availability, Wytheville, VA, 8/2/13) McAuliffe: The First I Learned Of This Investigation Was Earlier This Week When The Washington Post Reached Out To My Campaign. (Ryan Nobles, McAuliffe Specifically Denies Involvement In SEC Probe, Decision Virginia, 8/3/13) Despite Being The Chairman And Largest Individual Shareholder, McAuliffe Pled Ignorance To GreenTechs Decision To Build A Plant In Mississippi Over Virginia McAuliffe Resigned As Chairman Of GreenTech On December 1, 2012. Virginia Democratic gubernatorial candidate Terry McAuliffe stepped down late last year as chairman of GreenTech Automotive, a company he founded and that he has pointed to as an example of his private-sector experience, according to documents obtained by POLITICO. In a letter dated December 1, GreenTech Automotive CEO Charles Wang wrote to McAuliffe to accept his resignation as chairman of the company. (Alexander Burns, Terry McAuliffe Left Car
Firm In December, Politico, 4/5/13)

Mr. McAuliffe Remains The Largest Individual GreenTech Shareholder, With A 25 Percent Stake. (Trip Gabriel, Hopefuls
Connections Jolt Bitter Virginia Race, The New York Times, 8/9/13)

McAuliffe Later Claimed That He Had No Responsibility In The Decision To Build The Factory In Mississippi, Saying They Made The Decision, The Company Made The Decision, To Go There. KOJO NNAMDI, WAMU RADIO: Before we go on to the phones, there is one matter related to your electric car company we should discuss. PolitiFact Virginia reported last month that your claim that GreenTech decided to locate in Mississippi instead of Virginia because Virginias Economic Development Partnership decided not to bid on the project is false. What they said is contrary to your claim there is no evidence the st ate agency
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decided not to bid on the project. Emails show VEDP took GreenTech officials on a tour of potential sites and contacted the company about coming to Virginia almost two years after GreenTech announced it was building a plant in Mississippi. We rate McAuliffe s statement False. To which you say what? MCAULIFFE: I mean I disagree. Listen, the fo lks who were in charge of moving it, they had many meetings down there. How you decide to move a plant comes down to incentives and what you need to do. They made the decision, the company made the decision, to go there. Nothing I can do about it today. Theyve talked about an expansion plans. But, you know, listen, thats water under the bridge. Businesses move here, there, thats what happens in the business world. Some states do certain things, others do others. Nothing you can do about itthat is exciting. But the point being is we need to do a very good job here in Virginia. I think one of the biggest areas that we need to improve on would be workforce development. (WAMU Radios The Kojo Nnamdi Show,
2/8/13)

McAuliffe Had No Knowledge Of A Company He Was Linked To Being Based In The Cayman Islands McAuliffe Said I Dont Know What Youre Talking About When Asked About His Association With Leaf Clean Energy. QUESTION: Terry, whats your association with Leaf Clean? MCAULIFFE: Pardon me? QUESTION: Whats your association with Leaf Clean? MCAULIFFE: Im sorry. I dont know what youre talking about. QUESTION: You dont? Youre n ot familiar with Leaf Clean? (Terry McAuliffe, Norfolk International Airport, 7/15/13) McAuliffe Couldnt Speak To GreenTechs Parent Company Being Based In The British Virgin Islands McAuliffe Cant Speak About GreenTechs Parent Company Being Based In The British Virgin Islands, A Known Tax Shelter. NOBLES: And then today there was a report and I know watchdog.org is probably one of your least favorite entities on Earth, but they have unearthed a document this morning that shows that the parent company is operating in the British Virgin Islands, that they are incorporated there. Do you know anything about that? Can you speak to that at all? MCAULIFFE: I know my investment is here. I cant speak I can tell you my investment I uh - my investment is here. (NBC12 Decision Virginia McAuliffe On GreenTech, NBC 12, 4/30/13,
10:40)

GreenTechs Parent Company Incorporated In The British Virgin Islands Fledgling GreenTech was founded in 2009 by Chinese businessman Charles Wang, who owns Capital Wealth Holdings (CWH), an investment company incorporated in the British Virgin Islands. (Tori Richards, McAuliffe Car Co. Parent in Off-shore Tax Shelter, Watchdog-Virginia, 4/29/13) McAuliffe Claims He Was Not Aware Of Issues Regarding Telergys Finances Before Layoffs, Despite Being A Board Member In August 2001, McAuliffe Resigned From Telergys Board Claiming That He Was Not Aware Of What Specific Financial Issues Telergy Faces. Former company director Terry McAuliffe, chairman of the Democratic National Committee, said during a visit to Syracuse Friday that he resigned from Telergys 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)

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In August 2001, Telergy Laid Off 150 Workers. Telergy Inc., a fast growing telecommunications company that attracted highprofile investors, has laid off 150 employees in five locations because of a slowdown in the nations technology sector Most of the job cuts - 130 - occurred at the companys suburban Syracuse headquarters. The other 20 people were at offices in Albany, Buffalo, New York City and Providence, R.I. (Tech Bust Hits Telergy, 150 Lose Jobs, The Associated Press, 8/9/01) 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) Despite Writing The Memo That Led To The Lincoln Bedroom Scandal, McAuliffe Claimed Not To Have Any Involvement McAuliffe Claimed He Had Nothing To Do With The Lincoln Bedroom. MCAULIFFE: Listen, I should be able to respond. Governor Gilmore, just so you dont throw any cheap shots out there, did I ever have anything to do with the Lincoln Bedroom? GOV. JIM GILMORE: Well, werent you basically in charge of the fund-raising during the Clinton time? But you know what, Terry? MCAULIFFE: No, no. But I wasnt. So I just want to make sure were clear because I dont want you to come out here with cheap shots on me. I didnt. And if you can find one thing that says my name associated with it then Ill agree with you, but Im not going to all ow you to come out and say this. GILMORE: So you would disassociate yourself from selling the Lincoln Bedroom for money? MCAULIFFE: Yes. You bet. Absolutely. GILMORE: Good. Good. Then... (NBCs Meet The Press, 2/4/01) McAuliffe Wrote The Memo Which Suggested Major Financial Supporters Be Invited To M eals, Coffees, Rounds Of Golf Or Jogging Excursions With Clinton. The documents show that Clinton scribbled his enthusiastic approval for the overnight stays on the McAuliffe memorandum, which recommended that major financial supporters be invited to meals, coffees, rounds of golf or jogging excursions. (Clinton Okd Using Lincoln Bedroom For Contributors, CNNs All Politics, 2/25/97) Despite Being Identified As The Prime Mover Of An Illegal Fundraising Swap Scheme That Would Lead To Criminal Convictions, McAuliffe Rejected The Notion That He Was Involved In February 2001, McAuliffe Rejected, On Meet The Press, The Notion That He Was A Part Of An Illegal Contribution Swap That Indicted Teamster President Ron Carey. RUSSERT: There is concern amongst some Democrats that the TeamstersRon Carey, the head of the Teamsters, was indicted last week. The former finance director of the Democratic Party said that you were part of that scam... MCAULIFFE: Yeah, right. RUSSERT: ...with the 96 Clinton campaign and the Teamsters and the DNC all trading money to help each other. Is there any concern within your mind that you face a potential indictment for your involvement? MCAULIFFE: First of all, the Democrats didnt give any money, so lets be clear, there was no swap at the end of the day. A political consultant came and asked us. We discussed it, we decided that we wouldnt touch it. We didnt do any money. And three and a half years ago, I was told there were no issues with me and never heard since. So theres no issue there. Next one. (NBCs Meet
The Press, 2/4/01)

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McAuliffe Was Identified As A Prime Mover Behind The Scheme To Illegally Swap Contributions Between Teamsters President Ron Careys Campaign And The Democratic Party. For several years, the Democratic Partys new national chairman, Terry McAuliffe, has maintained he knew little about a Teamsters money-laundering scandal that resulted in the indictment of former union president Ron Carey. Sworn statements from at least four Democratic Party officials and Carey campaign consultants tell a different story. These officials, in little-noticed testimony before a Senate committee and in a continuing criminal probe in New York, portray McAuliffe as a prime mover in a plan to find Democratic contributors for Careys faltering 1996 re-election campaign in exchange for Teamsters contributions to Democratic Party accounts. The testimony depicts McAuliffe, a close friend of former President Bill Clintons and one of the partys most prolific fund-raisers, as one of the main intermediaries between Careys campaign and the Democratic Party. Under federal law, it is illegal to use union funds to pay union campaign expenses. (Chris Mondics,
McAuliffe Knew About Teamsters Plan To Swap Funds, Officials Say, The Philadelphia Inquirer, 2/20/01)

Despite Making At Least $47,000 Of The Investment, McAuliffe Described Himself As Simply A Passive Investor In A Scheme Profiting Off The Terminally Ill McAuliffes Campaign Described Him As A Passive Investor In Caramadres Scheme To Profit Off The Terminally. Federal court documents do not accuse McAuliffe of wrongdoing, and it wasnt clear whether he had made money or lost money on the investments. His campaign spokesman said McAuliffe was a passive investor who was deceived like many others. Spokesman Josh Schwerin also said that the campaign and McAuliffe donated sums to the American Cancer Society totaling $74,000 approximately the amount McAuliffe earned as a return on the investment and received in a campaign donation from Caramadre. Terry was one of hundreds of passive investors several years ago and had no idea about the allegations against the defendant who, at the time, was widely respected by business leaders and elected officials, Schwerin said. The allegations are horrible and he never would have invested if he knew he was being deceived. (Frederick Kunkle, McAuliffe Among Investors In Rhode Island Insurance Scam That Preyed On Dying People, The Washington Post, 10/10/13)

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