massive trs corruption scandal

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Campaign Contributions to Rick Perry Investment Fees Charles Tate $439,000 Gary Petersen* $400,000 Alfred Jackson $117,000 Joe Colonetta* $41,800 Tom Hicks $135,400 Rick Perry HM Capital Partners Unavailable EnCap $4,279,287 L&B Realty Advisers $1,612,520 R. David Kelly*, Todd Barth*, Robert Gauntt*, Dory Wiley, Jarvis Hollingsworth, Jim Lee* *Members of Texans for Rick Perry Statewide Finance Committee Perry’s Teacher Retirement System Board Members "Upsetting a board member or a friend of the fund over the investment of a few hundred million dollars doesn't make sense" - Paraphrased quote from Britt Harris, current Chief Investment Officer at TRS [Source: TRS Whistleblower Memo from Michael Green to Linus D. Wright]

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Page 1: Massive TRS Corruption Scandal

Campaign Contributions to Rick Perry

Investment Fees

Charles Tate

$439,000Gary Petersen*

$400,000

Alfred Jackson

$117,000Joe Colonetta*

$41,800

Tom Hicks

$135,400

Rick Perry

HM Capital Partners

Unavailable

EnCap

$4,279,287

L&B Realty Advisers

$1,612,520

R. David Kelly*, Todd Barth*, Robert Gauntt*,

Dory Wiley, Jarvis Hollingsworth, Jim Lee*

*Members of Texans for Rick Perry Statewide Finance Committee

Perry’s Teacher Retirement System Board Members

"Upsetting a board member or a friend of the fund over the investment of a few hundred million dollars doesn't

make sense" - Paraphrased quote from Britt Harris, current Chief Investment Officer at TRS

[Source: TRS Whistleblower Memo from Michael Green to Linus D. Wright]

Page 2: Massive TRS Corruption Scandal

Memo from Michael Green

Summary of Names and Entities

October 19, 2010

• Linus Wright (p.1)

o Addressee of Michael Green’s memorandum o Former chairman of TRS (Jan.9, 2009-Oct 16, 2009) o Current vice-chairman.

• Jim Lee

o Former chairman of TRS o Resigned in January 2009 after revelations of unpaid gambling debt o Co-chair of Texans for Rick Perry Finance Team

• David Kelly

o Current chairman of TRS o Texans for Rick Perry Finance Team

• Robert Gauntt

o Current board member of TRS o Texans for Rick Perry Finance Team

• Michael Green (throughout)

o Drafter of memorandum o Director, TRS Investment Division - Private Markets o Fired after writing the memo

• Britt Harris (throughout) o TRS Chief Investment Officer o Hired late 2007

• Alfred Jackson (p.2) o Managing Partner, Capital Point Partners o Donated $117,000 to Perry since 2000 o Perry appointee, Governor’s Economic Council of Texas

• Dory Wiley (pp.3, 4, 8, 10, 12) o TRS Board of Trustees (direct appointee of governor Perry) o Portfolio Manager, Commerce Street Capital

• Bill Quinn (p.3,10) o CIO AMR’s Pension and HM Capital investor

Page 3: Massive TRS Corruption Scandal

• Keith Garrison o Former employee of TRS

• Jarvis Hollingsworth (p.10)

o Former TRS board member o Appointed to UH board in August 2009 o Contributed $15,100 to Rick Perry

• Barrett Kingsriter (p.12-14) o Vice President of Investment Banking and Corporate Finance o Commerce Street Capital, LLC

• HM Capital Partners (formerly Hicks, Muse, Tate & Furst) (p.2)

o Joe Colonetta

! Current partner ! Contriubted $41,800 Rick Perry ! Texans for Rick Perry Finance Team

o Tom Hicks ! Partner at least through June 2009

! Contributed $135,800 to Rick Perry

o Charles Tate

! Former Partner

! Contributed $439,000 to Rick Perry ! ETF beneficiary, not currently at HM but reportedly still holds an interest

• L&B Realty Advisors (p.2)

• Aldus Equity Partners (pp.3-4, 9-11)

o Aldus went out of business after a lawsuit in New York alleging kickbacks and other ethical breaches. The founder of the Dallas-based company pleaded guilty to fraud.

• Clayton, Dubilier & Rice (“CD&R”) (pp.2, 10-11)

• EnCap Energy Funds (pp. 2, 3, 5) o Gary Petersen, Managing Partner

! Texans for Rick Perry Finance Team

! Contributed $400,000 to Rick Perry

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