Gary Winnick founded a telecom called Global Crossing Ltd in 1997 it filed for bankruptcy in January of 2002. This wiped out 54 billion in shareholders money, including in its biggest holder Mr. Winnick (1 ). This Bankruptcy also put thousands of employees out of work. But don't feel too bad for Gary. He made enough on selling Global crossing stocks in previous years ($575 million) to buy a mansion in Bel-Air California,that has 64 rooms, and has a kitchen with six sinks and enough ovens to warm 100 plates at once. The master suite has separate massage, sitting and shower rooms. It also has dozen bedrooms and a dozen bathrooms just for servants. He bought it for $94 million dollars (2 ).
Richard Perle was to be paid $725,000 by Global Crossing, and also 600,000 if the government approved the sale of a Joint venture Hutchison Whampoa, the international giant based in China. This company has link to Beijing intelligence. The Pentagon and FBI balked at the deal, this would have put fiber optic networks used by the US government under Chinese authority. Because of this, Perle has resigned as chairman of Defense Policy Board but remains a member. President Bill Clinton received a 1 million dollar gift from Global Crossing Chairman Gary Winnick for his presidential library (3 ).
It been said that Global crossing manipulated books that claimed the company was safely in the black, when in fact it was hemorrhaging heavily. When the company declared bankruptcy, it was the fourth largest bankruptcy in US history. Many see the companies assets as worthless because Global Crossing paid to much for them (4 ).
A Class action suit claimed that Winnick and chief executive John Legere misled shareholders about the companies health while continuing to sell company stock. Its also alleged that Winnick steer millions of dollars of business to a merchant bank he controlled Pacific Capital Group (5 ).