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Nov 1st
If the American Dream is to be believed, anyone can be president. But can anyone be a politician? A successful politician needs to communicate with his or her electorate, sympathizing with their concerns. Yet how possible is this when the difference in lifestyle and income between the average voter and the average politician is so vast?
Many successful business people or members of financially powerful families turn to politics at some point. Power and influence follow money in all areas of life, and politics is the ultimate power play. For as long as many of us can remember, politics has been the domain of those who are at least moderately well-off. However, the following currently serving politicians are in a different league all together. Here, then, are 10 American politicians who are stinking rich.
The Republican Congressman for Florida’s 13th congressional district, Vernon G. Buchanan successfully defended his position in 2010 against Democratic nominee Reverend James T. Golden. He has been just as successful in business as he has in politics, amassing considerable wealth from the automobile trade. The son of a factory foreman, Buchanan built up his business empire by buying up car dealerships — which made $756 million in sales in 2005 — and he sold five of these same dealerships in 2006 prior to kick-starting his political career. Buchanan also owns two offshore reinsurance companies, and has defended his record in response to the IRS concentrating efforts to investigate these offshore tax havens.
Jared Polis is currently US Representative for Colorado’s 2nd congressional district. At 36, he is by far the youngest politician on this list. Polis made his fortune in Internet communications: he is the founder of American Information Systems, an Internet service provider; and, along with his parents, he created bluemountainarts.com, a greeting card website, which he went on to sell for $780 million. In 2004, Polis’ wealth was estimated at $160 million, but his declining net worth since filing as a candidate in 2008 has put more recent estimates at closer to $65 million. Still, the entrepreneur and Democrat remains super-rich and a name to watch.
Democrat Mark Warner is the current junior Senator from the Commonwealth of Virginia as well as the former Governor of Virginia. His total net worth has been purported to be as high as $200 million, but more reliable sources put forward the less dramatic figure of $76 million. That said, this still makes Warner the wealthiest junior Senator in Congress. The political science major made his riches primarily in telecommunications and venture capital. A broker of mobile phone franchise licenses, he co-founded Capital Cellular Corporation and was also an early investor in Nextel. Not bad going for the boy from Indianapolis.
Jay Rockefeller, or, to give him his full name, John Davison Rockefeller IV, is the current US Senator for West Virginia. The great-grandson of oil magnate John D. Rockefeller — head of one of America’s most famous super-rich dynasties — the Harvard graduate has an estimated net worth of at least $81 million. Rockefeller’s political history goes back to 1966, when he was elected into the West Virginia House of Delegates. He is the only member of his powerful family to be currently directly involved in politics, and also the only Democrat of the traditionally Republican Rockefellers. An outspoken critic of George W Bush and the Iraq War, the New York-born official is one of the richest members of the Senate, with most of his wealth reportedly held in a handful of blind trusts.
Rick Scott is the current Governor of Florida, and, as the owner of a reported $103 million fortune, a very rich man indeed. The former US Navy sign-up and legal firm partner only entered the political arena in 2010, when he first beat Democratic candidate Alex Sink to the Governorship of Florida. Scott’s business history began in earnest with his role as the chief exec of Columbia/HCA, which he helped make the largest private health care company in the US. After being forced to resign from his position due to allegations about the company’s billing practices, Scott turned to venture capitalism, which is where he made his real money. Between 1998 and 2001, he is said to have bought 50% of computer security firm CyberGuard for around $10 million; five years later, it was sold for $300 million. After entering the world of politics, Scott reported a net worth of $218 million in June 2010, and after the $115 million dip in his fortune the following year, joked: “I spent too much on the darn campaign.”
Current US Secretary of State Hilary Clinton may have lost out to Barack Obama in the Democratic presidential nomination of 2008, but she certainly hasn’t lost out in the financial stakes. Together with her husband, she is one of the wealthiest politicians in America. Clinton has been somewhat reluctant to reveal her fortune in the past, but as of 2007 she was personally valued at $34.9 million, having made over $9 million from her 2003 memoirs. However, her husband’s income has truly skyrocketed since he left the White House: his earnings from his presidential pension, autobiography deals, lucrative consultancy and advisory contracts, as well as public speaking — at over $150,000 a speech — have boosted his net worth to at least $80 million. That’s the basis of a very sizable family nest egg.
Current senior Senator for Massachusetts John Kerry is hands-down the wealthiest US senator, with an amassed wealth estimated at a minimum of $193 million. The former Democrat Presidential candidate has big money in the family. He’s married to Teresa Heinz, heir to the famous food company fortune, who herself is thought to be worth anywhere between $165 million and a staggering $3.2 billion. What’s more, the man who lost out to Dubya in 2004 is also the son of Rosemary Forbes Kerry, of the wealthy Forbes family, and is thus the beneficiary of several sizable trusts.
Darrel Issa, the Republican Representative serving Riverside and San Diego counties in California, is reputed to be worth around $220 million, making him the second richest person in Congress. Issa earned his millions in the fields of electronics and security, founding and serving as CEO of Directed Electronics, which produces car alarms and other devices for automobiles. Before entering politics, he was a technician in the Army who defused bombs — but reportedly lied about having provided security for President Nixon. Issa’s office also recently refuted allegations from the group American Family Voices that he has used his political position for personal financial gain in dealings with Goldman Sachs, Merrill Lynch and others.
Texan Republican Representative Michael McCaul has seen his stock increase dramatically since 2010 — from an estimated net worth of around $74 million to one of at least $290 million. It has been suggested that the former attorney and federal prosecutor’s 300 percent rise in wealth, which has made him the richest congressman in America, is largely due to his wife Linda, the daughter of Clear Channel Communications founder Lowry Mays. According to McCaul’s most recent financial disclosure, assets owned by Mrs. McCaul were “acquired via a gift from spouse’s parents.” Also listed on his report was the Linda McCaul Descendant Trusts — valued at over $50 million — as well as two other trusts, owned by his dependent children, ranging in value from $1 million to $5 million and $25 million to $50 million respectively. From the looks of those figures, it certainly seems to pay to keep it in the family.
Michael Bloomberg, the Mayor of New York City since 2002, has a fortune that dwarfs the millionaires on this list. With a net worth of $19.5 billion, as well as being the richest politician in America he is on the Forbes 400 as the 12th richest person in the country. Founder and 88 percent share holder of Bloomberg L.P., the financial software, media, and data company, Bloomberg is also known as a generous giver to the arts, public health and charity organizations, having donated some $1.8 million. While his popularity as mayor may waver, the fortunes of Bloomberg L.P. show no signs of slipping, and his personal wealth looks set to grow exponentially in line with his business.
Herb Kohl, the senior US Senator from Wisconsin, has been cited as one of the wealthiest US Senators, with his net worth estimated at $215 million as recently as 2008. Much of Kohl’s fortune came to him as heir to his family’s chain of grocery and department stores, although he also invested in the stock market from an early age. This Democrat is also the owner of pro basketball team the Milwaukee Bucks, which he bought back in 1985. The sharp discrepancy between Kohl’s earlier estimated fortune and today’s somewhat lower figure of $9 million is also down the Bucks: while they’re reckoned to be worth about $258 million, Kohl has reported that the teams’ liabilities cancel out his assets. He recently announced that he won’t be standing for re-election in 2012. So it’s back to basketball.
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Nov 1st
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Oct 6th
Russian billionaire Alexander Lebedev — currently the 564th richest person on Earth — made the news in September 2011 when he used his KGB-acquired combat skills to punch fellow tycoon Sergei Polonsky out of his chair on a live Russian TV program. But how many other former Soviet secret police agents are there who could be listed in Forbes — or who at the very least earn big bucks in the capitalist economy despite their communist past? We list 10 former KGB men who are now staggeringly wealthy.
Vladimir Putin’s reported wealth only amounts to around $150,000 in savings and an income of about $80,000 per year, but a number of former Russian government officials have asserted that this is only the tip of the iceberg. Former Chairman of the Russian State Duma Ivan Rybkin and political scientist Stanislav Belkovsky have both claimed that the Russian Prime Minister secretly controls hefty stakes in gas and oil companies such as Gazprom and Gunvor — to the value of over $50 billion, according to Belkovsky, which would make him Europe’s richest man. In 2010, a former business associate of Putin named Sergei Kolesnikov claimed in a letter to Russian President Dmitry Medvedev that Putin was involved in a scheme to siphon off donations to a health infrastructure project into his own personal funds. If either is true, clearly the former intelligence man has done well for himself in the world — albeit in the sneakiest of ways.
Alexei Kondaurov was a former head analyst at Yukos — a company which provided 20 percent of Russia’s oil production before being driven to bankruptcy in 2006 — and is currently a member of Russia’s State Duma for the Communist Party. The ex-KGB general is irreverent about the conflict between his political ideology and his wealth, illustrated by his quote on being both a millionaire and a communist: “There’s no contradiction,” he said. “Engels was an oligarch and Lenin hardly a vagabond.”
Millionaire businessman, politician and former KGB bodyguard Andrei Lugovoi is now more famous for his scandals than his wealth. Apart from being arrested in 2001 for helping to arrange the escape of Nikolai Glushkov, who was being detained on fraud charges, he is currently wanted in the UK in connection with the murder of Alexander Litvinenko. Lugovoi is suspected of poisoning the Russian defector with radioactive polonium-210 during a visit to the UK in 2006, after traces of the material were found in three of the hotels in which he stayed. However, he is highly unlikely to be extradited since, as a member of the State Duma, he has immunity to prosecution, and the backlash from the Russian public has even helped his political career. Lucky for some.
Philipp Bobkov was a key player in the KGB during the 1980s and 90s, one who was instrumental in creating Soviet front organizations and resolving ethnic conflicts in the Soviet Union (and by “resolving” we mostly mean “inciting them and then taking credit for stopping them, by brutally suppressing the local population”). He apparently quietened down in his old age, going on to work as the head of a prominent private security agency for the Media-Most company — an agency containing thousands of ex-KGB members. Media-Most was founded by Russian media tycoon Vladimir Gusinsky, so while we haven’t got a figure on Bobkov’s earnings there, for being in charge of so many men we’d wager they were pretty healthy. As a footnote, since said agency was accused of attempting to assassinate the oligarch Boris Berezovsky in 1994, Bobkov may not have given up on his dirty tricks just yet.
This former KGB man has had a varied career, moving from serving with the international branch of the Russian intelligence service, to working as a financial expert at the (now defunct) REA bank, to heading the management board at Novikombank. The veteran finance expert then went on to serve as Director General at the state’s arms imports and exports agency Rosoboronexport (which had an export sales of $8.8 billion in 2009, incidentally) and is currently the chief of the Federal Customs Service of Russia. And they say that government employees don’t have to be smart… It’s a wonder Andrey Belyaninov didn’t give up intelligence work sooner.
The man with a monopoly on weapons in Russia was once an undercover KGB agent working in a company in Dresden, in the former East Germany, where his neighbor was a then-obscure fellow agent called Vladimir Putin. Chemezov now holds high-ranking positions in a number of companies, including a post on the board of directors at aircraft manufacturer Sukhoi (whose total assets reached $859.826 million in 2009). He is also the Director General at Rosoboronexport, the state-owned company which produces 90 percent of Russia’s annual weapons exports. Guess it’s not what you know, but who you know.
Nikolay Tokarev was alleged to be a KGB officer in East Germany during the Cold War — another who reportedly befriended one Vladimir Putin in his younger years — but he has since transferred from the backstabbing world of espionage to the backstabbing world of international oil transportation. He is currently the president of the Russian state-owned company Transneft, an oil and gas logistics organization with over 100,000 employees and an income of $4 billion per year. Tokarev also previously tried his hand in another part of the state sector as president of Zarubezhneft, also a company involved with oil transportation. Not too shabby.
Viktor Ivanenko was the former chairman of the KGB for the Russian Republic but, after the collapse of the Soviet Union, in 1993 he moved to become the vice president of the petroleum company Yukos. He became a majority shareholder five years later, but soon resigned to work as an adviser to the Russian tax minister and later served as the vice president of the Development of Parliamentarianism in Russia foundation (whatever that is). In light of Ivanenko’s current net worth of $290 million, making him Russia’s 84th richest man at one point, some might say capitalism is better for the economy than the communism practiced during the time of the KGB — if you’re as high up in the business world as he is, anyway.
Now a board member at Sovcomflot, one of the largest Russian state-owned maritime companies, Alexander Bortnikov is a former KGB officer done good (in a way). Bortnikov was trained in Moscow, then worked with the intelligence organization before becoming the chief of the St Petersburg/Leningrad Region Federal Security Service (FSB) and later getting promoted to become first Deputy Director and then Director of the FSB. Rumor has it that he and other high-up members in the agency were involved in the plot to murder Alexander Litvinenko in 2006; then, in 2007, he was reported to have been implicated in a money laundering scandal connected with the murder of Central Bank first deputy chairman Andrey Kozlov. Managing a big organization might occasionally mean having to get your hands dirty, but that’s taking it too far.
It bears repeating: Alexander Lebedev, multi-billionaire banking and media tycoon, punched a fellow billionaire on a live TV program. In recent years Lebedev has acquired a number of major British papers for sums of around £1, and he shows as much acumen in the world of fisticuffs as he does in business. The oligarch formerly worked for the First Chief Directorate of the KGB for the better part of a decade, the Directorate being the body that was responsible for foreign operations and intelligence gathering. Judging by the fact that Sergei Polonsky (the man he hit) was knocked practically across the room with one blow, all that training must have paid off for the man estimated to now be worth $2 billion.
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Oct 6th
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