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Jesse
Jackson Accused of Racketeering by Top Black Businessmen
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By Marc Morano
CNSNews.com Senior Staff Writer
October 22, 2001
(CNSNews.com) - One of America's wealthiest
African-Americans, asked by Jesse Jackson to assist with
Jackson's "Wall Street Project," says the tactics
used by the civil rights leader amounted to
"racketeering."
A prominent black broadcast executive says he's been the
victim of intimidation at the hands of Jackson and is fighting
the Federal Communications Commission's efforts to block the
sale of his television stations.
A black entrepreneur seeking aid from one of Jackson's groups
describes it as "a boys club to me, an inner
circle," that he cannot penetrate.
Officials with Jackson's various interests largely refused to
comment on these complaints, which represent a growing number
of concerns about some of the methods used by Jackson to
advance his agenda.
But increasingly, more African-American business professionals
are wondering whether the reverend represents American blacks
to the extent Jackson says he does.
Accusations that Jackson 'Stiffed' the Poor
Businessman Harold Doley, Jr. said he thought Jackson
"was going to do what he was saying," in launching
the Wall Street Project.
Founder and chairman of the New Orleans-based Doley
Securities, Inc., and rated as one of the country's 100
wealthiest African Americans by Securities Pro, a newsletter
covering blacks on Wall Street, Doley was asked by Jackson in
1996 to help with the Wall Street Project, a program designed
to promote minority participation in corporate America.
As the first African American to purchase a seat on the New
York Stock Exchange in 1973, Doley was thought to be able to
open many doors for Jackson on Wall Street.
"I got to really know Jackson," explained Doley, who
added that he shared the project's stated goal of "making
corporate America look more like America from the entry level
to the board room."
He explained that Jackson's original vision appealed to him.
"This is what is appropriate, this is where America needs
to be going," said Doley. "I felt what he was doing
was good, good for America, and good for my business."
But after initial exuberance about the Wall Street Project,
Doley became disillusioned.
Jackson went after the multi trillion-dollar pension fund
industry in his quest for minority empowerment and worked for
legislation to require 10-15 percent of the nation's pension
funds, depending on the state, to be brokered or managed by
minority firms.
Doley disapproved of the methods Jackson employed in
persuading the pension industry to aid minorities. "What
worried me was the way he operated, dealing with these veiled
threats," he stated.
Doley soon realized that Jackson's efforts "directing an
enormous income from pension [funds]" were only being
channeled to "roughly 10 firms that qualify."
He doubts most Americans know "that they were paying and
putting money in Jesse Jackson's
coffers to the tune of $170 million in commissions a year, 10
percent of which is going to Jackson."
Doley says he was a first-hand witness to how "Jesse in
effect stiffed the poor people of America." According to
Doley, Jackson gave political cover to a bank merger that
"cut out $330 billion dollars" over a 10-year period
to poor communities in the U.S. The merger did not meet the
minimum standards of the Community Reinvestment Act (CRA),
which requires that financial entities do not negatively
impact poor areas of the country.
According to Doley, representatives from Operation PUSH and
the Wall Street Project went before the Federal Reserve Board
and testified that the deal was in the best interests of
America, despite the fact they did not meet CRA guidelines.
Doley could not believe Jackson would support a merger that
"fell short by $330 billion dollars going into
communities in terms of mortgages and services provided by
financial institutions. This was a tremendous loss."
According to Doley, Jackson "knew the mega mergers were
not meeting the guidelines ... but Jesse was getting
contributions because of his support" for the deals.
An incredulous Doley decided to personally confront Jackson
about his support of the bank merger. The meeting was not very
productive. "I said, 'man, you cannot do this.' And I
went over the numbers quickly and he just walked away,"
Doley recalled. Despite Doley's protestations, the merger was
finally approved.
Doley says he then saw Jackson in a completely different
light. "What he was doing was a kind of RICO operation,
both criminal and civil. It was racketeering."
Doley consulted with several attorneys, confiding that "I
am concerned that what is going on here may be illegal."
The attorneys' advice was simple: "If you have to ask,
get out," they offered.
"I just eased on out," Doley recalled. After
spending about two years working with Jackson, he now calls
him a "Civil Rights Entrepreneur" whose moneymaking
ability is beyond comparison. He noted that in 1996, Rainbow
PUSH had a gross income of $695,000 and by the year 2000, it
grossed $17 million. "He's done better than any goddamn
dot-com stock that I am aware of," Doley said.
His advice for young entrepreneurs who may want to partner
with or join one of Jackson's organizations is blunt. "I
tell them they could go in the hood and go into a partnership
with a crack dealer if all they are interested in is the
money," he explained.
When contacted for reaction to Doley's charges about Jackson,
press spokeswoman Keiana Peyton of Rainbow PUSH, refused to
answer any specific questions, stating only that Jackson's
efforts have "opened the market and evened the playing
field for persons who have historically been locked out of
this access to business and capital."
Powerful Broadcaster vs. Powerful Civil Rights Leader
"I am not giving in to him, I won't give in to his
pressure tactics," broadcaster Eddie Edwards of Glencairn
Ltd., told CNSNews.com. Edwards is trying to sell his
television station group to Sinclair Broadcast Group, but
Jackson has stepped in and petitioned the FCC to try and block
the sale.
Edwards, of Pittsburgh, is considered one of America's most
powerful black broadcasters, coming in only second to W. Don
Cornwell of Granite Broadcasting, according to Media Week
magazine.
He traces his troubles back to his decision to start his own
Black Broadcasting Alliance (BBA), a competitor to what he
calls the Jackson-friendly National Association of Black Owned
Broadcasters (NABOB).
The Black Broadcaster Alliance was formed because "NABOB
tries to control minorities in broadcasting," according
to Edwards. "None of my difficulties began until I
started BBA. They really came after me," he explained.
Edwards said Rainbow PUSH attorney David Honig accused him of
being a "front man" for Sinclair Broadcasting.
Edwards recalled that Honig told him, "You, in short,
play by our rules and deal with us or we will get you."
But Edwards was not easily dissuaded.
"I am not going to be intimidated. I told them once,
twice, a hundred times. I am from the same street they are and
I have worked too hard to get where I am and if you think you
are going to try and muscle me through words and through
manipulating the system, you got another thing coming,"
he stated.
Jackson petitioned the FCC to halt Edwards proposed sale of 19
television stations to Sinclair and the approval of the deal
has been in legal limbo since May of 1998. The deals are
estimated to be worth $1.5 billion.
Martin Leader, an attorney for Sinclair Broadcasting,
explained that the company has probably "lost millions of
dollars" because of the FCC delays.
Edwards bristles at the charge that he is a "front
man" for Sinclair. "I don't have to dignify that. My
35 years in the business is second to none," he offered.
Leader said Edwards "owns 100 percent of voting stock [in
Glencairn]"
"Sinclair people have nothing to do with Glencairn and
the commission has so found that," he added, referring to
earlier FCC letters. CNSNews.com obtained a copy of the
petition that Leader filed with the U.S. Court of Appeals for
the District of Columbia on September 10. The petition calls
for "prompt action" by the FCC in rendering a
decision.
The US Court of Appeals for District of Columbia has ordered
the FCC to respond to Leader's petition by November 14th.
"The FCC's inaction on the applications has evidently
been caused by the refusal of Sinclair to accept improper
demands by the commission to sell broadcast stations to
minority purchasers solely because of their race and the
resulting hostility that continues at the commission,"
the petition states.
According to affidavits filed by Leader, the chief of the Mass
Media Bureau at the FCC, Roy Stewart, met with Sinclair
representatives in April of 1998 and stated, "If you
repeat anything that I say here, I will f*****g deny it."
Stewart then allegedly told Sinclair representatives that
"Chairman Kennard wanted to see more minority ownership
in broadcasting" and made it clear that they did not
regard Edwards as a viable minority, according to the
affidavits.
Stewart "made it very clear that if Sinclair could do
something to assist in [the goal of minority ownership] ... it
would be very beneficial to the processing of its
applications," the affidavits allege. They also accuse
Stewart of threatening Sinclair by stating that if they did
not cooperate, "Chairman Kennard would make it 'really
painful' for the company."
Leader said the FCC did not see anything wrong with Sinclair
or Glencairn business dealings before Jesse Jackson got involved.
The FCC had previously approved seven applications between
Glencairn and Sinclair.
Edwards maintains "Jesse and his group have strong
relationships with individuals within the FCC." He added,
"The stations out there that have cooperated with
[Rainbow PUSH] had to render favors of some kind and I refuse
to play that game."
He noted that the temptation is great to give in to the
tactics because "most broadcasters can't afford more
delays. Delays cost money." But he remains resolute,
declaring, "I am the first black or white person to step
up and to speak out [against Jackson]."
"The influence that Jesse Jackson has in
Washington, there are people genuinely afraid of this
man," Edwards said. However, he added, "Jackson does
not represent all black people.
Peyton, a spokeswoman for Jackson, declined to comment on the
specific charges made by Edwards and Sinclair Broadcast Group.
She reiterated that Jackson "has worked to even the
playing field for minorities and female-owned businesses that
have not in the past had access to meet with certain
businesses to even showcase their talents and abilities."
Young Entrepreneur Disillusioned
Frederick Jones is a young African American entrepreneur who
became disillusioned with Jesse Jackson's Rainbow PUSH
organization after multiple attempts to seek aid for his small
business.
"The more and more I got into it, I started finding out
that if you didn't have ties with the reverend or didn't have
money invested, you weren't getting helped," he told CNSNews.com.
Earlier this year, Jones approached Rainbow PUSH with a
complete business plan and expected to receive consultation
and help.
"Every article I read had these prominent minority
business people who are supposed to be so helpful with their
guidance, with their time, but nobody returns your phone call,
nobody talks to you," he stated.
Jones is in real estate development and information brokering.
He explained that he contacted several of Jackson's
organizations, including the Wall Street Project, because its
goal is to "partner with minority business people and
help mentor you and guide you along and help with
introductions."
A frustrated Jones said he called many members of Jackson's
inner circle, including Chester Davenport of Georgetown
Partners, who would not take or return the phone calls.
"I called so many times that [Davenport's] secretary
Eunice knew my name and my voice," he stated.
Jones claims Rainbow PUSH tried to extract a $250 small
business fee from him and another $250 registration fee for a
conference.
In a phone conversation with one of Jackson's organizations,
he was asked whether he had "joined Rainbow PUSH."
Jones asked, "Is it necessary?"
The answer he received from a woman who refused to identify
herself was, "It helps if you are a member of the
organization, to get help from them."
Jones said he complained that none of the promotional material
said "members only." However, according to Jones,
the woman persisted that Jones "should call the Rainbow
PUSH offices and ask for a membership package."
Jones has since lost interest in receiving any help from
Jackson. "It's a boys club to me, an inner circle,"
he lamented.
Peyton countered that "every Saturday here in Chicago, we
host trade bureau meetings, open to the general public, to
come and network. She added "that membership in Rainbow
PUSH is recommended but not a prerequisite," to receiving
business consulting and support.
But Jones is soured from his experience. "Why would you
want to join something that is going to keep you an
outsider?" |
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