Peter Schweizer, president of the Government Accountability Institute appeared on Sirius XM to discuss some of the revelations in his new book Secret Empires: How the American Political Class Hides Corruption and Enriches Family and Friends, the follow up to Clinton Cash.
He shows how Barack Obama used regulations to practically destroy a company’s stock value so his best friend, Marty Nesbitt, could rush in and buy the company for pennies on the dollar.
“This one was really surprising because I have to say, I did not think of Barack Obama as somebody who was necessarily involved in financial corruption. I mean, there are all these controversies or certain issues about his policies, but Barack Obama has this best friend that few people have ever heard of, a guy named Marty Nesbitt.”
“When Barack Obama is reelected in 2012, his best friend in the world, Marty Nesbitt, sets up this private equity fund called Vistria, and Vistria says in its corporate documents, explicitly, that it is designed to invest in highly regulated industries, and when your best friend is the regulator-in-chief, I guess that makes sense, and what happens is, they make a series of investments or deals based on companies or industries that are being smashed by the Obama administration’s regulations.”
Schweizer then describes how Obama and Nesbitt teamed up to bankrupt the University of Phoenix :
“So to give you one brief example, [the] University of Phoenix, it’s a for-profit school — a lot of people have heard of it — the Obama administration declares that the company is not serving students well, and they say, ‘We are going to suspend GI dollars from the Pentagon for soldiers to study at the University of Phoenix.’”
“Well, you can imagine, this for-profit university, its stock price goes from like a hundred dollars a share down to three dollars a share overnight. So what happens? Marty Nesbitt, Barack Obama’s best friend, says, ‘Hey! We’ll step in and buy it. We’ll step in and buy the company.’ They do. They basically buy it for three cents on the dollar, and then, lo and behold, imagine what happens next. The Obama administration decides that ‘No, we are going to allow GI dollars flow to the University of Phoenix,’ thereby boosting the valuation of the company again.”
This was not a one time gig either. Obama pulled this same scam on coal companies and George Soros swooped in and made a killing. Democratic Mega donor Tom Steyer, too.
“This pattern is repeated over and over and over again, not just with Marty Nesbitt, but with people like the environmentalist investor Tom Steyer [and] George Soros. Barack Obama smashes coal companies, [and] what do these guys do? They go in, they buy them for pennies on the dollar, and when the regulatory weight is lifted, their valuations increase, and they make a lot of money, and you see that pattern in all of these industries.”
“So what you see is these crusades that Obama is going on related to companies that are supposedly doing all these evil things really has this profit or money-making component to it that I was unaware of, and a lot of other people were unaware of. Now, in a sense, the favor gets returned because Marty Nesbitt is now the chairman of the Obama Foundation and is pouring money into that institution and is responsible for raising it so Barack Obama’s legacy can be applauded in Chicago.”
Humans go to jail for this kind of thing. Good thing for Obama that he’s not human.
The investors who lost their shirts should consult with their lawyers and the DOJ.