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Did Financier Tied to Barney Frank Secretly Control 'Woman-Owned' Hedge Fund?
National Legal & Policy Center ^ | October 20, 2010 | Alana Goodman

Posted on 10/21/2010 2:01:01 PM PDT by jazusamo


Sussman photo

A liberal financier at the center of two congressional ethics controversies may also be involved in some questionable business dealings, according to the New York Times. S. Donald Sussman, a billionaire hedge-fund titan, made news after his fiancé, Rep. Chellie Pingree (D-ME), was accused of traveling on his private jet to campaign events.

Rep. Barney Frank (D-MA) has also been scrutinized for traveling to Sussman's Virgin Islands mansion on the billionaire's plane. Republicans have said the trip had the appearance of impropriety, since Frank serves as chair of the House Finance Committee and a company owned by Sussman has received $200 million in federal bailout money.

But a recent lawsuit that Sussman brought against Paamco suggests that the billionaire may have also been involved in fraudulent business practices. The suit claims that a hedge-fund firm primarily bankrolled by Sussman may have been falsely portraying itself as a "women-owned business" in order to receive special benefits.

Judge Richard J. Sullivan, who heard the case, ruled that Sussman's relationship with the Pacific Alternative Asset Management Company (Paamco) "may have been designed to mislead a number of observers, from the tax authorities to the S.E.C. to entities wishing to invest in women-owned businesses."

Paamco was long thought to be run by Jane Buchan, but a lawsuit filed against the firm by Sussman alleges that he contributed much of the early financing. Sussman reportedly paid $2 million for a 40 percent ownership stake in the firm in 2000, while Buchan and her three partners invested a total of $10,000.

Shortly after Sussman's initial contribution, Buchan allegedly asked him to convert the $2 million to a loan instead of a stake in the firm, so that Paamco could hide its connection to Sussman from investors and outside authorities.

Paamco told the Times that its relationship with Sussman was not designed to mislead anyone, and an attorney for Sussman said that the hedge-fund managers "relied on their own counsel and advisers" to approve the deal. But Times reporter Julie Creswell noted that "[F]rom the start, Paamco trumpeted the fact that it was run by Ms. [Jane] Buchan, one of only a handful of women who have made a big mark in the mostly male world of hedge funds."

Sussman filed the lawsuit in order to convert his original loan back to a 40 percent share in the firm, and the court has ruled in his favor.

The Paamco case isn't the first time that Sussman's business practices have come into question. In 2000, the hedge-fund owner set up a company and established full-time residency in the U.S. Virgin Islands, in order to reduce the amount of income tax that he pays. While Sussman now claims primary residency in Maine with his fiancé Pingree, financial documents from September indicate that he may still be receiving U.S. Virgin Islands tax breaks.

Frank and Pingree have both been critics of tax havens, even while they have accepted gifts and contributions from Sussman.

Other politicians and organizations that Sussman has contributed to, including the Center for American Progress where he sits on the board, have also been vocal opponents of tax havens.

Alana Goodman is NLPC's Capitol Hill Reporter.


Barney Frank’s Ties to Bailed-Out Financier Raising Ethics Questions

Did Rep. Pingree Get Engaged to Beat Ethics Rap?

TOPICS: Business/Economy; Crime/Corruption; Government; News/Current Events; US: Massachusetts
KEYWORDS: barneyfrank; buchan; cultureofcorruption; ethics; fanniemae; frank; freddiemac; massachusetts; nlpc; paamco; pingree; seanbielat; sussman

1 posted on 10/21/2010 2:01:11 PM PDT by jazusamo
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To: jazusamo
Please bump the Freepathon and donate or become a monthly donor!

2 posted on 10/21/2010 2:08:43 PM PDT by jazusamo (His [Obama's] political base---the young, the left and the thoughtless: Thomas Sowell)
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To: jazusamo

“Financier Tied to Barney Frank...” — HaHaHa !

3 posted on 10/21/2010 2:16:29 PM PDT by PMAS
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I wouldn’t put anything past Bwaney. :)

4 posted on 10/21/2010 2:18:17 PM PDT by jazusamo (His [Obama's] political base---the young, the left and the thoughtless: Thomas Sowell)
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If the people in his district in MA had any sense, they’d vote this despicable person out of office. They have a good alternative candidate in Belait (?), so it remains to be seen if these voters have any common sense. Or will they continue to send these types of con men back to Washington?

The definition of insanity is doing the same thing over and over again, expecting a different result. So, if he gets re-elected, then I’d have to say that the people in his district are insane. Oops, is that PC?

5 posted on 10/21/2010 2:22:42 PM PDT by Catsrus (Have)
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To: AdmSmith; Arthur Wildfire! March; Berosus; bigheadfred; Convert from ECUSA; Delacon; dervish; ...

Sean Bielat For Congress
Sean Bielat - Marine, Businessman, Leader - Needs Your Help

6 posted on 10/21/2010 2:34:26 PM PDT by SunkenCiv (The 2nd Amendment follows right behind the 1st because some people are hard of hearing.)
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To: Catsrus
It's extremely obvious that Barney uses poor judgment and lacks even a shred of moral decency. He should be the madam in a gay bathhouse, not a representative of the people. How many voters would leave their young boys alone and in the care of Barney?
7 posted on 10/21/2010 2:35:03 PM PDT by peeps36 (America is being destroyed by filthy traitors in the political establishment)
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To: Catsrus

It’s a Lib district with a lot of Universities, what do you expect

8 posted on 10/21/2010 2:46:46 PM PDT by PMAS
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To: jazusamo

There must be a million “women-owned” businesses in the U.S. that are little (or nothing) more than a wife fronting for her husband in order to play the AA game.

9 posted on 10/21/2010 4:54:12 PM PDT by freespirited (This tagline dedicated to the memory of John Armor, a/k/a Congressman Billybob.)
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To: jazusamo

Spot on oppo research. Some of the links have gone dead (notably at his current employer Wells Fargo mortgage where his photo was posted - surprise), but you can verify Herb Moses photo by logging on to LinkedIn and searching on that name - his page will come up (
with a photo if you are logged in, and it is in fact the very same unmistakable face of Herb Moses in the graphic gay porn that one can find on the internet.

This was posted in a 2008 FR thread that was recently pulled, and it can lead you to make the connection between the unmistakable face of Frank’s Fannie Mae ex-spouse and the same un-photoshopped man as a raunchy gay porn star: “You are definitely on the right track since I know that Herb lives in Huntington Beach with his lover of 10 years Alvaro C. and he does (maybe did) work at WF in mortgage lending. They have both been and still are part-time male prostitutes and have also done gay porn. Real Couples #1 was their first video together. This can be verified as Jessie Foxx (Alvaro) and Mike (Herb) on the DVD cover and posting on pay VOD sites. Sometimes the light of truth uncovers a questionable past.”

Discover the link - it seems that Frank’s former Fannie Mae “spouse” went on to star in harcore gay porn:

Barney Frank’s former so-called “spouse” was a man named Herb Moses.

At the time, Herb Moses was a director for housing initiatives at Fannie Mae.

Herb Moses helped develop many of Fannie Mae’s affordable housing and home improvement lending programs.

Herb Moses was reportedly a mortgage expert who left Fannie Mae in 1998 to start a pottery business.

But not before his lover Barney Frank lobbied hard to widen Fannie Mae’s ability to give mortgages to high-risk borrowers.

A “Herbert M. Moses” from Washington D.C. and employed by Fannie Mae gave $1500 to Democrats in the 1990s.

A “Herbert M. Moses” in D.C. is listed at

At this whitepages page, you will find a “background records” link that allows you to buy a detailed report on that name from a list of several links.

Several of those links will give a teaser list of cities where the named person presumedly has lived or lives.

Fact check: you can type in the name of someone you know and see that the list of teaser cities is an actual list of the actual cities where the named person has lived.

For “Herbert M. Moses” of D.C., Huntington Beach, CA, is one of 6 cities listed as a current or former residence.

Newport Beach is 6 miles from Huntington Beach,+ca&daddr=Huntington+Beach,+CA&hl=en&geocode=&mra=ls&sll=33.829785,-117.27787&sspn=1.204664,2.460938&ie=UTF8&z=13

A google search of “Herbert Moses”

brings you to a photo and contact page of “Herb Moses” working at Wells Fargo in the mortgage department

and Herb Moses of Wells Fargo mortgage is also listed at this website

A brand new FReeper, Stevie1958, has posted an interesting note at FR claiming that this same pictured Herb Moses has made porn films with his current long-term gay sex partner.

A google search using key terms revealed by this new FReeper, Stevie1958, does lead to webpages with photos of the same pictured man (identified above as Herb Moses) engaged in explicit homosexual sex acts.

So, it seems that Barney Frank’s former homosexual “spouse” who was a Fannie Mae executive, is now a third rate loan salesman and gay pron star. It makes Frank’s old housemate, Steve Gobie, who Frank met when he hired him as a male escort, and who ran a gay “escort” service from Frank’s D.C. home, seem pretty tame in comparison (Representative Barney Frank received a formal reprimand from the House for his relationship with a male prostitute - Gobie).

And one more thing: Is Stevie1958 really Stephen L. Gobie?

10 posted on 10/21/2010 5:54:34 PM PDT by Notwithstanding
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