Friday

DUST ANGELS: FALLOUTs!


The President's brother Neil is making hay from school reform

Across the country, some teachers complain that President George W. Bush's makeover of public education promotes "teaching to the test." The President's younger brother Neil takes a different tack: He's selling to the test. The No Child Left Behind Act compels schools to prove students' mastery of certain facts by means of standardized exams. Pressure to perform has energized the $1.9 billion-a-year instructional software industry.

Now, after five years of development and backing by investors like Saudi Prince Alwaleed Bin Talal and onetime junk-bond king Michael R. Milken, Neil Bush aims to roll his high-tech teacher's helpers into classrooms nationwide. He calls them "curriculum on wheels," or COWs. The $3,800 purple plug-and-play computer/projectors display lively videos and cartoons: the XYZ Affair of the late 1790s as operetta, the 1828 Tariff of Abominations as horror flick. The device plays songs that are supposed to aid the memorization of the 22 rivers of Texas or other facts that might crop up in state tests of "essential knowledge."

Bush's Ignite! Inc. has sold 1,700 COWs since 2005, mainly in Texas, where Bush lives and his brother was once governor. In August, Houston's school board authorized expenditures of up to $200,000 for COWs. The company expects 2006 revenue of $5 million. Says Bush about the impact of his name: "I'm not saying it hasn't opened any doors. It may have helped with some sales."

(In September, the U.S. Education Dept.'s inspector general accused the agency of improperly favoring at least five publishers, including The McGraw-Hill Companies, which owns BusinessWeek. A company spokesman says: "Our reading programs have been successful in advancing student achievement for decades; that's why educators hold them in such high regard.")

The stars haven't always aligned for Bush, but at times financial support has. A foundation linked to the controversial Reverend Sun Myung Moon has donated $1 million for a COWs research project in Washington (D.C.)-area schools. In 2004 a Shanghai chip company agreed to give Bush stock then valued at $2 million for showing up at board meetings. (Bush says he received one-fifth of the shares.) In 1988 a Colorado savings and loan failed while he served on its board, making him a prominent symbol of the S&L scandal. Neil calls himself "the most politically damaged of the [Bush] brothers."

While hardly the first brother to embarrass a President — remember Billy Carter's Billy Beer or Roger Clinton's cocaine? — Neil could be the first to seek profit from a hallmark Presidential crusade. And also that of a governor: Jeb makes school standards a centerpiece in Florida, too.

Neil says he never talks shop with his brothers. He attributes his interest in education to his struggles with dyslexia. His son, Pierce, also had difficulties in school, he says. "Not one of our investors has ever asked for any kind of special access — a visa, a trip to the Lincoln Bedroom, an autographed picture, or anything."

By STAFF, Business Week



More Moon Money Flows to Bush Family


We are honored to welcome Larry Zilliox as a guest front pager. He is the president of Investigative Research Specialists, a private investigation company based in Bristow, Virginia. He has done extensive research on the Moon empire, following the money trail through public records and other sources. – FC

[image,right: George Bush Senior speaking at a 1996 Moon sponsored event]

As followers of Rev. Sun Myung Moon pray for a presidential pardon for their aging Messiah's felony tax-fraud conviction in the 1980s, the latest tax filing of the Washington Times Foundation has become available. The return covers the months from April 2005 through March 2006 and shows a $100,000 contribution from the foundation to the Barbara Bush Foundation for Family Literacy.

The Washington Times was founded by Moon and has been subsidized by Moon-controlled interests.

The only larger donation made by the foundation in that year was to another entity closely associated with Moon, the American Family Coalition, Inc. which received $219,000.

[image,right: still from video clip of George and Barbara Bush greeting Sun Myung Moon and his wife at a Moon event, backstage at the Tokyo Dome, 1995]

Funding for the Washington Times Foundation comes primarily from the mysterious International Peace Foundation (IPF). The source of the funds IPF donated to the Washington Times Foundation are not known and most likely are untraceable because IPF does not appear to be a legally incorporated entity. The IPF address listed in the Washington Times Foundation tax return is the Unification Movement-owned building at 7777 Leesburg Pike in Falls Church Virginia. A check of the Internal Revenue Service online directory of organizations recognized as exempt failed to find a listing for IPF. A check of GuideStar database of non-profit organizations also found no listing.

IPF was originally incorporated in the District of Columbia in 1988. A check of the District of Columbia online corporate registrations web page shows the status of IPF as "Revoked." District of Columbia corporate records identify Moon's long time right-hand man Bo Hi Pak as an original officer of the organization. Pak has a history of leading many Moon connected businesses and non-profit organizations in the Washington, DC area. One of the oldest organizations with which Pak is associated is the Korean Cultural Freedom Foundation. Pak, serving as Chairman, mismanaged the organization so badly it fell victim to one of the largest Nigerian Fraud Scams in US history. In 2001 and 2002 the Korean Cultural Freedom Foundation reported in it's IRS Form 990 tax return that it had lost nearly $3,000,000 to scammers.

In Virginia, where the Washington Times Foundation tax form lists IPF's current address, the Virginia State Corporation Commission records show the status for IPF as revoked in 2004. The Commission's online database of corporate registrations indicates the online record details for the entity have been purged from their system as of 12/31/2004.

This revelation of money donated to a charity associated with the Bush family is just the latest in a string of donations and payments dating back more than ten years. George H. W. Bush has had a long association with Moon going back to just after he left office. In September 1995 Bush and his wife gave a number of speeches in Asia for the Women's Federation for World Peace an organization headed by Moon's wife Hak Ja Han Moon. In November 1996 Bush spoke in Buenos Aires at a banquet honoring the opening of Moon's South American newspaper Tiempos del Mundo Bush refused to disclose how much he was paid for his Moon-sponsored speaking tour.

In 2003 the Washington Times Foundation funneled a $1,000,000 donation to the Bush Presidential Library through the Greater Houston Community Foundation. In 2005 the Moon sponsored Interreligious and International Federation for World Peace made a donation of $1,000,000, it's largest donation of the year, to the senior Bush's Points of Light Foundation for Hurricane Katrina relief.

The Bush 2005 Inaugural Committee received the maximum $250,000 donation from Moon's Washington Television Center the entity that owns the large office building at 650 Massachusetts Avenue in the District of Columbia. In December 2005 the President's younger brother, Neil, was spotted touring Taiwan and the Philippines with Moon. Less than a year later Business Week published an article titled "No Bush Left Behind" profiling Neil Bush's company Ignite!, Inc. The company sells a high tech teaching aid called "Curriculum on Wheels" or COWs. The article states "A foundation linked to the controversial Reverend Sun Myung Moon has donated $1 million for a COWs research project in Washington (D.C.)-area schools."

From non-profit tax returns and media reports we see that at least $3,335,000 has flowed from the Unification Movement to Bush family members or charities since George W. Bush has taken office.

By Larry Zilliox