Report: Did This Company Win a Lucrative Contract Because of VP’s Brother?
But with stiff competition from other more seasoned outfits, how did the relatively young HillStone land the contract?
Well, as is usually the case in situations like this, a little political help may have been involved. And in the case of Hill, that help may have been executive vice president of Hill International’s housing subsidiary James Biden, brother of Vice President Joe Biden.
“Since November 2010, James Biden has been the executive vice president of Hill International’s housing subsidiary despite little if any documented work history in residential construction,” Fox Business reports.
“And if the company’s projections are accurate, both Hill and Biden are on the verge of a huge payday, beneficiaries, some analysts believe, of James Biden’s connections to the Obama Administration through his older brother,” the report adds.
Lord knows the company could use the deal: Hill has been steadily losing money since 2011 and its shares are currently trading for $3.82, down 28 percent this year on the NYSE. But the Iraq deal, if it ever gets underway, could see the company’s profits boom.
“I think these guys will come through,” one former Hill executive told Fox, referring to the delay of the project’s start date. “You have to realize that these guys are relentless businessmen and they have the right connections.”
The project is expected to bring in about $1.5 billion over the next three years.
And you know who stands to profit handsomely?
“[A] chunk of that $1.5 billion will flow to the biggest connection Hill has to government: James Biden. Hill International owns a 51% stake in HillStone; a group of minority partners, including Biden, hold the rest,” Fox reports.
“That means that the minority partners would split roughly $735 million, pocketing millions of dollars even after expenses are paid,” the report adds.
Not a bad payout at all.
“There’s plenty of money for everyone if this project goes through,” Hill International’s chief executive, Irv Richter, who founded the company 40 years ago, is quoted as saying.
And Hill may have someone to thank for it. Indeed, as Hill president David Richter allegedly once said: It helps to have “the brother of the vice president as a partner.”
But Richter is also claims James Biden isn’t totally responsible for the contract.
“Listen, his name helps him get in the door, but it doesn’t help him get business,” Richter said of Biden. “People who have important names tend to get in the door easier but it doesn’t mean success. If he had the name Obama he would get in the door easier.”
Follow Becket Adams (@BecketAdams) on Twitter
Click here to read the full, in-depth report. All photos courtesy the AP.
- ‘Bigoted, Religious [Zealots]‘: High School Senior Allegedly Expelled, Charged With Felonies Over Gay Relationship With ‘Consenting’ Fellow Student 1,031 Comments
- ‘The Daily Show’ Creator Makes Outrageously Offensive Anti-Conservative Joke About Okla. Tornado 462 Comments
- Washington Times Writer: Fox News Scandal Goes ‘Much Deeper,’ W.H. Sitting on Something Top Obama Aides ‘Terrified’ About 434 Comments
- University Will Investigate Christian Professor’s Intelligent Design Class Following Atheist Furor 309 Comments
- See the First Behind-the-Scenes Photos as Beck and Mercury One Survey the Damage in Okla. 249 Comments
- ‘Death! You F**k!’: Bat Mitzvah Chaperone Unleashes Explosive, Profanity-Laced Tirade Against Kids Over Candy-Throwing Incident Read More
- How Can God Let Tragedies Like the Okla. Tornado Exist? Pastors Weigh In 136 Comments
- Is This Video of Pope Francis Performing an Exorcism? Read More
- Boston Cardinal Snubs Irish PM Over Abortion Support Read More
- Incredible: The Moment a Woman’s Dog Emerges from Rubble During TV Interview Right After She Describes Losing Him 224 Comments
- China Sets off What Could Be the World’s Longest Demolition Read More
- Here are the 5 Most Interesting Moments from Tuesday’s Hearing on the IRS Scandal Read More
- Jay Carney Shifts IRS Timeline (Again!) Read More
- Top IRS Official at Center of Political Targeting Scandal Will Plead the Fifth 132 Comments
- Disgraced IRS Interim Chief Now Fully Admits Knowledge of Planted Question (but Did It Reveal a Past Half-Truth?) Read More
- The Incredible Role Facebook Played in the Aftermath of Devastating Okla. Tornado Read More
- Tech Company Demonstrates Remote Disabling of a ‘Smart Gun’ Read More
- Meet the Blind Man Nicknamed ‘Midnight Gunslinger’ Who Has 80% Shot Accuracy Read More
- How a $4.5 Million Network of 181 Sirens Helped Save Lives in Oklahoma Twister Read More
- See the Record-Setting Python a Man Caught With His Bare Hands (and Guess How Much It Weighed) Read More
- Spurs blow late lead, beat Grizzlies 93-89 in OT
- Sharks tie series with 2-1 win over Kings
- Portland, Ore., rejecting water fluoridation
- North Korea sends leader's special envoy to China
- Early vote points to close race as LA picks mayor
- Straily, Cespedes push A's past Rangers 1-0
- Apple case seen as possible spur to tax action
- Bernanke testimony to be studied for policy clues