Turn over any green-energy rock, and wiggling underneath will be the usual creepy mix of political favoritism and taxpayer-funded handouts. Add to this the Clintons, Mississippi and a murky visa program, and you've got a particularly ripe political embarrassment for Terry McAuliffe. Everyone remember The Macker? Best Friend of Bill. Chairman of Hillary's 2008 presidential campaign. Famed money-tree shaker. Former Democratic Party chief. Failed 2009 contender for the Virginia governorship but now back as the party's nominee for that position in this fall's election. Ohâand in Mr. McAuliffe's wordsâ"a Virginia businessman" intent on "creating jobs." Or at least that was the image Mr. McAuliffe sought to portray in 2009, when he became chairman of a car company called GreenTech Automotive, with plans to produce golf-cart sized electric vehicles. The former DNC chief is no stranger to moneymaking, having once used a friendly union pension fund to spin a $100 investment in a Florida land deal into $2.45 million. GreenTech, however, was designed to shed the moneyman image and to reposition Mr. McAuliffe as a (clean) job creator the way Mark Warner and Bob McDonnell used their pro-business credentials to win office in Virginia. To this end, Mr. McAuliffe got out the political Rolodex and went on the money hunt. By October 2009, GreenTech announced it would build a plant in Tunica, Miss., after the state (under Republican then-Gov. Haley Barbour) promised at least $5 million in public loans and grants to aid the company moving in. GreenTech bragged that in its first phase alone it would invest $1 billion, employ 1,500 and produce 150,000 cars annually. Mr. McAuliffe grandly unveiled his signature MyCar last July at a rock-star event attended by Messrs. Clinton and Barbour. Business creds in hand, he then announced his run for governorâand the problems began. Among the first questions he was asked was why, as a proud "Virginia" businessman, he'd located his business in Mississippi. Scrambling, Mr. McAuliffe stated that he had wanted to bring his jobs home but the Virginia Economic Development Partnership "didn't want to bid on" GreenTechâwhereas Mississippi had offered incentives. He went so far as to criticize the state for not going after manufacturing jobs like his, suggesting he'd change that. After an investigation, media outlets discovered that Virginia never received enough information from GreenTech to proceed. The Associated Press reported that the state agency worried that "GreenTech lacked brand recognition; had not demonstrated vehicle performance; had no federal safety and fuel-economy certification; no emissions approval . . . no distribution network" and (ouch) "no demonstrated automotive industry experience within the executive management team." Rather than respond to these concerns, GreenTech moved on with Mississippi (which perhaps wasn't asking annoying questions). Virginia was particularly alarmed by GreenTech's use of an opaque visa program, called EB-5, to fund itself. Part of a 1990 immigration law, EB-5 lets foreigners who invest at least $500,000 in a U.S. company receive green cards. A federal immigration agency approves "regional centers" that administer the program. While these centers can be run by local government, GreenTech proposed running a Virginia center itself. One official at the Virginia development agency wrote to colleagues that she couldn't view Greentech's EB-5 program as "anything other than a visa-for-sale scheme with potential national security implications." GreenTech is today using its own investment vehicle to run a regional center in Mississippi. The president and CEO of Gulf Coast Funds Management is Anthony Rodham, the youngest brother of Hillary Clinton. Its board is composed of Democratic Party insiders, from former Clinton IRS Commissioner Margaret Richardson to former Louisiana Gov. Kathleen Blanco. Neither the immigration agency, nor GreenTech or Gulf Coast, has divulged how much money the company has raised via EB-5, or how many visas it has issued. This is of particular interest, since GreenTech looks to be a lemon. Despite promising production in 2011, there is no evidence the company is manufacturing any cars in volume. It is operating out of a temporary site and has yet to begin building its flagship factory in Tunica. GreenTech is the latest proof (after Solyndra, Fisker, A123 and others) that the political class is adept at hooking up cronies and investors with taxpayer dollars. But creating jobs? No can do. This may explain the latest news bomblet. Mr. McAuliffe continued flogging his GreenTech credentials this year, appearing in January at a trade show under the title "chairman of GreenTech Automotive." Recent media reports have also used that titleâwith no protest from the candidate. But as the heat mounted, his campaign last week released a letter that claims Mr. McAuliffe had resigned from GreenTech by Dec. 1, 2012. The company, Mr. McAuliffe would now like everyone to know, has nothing to do with him. The Democratic pol may not shake the story so easily, given the degree to which he made the firm central to his gubernatorial run. Green crony capitalism is proving to be one of the more politically toxic stories of our time. And in this case, just in time for an election. Write to kim@wsj.com http://online.wsj.com/article/SB10001424127887323741004578416821313987276.html
What I would really like to know is how do you get in on these little Democrap deals that make millions out of nothing. Hillary got a similar deal in cattle futures. Is there a Democrap insiders investment club you join or something?