January 14, 2006 -- Serious questions remain concerning Col. Westhusing's "suicide" in Iraq. Army's chief ethics expert was murdered, according to Carlyle Group insider.
According an informed source within The Carlyle Group business consortium, Col. Ted Westhusing, the Army's top military ethicist and professor at West Point, did not commit suicide in a Baghdad trailer in June 2005 as was widely reported in the mainstream media five months later. At the time of his death, Westhusing was investigating contract violations and human rights abuses by US Investigations Services (USIS), formerly a federal agency, the Office of Federal Investigations (OFI), which operated under the Office of Personnel Management (OPM).
In 1996, OFI, which conducted background investigations for civil service personnel, was privatized. The 700 government employees of OFI became employee-owners as part of USIS. In January 2003, the New York investment firm Welsh, Carson, Anderson, and Stowe, described by a Carlyle insider as a virtual shadow operation for The Carlyle Group, bought USIS for $545 million. With 5000 current and former employees of USIS sharing $500 million, the deal made them wealthy with the stroke of a pen. However, upper management within USIS became much wealthier than the rank-and-file. Insiders report that the twelve top managers at USIS became multimillionaires as a result of their cashing in of their Employee Stock Ownership Plans (ESOPs). Many of these instant millionaires already had a close relationship with The Carlyle Group.
Carlyle had been a shareholder in USIS since 1999 and with the buy-out deal via the Welsh, Carson, Anderson, and Stowe deal, Carlyle became the major shareholder.
USIS continues to have a virtual exclusivity deal to perform background security investigations for OPM. The company bills itself as "one of the largest Intelligence and Security Services companies in North America.”
With the Iraq invasion, USIS obtained lucrative Pentagon private security contracts in Iraq. At a 2004 job fair in Falls Church, Virginia, USIS was advertising for "interrogators" and "protection specialists" for "overseas assignments." While he was in Iraq training Iraqi police and overseeing the USIS contract to train police as part of the Pentagon's Civilian Police Assistance Training Team, Westhusing received an anonymous letter that reported USIS's Private Services Division (PSD) was engaged in fraudulent activities in Iraq, including over-billing the government. In addition, the letter reported that USIS security personnel had murdered innocent Iraqis. After demanding answers from USIS, Westhusing reported the problems up the chain of command. After an "investigation," the Army found no evidence of wrongdoing by USIS.
That decision signed Col. Westhusing's death sentence. USIS and Carlyle have powerful allies in the administration, including Defense Secretary Donald Rumsfeld, the Princeton roommate of Carlyle Chairman Emeritus and former Defense Secretary Frank Carlucci. Former President George H. W. Bush, former Secretary of State James Baker, and former British Prime Minister John Major are Carlyle international advisers. George W. Bush was formerly employed by a Carlyle subsidiary and the Bin Laden business cartel was a one-time investor in the firm.
Westhusing, who, according to friends and colleagues, showed no signs of depression, left a suicide note the Army concluded was in his handwriting. However, Westhusing's family and friends have thrown cold water on the Army's investigation.
WMR can report that based on information obtained from Carlyle insiders, Col. Westhusing's death was not caused by suicide. The fact that Westhusing was investigating one of the most politically and financially powerful firms in the world resulted in higher-ups wanting him out of the way. According to the Los Angeles Times, all of the witnesses who claimed Westhusing shot himself were USIS employees. In addition, a USIS manager interfered with the crime scene, including handling Westhusing's service revolver. The USIS manager was not tested for gunpowder residue on his hands.
Westhusing's investigation threatened to unearth a network of fraudsters looting the US Treasury that included the Bush family and some of their closest financial partners. After Westhusing's murder, USIS management sent a vaguely-worded memo to employees about how to respond to derogatory information in the media or rumors about USIS. Management's attention, described as "psychotic" in nature, was on USIS's upcoming IPO (initial public offering), according to a well-placed source.
USIS also owns Total Information Services of Tulsa, Oklahoma, a commercial personal data mining operation.
Coming Up: How Carlyle began on the net operating loss (NOL) financial backs of Native Alaskan tribes.