Saturday, October 11, 2008

McCain's wife and father continued business partnership with Keating despite McCain's claim that he ended his relationship with Keating

PHOENIX—Sen. John McCain’s wife and father-in-law continued a lucrative business partnership with disgraced financier Charles H. Keating Jr. for 11 years after the GOP presidential nominee said he ended his close friendship with Keating in March 1987.

Cindy McCain’s business partnership with Keating in a real-estate development between 1986 and 1998 netted her a tidy profit, in addition to years of significant tax benefits. Her father, who died in 2000, earned similar returns.

McCain’s campaign and his Senate office did not respond to repeated phone calls and emails concerning Cindy McCain’s investment with Keating. McCain and his wife file separate tax returns and signed a pre-nuptial agreement before their marriage in May 1980. Cindy McCain owns one of the nation’s largest beer distributorships, Hensley & Company.

On Monday, McCain’s attorney, John Dowd, said in a conference call with reporters that McCain was not aware of his wife’s and father-in-law’s investment with Keating at the time it was made. “John was unconnected to that and unaware of it at the time and did not participate in it,” Dowd said.

However, during the Keating Five Senate Ethics Committee hearings in 1990-91, McCain testified that he was aware of the family investment with Keating in early 1986.

Under questioning from Dowd, McCain said he learned of the investment from a Hensley & Co. executive.

“I was told …they were going to invest in a shopping center and that the investment –- the project — was being put together by a subsidiary of American Continental,” McCain told the ethics committee. “He [the executive] later told me that had happened. And I had no interest in it and just noted in passing that this investment took place.”
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