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Correction re: Lillian Vernon, Fred Hochberg, Norman Hsu
In this post on September 21st, I inaccurately referred to Fred Hochberg (Dean of Milano at the New School, HillRaiser, financier of many of Norman Hsu's favored Democratic candidates and committees, and member of Bill Clinton's cabinet), as the current CEO of Lillian Vernon and his brother David Hochberg as an executive at the company.
Fred Hochberg is not (nor was he ever) CEO of Lillian Vernon, but rather is the company's former president and COO, while David Hochberg is the former VP of public affairs.
Fred and David are both sons of the company founder, chairman emeritus, and former CEO Lillian Hochberg (later renamed Lillian Vernon), but neither son currently serves any role in the organization, nor does either maintain any ownership in the company.
Fred departed the company in the early 1990s, not long after Hsu first became a fugitive from justice and several years before the apparent onset of his current political imbroglio. David left the company more than two years ago, according to Lillian Vernon's public relations specialist, who e-mailed to alert me of the error.
In the context of the previous post, I called attention to Fred Hochberg's identity as a Lillian Vernon executive (former executive) and offpsring of the founder, given the odd fact that the company is listed as the official intermediary of one of Norman Hsu's own direct political contributions (a singular distinction, so far as I've seen). Hochberg's multiple linkages to Hsu (Hillary's A-list, the New School, their political contribution patterns) seemed to render Lillian Vernon's identity as the intermediary of that Hsu contribution all the more relevant.
The fact that neither son is currently involved in (nor owns any of the equity in) the company seems to refute any resulting suggestion of a relationship between Hsu and the company (though certainly not between Hsu and Hochberg).
The resulting question mark, as concerns Lillian Vernon, is then: Why is the company listed as intermediary of one of Hsu's contributions as recently as June 2007 (to NY City Council Speaker Christine Quinn), given that Fred (the one whose linkages to Hsu are well-documented) departed 14 years prior?
Occam might suggest mega-bundler Fred Hochberg is simply still using the Lillian Vernon name when filling out his bundling forms (of which he's filled out quite a few, based on the records from the NYC Campaign Finance Board, one of the few bodies that reports intermediaries). Oddly though, Fred hasn't listed himself as an intermediary on any filing with the NYC CFB since 2003.
"Lillian Vernon", on the other hand, is the intermediary of record not only for Hsu's June 5, 2007 contribution to Quinn, but on precisely one other contribution - also to Christine Quinn, also on June 5th, 2007, made by Cathy Lasry.
Cathy's husband Marc is a member of a list that you're likely becoming increasingly familiar with.
So while this correction (as egregious and regrettable as the underlying error was) tends to sever the indirect connection between Hsu and Lillian Vernon, by way of Hsu's apparent association with Fred Hochberg, it renders all the more puzzling the fact that the company is listed as the bundler of these two very recent contributions, made by Hsu and a fellow HillRaiser's spouse - on the same day to the same candidate.
I've asked the public relations specialist who wrote in about this and will update this post with any insights he's able to offer.
Update: The PR rep indicates that the bundler in question here is "Lillian Vernon the person [not] Lillian Vernon the company." In the 1990s, Lillian Hochberg did formally rename herself after the company that she'd partially named after herself, so were she to set to bundling, I suppose that's how her name would appear.
Handcrafted by Flip on September 24, 2007 |
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Comments
At one time both sons held stock via foundations they each run, don't know if it's still true 21) Includes 697,100 shares owned by the Lillian Menasche Vernon Foundation, of which Lillian Vernon, Fred Hochberg, and Leo Salon are directors. Includes 85,000 shares owned by the David Hochberg Foundation, of which David Hochberg is the trustee. Includes 35,000 shares owned by the Heyday Foundation, of which Fred Hochberg is the trustee. Includes options to purchase 598,667 shares which are presently exercisable or which become exercisable within 60 days of date hereof. Shares owned by Jane Ries, who resigned as Senior Vice President-New Catalog Development on April 7, 1995, are not included in references to shares owned by Directors and Executive Officers in this Proxy Statement. http://sec.edgar-online.com/1995/10/19/00/0000950136-95-000356/Section7.aspPosted by: JustADude | Sep 24, 2007 10:20:45 PM
Again, you don't have to look too far to find an apparel/textile connection: Marc Lasry was formerly a director at Dress Barn, a retailer and importer.Posted by: marmot | Sep 25, 2007 6:10:45 AM
Was looking for recent financials for LV seems they have been de-listed from AMEX (old ticker LVC?), and they had some financial troubles in 2002? Also the models and actresses that have been popping up might loop back to LV as previous catalouge models [might be worthwhile to look at the pr/agency representation of those models/actresses and see if they can be traced back, might find more money that way]. Another loop I've been curious about is the charity/foundation angle, referred to in comment 1. Have any names and 990's been cross-referenced at this point using the Hsu stable of names [also a curious bit: I've seen "Norman" Hsu identified as Jang Jung Hsu-[this spelling might be incorrect, from memory of another court document referring to him-will look up and link this evening], but the SDNY charges don't include it as an a/k/a. Am I being paranoid or is this par-for-the-coursePosted by: RichatUF | Sep 25, 2007 11:56:53 AM
The company was taken private in 2003.Posted by: Flip | Sep 25, 2007 12:00:10 PM
The company was taken private in 2003? Was it the same firm that "Mr. Woodstock" [Rosenberg?] worked for-sorry if this is already tilled ground-find it odd that a company in as bad of shape as LV was in 2002 would have attracted any private capital (pe, hf, etc)?Posted by: RichatUF | Sep 25, 2007 12:10:03 PM
It was taken private by Ripplewood (the highest among multiple bidders), a firm that does a lot of turnarounds.Posted by: Flip | Sep 25, 2007 12:25:01 PM
Mr. Lasry is the Chairman, Chief Executive Officer, and a founder of Avenue Capital Group. Distressed investing has been the focus of his professional career for over 22 years. Mr. Lasry is also a founder of Amroc Investments, LLC. Prior to operating Amroc as an independent entity, Mr. Lasry managed capital for Amroc Investments, L.P., where he and the company were affiliated with Acadia Partners L.P., an investment partnership whose general partners include Keystone, Inc. (an investment partnership firm that was associated with the Robert M. Bass Group, Inc.), American Express Company and the Equitable Life Assurance Society of America. Prior to that, Mr. Lasry was Co-Director of the Bankruptcy and Corporate Reorganization Department at Cowen & Company. Prior to that time, he served as Director of the Private Debt Department at Smith Vasiliou Management Company. Mr. Lasry also clerked for the Honorable Edward Ryan, former Chief Bankruptcy Judge of the Southern District of New York. Mr. Lasry graduated with a B.A. in History from Clark University (1981) and received a J.D. from New York Law School (1984).Posted by: JustADude | Sep 25, 2007 4:12:15 PM
Using a soundex algorithm -- rather than an exact name match -- I found that there are not three, but at least eight Hillraisers who are also board members or trustees of the New School. They are: 1 John Catsimatidis 2 Barbaralee Diamonstein (Diamonstein-Spielvogel in The New School's Annual Report) 3 Blair/Cheryl Effron (Blair is a Hillraiser, wife Cheryl on the New School list) 4 Fred Hochberg 5 Norman Hsu 6 Bernard Schwartz 7 Jay Snyder 8 Sally Susman Additional speculation here and here about that.Posted by: Doug | Sep 26, 2007 6:05:18 AM
Links from above since the HTML didn't appear to work: http://directorblue.blogspot.com/2007/09/is-new-school-new-conduit-between-china.html http://directorblue.blogspot.com/2007/09/hillraisers-go-to-school-new-school.htmlPosted by: Doug | Sep 26, 2007 6:06:41 AM
More on Lasry http://www.cityhallnews.com/news/128/ARTICLE/1147/2007-05-15.htmlPosted by: meryl | Oct 1, 2007 8:50:11 AM

