Global Crossing boss under fire for suspect deals

NEWS Global Crossing's ex-chairman is being accused of involvement in suspect deals with other businesses that he controlled before the fibre optic networking outfit went bankrupt. Gary Winnick allegedly profited from the dealings with a privately held merchant bank he founded and managed - Pacific Capital Group - and its subsidiaries. One deal involved Global Crossing paying a subsidiary of Pacific Capitol - North Cresent Realty - $400,000 each month in rent for a Beverly Hills office, which was then subleased by Pacific Capitol back to North Cresent Realty for $53,000 per month. Global Crossing also contributed $3.2m towards half the alleged renovations required for the Beverly Hills office. Further deals were made by Winnick involving his own companies. It is not known how much Winnick made from the deals although it is known he sold shares in Global Crossing valued at $734m before it collapsed. Global Crossing has not yet launched a prosecution, but is itself under investigation from the FBI following its bankruptcy.