Florida Gubernatorial Candidate Rick Scott Profitably Aided Oppressive Regimes

Disgraced Columbia/HCA executive Richard L. "Rick" Scott

Disgraced Columbia/HCA executive Richard L. "Rick" Scott has been in the media lately for spearheading Conservatives for Patients Rights, an organization adamantly opposed to health care reform. In addition to the fraudulent practices of his former empire, Scott serves on the boards of two companies that helped the Saudi Arabian and Iranian regimes suppress their citizens by censoring access to the Internet.
Rick Scott Is Personally Funding Conservatives For Patients Rights

Rick Scott Used His Own Funds To Start The Group Conservatives For Patients Rights. During an interview with the Politico, Rick Scott was asked if he was "providing the only source of funding" for the group, to which he said: "I started by myself, but people have started funding. I did it myself at the beginning because it is what I believe, and I think it is hard to get people to ever ... do something with you if you don't stick your own neck out. So that is what I did, and now I have a lot of support." When asked "who else is funding the organization?" Scott answered: "I told people I am not disclosing their names. But there are lots of people who believe the same way we do." [Politico, 4/21/09]
CyberGuard, 2001-2006
February 2001 - January 2006: Richard L. Scott Served On CyberGuard's Board Of Directors.

February 2001: Richard L. Scott Joined CyberGuard's Board Of Directors. According to the Secure Computing website, Richard L. Scott joined CyberGuard's Board of Directors in February 2001. [SecureComputing.com, accessed 4/8/09]

* Various Reports Of The Length Of Scott's Tenure On CyberGuard Board Have Conflicting Dates. The Secure Computing (now McAfee website) reports that Scott left the CyberGuard Board in March of 2003. However, Business Wire twice reported that Scott was on the CyberGuard Board during the Secure Computing merger in January 2006. [SecureComputing.com, accessed 4/8/09; Business Wire, 8/18/05; Business Wire, 1/11/06, via TheFreeLibrary.com]

* Scott Served On CyberGuard Board From April 2004 Through January 2006. According to Enterpriser.in, a business site in India, "Scott, who was a board member of CyberGuard Corporation from April 2004 to Secure's acquisition of CyberGuard in January 2006." [Enterpriser.in, accessed 5/11/09]

In 2003, Scott Owned 45% Of Cyberguard. The Nashville Post reported: "Scott also has deployed funds to CyberGuard Corp., a Ft. Lauderdale computer security firm. He controls a 45% stake worth almost $50 million." [Nashville Post, 2/1/03]

* Scott Owned A Controlling Interest Of CyberGuard Stock. According to a CyberGuard SEC report filed in July 2004 because of the amount of stock owned by him, "Mr. Scott may be able control the outcome of certain shareholder votes, including votes concerning the election of directors, the adoption or amendment of provisions in our Articles of Incorporation, and the approval of mergers and other significant corporate transactions. This level of concentrated ownership by one person may have the effect of delaying or preventing a change in the management or voting control of CyberGuard." [CyberGuard SEC Filing, 7/7/04]

By 2006, Scott Was CyberGuard's Largest Shareholder. Business Wire reported: "Richard L. Scott, CyberGuard board member and largest shareholder said, 'When I initially made my investments in CyberGuard, I felt CyberGuard had superior products in the firewall industry. What was accomplished over the last 5 years is a testament to the management team we put in place and their commitment and focus." [Business Wire, 1/11/06, via TheFreeLibrary.com]
Clientele During Scott's Tenure On Board Of Directors

CyberGuard's Clients Included Saudi Arabian And U.S. National Banking, As Well As The U.S. Department Of Defense. According to Business Wire, CyberGuard has had "security projects in the Asian ISP/ASP markets, Saudi Arabia's National Banking System and in the US on the DOD Satellite Data Project." [Business Wire, 4/5/01]

October 2002: CyberGuard Announced Six-Month Saudi Security Contract. The Miami Herald reported: "Cyberguard, the Fort Lauderdale computer network security firm, reported net income of $931,000 for its first fiscal quarter ended Sept. 30, reversing a loss of $908,000 a year ago...Last week, CyberGuard said it would be providing security for the Saudi Telecom Co., the only communications provider in the Kingdom of Saudi Arabia. The contract with CyberGuard is part of a large data network security project embarked upon by the Saudi company. CyberGuard, which didn't disclose the value of the contract, says the work will last about six months." [Miami Herald, 10/28/02, emphasis added]

* Saudi Telecom Sought To Provide Secure Technology To Its Consumers. Business Wire reported that "Saudi Telecom is a company delivering results for its customers as it evolves to cope with the competition it progressively faces as its traditional markets are liberalized...Saudi Telecom understands that its leading edge network technology (Optical Fiber & ATM backbone), in data, telephone and mobile, and a focus on customer needs is not the end of the story; it also needs a secure business environment where vital information is safeguarded." [Business Wire, 10/22/02]

December 2002: CyberGuard Provided Data Security For Saudi Company. Communications News reported that "CyberGuard Corp., Ft. Lauderdale, FL, will provide firewall/VPN appliances to secure the network infrastructure for the Saudi Telecom's data network security project in Saudi Arabia." [Communications News, 12/2002]

The Saudi Government Utilized CyberGuard's Software To Protect The Banking System. According to an M2 Presswire release, "the Saudi Arabian Monetary Agency (SAMA) has selected CyberGuard's premium firewall/VPN appliances to provide the information security for a new ATM network called the SADAD Project being established in the Kingdom of Saudi Arabia. SADAD is a nationwide network that will allow citizens throughout the Kingdom to pay utility, phone and other bills securely at ATM machines. The project is a collaboration between all the banks in Saudi Arabia under the sponsorship and supervision of the SAMA." [M2 Presswire, 7/29/04, accessed via Goliath.ecnext.com]

CyberGuard Has Several Saudi Clients. According to an M2 Presswire release, "CyberGuard provides information security solutions throughout the Middle East, particularly within the Kingdom of Saudi Arabia. In 2002, Saudi Telecom Corp selected - and began deploying - CyberGuard firewall/VPN appliances in high availability configurations to secure their critical customer and consumer backbone networks. Other large CyberGuard customers include Saudi Arabian Airlines, the National Commercial Bank (NCB) in Jeddah, as well as other banks and government agencies in Riyadh." [M2 Presswire, 7/29/04, accessed via Goliath.ecnext.com]
CyberGuard - Secure Computing Merger

Secure Computing Purchased CyberGuard "For About $295 Million." Computer World reported: "Secure Computing Corp. said it has reached an agreement to acquire CyberGuard Corp. for about $295 million in cash and stock." [ComputerWorld.com, 8/19/05]

CyberGuard's Largest Shareholder, Rick Scott, Joined "Secure Computing's Board Of Directors Following The Close" Of The Merger. Business Wire reported: "Richard L. Scott, CyberGuard board member and largest shareholder said, '...Their acquisition of technology and vision for combining these technologies, we believe, will be a significant benefit to all of the combined shareholders of CyberGuard and Secure Computing. I am very proud of what has been accomplished and the team that have been acquired by Secure Computing.' Mr. Scott will join Secure Computing's Board of Directors following the close of the transaction." [Business Wire, 1/11/06, via TheFreeLibrary.com]

CyberGuard Stockholders Received Stock And Cash Windfall In Merger Agreement. The Miami Herald reported: "Secure Computing has agreed to buy CyberGuard in a deal valued at $295 million, based on Secure's closing price of $12.18 Wednesday. The stock closed Friday at $11.18. [...] CyberGuard stockholders will receive a half share of Secure stock and $2.73 for each CyberGuard share. The company yesterday reported revenues for the fiscal year ended June 30 spiked 38 percent over last year, to $66.1 million. Earnings per share decreased to 3 cents from 7 cents in fiscal 2004. Among CyberGuard's shareholders and directors are Broward County Sheriff Ken Jenne and lobbyist William Rubin." [Miami Herald, 8/20/05, emphasis added]

* Prior To Merger, Scott Purchased Nearly 6,500 Shares Of CyberGuard Stock. Business Wire published a RealTimeInsider.com report indicating that "Richard L. Scott, Director of Cyberguard Corp. (NASDAQ:CGFW), purchased a total of 6,478 shares at an average price of $5.96. The total purchase price was $38,639.97. Based on the Form-4 Filing, this appears to be an open market purchase and there were no footnotes or special circumstances described in the filing." [Business Wire, 2/7/05]

Under Scott, CyberGuard Previously Attempted To Absorb Secure Computing In July 2004

July 2004: CyberGuard Attempted To Acquire Secure Computing For $297 Million. The South Florida Sun-Sentinel reported that CyberGuard "made a $ 297 million bid to buy rival Secure Computing Corp....Both CyberGuard and Secure specialize in helping business and government customers with information technology security issues. In a letter sent to Secure on Sunday, CyberGuard proposed a one-for-one stock trade...The final price will have to be negotiated if Secure agrees to the deal. Layoffs could occur at the combined company if the deal goes through." [South Florida Sun-Sentinel, 7/13/04]

* In 2004, Secure Computing Was Reportedly Providing Iran With Censorship Software. Information Week reported: "In a report released earlier this year, [Open Net Initiative] stated that Iran used software from Secure Computing, based in San Jose, Calif. to operate 'one of the world's most substantial censorship regimes' in 2004 and 2005." [Information Week, 10/14/05]