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Ted Kennedy, Jr – ‘Healthcare Investor’

From the archives of The Hill:

Edward M. Kennedy at Massachusetts General Hospital on Tuesday surrounded by family; from left, his son Patrick, a congressman from Rhode Island; his stepson, Curran Raclin; his son Ted Kennedy Jr.; his daughter, Kara Kennedy; and his wife, Victoria.

Ted Kennedy Jr.’s firm sues over political intel

By Jeffrey Young

Posted: 11/20/07

A Wall Street investment firm co-owned by Edward Kennedy Jr. has filed suit against a well-connected Washington healthcare lobbying shop in a case that points up the legal gray area in the governance of political-intelligence gathering.

The Marwood Group, an asset management company that provides investment advice to hedge funds, mutual funds and institutional investors, filed suit against Health Policy Source, a lobbying firm specializing in healthcare legislation and regulations, on Oct. 30 in federal court in Washington, D.C.

Marwood filed a separate suit against its former employee, Katie Simons Pahner, in New York City.

If the currency of Washington is information, investment firms and lobby shops use the same coinage. Employees of investment firms and lobbying operations both seek to gain advance knowledge of legislation or federal regulations that could have a big impact on business.

Though Marwood and Health Policy Source serve different markets — investors versus lobbying clients — and have different motives — targeting investment dollars versus influencing public policy — they each perform similar services in the political intelligence realm and provide specialized, inside information to clients that pay dearly for it.

Kennedy, son of Sen. Edward Kennedy (D-Mass.) and brother of Rep. Patrick Kennedy (D-R.I.), founded Marwood with John Moore in 2002. The firm has more than 60 employees split among its New York, Washington and London offices and specializes in healthcare matters. Health Policy Source is co-owned by lobbyists Daniel Boston and Monica Tencate.

The result of the lawsuits could have important implications for lobbying firms, investment firms and other industries in Washington that depend on the information trade. A favorable ruling for Marwood could, for example, constrict the regular flow of knowledgeable, connected employees from one firm to another. 

The lawsuit stems from the decision of Pahner, 27 as of last month, to quit Marwood in September after working there for roughly one year. Pahner, who previously worked as an aide at the Centers for Medicare and Medicaid Services, then accepted a position as a lobbyist at Health Policy Source.

Marwood claims that Pahner’s employment at Health Policy Source violates the non-compete and non-disclosure clauses of her contract, which stipulated that she could not work for a competitor for two years after leaving Marwood.

Pahner rose to the position of vice president at Marwood even though it was her second job after completing her master’s degree at George Washington University.

The plaintiff and defendants laid out their arguments in filings to the New York City court and the federal court in D.C.

Marwood’s Vienna, Va.-based attorney, Tyler Brown, of Jackson Lewis, declined to comment and a call to Marwood’s New York office was not returned. Boston would not comment and Pahner could not be reached.

Marwood is seeking $2.5 million plus punitive damages from Health Policy Source, saying the lobbying firm has benefited from information known to Pahner about Marwood’s clients, business practices and pricing structure that has given it an unfair competitive advantage.

Marwood’s cases against Pahner and Health Policy Source, respectively, rest on its assertion that Pahner’s activities collecting information about pending healthcare legislation and regulation for Marwood’s clients is materially the same as the work she performs for her new employer.

Marwood has not registered its employees as lobbyists since 2004, according to pubic records. Pahner has never registered to lobby, but Health Policy Source will add her name to its lobbying registrations next year, according to court documents

In its filing, Health Policy Source also noted that it offered to agree not to do business with any of Marwood’s clients for two years in order to settle the matter.

The lobbying shop does work for one of Marwood’s competitors, however. Health Policy Source provides coverage of congressional hearings and other public events for an investment firm, the Stanford Washington Research Group, which competes directly with Marwood

In a nutshell, Ted Kennedy, Jr owns a firm that specializes somehow in health care investments.

An employee of Kennedy Jr’s quit and went to work for Health Policy Source, a healthcare lobbyist firm.

And Kennedy’s company is now suing that firm and his former employee, claiming that this violates his contract which stipulates that he cannot work for a competitor.

So, ergo Mr. Kennedy is also in the healthcare business.

What a shock, huh?

Marwood’s cases against Pahner and Health Policy Source, respectively, rest on its assertion that Pahner’s activities collecting information about pending healthcare legislation and regulation for Marwood’s clients is materially the same as the work she performs for her new employer

And isn’t it handy that Mr. Ted Kennedy, Jr  is so well positioned to collect “information about pending healthcare legislation and regulation”?

(Thanks to Clarice for the heads up.)

This article was posted by Steve on Thursday, July 16th, 2009. Comments are currently closed.

13 Responses to “Ted Kennedy, Jr – ‘Healthcare Investor’”

  1. proreason says:

    Why it’s almost as if Mr. Kennedy is violating a public trust.

    But we know that’s impossible.

    He is the voice of the people.

    Like his father.

    Both selfless public servants.

  2. Chuckk says:

    Someday soon we will look back on the “Kennedy era” like we look back on bell bottom jeans. WTF were we thinking???

    • beautyofreason says:

      Hey, now. I like bell bottoms. But acid washed jeans….yes, those are bad enough to merit comparing to the “Kennedy era.” :)

    • Liberals Demise says:

      Nope …………………… DISCO and the clothes that went with it!!

  3. GetBackJack says:

    In the late 80s, I had occasion to need a private security firm to investigate as business matter. The firm I settled on was founded and managed by an elite group of former military intelligence officers now in the private sector. Perfect, as what I needed at the time crossed international boundaries.
    But the Kennedy Family bought out the firm before I could engage them. And it struck me at the time as moment to note … the Kennedy family buying up their own private intelligence agency.

    I see a pattern, now.

    (need more rope, there’s so many of these Kennedy buggers)

  4. Right of the People says:

    I’m shocked, shocked I tell you by the implication that they would use “insider” information to profit personally. Why that would be unethical and I can’t fathom a Kennedy doing anything unethical.

    (extreme sarc)

    I wonder how the Kennedys feel about being supplanted as America’s royal family by the Won, Thunderbutt and their progeny?

    • catie says:

      I just have never understood the fascination with those bootlegging, killing creeps. I don’t think they’ll ever be fully supplanted, they’re now the Dowager Queen. BTW I know I will be sickened when teddy finally kicks the bucket. They’ll give him a grand, Catholic send off. I may be pulling the hair out of my head.

  5. TwilightZoned says:

    It’s obvious, at least to me, the fix is in. Wall Street is in bed with the government and/or vise versa. Anyone and everyone in the government know or in cahoots with the government stands to make a fortune off national health care and crap & tax (Kennedy, Goldman Sachs, Al Gore); in the meantime paying little if any taxes. Regulators to watch out for the people will be held hostage and the people will be screwed royally.

    Our lives are becoming the never ending nightmare.

  6. wardmama4 says:

    I think my father is rolling over in his grave to see one of his beloved hospitals catering to this murderer (July 19/20, 1969).

    I can’t tell you what he did/was to MA General – I just know it was on his obituary – along with a long string of hospitals that I did not know he was educated at, taught at, worked at, or volunteered at.

  7. canary says:

    Money before medical care. This explains Obama saying one day that Trillions would be made by his Health Care passing, to pay back the debt he put us in, then is flip flopping and his Health Care would be cheap because they’d not profit. Which are we to believe.

    Is congressman Patrick Kennedy (RI) still in his expensive elite rehab hospital for substance problems, he admitted last month?. Are tax payers paying for it?

    • canary says:

      Guess Kennedy figures he’ll win big bucks with the Kennedy loving U.S. Attorney General in charge of Federal Court now.

  8. U NO HOO says:


    “It’s Not An Option
    By INVESTOR’S BUSINESS DAILY | Posted Wednesday, July 15, 2009 4:20 PM PT

    Congress: It didn’t take long to run into an “uh-oh” moment when reading the
    House’s “health care for all Americans” bill. Right there on Page 16 is a
    provision making individual private medical insurance illegal.

  9. Reality Bytes says:

    ER-A! Why That’s Out Rageous! ER-A, Employees don’t leave Kennedy’s. ER-A, Kennedy’s leave them, ER-A in a car, ER-A, after one of us drives it off a bridge.

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