Message-ID: <24537690.1075852713754.JavaMail.evans@thyme> Date: Thu, 24 May 2001 05:15:53 -0700 (PDT) From: john.arnold@enron.com To: mike.maggi@enron.com Subject: FW: Follow up on the Chung Guy Mime-Version: 1.0 Content-Type: text/plain; charset=ANSI_X3.4-1968 Content-Transfer-Encoding: 7bit X-From: Arnold, John X-To: Maggi, Mike X-cc: X-bcc: X-Folder: \JARNOLD (Non-Privileged)\Arnold, John\Sent Items X-Origin: Arnold-J X-FileName: JARNOLD (Non-Privileged).pst -----Original Message----- From: "Eva Pao" @ENRON [mailto:IMCEANOTES-+22Eva+20Pao+22+20+3Cepao+40mba2002+2Ehbs+2Eedu+3E+40ENRON@ENRON.com] Sent: Wednesday, May 23, 2001 11:58 PM To: jarnold@enron.com Subject: FW: Follow up on the Chung Guy > -----Original Message----- > From: Anand R. Radhakrishnan > [mailto:aradhakrishnan@mba2002.hbs.edu] > Sent: Tuesday, May 22, 2001 7:07 PM > To: gkoundinya@hotmail.com; Donald Edward Lacey; Eva Pao; Catherine > Olson; Eileen Shy; David Hayes; Matt Crossland; Kim Scott; Heidi von > Allmen > Cc: Mike Stanton; ewong@thecarlylegroup.com > Subject: Follow up on the Chung Guy > > So, this story is now officially everywhere. New York Times, Washington > Post, NY Post, Bloomberg, etc... > > Anand > > The Carlyle Group's Scarlet Letter > > By Lloyd Grove > Washington Post Staff Writer > Tuesday, May 22, 2001; Page C03 > > > The Carlyle Group, the Washington-based global investment firm, boasts an > enviable roster of world-class financiers, including former defense > secretary Frank Carlucci, former secretary of state James Baker, former > budget director Richard Darman and former British prime minister John > Major. > But as of last Friday, it no longer enjoys the services of junior analyst > Peter Chung, whose international fame is starting to rival that of his > elders and betters. > > The Post's Carrie Johnson reports that the 24-year-old Chung -- a 1999 > economics graduate of Princeton University who had worked for Merrill > Lynch > in New York before joining Carlyle -- was ordered to resign from his job > in > the firm's Seoul office after he sent a shockingly vulgar e-mail detailing > his sexual ambitions in South Korea. After it was sent last Tuesday, > Chung's > e-mail proliferated all over the Internet (headlining the online industry > newsletter PrivateEquityCentral.net) and made the grayly eminent Carlyle > Group blush deep crimson. > > "So I've been in Korea for about a week and a half now and what can I say, > LIFE IS GOOD," Chung e-mailed a dozen friends. "I've got a spanking brand > new 2000 sq. foot 3 bedroom apt. . . . Why do I need 3 bedrooms? Good > question. . . . the main bedroom is for my queen size bed . . . where > CHUNG > is going to [bleep] every hot chick in Korea over the next 2 years (5 > down, > 1,000,000,000 left to go). . . . the second bedroom is for my harem of > chickies, and the third bedroom is for all of you [bleepers] when you come > out to visit my [butt] in Korea. . . . CHUNG is KING of his domain here in > Seoul." > > Last Thursday, when Chung's e-mail found its way back to headquarters, the > ax fell quickly. Carlyle Managing Director David Rubenstein told The > Post's > Johnson: "I can confirm on the record that he's no longer an employee." > Chung's former colleagues remained puzzled yesterday by his message. A > Carlyle source told Johnson: "He'd only been here five days. Ask Merrill > Lynch if he did anything like this." > > Merrill Lynch spokesman Joe Cohen told us: "We have no comment on any > statements made or activities taken after Mr. Chung left Merrill Lynch." > But > Cohen confirmed that Chung was a summer intern in 1997 and 1998 and then a > full-time employee in New York from July 1999 to April 2001. Our calls to > Chung were not returned yesterday. His younger brother, Patrick, told us: > "We have no comment at this time. . . . He's still in Seoul." > > > > May 22, 2001 (New York Times) > An E-Mail Boast to Friends Puts Executive Out of Work > By ANDREW ROSS SORKIN > > Hold on. Do not press send. > > A young click-happy financial executive is wishing that he had never > touched > his computer's left mouse button last Tuesday. > > Paul Chung, a recently hired associate at the Carlyle Group in its office > in > Seoul, South Korea, was forced to resign on Friday after boasting about > his > sexual exploits and lavish lifestyle in an e-mail message to 11 buddies at > Merrill Lynch in New York, where he used to work. > > Unfortunately for Mr. Chung, a 24- year-old Princeton graduate who had > moved > to Seoul three days earlier to start his job, the message was forwarded or > passed on to thousands of people on Wall Street and wound up being sent to > his bosses at Carlyle, the private equity firm. > > Mr. Chung was given the option of resigning or being dismissed, a Carlyle > executive said. > > The message, which was retitled "Amazing Cautionary Tale" by a banking > analyst, meandered in and out of e-mail boxes around the world. > > "I know I was a stud in N.Y.C., but I pretty much get about, on average, > 5-8 > phone numbers a night and at least 3 hot chicks that say that they want to > go home with me every night I go out. I love the buy side," Mr. Chung > wrote > in the message using the company's network. He bragged about his "spanking > brand new 2000 sq. foot, three bedroom apt. with a 200 sq. foot terrace." > He > bragged that he used one bedroom for his "harem" and another for other > sexual exploits. > > Mr. Chung also boasted about his job. "I have bankers calling me every day > with opportunities," he wrote, "and they pretty much cater to my every > whim > - you know (golfing events, lavish dinners, a night out clubbing)." > > Reached by telephone in Seoul, Mr. Chung said: "It's devastating. I really > can't comment. Sorry." > > Mr. Chung is the latest in a string of employees to lose their jobs or be > publicly embarrassed by a sexually explicit e-mail message that was > forwarded to others. In a much publicized e-mail message last year that > made > its way to hundreds of thousands of in-boxes, an employee of a British > Internet provider wrote to her boyfriend about a sex act. Employees of > many > different companies that passed the message along to friends were > dismissed. > > > David M. Rubenstein, a founder and managing director of the Carlyle Group, > had no comment. The Carlyle Group is known for its investments in military > companies and its prominent list of advisers, including Arthur Levitt, the > former chairman of the Securities and Exchange Commission, and James A. > Baker III, the former secretary of state. > > One analyst that passed along the message to his investment banking > colleagues attached this prophetic message: "Rule No. 1 we learned in I.B. > training: If you don't want it published in the NYT, don't write it." > > > Date: Mon, 21 May 2001 14:47:08 -0400 > > Carlyle Fires Associate After E-mail Sex Boast, Web Site Says > 2001-05-21 13:36 (New York) > > Washington, May 21 (Bloomberg) -- The Carlyle Group Inc. told a recently > hired associate in South Korea to resign after he boasted of sexual > exploits > in an e-mail that was sent to investment banks worldwide, according to > PrivateEquityCentral.net, an industry Internet news service. > > Peter Chung, working in Carlyle's Seoul office, boasted that he needed a > three-bedroom apartment because he needed one bedroom to house his ``harem > of > chickies'' and the other to house his visiting friends, according to the > e-mail. Chung, who resigned Friday, wrote that he was going to sleep with > > ``every hot chick in Korea over the next 2 years (5 down, 1,000,000,000 > left > to go).'' Chung sent the message May 15 to 11 friends via the Carlyle > e-mail > system, according to PrivateEquityCentral.net. > > Carlyle founding partners Bill Conway and David Rubenstein couldn't > immediately be reached to comment on the Internet report. The > private-equity > firm, with more than $13 billion under management, has one of its largest > investments in Korea, where it spent about $300 million to buy a stake in > KorAm Bank, the country's eighth-largest commercial lender. Carlyle, > whose > owners include the California Public Employees' Retirement System, counts > former President George Bush and former Prime Minister John Major of Great > > Britain among its advisers. > > Chung asked that condoms be sent by Federal Express because he was running > > out and that he goes out to Korea's finest clubs, every other week night > and > both weekend nights -- much of it paid for by the investment banks seeking > > advisory fees from Carlyle. > > ``I think in about 2 months, after I learn a little bit of the buyside > business I'll probably go out every night on the weekdays,'' Chung's > e-mail > said. > > Carlyle Contacts > > Washington, D.C.-based Carlyle has zoomed to prominence partly through its > > contacts. At its annual meeting in September, speakers included General > Electric Co. Chairman John Welch, AOL Times Warner Inc. Chairman Steve > Case > and Citigroup Inc. Chairman Sanford I. Weill. Among Carlyle advisers are > Arthur Levitt, former chairman of the Securities and Exchange Commission, > former Secretary of State James Baker and former Philippine President > Fidel > Ramos. The Chairman Frank Carlucci is a former U.S. defense secretary. > > Last year's investments included an airplane parts factory complex bought > from Northrop Grumman Corp. for $1.2 billion and a plastic laminate maker, > > Panolam Industries Holding Inc., for $402 million. > > --Mark Pittman in the New York newsroom (212) 893-3767 or e-mail at > MPittman@Bloomberg.net/jk/jdh/bw > > CARLYLE'S E-MAIL STUD BYTES THE DUST > > By ERICA COPULSKY - NY POST > -------------------------------------------------------------------------- > -- > ---- > > May 22, 2001 -- Subject: The Story (Gone Awry) of a Private Equity "Stud" > Another Wall Streeter apparently fell victim to the perils of the Digital > Age last week, when an associate from prominent Washington, D.C., > investment > firm Carlyle Group reportedly was forced to resign after a risqu? e-mail > he > sent to friends became a chain letter among investment banks around the > world. > > The incident began innocently enough when a Peter Chung, who represented > himself to be a junior staffer in Carlyle's Seoul office, sent an e-mail > to > 11 friends boasting of the lavish lifestyle and sexual exploits he is > enjoying in his new buy-side position. > > In a May 15 e-mail, obtained by The Post, "Living Like A King," "Chung" > brags in lewd detail about how he gets "on average, 5-8 phone numbers a > night" and how "at least 3 hot chicks that want to go home" with him every > time he goes out. > > He goes on, saying he loves the buy-side because "bankers pretty much > cater > to my every whim - you know (golfing events, lavish dinners, a night out > clubbing)." > > He concludes the e-mail by asking his friends to send him condoms by FedEx > because he was running out of them. > > The executive was forced to resign from Carlyle Friday, less than two > weeks > after his hiring, according to 'Net news service PrivateEquityCentral.net. > > > Carlyle partner David Rubenstein did not return repeated phone messages. > "Chung" could not be reached. However, in a May 17 e-mail purportedly sent > by him to a friend, he denied writing the e-mail that sparked the > controversy. > > That e-mail quickly circulated to hundreds of eager readers, who in some > cases added their own mocking commentaries. One reader called the e-mail > "kind of a 'pimpin' aint easy' version of the Uberconsumer from several > years back." Another marked it as "a lesson of why one should never put > anything in print . . ." > > The most biting satire, entitled "The True Story of a Private Equity > Stud," > urged recipients of the e-mail to contact former Secretary of State James > Baker, a senior counselor at Carlyle. > > > Carlyle Associate Resigns Following Raunchy E-Mail Incident > By David Snow > May 21, 2001 > > A junior professional in The Carlyle Group's Seoul office was forced to > resign Friday after a raunchy e-mail he sent to friends was forwarded to > thousands of people around the world. > > The junior professional, an associate, sent the message on May 15 to 11 > friends via his Carlyle e-mail account. In the message, the associate > expressed excitement about his new position with the Washington, > D.C.-based > private equity giant. But the associate mostly described, in bawdy detail, > > the lavish lifestyle and various sexual conquests he enjoyed as a young > "buyside" professional. > > The e-mail made its way to thousands of financial professionals and others > > around the world and two days later made it to top partners at The Carlyle > > Group, according to a source familiar with the situation. Carlyle > executives > found the e-mail "totally inappropriate," the source said, and were > particularly concerned about the mocking commentary that accompanied the > message as it was sent from person to person. One lengthy commentary > described private equity professionals as "arrogant" and "profiting from > the > hoarding of capital," and satirically urged recipients of the forwarded > message to contact Carlyle senior counselor James Baker. "The e-mail > highlighted the firm in a very negative way, and it was taken very > seriously," the source said. > > The associate resigned last Friday after having been employed by Carlyle > for > less than two weeks. The Carlyle incident is similar to the "Brad and > Claire" incident that originated in London late last year, in which an > employee of law firm Norton Rose forwarded to friends an explicit e-mail > from > his lover. The message was forwarded to an estimated 10 million people and > > eventually made it to the front pages of the British tabloids. The Norton > Rose employee was subsequently disciplined but not fired. > > In his e-mail, the Carlyle associate bragged about having investment > bankers > "cater to my every whim - you know (golfing events, lavish dinners, a > night > out clubbing)." He said his goal was to sleep with "every hot chick in > Korea." > > Carlyle's Seoul office, responsible for leading Carlyle's $300 million > investment in KorAm Bank of South Korea last year - its largest deal ever > is > headed by managing director Michael Kim. > Copyright (c)2001, PrivateEquityCentral.net > PrivateEquityCentral.net is a division of Links Securities LLC > > > Anand Radhakrishnan > Harvard Business School - Class of 2002 > 14 Trowbridge Street #1 > Cambridge, MA 02138-5307 > home: (617) 491-0525 mobile: (617) 899-0026 > aradhakrishnan@mba2002.hbs.edu > - winmail.dat