FW: Follow up on the Chung Guy

-----Original Message-----
From: "Eva Pao" <epao@mba2002.hbs.edu<@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 ©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
<

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