Global Crossing: Labor's Questionable Windfall

Thanks to a union-owned insurer's early stake in the former highflier, more than a dozen labor leaders profited handsomely

The unfolding scandal involving Global Crossing may be about to engulf an unlikely group: the U.S. labor movement. The labor connection involves a union-owned life insurance company that was one of the original investors in the fiber-optic outfit, providing some initial seed money to Global founder Gary Winnick. It was a savvy deal for the unions that own the insurer, ULLICO Inc., earning the company a $500 million profit on a $7.6 million investment.

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