-----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 (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
>

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