Buzzy the Banker
Just published: Part 5 of TrueHoop on the CIA, the NBA, and Jeffrey Epstein
Just published to TrueHoop subscribers: PART 5 of our investigation into the NBA’s most important source of cash. Mostly this episode details the fascinating banking career of A.B. “Buzzy” Krongard, and its intersection with figures ranging from Bill Gates to former Sonics owner Howard Schultz. To read the whole thing:
Below is a short excerpt of PART 5, which delves into Krongard’s business history, and his time at the CIA.
Also in 1998, Buzzy made a name for himself inside the Beltway by putting together a deal with Blackwater. Erik Prince, a billionaire-by-inheritance and—like Buzzy’s son—a former Navy SEAL (whose sister, Betsy, married into the DeVos family that owns the Orlando Magic), had a startup with the dream of privatizing many aspects of war. Prince tried to drum up business in Washington, and failed … until he met Buzzy.
Later there would be reports—which Prince did not deny—that Prince was long a CIA asset himself. Much of what Blackwater did was effective, including providing security for the CIA. But before long, Blackwater was under investigation for many terrible things. One of the allegations was mass civilian murder. Another was arms smuggling.
Eventually, the House Committee on Oversight and Government Reform declared that the government spent $1,222 per day per Blackwater guard, “equivalent to $445,000 per year, or six times more than the cost of an equivalent U.S. soldier.”
By then, Buzzy was reportedly a hunting buddy of Erik Prince’s. He defended Blackwater even after it all went wrong. “It’s very easy to second-guess them when you’re sitting back in an air-conditioned office,” Krongard told the New York Times.
The State Department Inspector General’s office was assigned to look into it all, and the head of the department riled his staff by appearing to meddle with the investigations. It led to congressional hearings, and would you believe that, of all people, the inspector general in the crosshairs was … Buzzy’s brother—Howard “Cookie” Krongard?
C-SPAN is rarely chilling, but this episode led to some exciting tension.
Howard swore, under oath, that he had called his brother Buzzy and confirmed Buzzy had no ties to Blackwater. Representative Elijah Cummings confronted Howard with a letter and an email which seemed to show Buzzy accepting an invitation to join Blackwater’s board. Howard stuck to his guns. Cummings asked if Howard knew where his brother was right then, as the Blackwater board was meeting, and it seemed Buzzy might be there.
The committee took a break. Then, after a few questions, Howard asked if he could make a statement. There was some discussion, and then it was allowed. Howard announced that, during the break, he had talked to his brother, and learned that he had been wrong. Buzzy had just left the Blackwater annual meeting.
Howard recused himself from the Blackwater investigation on the spot and resigned a few weeks later. Buzzy resigned from the Blackwater advisory board, and never really got in any detectable trouble—although he did move on from the CIA the instant his friend Tenet was replaced.
In an interesting twist, Buzzy told a reporter that his brother had known about his being on the Blackwater board all along. Howard had told the committee he hadn’t been so focused on this or that appointment, but had instead been wondering if Buzzy had a significant ownership stake in Blackwater, and Buzzy did not.
Not that day, at least. Blackwater went through two name changes and got new owners—now what’s left of it is called Constellis and is part of Apollo. Since 2011, Buzzy has been a board member and a major shareholder.
SUBSCRIBE TO READ THE WHOLE SERIES.
PART 1: Apollo Global, deep pockets with ties to the NBA, Jeffrey Epstein, and Buzzy
PART 2: The earliest days of Sears Roebuck, the CIA, and United Fruit
PART 3: 1950s and 60s: Buzzy at Princeton, the CIA messes with mind control, Leon Black’s dad
PART 4: Beverly Hills in the 1960s, 70s, and 80s
PART 5: Buzzy the Banker