Checking Giuliani's Ties

Other bulletin board stocks Giuliani Partners has advised include Lagrangeville, N.Y.-based Command Security (CMMD - Cramer's Take - Stockpickr), which provides security, aviation and support security services to U.S.-based private and governmental clients.

Command Security paid Giuliani Security & Safety LLC, a unit of Giuliani Partners, $175,000 a month plus expenses in 2005, according to SeekingAlpha.com. Command Security paid a third company, Jericho State Capital, a monthly fee of $90,000 for making the introduction to Giuliani Security.

In addition, Jericho received warrants to purchase 350,000 shares of Command Security stock at $2, which vested immediately, as well as an additional 150,000 shares if the agreement with Giuliani Security was extended another 12 months, according to a February 2006 SEC Filing.

For the six months ended Sept. 30, Command Security paid Giuliani Security more than $1 million related to its "consulting agreement," according to a 10-Q filing in mid-November, the company's most recent regulatory filing.

Another bulletin board name, Dallas-based Lighting Sciences (LGSP - Cramer's Take - Stockpickr), entered into a similar warrants-laden transaction in February 2005 with Giuliani Capital Advisors, a boutique investment bank and the largest unit of Giuliani Partners.

In exchange for financial advisory services, the company paid Giuliani Capital a $150,000 one-time fee, gave it 20% ownership of a planned joint venture to own light poles and related infrastructure, and issued warrants to purchase up to 1.65 million shares at 60 cents per share, exercisable at any time during the ensuring five years. The shares represented 3.2% of Lightning Sciences' outstanding float at the time, according to the firm's 8-K filing.