Welcome to the Wednesday edition of the news round-up on Consult THIS. Consultants at firms other than Booz Allen: do something! And I shall grant your just reward—a coveted spot right here on the news round-up.
"The only winners in the Madoff scandal are the lawyers," said one Hofstra professor about the multibillion dollar Ponzi scheme that devastated countless investors. But not so! As is the case in most situations involving lawyers, consultants are behind the scenes, weighing in and seeking their just reward. In the case of Bernie Madoff, they've received it. CNN Money reports today that two consulting firms, FTI Consulting and AlixPartners, were paid millions by The Securities Investor Protection Corp (SIPC) in return for investigative services surrounding the fraud. The SIPC, which CNN describes as "an industry-sponsored organization that provides financial protection to investors," paid FTI $84 million and AlixPartners $48 million for their services (the details of which are, unsurprisingly, undisclosed). The SIPC's expenditures to lawyers and consultants total nearly $300 million, a figure that the Hofstra prof calls "eye-popping".
Sapient today released its fourth quarter and fiscal year 2010 results, which showed increasing momentum heading into 2011. Accounting for all three of its service lines (Global Markets, Government Services, and Sapient Nitro), the firm brought in roughly $825 million in revenue in 2010, a significant increase of 29 percent from 2009 ($640 million). Gains were equally impressive in the fourth quarter, which saw Sapient earn $222 million, up 21 percent from $185 million in Q4 2009. President and CEO Alan Herrick was thrilled with the results. "We had a strong finish to 2010 and are proud of the results we achieved for the year, with all three business segments posting excellent growth," he said. The firm was predictably bullish about the new fiscal year, forecasting a revenue increase of at least $6 million for the first quarter, and revenue growth above 20 percent for the full year.
And now, for the Wednesday run-in. Booz Allen Hamilton makes its daily appearance here, after executive VP Lloyd Howell was named Black Engineer of the Year for 2011. In government news (no Booz Allen, you aren't part of the actual government), Politico reports today that Bill Burton and Sean Sweeney, formerly a spokesman and chief aide to the Obama administration (respectively), have left their posts to "start a firm focused on political and strategic consulting." The pair have ruled out lobbying as a practice area (ahem…Liberty "Consulting").
For more information:
CNN: Madoff mess winners
Reuters: Sapient Q4 tops market
Booz Allen EVP Lloyd Howell to Receive Black Engineer of the Year Award
Politico: Burton, Sweeney leave White House
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