Original Article Security pick has made millions touting Tasers New York Times Dec. 10, 2004 12:00 AM WASHINGTON - Just five years ago, Bernard Kerik was facing lawsuits from a condominium association and bank over delinquent payments owed on a modest New Jersey condo he then owned. Today, he is a multimillionaire, the result of a lucrative partnership with former Mayor Rudolph Giuliani and an even more profitable relationship with a stun-gun manufacturer. If he is confirmed to the post of Homeland Security secretary for which he was nominated by President Bush last week, he will oversee an enormous department that does business with some of the companies that helped make him wealthy. The list of income sources that transformed the former New York City police commissioner into a wealthy man is a diverse one, including a bestselling autobiography, speeches around the United States and service on corporate boards. Kerik even sold the rights to make a feature film about his rags-to-riches life to Miramax, the film production company. But it is the relationship Kerik has had since the spring of 2002 with Taser International, a Scottsdale-based manufacturer of stun guns, that has by far been the biggest source of his newfound wealth, earning him more than $6.2 million in pre-tax profits through stock options he was granted and then sold, mostly in the past month. Kerik benefited largely because the company has enjoyed an extraordinary surge in its stock. Stock options that were worth very little at the time became extremely valuable, in part because of the sales pitch Kerik made on the company's behalf to other police agencies. The sales driving Taser's growing profits come mostly from local and state governments. But while Kerik has served on the company's board, it has made an aggressive push to enter markets either regulated or controlled by the federal government, most notably the Department of Homeland Security. A White House spokesman said Kerik would resign from the board and sell his remaining stock, if confirmed. At one point, Kerik referred Taser executives, seeking more federal business, to a Customs and Border Protection official of the Homeland Security Department, according to the company president. "Anyone in a federal law enforcement position is a potential customer," said Thomas Smith, president and co-founder of Taser International, who said he hired Kerik because of his prominence as New York's police commissioner. Kerik declined, through a spokeswoman, to discuss his work for Taser. A White House spokesman said Kerik will adhere to "the highest ethical standards" and ensure there are no conflicts of interest. In 2002, Taser International sought to significantly expand its sales to law enforcement agencies, and it needed a high-profile former public official who could serve as a spokesman for its product, Smith said. Kerik, he added, was the perfect candidate, having served as both corrections and police commissioner. Kerik's role working alongside Giuliani on Sept. 11, 2001, had also earned him a national reputation, particularly in the law enforcement world. From the moment he joined Taser's board in May 2002, Kerik became one of Taser's chief spokesmen before police officials. Kerik also defended the guns against criticism that their use had contributed to the deaths of suspects who have been fired upon by police. Amnesty International said there have been 74 Taser-related deaths in North America since 2001. An Air Force laboratory that conducted research on the guns said last month that it could not determine whether they were safe, in contrast to statements from Taser that the laboratory had found its weapons generally safe and effective. The Taser publicity campaign has been an enormous success. More than 6,000 police departments and prisons today use Tasers, compared with only a handful five years ago, and Taser International's sales have climbed from $6.9 million in 2001 to about $68 million this year. In Washington, Taser executives have sought ways to break into another potentially enormous market: domestic security and the military. The company hired a lobbyist and met repeatedly with government officials to begin building a base for future federal business, which has represented only about 3 percent of the company's sales.