Over the last decade, the Carlyle empire has grown to span three continents and include investments in most corners of the world. It owns so many companies that it is now in effect one of the nation's biggest defense contractors and a force in global telecommunications. Its blue-chip investors include major banks and insurance companies, billion-dollar pension funds and wealthy investors from Abu Dhabi to Singapore.

In getting business for Carlyle, Mr. Bush has been impressive. His meeting with the crown prince was followed by a yacht cruise and private dinners with Saudi officials, including King Fahd, all on behalf of Carlyle, which has extensive interests in the Middle East.

And Mr. Bush led Carlyle's successful entry into South Korea, the fastest-growing economy in Asia. After his meetings with the prime minister and other government and business leaders, Carlyle won a tough competition for control of KorAm, one of Korea's few healthy banks.

The steady flow of politicians to lucrative private-sector jobs based on their government contacts is a familiar Washington tale. But in this case, it is being played out for more dollars, on a global stage, and in the world of private finance, where the minimal government rules prohibiting lobbying by former officials for a given period are not a factor. These rules say nothing about potential conflicts when former government officials use their connections and insights for financial gain, and they may attract more notice now that George W. Bush is president. Many of those involved with Carlyle, which invests largely in companies that do business with the government or are affected by government regulations, have ties to the Oval Office.

For instance, Frank C. Carlucci, a Reagan secretary of defense who as much as anyone is responsible for Carlyle's success, said he met in February with his old college classmate Donald H. Rumsfeld, the secretary of defense, and Vice President Dick Cheney, himself a defense secretary under former President Bush, to talk about military matters -- at a time when Carlyle has several billion-dollar defense projects under consideration.

Carlyle officials contend that the firm's activities do not present any potential conflicts since Mr. Bush, Mr. Baker and other former Republican officials now at Carlyle -- including Mr. Carlucci, who is Carlyle's chairman, and Richard G. Darman, Mr. Bush's former budget director -- do not lobby the federal government. Carlyle executives point out that many corporations have former government officials as board members.

''Mr. Bush gives us no advice on what do with with the federal government,'' said David Rubenstein, the firm's founder and a former aide in the Carter White House. ''We've gone over backwards to make sure that we do no lobbying.''

Others, however, see little difference between potential conflicts involving lobbying and those involving investments.

''Carlyle is as deeply wired into the current administration as they can possibly be,'' said Charles Lewis, executive director of the Center for Public Integrity, a nonprofit public interest group based in Washington. ''George Bush is getting money from private interests that have business before the government, while his son is president. And, in a really peculiar way, George W. Bush could, some day, benefit financially from his own administration's decisions, through his father's investments. The average American doesn't know that and, to me, that's a jaw-dropper.''

It is difficult to determine exactly how much money the senior Mr. Bush and Mr. Baker have made. Mr. Baker is a Carlyle partner, and Mr. Bush has the title senior adviser to its Asian activities. With a current market value of about $3.5 billion on Carlyle's equity and with the firm owned by 18 partners and one outside investor, Mr. Baker's Carlyle stake would be worth about $180 million if each partner held an equal stake. It is not known whether he has more or less than the other partners.

Unlike Mr. Baker, Mr. Bush has no ownership stake in Carlyle; he is an adviser and an investor and is compensated by obtaining stakes in Carlyle investments. Carlyle executives cited, for example, Mr. Bush's being allowed to put money he earns giving speeches for Carlyle into its investment funds. Mr. Bush generally receives $80,000 to $100,000 for a speech. He sits on no corporate boards other than Carlyle's.

Carlyle also gave the Bush family a hand in 1990 by putting George W. Bush, who was then struggling to find a career, on the board of a Carlyle subsidiary, Caterair, an airline-catering company.

From Carlyle's point of view, the involvement of Mr. Baker and the former president is invaluable.

''It punches up the brand awareness for us globally,'' said Daniel A. D'Aniello, a Carlyle managing director. ''We are greatly assisted by Baker and Bush. It shows that we are associated with people of the highest ethical standards.''

With $12 billion from investors, Carlyle claims to be the nation's largest private equity fund and makes money by investing in undervalued companies and reselling at a profit. These numbers put Carlyle in the same league as better-known private equity firms like Kohlberg Kravis Roberts & Company and Forstmann-Little & Company.

Two hundred forty Carlyle employees are stationed throughout the world either raising money or finding ways to spend it. Carlyle has ownership stakes in 164 companies, which last year employed more than 70,000 people and generated $16 billion in revenues. About 450 institutions -- mainly large pension funds and banks -- are Carlyle investors.

The California state pension fund invested $305 million with Carlyle, and the Texas teachers pension fund -- whose board was appointed when George W. Bush was governor -- gave Carlyle $100 million to invest in November. Carlyle also works as a financial adviser to the Saudi government.

''Let's say Carlyle is going fund-raising in the Middle East and they bring Bush along,'' said David Snow, editor of Private Equity Central, a trade publication. ''He led the U.S. Army into that region. That will catch the attention of very wealthy investors in Saudi Arabia and Kuwait. The fact that Bush is involved doesn't mean that Carlyle will make great investment decisions. But it will get them access to certain deals and certain countries that they might otherwise not have.''

One former Carlyle employee said, ''The firm understands that having Bush and Major around is like having movie stars around.''

Yet Carlyle's success is not just because of its high-powered connections. Carlyle has done well for its investors, returning an average of 34 percent a year over the last decade, in line with other private equity funds. It has done this by buying what it knows best -- companies that are regulated by the government. Nearly two-thirds of its investments are in defense and telecommunications companies, which are affected by shifts in government spending and policy.

One property of specific interest was Quintana Island, located in the Texas gulf, because it was accessible to cargo ships. The right to grant a lease to the land belonged to the Brazos River Harbor Navigation District.

If it could gain approval, the Crest LNG facility would be the first such facility in Texas, and only one of a few in the entire country.

The Harbor Commission was so enthralled with a proposal from Crest, that it offered the company an all-exclusive lease without soliciting for any other bids. The proposal was approved even though ExxonMobil owned the right to a first refusal on that part of the island, under a 1998 agreement, and even though the Commission knew that another company, Cheniere Energy, was interested in building a nearly identical facility on the exact same parcel of land.

When asked why the commission chose to grant the initial deal to Crest, Phyllis Saathoff, managing director of the Commission, said, "We worked it out and could accommodate [the Crest proposal], so we did," according to the LA Times on Oct 29, 2004.

To this day, Neil's connection to the firm is not widely known. However, Saathoff said that when Crest approached the commission with the project, it provided Neil's name as a reference.

How Did Crest Pull It Off?....

......James Smith, director of Public Citizen-Texas, a watchdog group focused on energy issues, described the Crest profiteering scheme correctly when he told the LA Times on Oct 29, 2004, that the deal appeared to be "another classic example of Bush family cronyism paying off."