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Iran/Arms Transaction: North/Poindexter Classified Discovery Request (13)
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Iran/Arms Transaction: North/Poindexter Classified Discovery Request (13)
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Records of the Office of Counsel to the President (Reagan Administration)
Arthur Culvahouse's Office Files
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Ronald Reagan Presidential Library
Digital Library Collections
This is a PDF of a folder from our textual collections.
Collection: Culvahouse, Arthur B.: Files
Folder Title: Iran/Arms Transaction:
North/Poindexter Classified Discovery Request (13)
Box: CFOA 1131
To see more digitized collections visit:
https://reaganlibrary.gov/archives/digital-library
To see all Ronald Reagan Presidential Library inventories visit:
https://reaganlibrary.gov/document-collection
Contact a reference archivist at: [email protected]
Citation Guidelines: https://reaganlibrary.gov/citing
National Archives Catalogue: https://catalog.archives.gov/
THE WHITE HOUSE
WASHINGTON
&
Date: 1/17/89
FOR:
Arthur B. Culvahouse, Jr.
FROM:
WILLIAM J. LANDERS
Associate Counsel to the President
The comment not only is untrue, it is
impossible to "reclassify" material in
the public domain. There is no authority
for it, nor would it meet the criteria
for classification in E.O. 12356.
THE WHITE HOUSE
WASHINGTON
Date: Qaiy
TO: Bill Lander,
FROM: ARTHUR B. CULVAHOUSE, JR.
Counsel to the President
See Miami Herold
FYI:
on page 2. Is this
COMMENT:
time
ACTION: ? No
U.S. Department of Justice
Office of Public Affairs
PM
News Summary for
The Attorney General
THURSDAY AFTERNOON, JANUARY 12, 1989
IRAN/CONTRA
PAGE
AG Thornburgh affidavit certifies that threatened
exposure of U.S. secrets forced government to drop
key North charges (UPI)
1
Documents government withheld from prosecutors
reportedly named Latin American government officials
working for CIA (Mi. Her.)
2-3
Los Angeles Times profiles lead prosecutor of North
4-5
Atlanta Constitution: Waiting on Attorney General
Thornburgh
6
Miami Herald cartoon
7
BUSH CABINET
President-elect Bush names former education secretary
Bennett to drug czar post; James Watkins as energy
secretary (UPI, AP)
8-10
Bush's Veteran's Affairs nominee reportedly tipped
South Korea on defector (LA Times)
11-12
Bush expected to quickly establish panel on ethics
laws (LA Times)
13
SOLICITOR GENERAL
Charles Alan Wright reported to be top prospect for
Solicitor General post (AP)
14-15
NERVE GAS
Customs agents today arrested Korean-American for
conspiracy to buy nerve-gas weapons for export (AP)
16
NFL
AP reports Gene Upshaw, executive director of the NFL
Players Association, faces possible criminal tax charges
17-18
DRUGS/DRUG TESTING
PAGE
Labor survey finds fewer than one worker in 100 was
checked for drug use last year (LA Times)
19
Two California cocaine suppliers sentenced to lengthy
federal prison terms (LA Times)
20
IMMIGRATION
Central American refugees stranded in Texas head for
Florida; Miami city manager closes stadium door to new
arrivals; Sen. Bentsen assails INS refugees' travel
restrictions (Mi. Her.)
21-23
California INS officials expect 300,000 immigrants to
take exam for citizenship (LA Times)
24
Suicide of Marielito at Leavenworth spurs fear of
more suicides (Kansas C-S)
25
INS systems chief successfully automates immigrant
legalization (Federal Computer Week)
26
WALL STREET
Former jurors at GAF trial say they distrusted
government's chief witness (LA Times)
27
National Review: RICO run amok
28
JUDICIARY
Legal Times analysis of President Reagan's judicial
legacy
29-31
IN OTHER NEWS:
Stock fraud: New Jersey con artist gets 12 years for
penny stock fraud (Newark S-L)
32
Bribery: Government witness in federal grand jury probe
charged with bribery attempt (Mi. Her.)
33
Sedition: Defense lawyer tells jury woman accused of
plot to overthrow government is innocent (Hart. Cour.)
34
COMMENTARY
National Review: Mayor Barry's legacy
35
Miami Herald: Put guilty in prison
36
UPI
up054
r W
UNITED PRESS INTERNATIONAL
bc-iranarms:1pes sked 1-1201
Thornburgh certifies need to protect secrets
By GREGORY GORDON
WASHINGTON (UPI) -- In a sealed affidavit, Attorney General Dick
Thornburgh certified Thursday that the threatened exposure of U.S.
secrets forced the government to drop two key Iran-Contra charges
against Oliver North.
Thornburgh and independent prosecutor Lawrence Walsh filed
declarations in response to U.S. District Judge Gerhard Gesell's
demand Monday for a formal statement that the decision to withhold
classified information was made at the highest levels of government.
Walsh, who has spent more than two years and $12 million in
taxpayers' money investigating the Iran-Contra scandal, asked Gesell
Jan. 5 to dismiss the two main charges against ex-White House aide
North because the administration had refused to declassify data
needed for the case.
North still faces trial Jan. 31 on 12 other criminal counts
charging him with obstructing Congress, shredding documents and other
improprieties during his secret campaign to arm the Nicaraguan Contra
rebels.
If convicted of all those charges, he could face up to 60 years in
prison and $3 million in fines.
The counts being dropped accuse North of conspiracy and theft of
government property in his role in the controversial diversion to the
Contras of about $14 million in proceeds from U.S. arms sales to
Iran.
Last week, Thornburgh said he agreed with the decision of an
inter-agency committee of intelligence experts to bar release of the
classified documents, saying that national security secrets would be
exposed at trial.
Walsh contended to the judge at a Monday hearing that no
certification from the administration was necessary because he was
simply exercising his prosecutorial right to drop charges because he
lacked sufficient evidence to proceed. However, he agreed to comply
with the court's request for a justification from Thornburgh for the
decision.
Gesell was expected to act promptly on the request.
James Wieghart, a spokesman for Walsh, declined comment Thursday
on a report by the Knight-Ridder News Service that the withheld
documents include the names of several Latin American government
officials who work for the CIA. The exposure of those ties,
Knight-Ridder said, could disrupt U.S. intelligence activities in
several countries.
Despite contentions from North's lawyers that classified
information also pervades the rest of the case, they have served
subpoenas on President Reagan, Vice President George Bush, Secretary
of State George Shultz and more than 70 other administration
officials -- including about 40 from the CIA, sources say.
The prospects of a trial going forward appear to hinge, in large
part, on how Gesell rules on North's arguments that he must use much
of the same classified information to defend himself on the other 12
charges.
An administration official familiar with the case predicted this
week that the case now can proceed to trial, perhaps even as
scheduled.
Gesell plans to begin considering North's arguments at a hearing
Friday. Walsh is expected to lay out the theory of his case,
contending it is narrow in scope and will not require a broad
defense.
upi 01-12-89 01:54 pes
I
The Miami Herald
ATE: 1-12-89
PAGE:
/A
U.S. feared North's documents
would reveal CIA Latin contacts
North in the past or participated in
They said the foreign officials as-
By ALFONSO CHARDY
the 1987 congressional investiga-
sisted North because they believed
Herald Washington Bureau
tion into the Iran-contra affair. One
that North and his lieutenants were
WASHINGTON - Documents
of the sources is a senior administra-
acting with official U.S. approval.
withheld by the Reagan administra-
tion official who advises the State
For example, in March 1986 the
tion from the prosecution of former
Department and the White House
then CIA station chief in Costa Rica
Lt. Col. Oliver North include the
on Central American security poli-
- Joe Fernandez - brought Piza
names of several Latin American
cy.
and his wife to Washington to meet
government officials who work for
Countries listed in the docu-
with North and then with Reagan, if
the Central Intelligence Agency,
ments, the sources said, include
only to have their picture taken with
sources close to the Iran-contra
Costa Rica, El Salvador and Venezu-
the American president. Walsh also
probe say.
ela where - respectively -
charged Fernandez in the Iran-con-
While many of the withheld docu-
North's contra resupply network
tra criminal case, but subsequently
ments detail incidents that are al-
built an airstrip, controlled part of
?
dropped the charges because Fer-
ready known publicly, the adminis-
an air base and attempted) to buy
nandez worked at CIA headquarters
tration fears that even a
military aircraft
in Virginia, not in the District of Co-
circumspect discussion of the epi-
North's activities in these coun-
lumbia, where Walsh has jurisdic-
sodes in an American courtroom
tries were central to Walsh's legal
tion.
strategy to show that the former
"If you ask Piza whether he
might expose the Latin American
National Security Council aide con-
thought Reagan supported North's
officials' links to the CIA and disrupt
spired to defraud the United States
activities, he probably would have
U.S. intelligence activities in sever
and steal government property by
concluded that he did," a senior ad-
al countries, the sources said.
using the profits from arms sales to
ministration official who once
One source said some of the with-
Iran to purchase supplies for the
worked closely with North said.
held documents previously had been
contras. Those are the charges
Piza and other Costa Rican securi-
declassified during congressional in-
Walsh now wants withdrawn.
ty officials, whose names remain se-
vestigations of the Iran-contra af-
In each case, the sources said,
cret, assisted North and Fernandez
fair, but were subsequently reclassi-
Walsh has documentary evidence -
in building an alternate contra re-
fied in an effort to limit discussion of
invoices, receipts and other legal pa-
supply airstrip in northern Costa Ri-
the incidents.
pers - showing transactions in-
ca where supply aircraft could land
The administration's refusal to ak
volving Iran arms sales profits to
for refueling and repairs after deliv-
low the documents to be used in
purchase contra supplies.
ering weapons to the contras inside
North's prosecution forced Iran-
Declassification of the documents
Nicaragua.
contra special prosecutor Lawrence
probably would shed little light on
Walsh to ask that the two major
whether President Reagan autho-
Also key to Walsh's case was the
charges against North be dismissed.
rized North to help the contras, the
assistance Bustillo, the Salvadoran
sources said. But it would almost
general, gave North. Between 1985
U.S. District Judge Gerhard Gesell
certainly expose Latin American se-
and 1986, Bustillo authorized North
is expected to act on that request
curity officials who collaborate with
and his contra resupply aides to use
this week.
the United States in covert opeΓa-
a section of El Salvador's principal
Gesell also has suggested that
tions, the sources said.
air force base - llopango - for air
other charges against North might
Some of the officials, the sources
resupply drops to the contras inside
be in jeopardy because of the refusal
said, are CIA assets - on the pay-
Nicaragua.
to permit use of the documents.
roll of the Central Intelligence
A third significant element in
All of the sources consulted for
Agency - who systematically as-
Walsh's case was North's efforts to
this article are either familiar with
sist the United States in specific
purchase the resupply aircraft
some of the documents or with the
projects to collect intelligence or
launched from Ilopango. As part of
legal strategies of Walsh and
carry out operations to further or
the evidence, Walsh planned to
North's defense team.
protect American interests in the
show that in November 1985 North
Some of the sources are closely
region.
and one of his co-defendants, Rich-
tied to North's defense team while
At least two of them - Gen. Juan
ard Secord, sent one of Secord's as-
others either worked closely with
Ramon Bustillo, commander of the
sistants to Venezuela to buy military
Salvadoran air force, and Benjamin
aircraft from the Venezuelan air
Piza, a security expert and former
force.
Costa Rican security minister -
were linked to North after the Iran-
contra affair broke in 1986, but the
names of at least a dozen other
agents and collaborators have never
been publicized, the sources said.
cont
2
In a document entitled "Proof of
The congressional report issued
the Charges" which Walsh filed in
in September suggests that Assis-
federal court Dec. 5, the special
tant Secretary of State Elliott
prosecutor, who did not identify
Abrams played a role in the effort.
Venezuela by name, says that when
An entry in North's notebook for
Secord's assistant, Richard Gadd,
November 1985, the congressional
"encountered resistance from [dele-
report says, records a request from
ted] North used his influence as a
North to Abrams to tell a Latin
representative of the United States
American country that "ACE [a
government to vouch for Gadd's
shell company set up by Richard
bona fides with the government [de-
Gadd to hold title to the aircraft for
leted]."
the resupply operation] is OK."
While Walsh attempted to protect
Abrams declined comment
Venezuela's identity in his filing, the
through a spokesman who said his
incident was outlined in a 1,002-
boss cannot discuss an ongoing
page supplementary report issued
criminal investigation. North's law-
in September 1988 by the congres-
yers have subpoenaed Abrams as a
sional Iran-contra committees. The
witness and Walsh himself was plan-
report is one of several, generally
ning to summon Abrams to testify
unheralded supplements that the
against North.
committees have released since
The November 1987 final Iran-
their "final" report was made public
contra congressional report said
in November 1987.
that Abrams denied "any knowledge
In the September supplement,
of the planes belonging to the Latin
Venezuela is openly identified as the
American country's air force."
country where North tried to buy
The final Iran-contra report notes
the aircraft.
that it was the "logistics director"
"Around November 1985," the
of the Venezuelan air force that ob-
congressional report says, "Gadd lo-
jected to the sale of the airplanes be-
cates three C-123 aircraft for pur-
cause he feared that the aircraft
chase for the resupply operation.
Secord tells Gadd that the cost will
would be used for drug-trafficking.
The report did not identify the logis-
be paid by 'donation.' Gadd arranges
tics director by name.
to tell Secord the price, after which
Ultimately, efforts to buy the
Secord will transfer the funds to the
Venezuelan aircraft failed and the
seller. North intercedes to help the
North network purchased the re-
sale by 'a letter, a message or
a
supply planes in Canada and the
telephone call to
the American
United States.
embassy in Caracas, Venezuela."
3
Los Angeles Times
DATE:
1-12-P4
PAGE: PA.V P.1 PA.V
The Man Who Would Prosecute Oliver North Is a Marine
Veteran Known for His Tough Courtroom Stance
By DAN MORAIN, Times Staff Writer
As pretrial maneuvering continues, law-
he can make more in a good hour in San
yers who know Keker say that if anyone
Francisco than the special prosecutor pays
S
AN FRANCISCO-John Keker was a
can bring the case to trial, it is Keker. After
in a day. Walsh's trial attorneys are paid at
young second lieutenant commanding
almost 20 years on the defense side of the
a rate of $278 a day.
a platoon of 60 Marines in Vietnam 23
well, he will play the part of a prosecutor
Two years ago. as outlines of the Iran-
years ago when an enemy bullet shattered
for the first time in the most important case
Contra scandal emerged, Keker sought a
his elbow and left it permanently disabled.
of his career.
job with Walsh. Driven not only by a
Now, the retired Marine is enmeshed in a
The drama of it all is not lost on him.
long-held interest in the secret workings of
different sort of combat. His target is
"When you go to court," he said, "you
government but also by simple curiosity.
another bemedaled Marine veteran, the
get a chance to be a hero, which is a thing
he thought it would be "fun" to find out
one President Reagan has called a national
that most people repress the desire for. You
what really happened in the worst foreign
hero.
also get a chance to fail enormously.
policy failure of the Reagan Administra-
With a Washington courtroom as the
"That sort of edge is something that
tion.
battlefield, Keker, 45, is leading the effort
people who are trial lawyers usually like.
to prosecute retired Lt. Col. Oliver North in
"You get a chance to do the right thing.
'He Really Was Offended'
what would be the first criminal trial to
You get a chance to do it in a stylish way."
"The political and legal implications
come of the Iran-Contra scandal. Semper
struck me as enormous," Keker said.
fidelis aside, if Keker has any loyalty
though he won't say anything beyond that
toward a fellow Marine in distress, it does
In the infantry. Keker and North had
about North or the trial. "He'll have his day
not show.
similar experience in war. Both led pla-
in court. That's what everybody is entitled
"What North has been doing for the last
toons in especially bloody battles. Both
to. What he has to say. what I have to say,
five years has, as far as I'm concerned,
were wounded and awarded Purple Hearts.
will be said in the courtroom."
nothing to do with the Marine Corps,"
North won a Silver Star for heroics in 1969.
Keker's friends say he wanted the job
Keker said in a recent interview at his San
After Vietnam, however, they took very
because he was appalled by the whole
Francisco office before shuttling back to
different paths.
messy affair.
Washington.
Keker rarely talks in any detail about
"What motivated him." Brockett said,
Vietnam. fends off questions about his
"was that he was offended by what North
Simple and Direct Reason
wound with a quip, and has a hard time
had done, rather than a desire to become
When independent counsel Lawrence E.
imagining a cause worth the high price of
famous in his time. I think he really was
Walsh selected Keker last month to lead a
war.
offended."
team of three lawyers who will prosecute
"I don't like flag-waving. That's not
To get the job, Keker turned to Charles
the former White House aide, he had a
what I am," said the San Francisco Demo-
Renfrew, an executive of Chevron Corp.,
simple and direct reason for tapping him.
crat, whose firm has taken on such pro-
who, like Walsh, had been a federal judge
"The general feeling here is that he's one
bono causes as fighting random drug
and deputy U.S. attorney general, serving
of the top trial attorneys in the country,"
testing of college athletes. "Anybody who
during the early years of the Reagan
said James G. Wieghart, spokesman for the
wants to be a flag-waver can wave the flag.
Administration.
special prosecutor.
It seems to me that it papers over things
"I wrote to Ed that if I were in his spot
"John Keker is genuine-tough, the sort
that need to be talked about."
putting together a staff. the first lawyer I
of person you would want with you if you
would hire is John Keker." Renfrew said,
were in a tough spot," said William
By the time Keker recuperated from his
calling him "uncanny in a courtroom."
Brockett, a Yale Law School classmate of
wounds in 1966, he was convinced that the
"It came as no shock to me that John
Keker, his partner in a flourishing litigation
war was a mistake. He retired from the
would try the case," Renfrew added.
firm, and a Vietnam veteran himself.
Marines as a first lieutenant. spent his
"You're just going to shoot with your best."
And Walsh is in a tough spot, indeed. In
savings traveling with his wife in Europe,
the past week, it has become less clear that
and returned to enter Yale where he made
'Give No Quarter, Ask No Quarter'
there will even be a prosecution. Walsh
the law review, and dabbled in liberal
In a courtroom, Keker's style is one of
was unable to persuade Reagan Adminis-
politics of the times.
"give no quarter. ask no quarter," says
tration officials to declassify documents
After graduating, he worked as a law
William T. McGivern Jr., chief assistant
that North claims to need in his defense,
clerk for Chief Justice Earl Warren, then
U.S. attorney in San Francisco.
and was forced to ask U.S. District Judge
Gerhard A. Gesell to dismiss two key
moved to San Francisco for a job as a
"John is probably as unfriendly as
charges: conspiracy to defraud the U.S.
deputy federal public defender. In 1973, he
anyone you can deal with while the case is
went into private practice, and he built a
going on," said Palmer Kelly, an assistant
government and theft of $14 million in
proceeds from arms sales to Iran to help
reputation by specializing in white-collar
U.S. attorney in Austin, Tex., who won a
criminal defense and business litigation.
conviction against a client of Keker's, a
finance U.S.-backed Contras in Nicaragua.
His success is reflected by Keker &
lawyer who helped a drug dealer launder
Dispute Over Classified Papers
Brockett's office, once a warehouse for
money. Kelly placed Keker on a list of the
North's attorney, Brendan V. Sullivan
wine, later a bawdy nightclub, now a brick
three top lawyers he has ever faced.
Jr., claims he needs classified documents to
and open-beamed showcase where Calisto-
"[Sullivan] will try to smoke up the
defend against the dozen charges that
ga, not aged coffee. is offered to visitors.
courtroom and throw the jury off the trail.
remain, and is trying to persuade Gesell to
Keker won't discuss his fees, except to say
Keker has got to blow the smoke out of the
courtroom. Being one of the better 'smoke'
throw out the rest of the case. In a hearing
set for Friday, Keker will step forth to
lawyers himself is certainly going to help."
argue that there is no need for classified
Kelly said.
papers in the pared-down trial.
4
cont'd.
The firm that Keker formed with
Newly married to his high school
Brockett a decade ago has fewer
sweetheart, Christina Day, Keker
months in Bethesda Naval Hospi-
than 20 lawyers, but nonetheless is
arrived at Camp Pendleton that
tal, Keker retired from the Ma-
often mentioned in legal publica-
January, figuring to enjoy
rines. He entered law school that
tions as one of the best litigation
Southern California. Twenty-eight
fall. He was, he said, a "concerned
firms in the country.
days later he was on a ship bound
citizen" who was involved in "bits
Keker & Brockett built its repu-
for Vietnam.
and pieces" of campus activism,
tation by winning cases for people
When he joined the Marines and
though his age and experience set
charged with white-collar crime,
realized that there was a chance
him apart.
later by handling complex business
that he would go to war, Keker
"I felt like an old man. I had a
cases, and more recently by repre
dropped his desire to fly and chose
wife and a kid," said the father of
senting lawyers in malpractice
the infantry. The decision had to do
two sons, ages 20 and 17.
suits.
"We were veterans. We respect-
Keker has had his share of
with his concept of fair fights, he
ed other veterans," Brockett add-
glamour cases. He successfully de-
said.
ed.
fended George Lucas in a suit
"I really didn't want to be in an
On Fire Commission
accusing Lucas of stealing the
airplane dropping bombs on people.
concept of the Walkers in the
It seemed somehow impersonal. If I
Like Brockett, who once quit law
"Empire Strikes Back."
was going to kill somebody, I'd
to play poker professionally, Keker
On leave from Walsh's staff last
rather do it face to face. It just made
has, on occasion, felt a need to do
year, the Ivy League-educated San
me more comfortable. It seemed
more than represent clients. He ran
Francisco sophisticate questioned
more human to fight as an infantry
unsuccessfully for the San Francis-
experts on such bucolic topics as a
platoon leader.
CO Board of Supervisors in 1977.
cow's rumen, and ended up with an
"The idea of being in charge of a
Mayor Art Agnos recently appoint-
$8-million libel verdict on behalf of
platoon is a much different experi-
ed him to the San Francisco Fire
a rancher who claimed that the
ence than just flying an airplane. I
Commission. He says he'd like to
University of California falsely ac-
must say that to be responsible for
have influence in national issues,
cused him of poisoning his live-
a platoon, 60 Marines, and all that
but has no desire to leave his
stock.
that entails, that is a big deal. I
chosen city.
In 1986, Keker defended San
don't think it gets any bigger than
"Washington is a one-industry
Francisco society figure and archi-
that."
town. The one industry is very
tect John (Sandy) Walker against
In July, 1966, as the war escalat-
interesting. But the diversity of
vehicular manslaughter charges.
ed, the Marines began Operation
ways of thinking, the things that
Walker's blood alcohol count was
Hastings, their first foray to the
people are interested in, are just not
.14%, and he was speeding along
Demilitarized Zone. "At least, they
there. It's remarkable how much
narrow Silverado Trail in the Napa
hadn't gone in officially" before. he
it's not there.
Valley wine country in June, 1984,
said. It was their largest and most
All the things that people
when he lost control of his Mer-
violent battle up to that point in the
make fun of California for are
cedes. His passenger, a 26-year-old
war, according to a Marine spokes-
things that I like about California. I
woman, died.
man.
would not want to live in a place
Keker brought in a world-class
"We dealt with mines; we dealt
where you're not exposed to some
with small attacks. But this was the
race car driver who had helped
design the Mercedes brake system
first knock-down, drag-out fight
of the dizziness that is here. I'm not
to testify that the 368 feet of skid
that we had been in. This was the
part of the dizziness, but I like it
proved that a brake malfunction
first bloody, awful battle. And it
around."
was to blame for the fiery crash.
was-awful.
By the time I was
"He created a theory out of thin
wounded, about half the platoon
air. There was evidence that the
was dead or wounded."
car was going in excess of 90. The
In all, 126 Marines died. Keker
car went airborne, hit an oak tree,
was among 448 who were wounded.
then uprooted a second oak tree."
He will not talk in detail about it.
said Mark Pollack, the prosecutor.
"There is no way," Keker said,
Though he lost the case, Pollack
"that a person who has been in
was effusive in his praise of Keker,
combat can talk about being in
saying that he has "developed his
combat, especially in this day and
skill to the level of an art form.
age, especially in relation to the
"It was a pleasure opposing him."
Vietnam War, especially to some-
body who has not been in combat,
someone who hasn't been in Viet-
Keker began his military service
nam.
with an ROTC scholarship to
"You end up making yourself out
Princeton. He had hoped to become
to be a hero or, to the contrary, you
a pilot. But when the Navy asked
make yourself out to be someone
that he become a submarine officer,
who is anti-war, or something. The
he became angry and took what he
truth is, you're a jumble of all of
saw as his one the Marines.
that.
After graduating cum laude from
"It's sort of nobody's business."
Princeton, he went to Quantico,
In February, 1967, after six
Va., for training. There, in Decem-
ber, 1965, he finished with the
highest rating in a class of 400
second lieutenants-"one of my
proudest accomplishments," he
says.
5
T. E ATLANTA CONSTITUTION
DATE:
PAGE:
Waiting On Attorney General Thornbu. gh
Never take a federal judge for granted.
Technically. the Judge acted to ensure
that the provisions of the 1980 Classified In-
After the Reagan dministration refused
formation Procedures Act are carried out. It
to permit portions of some classified docu-
is clear, however, that his aim is to affix re-
ments to be used in the trial of Oliver
sponsibility for dismissal of the charges on
North. independent prosecutor Lawrence E.
the man who heads the intelligence commit-
Walsh requested that the central counts of
tee that unanimously turned thumbs down
theft and conspiracy be dropped. Judge Ger-
on the court's request. Can it be that the
hard A. Gesell was expected to go along
judge suspects that the administration's cry
without a peep.
of national security is less than bona fide?
But the Judge has declined to dismiss
Interviewed last Sunday on television,
the counts until Attorney General Richard
Mr. Thornburgh confessed that he had not
L Thornburgh supplies an affidavit declar.
actually read the documents that his com-
ing that the documents cannot be entered
mittee so definitively pronounced upon.
into evidence without endangering national
Perhaps now he will be encouraged to take
security.
a look
b
One Heralo
LATE: 1/12/81
PAGE: 27A
MANEY
Chicag Tribuse
HELL NO YOU CAN'T
DIVERT MY LEGAL FEES
TO THE CONTRAS.
WALSH
STATE
DXO
7
JPI
UNITED PRESS INTERNATIONAL
up062
UW
bc-transition:225pes ld-multitakes 1-1211
urgent
(complete writethru bush names watkins and bennett)
By JOSEPH MIANOWANY
UPI Political Writer
WASHINGTON (UPI) -- President-elect George Bush filled the
remaining Cabinet-level posts for his adminstration Thursday,
selecting retired Adm. James Watkins as energy secretary and former
Education Secretary William Bennett to lead the battle against drugs.
The vice president, citing the challenges both men will face,
promised that his administration would be actively involved in trying
to deal with the problems currently plaguing the nation's nuclear
weapons facilities and in attempting to lessen America's drug
problem.
He said that developing energy sources was not inconsistent with
protecting the environment and, in an apparent attempt to calm the
fears of oil and gas interests, contended it was essential for the
nation to not rely on any single source of power.
Bush said drugs are as "serious as any problem we're likely to
face in the years to come."
"We are at war. Drugs are a terrifying, insidious enemy, Bush
added, contending they posed a threat that "reaches deep into our
nation's soul.'
The president-elect added he would be "personally involved" in the
fight.
The selection of Watkins, a former chief of naval operations and
commander in chief of the U.S. Pacific Fleet, was Bush's 14th and
final Cabinet choice, completing the team that will take over the
helm of government Jan. 20.
The 61-year-old has an extensive background in nuclear power -- an
expertise that Bush is hoping will help him deal with the biggest
problems facing the Energy Department.
Bennett, 45, is an ardent conservative who developed a reputation
as being tough-talking and outspoken when he served as President
Reagan's education secretary from February 1985 to last September.
That post, often referred to as the nation's "drug czar," is
considered to hold Cabinet rank.
Shortly after announcing the selections, Bush scheduled his first
Cabinet meeting, calling together all 14 department heads to review
the tasks ahead.
The Senate is planning to begin confirmation proceedings for the
Cabinet members next week, although it is not expected that all the
members will be cleared until at least next month.
Ironically, the two posts Bush announced Thursday were to head two
departments that President Reagan had at one time wanted to
eliminate.
The energy job has been the toughest to fill for Bush, who
reviewed what aides described as several "short lists" of names for
the job. The vice president, a former Texas oilman, was believed to
be torn between choosing someone between candidates with backgrounds
in oil and gas or nuclear power.
Eventually, Bush came down on the side of a nuclear background,
and Thursday cited the nuclear-related tasks facing the Energy
Department.
8
Contid
One of the most pressing concerns is how to deal with the nation's
decrepit nuclear weapons plants, which the agency administers for the
Pentagon. The factories, dating from the 1950s, are not only in
disrepair but plagued by environmental problems. Some key facilities
are shut down, and repair and cleanup costs have been estimated in by
congressional leaders to exceed $100 billion.
The department also faces troubles in finding a permanent and safe
place for the mountains of radioactive waste piling up across the
nation in temporary storage.
Bennett, meanwhile, will be in charge of coordinating the federal
fight on drugs, which both Republicans and Democrats said during the
campaign was a top priority for the nation.
"Defeatism and despair about drugs simply will not do," Bush said
Thursday, contending he was sure that Bennett would attack the
problem with the same vigor that marked his stay at the Education
Department, although cooperation with both congressional Democrats
and Republicans was necessary.
Bush also sidestepped a question about Bennett's smoking habits
and whether that would hamper his ability to lead the anti-drug
fight.
Watkins, described by friends as an able, conscientious officer
and a "George Bush-kind-of-guy," was also chairman of President
Reagan's controversial presidential commission on AIDS.
He was commander of the U.S. Pacific Fleet, with headquarters in
Honolulu. when he was chosen by Reagan as head of naval operations.
His broad experience in undersea craft, as well as conventional
ships, came from his association with Adm. Hyman Rickover, father of
the nuclear submarine. Watkins had been a student in Rickover's
nuclear school and the experience he gained there led to his
appointment as manager of naval reactors for the old Atomic Energy
Commission.
Bennett, the chairman of the National Endowment for the Humanities
before he succeeded Terrel Bell as education chief, called the
nation's attention to troublesome educational problems such as
students' low academic achievements, lack of discipline, values and
morals.
During his tenure at the Education Department, he was a lightning
rod for conservatives in the administration, and the target of
widespread praise as well as fierce criticism for his unorthodox
approaches to educational problems.
He was outspoken in criticizing many of the nation's largest
universities for paying more attention to their own self-preservation
than the education of students and blamed at least part of the rising
costs of attending those schools on the universities.
At one point he caused a mild uproar, mainly among young people,
when he argued that many students receiving student loans were using
the money for vacations and stereos.
But despite the criticism, he never apologized for his approach.
upi 01-12-89 02:50 pes
9
AP
Associated Press
N074
UW
BUSH (TOPS N071)
URGENT
BY TOM RAUM
WASHINGTON (AP) PRESIDENT-ELECT BUSH COMPLETED THE TOP RANKS OF
HIS ADMINISTRATION TODAY BY SELECTING RETIRED ADM. JAMES D. WATKINS TO
BE ENERGY SECRETARY AND FORMER EDUCATION SECRETARY WILLIAM J. BENNETT
TO LEAD THE NATION'S FIGHT AGAINST DRUGS.
BUSH MADE THE ANNOUNCEMENT A FEW HOURS BEFORE HOLDING A
DRESS-REHEARSAL MEETING OF HIS CABINET AT BLAIR HOUSE, THE GOVERNMENT
GUEST QUARTERS ACROSS FROM THE WHITE HOUSE.
IN INTRODUCING BENNETT, BUSH SAID THE NEW POST ''IS A TREMENDOUS
UNDERTAKING AND THE BOTTOM LINE IS THIS: WE NEED FULLY AND COMPLETELY
TO MARSHAL THE NATION'S ENERGY AND INTELLIGENCE IN A TRUE, ALL-OUT WAR
AGAINST DRUGS. WE CAN AND WE MUST WIN THAT WAR.''
ON THE TROUBLES FACING THE NEW ENERGY SECRETARY, BUSH SAID, ''I'M
COMMITTED TO SOLVING THE PROBLEMS THAT EXIST WITHIN OUR ATOMIC
ENERGY-DEFENSE COMPLEX. I'M SURE THAT WITH JIM WATKINS BY MY SIDE,
WE'RE GOING TO DO JUST THAT.''
WATKINS, 61, WAS R NUCLEAR SUBMARINE COMMANDER BEFORE BECOMING CHIEF
OF NAVAL OPERATIONS UNDER PRESIDENT REAGAN, A JOB HE HELD UNTIL 1986.
MORE RECENTLY, HE HEADED A PRESIDENTIAL COMMISSION ON AIDS WHICH LAST
YEAR RECOMMENDED NEW LAWS TO PROTECT VICTIMS OF THE DEADLY DISEASE FROM
DISCRIMINATION.
HE IS CONSIDERED AN AUTHORITY ON NUCLEAR WARFARE. THE ENERGY
DEPARTMENT FACES A MULTI-BILLION DOLLAR CLEANUP OF THE NATION'S AGING
AND INCREASINGLY UNSAFE NUCLEAR WEAPONS PLANTS.
BENNETT, 45, WILL GET THE NEW JOB OF COORDINATING THE GOVERNMENT'S
WAR ON DRUGS -- A POSITION CREATED BY CONGRESS JUST LAST YEAR. BUSH
ORIGINALLY PLANNED TO GIVE VICE PRESIDENT-ELECT DAN QUAYLE THE JOB, BUT
THE LEGISLATION SUBSEQUENTLY PASSED EXPRESSLY PROHIBITED THE VICE
PRESIDENT FROM THE JOB.
ALTHOUGH THE POSITION IS NOT STRICTLY SPEAKING A CABINET POST,
BENNETT IS EXPECTED TO HAVE CABINET RANK. THE FORMAL TITLE OF THE NEW
AGENCY IS THE OFFICE OF NATIONAL DRUG CONTROL POLICY; INFORMALLY, IT
HAS TAKEN ON THE TITLE DRUG CZAR.
POPULAR AMONG CONSERVATIVES, BENNETT SERVED AS REAGAN'S EDUCATION
SECRETARY FROM 1985 UNTIL LAST SEPTEMBER, WHEN HE LEFT GOVERNMENT TO
LECTURE AND WRITE.
BUSH HAD A HARD TIME FILLING BOTH JOBS, THE LAST TOP-LEVEL POSTS IN
HIS ADMINISTRATION. AIDES SUGGESTED HE VACILLATED ON THE ENERGY POST
BETWEEN AN OIL-STATE CANDIDATE AND ONE WITH EXPERIENCE IN NUCLEAR
ENERGY.
AP-WX-01-12-89 1441EST
10
Los Angeles Times
DATE: 1-12-89
PAGE:
The Justice Department and
PT.Ifg.1
Derwinski Tipped S. Korea
Congress at the time were investi-
gating a scandal that came to be
known as Koreagate-covert pay-
on Defector, Then Denied It
ments to members of Congress by
South Koreans in an effort to
influence U.S. policy toward that
nation.
By RONALD J. OSTROW
and ROBERT L. JACKSON,
During the call, Derwinski
A panel on which Derwinski was
Times Staff Writers
leaked word of the planned defec-
the ranking Republican-the
tion, government sources said.
House Foreign Affairs subcommit-
WASHINGTON-Edward J.
tee on international relations-had
Derwinski, President-elect Bush's
Episode May Haunt Him
secretly been in touch with Sohn
choice to head the new Department
Now, on the eve of Senate con-
and planned to have him testify
of Veterans Affairs, concealed for
Irmation hearings on his nomina-
about the Korean CIA's involve-
more than five years that he had
Non to head the new Veterans
ment in the scandal. The informa-
leaked confidential information in
Department, Derwinski's involve-
tion about Sohn's plan to defect was
1977 to a South Korean diplo-
ment in the episode and his early
so sensitive that former Rep. Don
mat-a leak that federal investiga-
lack of candor are coming back to
Fraser (D-Minn.), who was chair-
tors say could have cost the life of a
haunt him.
man of the subcommittee at the
Korean intelligence officer who
Sen. Alan Cranston (D-Calif.),
time, told only one other member
was about to defect to the United
chairman of the Senate Committee
aboutit-Derwinski.
States.
on Veterans Affairs, wrote Presi-
The next day, the subcommittee
Derwinski, who served 24 years
dent-elect Bush last week saying
was informed by a Justice Depart-
in Congress as a Republican from
that the charges "must be covered
ment official that the Korean CIA
Chicago, publicly denied the
by the FBI in its customary back-
had been told of Sohn's intention to
charges when they were raised in
ground investigation." Cranston
defect. After trying unsuccessfully
asked for a copy of the FBI report
to warn Sohn, Fraser turned to the
1978. He dismissed the leak allega-
before the committee's hearing on
FBI, which dispatched agents to
tions as "guilt by association" be-
cause he was known to be friendly
Derwinski's nomination.
Sohn's New Jersey home. They
toward anti-communist govern-
FBI agents already have inter-
escorted the defector from his
ments, including South Korea's
viewed the nominee and are ex-
home, along with his family, about
He refused to testify before a
pected to focus on the incident in
half an hour before Korean CLA
federal grand jury that investigated
their background report.
officials arrived there to stop the
The newly surfaced hearing re-
defection.
According to the Senate tran-
the matter, and he gave no state-
cord shows that, in 1983, Derwinski
ment to the House Ethics Commit-
belatedly admitted the basic truth
script, Derwinski acknowledged
tee, which also looked into the
of the allegations. Documents show
that he had mentioned the immi-
episode.
that Derwinski, now an undersec-
nent defection during a phone
retary of state, made his first
conversation with Korean diplo-
Both inquiries ended inconclu-
sively. U.S. officials said that pur-
admissions in a closed meeting with
mats on another subject. He said
suing them could have disclosed
senators just before he was con-
the defector was to be asked to
sensitive "sources and methods" of
firmed to his first State Department
testify as part of "an ongoing
post, as counselor, in March, 1983.
[subcommittee] investigation
the American intelligence commu-
A transcript of Derwinski's lit-
which I had opposed from the
nity.
But the unpublished record of a
tle-noticed confirmation hearing-
beginning."
1983 congressional hearing shows
never printed or published by the
Derwinski said he had opposed
that Derwinski admitted then that
Senate but found in the National
the investigation because "I felt we
he had given the confidential infor-
Archives-shows that Sen. Clai-
were endangering U.S.-Korean re-
lations at a time of the discussion of
mation to a Korean diplomat in a
borne Pell (D-R.L) insisted on
[U.S.] troop withdrawals."
phone call.
putting on the public record what
"This guy [the Korean defector]
He told senators that he never
Derwinski had told the panel pri-
mentioned the name of the intend-
would have been severely pun-
vately the day before.
ished or killed, as well ashis fami-
Pell referred to Derwinski's tele-
ed defector and termed his leak
ly," a senior law enforcement offi-
phoned tip to the Korean Embassy
"inadvertent." He said he never
cial said recently, noting that
as "an error in judgment" and
gave the matter "any serious
Korean CLA agents arrived at the
suggested that Derwinski "should
thought." Derwinski added that "I
defector's home a half hour after
say just what he did [say] to us
considered this [Sohn's planned
FBI agents had escorted him to
yesterday in that meeting.'
testimony] sort of a grandstand
safety.
Pell was referring to charges
development at the committee lev-
The September, 1977, phone
that Derwinski had tipped off the
el, of which I did not approve."
conversation between Derwinski,
embassy that Sohn Ho Young, a
"I really did not think it would
who was in his congressional office,
high-ranking official of the Korean
have any complications," Derwin-
and the South Korean Embassy
CLA, was preparing to defect in the
ski said of the phone call, according
was recorded by U.S. intelligence
face of an imminent transfer from
to the transcript.
and helped spark the subsequent
his New York base back to South
investigation.
Korea.
Cont'd.
When asked if he realized that
of the defection. In a 1980 book
security. This seriously impeded
Sohn might be in danger as a result
about the Koreagate scandal,
the panel's inquiry into South Ko-
of his tip, Derwinski told the sena-
Boettcher said Derwinski had con-
rean affairs, he said.
tors: "It never crossed my mind. In
tended that his friendliness toward
Grand jurors subsequently issued
fact, I was not aware whether
South Korea had led to the accusa-
the defection had actually taken
a sealed report that was given to
tion and that he had told the staff:
the House Ethics Committee.
place.
Hindsight is always
"I wind up as suspect No. 1 because
When the committee concluded its
better than foresight."
of guilt by association."
inquiry in October, 1978, Rep.
Derwinski, who has had a repu-
According to Boettcher, Derwin-
James H. Quillen (R-Tenn.) told
tation for candor during his 24
ski reported that, when he was
the Associated Press that Derwin-
years in Congress and nearly six
called before the grand jury inves-
years at the State Department
tigating the incident, he refused to
ski was "completely cleared."
refused to discuss his role in the
answer questions, citing the
But Chairman John J. Flynt Jr.
Korean incident with Times re-
"speech and debate" clause of the
(D-Ga.) said that "insufficient evi-
porters this week.
Constitution, which grants mem-
dence" had prevented the commit-
Bill Anderson, a former Chicago
bers of Congress immunity from
tee from taking action. And Rep.
newspaperman who is assisting
prosecution for certain activities in
Lee H. Hamilton (D-Ind.), who
Derwinski during the change in
the course of their official duties.
headed the inquiry, told the Wash-
administrations, described the inci-
Boettcher wrote also that the
ington Post that "publication of the
dents as "an 11-year-old story, a
Departments of State, Justice and
evidence [held by the intelligence
non-event."
Defense and the CIA had stopped
community] would jeopardize in-
"He was not charged with any
providing classified material to the
telligence sources and methods."
illegal or unethical conduct," An-
subcommittee for six months be-
Flynt died in 1985. Hamilton
derson said. "That's the operative
cause of the unresolved breach of
refused to discuss the case this
comment."
week.
An attorney who represented
Derwinski at the time refused to
discuss the case.
Sheila Tate, a spokeswoman for
the Bush transition office, said:
"Any questions that arise will be
answered by Mr. Derwinski at his
confirmation hearings." She added:
"I am not privy to any FBI infor-
mation."
According to the 1983 transcript,
members of the Senate panel com-
mended Derwinski on his admis-
sion and said they were willing to
forgive one instance of "poor judg-
ment" when matched against 24
years of congressional service.
Issue Raised by Cranston
Derwinski last week paid a cour-
tesy visit to Cranston, who will
preside over his confirmation hear-
ings. During their meeting, Cran-
ston raised the Korean issue, and
Derwinski neither admitted nor
denied tipping off the Koreans,
according to an individual who was
present. He was "rather vague"
about it, this source recalled.
Robert Boettcher, former staff
director of the subcommittee on
which Derwinski served, said Der-
winski had been angry when he
was accused of having leaked word
12
Los Angeles Times
DATE:
PAGE: Fi, 19.1
first hundred days that have beer
Baran said the panel would be
Bush to Quickly
the subject of virtually nonstop
asked to prepare a recommendation
meetings among Bush aides over
within about 30 days that will be
the last few days. Bush plans to
"broader in its scope" than the
Establish Panel
discuss some of those initiatives
failed ethics bill.
with the members of his Cabinet-
The bill Reagan vetoed would
to-be in a meeting today.
have restricted for the first time
on Ethics Laws
Before the meeting, Bush hopes
paid lobbying by former members
to announce the last of his Cabinet
of Congress and their top aides. It
members, a secretary of energy.
also would have tightened lobbying
By JAMES GERSTENZANG
Sources on Wednesday listed sev-
restrictions on former White House
and CATHLEENDECKER,
eral possible candidates, chief
officials and others who leave jobs
Times Staff Writers
among them Adm James D. Wat-
in the executive branch of govern-
kins, who last year chaired a highly
ment.
WASHINGTON-In his first
regarded commission on the AIDS
Baran said the commission would
days in office-and possibly on
crisis. Congressionmal sources also
Inauguration Day itself-George
go beyond "post-employment con-
said Harold Agnew, a nuclear
Bush will establish a bipartisan
flicts" and would examine all as-
physicist and former director of the
commission to examine the full
pects of government ethics.
Los Alamos National Laboratories,
scope of ethics laws that govern
was a prominent candidate for the
Inclusion of judges and members
federal officials and employees.
sources close to the President-elect -
post.
of Congress in ethics laws regulat-
In addition, former Carter Ad-
ing the conduct of current and
said Wednesday.
ministration Defense Secretary
former officials in the executive
Hoping to put an early and
Harold Brown and former Rep. W.
branch would represent a major
positive stamp on a sensitive issue,
Henson Moore (R-La) have been
expansion of present laws.
Bush's aides have lined up seven
under consideration for the job.
In addition to Bell, Fielding and
people, including former Atty. Gen.
Asked Wednesday about his
Baran, those recruited for mem-
Griffin B. Bell and Fred F. Fielding,
plans for the energy post, Bush told
bership on the commission. accord-
President Reagan's first White
House counsel, to review current
reporters that "we'll probably have
ing to sources close to Bush, in-
some announcements soon, very
clude Lloyd Cutler. White House
ethics laws as well as stronger
soon."
counsel during Jimmy Carter's fi-
ethics legislation that Reagan ve-
The idea to make government
nal two years in the White House,
toed on Nov. 23.
ethics the first of Bush's public
former Sen. Harrison H. Schmitt
Hopes to Buy Time
initiatives goes back at least to last
(R-N.M.), former U.S. Appellate
July, when the Reagan Adminis-
Court Judge Malcolm R. Wilkey
By tackling the issue quickly,
tration was under fire on ethical
and R. James Woolsey, undersec-
Bush apparently hopes to buy some
issues Bush promised that, if elect-
retary of the Navy during the
time from a Congress already mov-
ed. he would appoint a special
Carter Administration. Wilkey
ing to revive the vetoed legislation
counselor responsible for ethics
would serve as chairman. and staff
while also signaling his intention to
and that his Administration would
members would be borrowed from
act on a subject that has drawn
send an "unmistakeable" message
the White House counsel's office
widespread political attention.
that public employees must be held
and the Justice Department.
At the same time, an effort on
ethics can provide an initial focal
to "an exacting code of conduct."
The new Congress already has
point for his Administration, much
At the time, some of his aides
signaled its intent to move on
as Reagan signaled his attack on
were concerned that although
ethics issues. House Speaker Jim
federal spending by freezing gov-
Bush has faced no questions about
Wright (D-Tex.) and House Mi-
ernment hiring on his first day in
his own personal affairs, he would
nority Leader Robert H. Michel
the White House and Jimmy Carter
pay a political price for the prob-
(R-III.) plan to name a bipartisan
moved to heal the Vietnam War
lems of some top Reagan Adminis-
task force to carry out an in-depth
trauma by granting amnesty to
tration officials. Reagan's first dep-
review of House ethics rules. Rep.
those who fled the country to avoid
uty chief of staff, Michael K.
Barney Frank (D-Mass.), chair-
the draft.
Deaver, was convicted of perjury,
man of a House subcommittee with
"I think it's a fairly good thing to
former political assistant Lyn
jurisdiction over the Ethics in Gov-
do on the first day of your presi-
Nofziger was convicted of illegally
ernment Act, has urged Bush to
dency. It's a good statement for the
lobbying former White House col-
impose tougher restrictions on
President to make, that he wants
leagues, and several other senior
post-employment lobbying by the
an ethical Administration," said
and mid-level Administration offi-
incoming Administration officials.
Bell, who has been asked to be vice
cials came under sharp criticism for
chairman of the commission. But
other activities.
Bell left open just how far the panel
"The importance here is that the
might go, saying he understood the
President-elect was sincere in the
vetoed legislation to be "on the
campaign in expressing his interest
drastic side" and adding, "I didn't
in ethics and making sure it is done
know we needed any more ethics
promptly and a bill submitted to
laws."
Congress," said Jan Baran, counsel
The ethics commission is part of
of Bush's campaign organization
a package of closely guarded initia-
who is on the list of commission
tives for the new Administration's
members.
13
AP
Associated Press
N069
RW
SOLICITOR CANDIDATES
BY JAMES ROWLEY
WASHINGTON (AP) AN ARCHITECT OF PRESIDENT NIXON'S UNSUCCESSFUL
EXECUTIVE-PRIVILEGE WATERGATE DEFENSE IS A TOP PROSPECT FOR THE POST OF
U.S. SOLICITOR GENERAL IN THE NEW BUSH ADMINISTRATION.
CHARLES ALAN WRIGHT, A CIVIL LAW EXPERT, IS AMONG FIVE OR SIX
CANDIDATES BEING CONSIDERED FOR THE JUSTICE DEPARTMENT'S TOP LEGAL
POLICY POSITION BY PRESIDENT-ELECT BUSH'S TRANSITION TEAM AND ATTORNEY
GENERAL DICK THORNBURGH.
ALSO UNDER CONSIDERATION ARE TWO CONSERVATIVE FEDERAL APPELLATE
JUDGES APPOINTED BY PRESIDENT REAGAN: RALPH K. WINTER OF THE 2ND U.S.
CIRCUIT COURT OF APPEALS IN NEW YORK AND KENNETH STARR OF THE U.S.
CIRCUIT COURT OF APPEALS FOR THE DISTRICT OF COLUMBIA.
BEST KNOWN FOR HIS WORK FOR NIXON DURING THE 1973-74 WATERGATE
INVESTIGATION, WRIGHT, 61, HAS A FORMIDABLE REPUTATION AMONG LAWYERS RS
A LEGAL SCHOLAR AND EXPERT ON FEDERAL COURT PROCEDURE.
A UNIVERSITY OF TEXAS LAW PROFESSOR, WRIGHT HELPED DEVISE THE LEGAL
ARGUMENT THAT EXECUTIVE PRIVILEGE EXEMPTED NIXON FROM COMPLYING WITH R
SUBPOENA TO SURRENDER TAPE RECORDINGS OF OVAL OFFICE CONVERSATIONS.
ALTHOUGH THE SUPREME COURT ACCEPTED NIXON'S ARGUMENT THAT EXECUTIVE
PRIVILEGE WAS A VALID CONCEPT, THE JUSTICES RULED 8-0 IN 1974 THAT HE
STILL WAS NOT EXEMPT FROM SUBPOENAS FOR EVIDENCE NEEDED IN COURT CASES.
IN R DECISION THAT LED TO NIXON'S RESIGNATION, THE HIGH COURT
ORDERED HIM TO SURRENDER THE TAPES, WHICH CONTAINED DAMAGING EVIDENCE
OF WHITE HOUSE INVOLVEMENT IN COVERING UP THE WATERGATE BREAK-IN.
THE PRESIDENTIAL APPOINTMENT OF A SOLICITOR GENERAL REQUIRES SENATE
CONFIRMATION.
THE SOLICITOR GENERAL IS THE GOVERNMENT'S CHIEF APPEALS LAWYER,
ARGUING CASES BEFORE THE SUPREME COURT AND DECIDING WHETHER TO APPEAL
LOWER COURT DECISIONS AGAINST FEDERAL AGENCIES.
THE SOLICITOR IS KNOWN IN LEGAL CIRCLES AS THE 10TH JUSTICE BECAUSE
THE HIGH COURT HAS TRADITIONALLY RELIED UPON HIM TO PROVIDE LEGAL
GUIDANCE.
CHARLES FRIED, THE CURRENT SOLICITOR, IS LEAVING OFFICE TO RETURN TO
HARVARD UNIVERSITY LAW SCHOOL.
WINTER, 53, A FORMER YALE UNIVERSITY LAW PROFESSOR WHO BECAME A
JUDGE IN 1982, AND STARR, 42, WHO SERVED AS COUSELOR TO ATTORNEY
GENERAL WILLIAM FRENCH SMITH FROM 1981 UNTIL HIS APPOINTMENT TO THE
D.C. CIRCUIT IN 1983, HAD BEEN MENTIONED AS POSSIBLE SUPREME COURT
NOMINEES FOLLOWING THE 1987 RETIREMENT OF JUSTICE LEWIS POWELL.
14
cont.d
JUSTICE THURGOOD MARSHALL GAVE UP R SEAT ON THE 2ND CIRCUIT TO
BECOME SOLICITOR GENERAL IN 1965. TWO YEARS LATER, PRESIDENT JOHNSON
NAMED HIM TO THE HIGH COURT.
WRIGHT'S APPOINTMENT AS SOLICITOR GENERAL WOULD CAP A DISTINGUISHED
CAREER AS R PROFESSOR, APPELLATE LAWYER AND EXPERT ON COURT PROCEDURE.
HE HAS REPRESENTED THE STATE OF TEXAS BEFORE THE SUPREME COURT, NOTABLY
IN DEATH PENALTY AND VOTING-AGE CASES.
WRIGHT ALSO IS THE CO-AUTHOR OF THE DEFINIITIVE LEGAL TEXTBOOK ON
FEDERAL COURT PROCEDURES AND PRACTICE.
AP-WX-01-12-89 1413EST
15
AP
Associated Press
N068
UA
NERVE GAS-ARREST
NEWARK, N.J. (AP) -- CUSTOMS AGENTS TODAY ARRESTED A KOREAN-BORN
NATURALIZED CITIZEN ON CHARGES OF CONSPIRING TO BUY NERVE-GAS WEAPONS
FOR EXPORT FROM THE UNITED STATES.
RICHARD MERCIER, AGENT IN CHARGE OF THE CUSTOMS OFFICE IN NEWARK,
WOULD NOT IDENTIFY THE MAN OR SAY WHERE THE NERVE GAS WAS DESTINED.
THIS IS R BIG ONE,'' HE SAID. ''WE'RE TALKING LARGE QUANTITIES.''
AN ARRAIGNMENT WAS SCHEDULED FOR LATER TODAY BEFORE R U.S.
MAGISTRATE.
"IT PERTAINS TO THE EXPORTATION OF MUNITIONS, AND THE MUNITIONS
INVOLVED NERVE GAS,'' MERCIER SAID. THE AGENT WOULD NOT DISCUSS HOW THE
MAN ALLEGEDLY INTENDED TO TRANSPORT THE GRS.
THE MAN WAS ARRESTED IN NEWARK AFTER A SEVEN-MONTH INVESTIGATION,
AUTORITIES SRID.
THIS IS THE ONLY ARREST WE ANTICIPATE RIGHT NOW,'' SAID ASSISTANT
U.S. ATTORNEY ANNE SINGER, WHO IS HANDLING THE CASE. SHE DECLINED TO
COMMENT FURTHER.
AP-WX-01-12-89 1405EST
16
AP
Associated Press
s2720
R SBX
(
^P-FBN--UrSHAW-NFLPA,049.
FORT WAYNE, IND. (AP) GENE UPSHAW, EXECUTIVE DIRECTOR OF THE NFL
PLAYERS ASSOCIATION, FACES POSSIBLE CRIMINAL CHARGES OF TAX EVASION THE
FORT WAYNE NEWS-SENTINEL REPORTED TODAY.
THE JUSTICE DEPARTMENT IS CONSIDERING SUCH CHARGES THE NEWSPAPER
SAID, CITING WHAT IT DESCRIBED AS A CONGRESSIONAL SOURCE FAMILIAR WITH A
LABOR DEPARTMENT INVESTIGATION INTO THE UNION'S FINANCIAL RECORDS.
R UNION SOURCE CALLED THE STORY "OLD HAT.''
A WASHINGTON TELEVISION STATION: WJLA, REPORTED WEDNESDAY NIGHT THAT
THE LABOR DEPARTMENT CONCLUDED ITS YEAR-LONG AUBIT OF NFLPA RECORDS AND
PASSED SOME OF THE INFORMATION TO THE JUSTICE DEPARTMENT.
THE CONGRESSIONAL SOURCE TOLD THE NEWS-SENTINEL THAT SCRUTINY OF
THOSE RECORDS WENT "MILES BEYOND'' AN ORDINARY REVIEW.
"JUSTICE IS INTO THIS IN A PRETTY BIG WAYS'' SAID THE SOURCE WHO
REQUESTED ANONIMITY, "I DON'T THINK THEIR PRESENCE CAN BE CONSTRUED IN
ANY WAY AS ROUTINE.'
ACCORDING TO THE SOURCE: A JUSTICE DEPARTMENT INTERNAL MEMO
"STRONGLY SUGGESTS" THAT THERE IS SUFFICIENT EVIDENCE TO INDICT
UPSHAN, A 15-YEAR NFL VETERAN AND A MEMBER OF THE PRO FOOTBALL HALL OF
FAME.
THE SAME MEMO REQUESTS AN "EXPEDITIOUS" DETERMINATION OF WHETHER
OR NOT CHARGES SHOULD BE BROUGHT AGAINST UPSHAW. AN INDICTMENT IF
BROUGHT: HOULD PROBABLY CENTER AROUND A "SIX-FIGURE LOAN'' TO UPSHAW
FROM THE NFLPA, SAID THE SOURCE. "THERE IS SOME DISCREPANCY ABOUT
WHETHER (THE DOLLAR AMOUNT) WAS R LOAN, SALARY, COMPENSATION OR
WHATEVER.'
THE SOURCE AL50 SAID IT IS LIKELY THE JUSTICE DEPARTMENT HILL
RECOMMEND THAT THE LABOR DEPARTMENT PROCEED WITH A DETERMINATION ON
POSSIBLE CIVIL CHARGES AGAINST THE NFLPA. UNION OFFICIALS LAST YEAR
CONFIRMED THAT THEY WERE BEING AUDITED: BUT REFERRED TO THE AUDIT, AT
VARIOUS TIMES: AS "ROUTINE" AND "RANDOM."
''WE'VE BEEN FULLY COOPERATING WITH A ROUTINE AUDIT BY THE
DEPARTMENT OF LABOR FOR NEARLY A YEAR AND WE ARE CONFIDENT THAT WHEN THE
PROCESS IS COMPLETED THE NFLPA WILL BE FOUND TO BE IN COMPLIANCE WITH
ALL APPLICABLE LAWS'' Doug ALLEN, THE UNION'S ASSISTANT EXECUTIVE
DIRECTORS TOLD THE ASSOCIATED PRESS.
UPSHAW COULD BE REACHED FOR COMMENT.
FRANK WOSCHITZ, DIRECTOR OF PUBLIC RELATIONS FOR THE NFLPA, TOLD THE
NEWS-SENTINEL ITS INFORMATION HAS "JUST RE-HASHING A LOT OF THE STUFF
(THE MEDIA) STARTED BRINGING UP A FEW MONTHS AGO.''
17
Cont.d
HONEVERS AN UNHAMMED NFLPA SOURCE TOLD NEWSPAPER ''THINGS ARE
GETTING KIND OF HAIRY AROUND HERE."
THOM GATENOOD, THE MANAGING DIRECTOR OF NFL-PRO, R RIVAL UNION
SEEKING TO REPLACE THE NFLPA AS THE BARGAINING AGENT FOR THE LEAGUE'S
1,600 PLAYERS' SAID WEDNESDAY NIGHT THAT THE JUSTICE DEPARTMENT'S
INVOLVEMENT LENDS CREBENCE TO CHARGES HIS GROUP HAS BEEN MAKING FOR
NEARLY A YEAR,
"BASICALLY, IT PUTS THE INFORMATION INTO THE HANDS OF THE PEOPLE
WHO CAN DO SOMETHING WITH 11," SAID GATENOOD. ''THE NFLPA IS ON THE
DEFENSIVE NOW. ALL NE'VE EVER ASKED FOR IS FISCAL ACCOUNTABILITY: AND
NOW IT LOOKS RS IF THEY'RE GOING TO HAVE TO BE ACCOUNTABLE.
18
Los Angeles Times
DATE: 1-12-89
PAGE: PT.Ifg.1
the job and the level of supervision
employees encounter that corre-
Few Employees Tested
lates most closely with drug use.
"Jobs that involve periods
of inactivity certainly lend them-
for Drugs in Workplace
selves to drug use as do jobs with
less supervision" and those that
have late evening shifts, said Ray
Kelly, president of Stat Tox Center
Survey Also Finds Lower-Than-Expected Rate
in Mission Hills, a leading Southern
of Use; Experts Warn of Misinterpreting Data
California drug-testing firm.
For those reasons, Kelly said,
"the fact that there is a greater
By JESUS SANCHEZ and JUBE SHIVER Jr., Times Staff Writers
incidence of drug use among retail
employ 20% of American workers,
workers doesn't surprise me."
The federal government, in a
according to the report. The survey
Among those tested overall,
major study of drug testing in the
also found that job applicants were
about 9% of current employees
workplace, reported Wednesday
that fewer than one worker in 100
four times as likely to be tested as
showed signs of drug use while
was checked by a current employer
workers already on the job.
approximately 12% of job appli-
for drug use last year.
"I think most employers are
cants tested positive, according to
reluctant to test their current em-
the survey.
Several outside experts said the
study, based on a Labor Depart-
ployees," said Elaine Kaplan, depu-
But drug-testing opponents said
ment survey of 7,500 businesses,
ty director of litigation at the
the figures show the drug problem
showed a lower-than-expected
National Treasury Employees Un-
among employees has been over-
ion, whose suit to invalidate a Coast
blown. They said the findings also
rate of both drug testing and drug
use in the American workplace. In
Guard drug-testing program is
might indicate that employers are
fact, they reasoned, the figures
pending before the Supreme Court.
having trouble spotting employees
were so low that it might discour-
"Current employees have unions to
with a drug problem.
age more companies from adopting
represent them and they have a lot
"That 9% means employers are
drug-testing programs, which can
more ammunition to fight drug
very poor judges if someone has a
be costly.
programs than applicants.'
problem or they are being very
The survey showed that compa-
cautious," said the University of
'Why Create This Hassle?"
hies were generally reluctant to
Pennsylvania's Summers.
"I guess that employers who see
test workers at random. About 64%
John Hunt, personnel manager
this and are not engaged in testing
of the employers conducted tests
at Southern California Edison.
will say, 'So we're like most people.
on workers suspected of drug use
which has been testing all job
Why should we invest money in
while only about 25% carry out
applicants for two years, said the
this and create all this hassle?"
random tests.
utility's results were close to those
said Clyde Summers, a professor at
Test results varied widely by
in the government report. Last
the University of Pennsylvania.
industry. The highest rate of ap-
year, 9.3% of applicants tested
But some experts argued that the
parent drug use was in the retail
positive for drugs last year and "we
figures showed that drug testing
trade business, where about 20% of
have had a relatively consist
has acted as a deterrent to drug
current employees and 24% of job
reduction in that figure," he said.
abuse. Such tests are "a powerful
applicants tested positive. At the
shaper of behavior," said Lee Do-
other end of the scale was the
Hunt attributes the drop to in-
creased awareness of drug testing.
goloff, executive director of the
transportation field, where only
5.6% of current employees and
Job applicants "are less likely to
American Council for Drug Educa-
10% of job applicants tested posi-
come in if they use drugs," he said.
tion. "My concern is that compa-
"We think it's worth it," he said of
nies will misinterpret the statistics.
tive, the survey showed.
They might say 'because the num-
Retailers and labor union offi-
the utility's drug-testing program.
bers are 80 low, we don't have a
cials expressed surprise at the
Under the "unreasonable search
problem."
study's findings and suggested the
and seizure" standard of the Fourth
The study, which excluded gov-
data may be misleading because
Amendment of the U.S. Constitu-
ernment employees, was released
drug testing in the retail industry is
tion, federal, state and local gov-
amid strong concerns among labor
not as widespread as in fields such
ernments' freedom to test workers
groups and others about the threats
is limited. Private employers have
to workers' privacy posed by on-
defense. as manufacturing, aerospace and
more freedom to test at will unless
the-job drug testing. A key U.S.
"My experience is that drug
restricted by a labor union agree-
testing is much more prevalent in
ment or other pact, said Benjamin
Supreme Court ruling on drug
testing for government workers is
other industries," said Andrea Zin-
Aaron, a specialist in labor law at
expected in a few months, and labor
der, research director of Local 770
the UCLA School of Law.
unions representing private sector
of the United Food and Commercial
In addition, at least 11 states-
Workers, which represents about
but not California-have enacted
employees have brought Buits
30,000 Southern California grocery
laws regulating drug testing by
well.
store employees, meatpackers and
private employers, usually by re-
Drug testing, the survey report-
ed, is much more common at big
pharmacy clerks.
quiring employers to notify em-
companies than small ones. Only
The head of a leading Southern
ployees in advance of any drug test,
3% of employers have drug-testing
California drug-testing firm specu-
setting standards for drug testing
programs, but those companies
lated that it may be the nature of
laboratories and limiting testing to
hazardous or safety-related jobs.
19
Los Angeles Times
DATE: 1-12-89
PAGE: PartH/PS.2
2 Cocaine
Satisfied With Sentences
Assistant U.S. Atty. Janet C.
Suppliers
Hudson, who prosecuted the case,
said she was satisfied with the
sentences.
Get Lengthy
"I think the court was very
aware of the fact we've got a
serious drug problem that is getting
Sentences
much, much worse. We have to
crack down, and increased sen-
tences are about the only option if
By PAUL FELDMAN,
we are ever going to make any kind
Times Staff Writer
of a dent."
A third defendant, Ector's half-
Two Los Angeles men who po-
lice say supplied large quantities of
brother Alonzo Troy Andrus, 19,
faces retrial Feb. 7. A mistrial was
rock cocaine to several Crips street
declared in Andrus' first trial when
gang factions were sentenced
Wednesday to lengthy federal
a jury was unable to reach a
verdict.
prison terms.
Police described the 132 pounds
of cocaine seized last May as the
largest cache of the drug taken
from outright gang members or
associates.
Michael Ray Ector, 25, identified
by authorities as a long-time asso-
ciate of the West Los Angeles-
based Playboy Gangster Crips, was
handed a 20-year sentence by U.S.
District Judge Laughlin E. Waters.
Andre Jackson, 21, who had no
previous criminal convictions, re-
ceived a 15-year term.
The pair were arrested last May
when police, acting on a tip from a
jailed drug dealer, served a search
warrant on a West 76th Street
house and discovered 60 1-kilo-
gram bags of cocaine inside. The
fingerprints of Ector, who was in
the house when police served the
warrant, were discovered on 10 of
the bags. Jackson was arrested
when he returned to the residence
during the search.
Pleaded Guilty
Ector, whose gang nickname was
"Money Mike," eventually pleaded
guilty to possession of cocaine for
distribution and a second count of
conspiracy to distribute cocaine.
Jackson, whose 10-year-old sis-
ter was killed in an unrelated 1987
random drive-by shooting, was
convicted by a federal jury on the
same two charges.
Both men had faced minimum
10-year sentences under federal
law because of the large quantity of
drugs.
20
The Miami Herald
DATE:
1-12-89
PAGE:
/A
Refugees on their way to Miami
By DAVID HANCOCK
Central Americans.
Dolores Muniz and other mem-
Haraid Staff Writer
"We've heard that in Miami there
bers of Harlingen's Citizens' Com-
BROWNSVILLE, Texas - Hundreds of
is support for the Nicaraguans,"
mittee for Justice took blankets,
Central American refugees stranded on the
said Cabezas, traveling with his wife
sweet potatoes, beans, rice, noo-
U.S.-Mexico border jubilantly boarded buses to
and three children.
dles, bread and tea to the men,
Miami and other U.S. cities Wednesday in
a Cabezas and his family crossed
women and children huddled under
hopes of ending weeks of living in squalor, un-
the Rio Grande into Brownsville on
blankets and sheets of black plastic
certainty and desperation.
Jan. 5, after an arduous journey by
at the INS center.
Meanwhile, hundreds more lined up at the
foot and bus from Nicaragua. In his
U.S. Immigration and Naturalization Office at
homeland, he said, he was harassed
"We're all human beings," Muniz
Harlingen and flocked to Western Union offices
by the military and was unable to
said. "These people are freezing,
they're starving."
where relatives wired them money for the jour-
earn enough to support his family.
ney.
During the journey through Mexico,
Virginia Kice, spokeswoman for
More than 1,700 refugees have been pro-
he said, he had to bribe immigration
the INS' Harlingen District, said
cessed by the U.S. Immigration and Naturaliza-
agents and bus drivers several times
more than 800 people were in line
tion Office at Harlingen since Monday, when
before they made it through the bor-
when the door opened Tuesday.
der.
U.S. District Judge Filemon Vela issued a tem-
Bemil Morales is bound for Los
"It was reminiscent of the last
porary restraining order against immigration
Angeles, but she, too, must wait for
days of the amnesty program" last
the money to come from relatives.
year when some undocumented
officials that allows the immigrants to travel
"I'm too old for this trip," said
aliens received legal status under a
out of the border area. The judge ordered INS
Morales, a 64-year-old grandmoth-
landmark immigration-reform law,
to abandon its month-old policy that required
Kice said.
political asylum applicants to remain in South
er sprawled on the grass lawn out-
Texas pending a review of their cases.
side the INS office with her 4-year-
The asylum applicants include
On Wednesday, 739 refugees got their ap-
old grandson and 22-year-old neph-
Nicaraguans, Salvadorans, Guate-
plications filed and stamped by INS - and
ew.
malans, Hondurans. INS officials es-
most headed straight for the Greyhound-Trail-
Juan Mendoza, a 31-year-old Nic-
timate as many as 5,000 have been
ways bus station.
araguan who has lived in Miami for
stranded in the rural border area
"Ninety-five percent are going to Miami,"
six months, went to Texas to meet
since the stricter immigrations
said station manager George Reynolds. To
his wife Luz Marina and three chil-
guidelines went into effect Dec. 16.
handle the excess of travelers, the bus line has
dren, including a 1-year-old daugh-
Most have been living in abandoned
added 30 buses this week to various destina-
ter, who traveled by themselves
buildings and makeshift shelters
tions: Miami, Los Angeles, other cities in Tex-
from Matagalpa in Northern Nicara-
while they waited to be reviewed by
guan.
INS.
as
"All day long, it's people going to Miami, all
"She was desperate to come,"
Near Brownsville on Tuesday,
day long," said Humberto Flores, ticket agent
said Mendoza, who planned to stay
crews used bulldozers to remove de-
for the Greyhound-Trailways station in
with his family at Bobby Maduro Mi-
bris from a makeshift campsite
Brownsville. "It's been pretty busy."
ami Stadium until he can find work.
where more than 300 of the refu-
Herman Cabezas is one of those wanting to
Vela's order was to last until to-
gees had been staying in improvised
make that journey. He got his papers stamped
day, pending a full hearing on a
tents. The immigrants were or-
Wednesday, but now he must wait until his
class-action lawsuit against the INS.
dered off the property by Tuesday
sister-in-law in Miami wires him the money to
but was extended when the hearing
afternoon and many took refuge in
travel.
was postponed to Jan. 31. Hundreds
churches.
of refugees camped outside the INS
He's certain that good things lie ahead for
office early Wednesday, vying for
City commissioners voted Tues-
him in the city that's become a mecca for hun-
the chance to be the next to leave
day night to demolish the con-
dreds of thousands of Nicaraguans and other
South Texas.
demned Amber Motel, where about
150 Central Americans have been
"I'm trying to leave tomorrow,"
holed up in squalid conditions.
said Jairo Ramon Contreras Marti-
nez, a 24-year-old Nicaraguan
This report was supplemented by
camped by the door and trying to
Herald wire reports.
make it to a cousin's house in Aus-
tin. "Thank God for the kindness of
the American people."
21
The Miami Herald
DATE:
1-12-89
PAGE:
/
Odio: No more exiles in stadium
the city.
rosary prayer.
'Inn is full,'
"It's a declaration of open fron-
"The inn is full," Odio said.
tiers," he said. "The effect is very,
Meanwhile, Suarez prepared a
very drastic for this community."
telegram for Ygnacio Garza, mayor
city official
Miami, historically the destina-
of Brownsville, requesting that he
tion of most Nicaraguan refugees,
publicly announce the stadium is
became more inviting to some after
full.
tells crowd
Odio opened the baseball stadium
Declaring "crisis" conditions,
for temporary housing, and declared
Suarez said he would also send wires
he would not abandon them.
to President Reagan and Florida
of refugees
"Throughout Mexico, they kept
Gov. Bob Martinez, asking for fed-
on telling us about Bobby Maduro
eral and state relief.
stadium,' said Sergio Castillo, a
County officials Wednesday also
Nicaraguan who crossed the Rio
expressed concern over the nearing
By GEOFFREY BIDDULPH
Grande Sunday and bused into Mi-
bus loads of largely poor refugees.
And CHRISTOPHER MARQUIS
ami on Wednesday.
Except for the stadium shelter, nei-
Herald Staff Writers
"So I came here," he said. "But I
ther Miami nor Dade County has in-
Miami City Manager Cesar Odio
thought everybody could enter."
stituted a resettlement program for
ordered the doors of Bobby Maduro
Castilio was one of 15 refugees,
a Nicaraguan refugee community
Miami stadium closed to newcomers
including Hondurans and Salvador-
that now numbers more than
Wednesday night, while hundreds of
ans, who were left outside Wednes-
100,000.
indigent Nicaraguan and other Cen-
day night after the stadium was
"From a practical standpoint,
tral American refugees headed to-
closed. He said he spent much of the
ward Miami by bus.
day wandering the streets of West
there's a limitation to what we can
The stadium, which for almost a
Dade, searching for friends to take
do," said County Manager Joaquin
month has served as the city's only
him in.
Aviño.
shelter for homeless Nicaraguans,
Odio held fast to his pledge
The stadium must be vacated by
has exceeded its capacity of 250 ref-
Wednesday not to abandon refu-
Jan. 25, when the Baltimore Orioles
ugees, Odio said, and cannot provide
gees, and enlisted aides to find shel-
arrive to begin spring training
proper beds and bathroom space for
ter for those locked out of the stadi-
there.
more.
um. About 150 of Miami's homeless
Avino said workers are clearing
"There's not a new policy," Odio
population are also sheltered at the
county wetland at a West Dade site
said. "We haven't been taking extra
stadium.
to set up temporary housing with as
people in for three weeks."
The city manager was cheered by
many as 60 trailers.
The city manager's announce-
refugees as he entered the stadium
Cristobal Mendoza, whose over-
ment came on the eve of what prom-
Wednesday night, then stepped
crowded Little Havana shelter was
ises to be one of the largest sudden
among 100 Nicaraguans gathered
closed and relocated at the stadium.
influxes of Central American refu-
around a three-foot statue of the
estimates 400 refugees will arrive
gees to Miami in recent years.
Virgin Mary, their heads bowed in a
by the weekend. The key to absorb-
As many as 5,000 refugees, for
ing them, he said, is for the federal
weeks restricted to the Brownsville
government to issue them work per-
area of South Texas, were effective-
mits.
ly given permission to travel to their
Herald staff writers Ronnie Ra-
destinations in the United States,
mos and Craig Gemoules contribut-
while their claims for political asy-
ed to this report.
lum are being processed.
U.S. District Judge Filemon Vela
on Monday issued a temporary re-
straining order effectively suspend-
ing a travel ban imposed by U.S. im-
migration officials last month. He
decried squalid conditions in squat-
ter's camps around Brownsville.
On Wednesday, the judge said he
would delay a decision on whether
to reinforce the order with a prelim-
inary injunction until Jan. 31, allow-
ing the refugees to travel until then.
Hundreds of the refugees crowd-
ed Brownsville bus stations
Wednesday for a special-fare $89
journey to Miami. About half of the
5,000 squatters were destined for
Miami, Texas relief workers said.
Miami Mayor Xavier Suarez said
the ruling threatened to overwhelm
22
The Miami Herald
DATE: 1-12-89
PAGE:
The new policy created a bottle-
Sen. Bentsen assails
neck in South Texas. Bentsen said
refugees were sleeping under trees
and in churches, and local govern-
ments were strained beyond their
restrictions by INS
means trying to deal with destitute
newcomers to an area that was al-
ready economically depressed.
on travel of refugees
He said he would like to see those
who don't qualify for political asy-
lum deported quickly, but added
However, Austin said no money
that he knew of no alternative to the
By R.A. ZALDIVAR
Herald Washington Bureau
has ever been appropriated for the
system that INS originally used.
fund. Under the law, the president
INS spokesman Verne Jervis said
WASHINGTON - Texas Sen.
must declare an immigration emer-
the restrictive rules had dramatical-
Lloyd Bentsen, charging that new
gency for any payments to be made.
ly reduced the number of refugees
travel restric-
Congressional investigators esti-
seeking asylum in South Texas.
tions on Central
mate that there are 150,000 to
From Oct. 31 to Dec. 9, the INS of-
American refu-
200,000 Nicaraguan refugees in
fice there handled an average of
gees
have
Costa Rica and Honduras, who may
1,745 asylum applications a week.
turned the South
want to come the United States.
In the three weeks after the new
Texas border in-
The 1980 Cuban boatlift brought
policy went into effect the number
to "a massive
125,000 refugees to U.S. shores,
averaged 450 a week.
detention cen-
most of whom settled in Miami.
ter," Wednes-
Bentsen said he urged Attorney
day urged the
General Dick Thornburgh Tuesday
Immigration and
not to contest the Brownsville law-
Naturalization
suit. "I suggested they go back to
Service to per-
the old policy," Bentsen said. He
Bentsen
manently rein-
said Thornburgh promised "imme-
state its old poli-
diate consideration" of his request.
cy of letting asylum applicants go on
Austin said INS had no official re-
to cities like Miami.
sponse to Bentsen.
Meanwhile, in Brownsville, Tex-
Before Dec. 16, INS had allowed
as, U.S. District Court Judge File-
refugees applying for political asy-
mon Vela postponed until Jan. 31 a
lum at the border to transfer their
hearing originally set for today on a
cases to other cities within the Unit-
lawsuit by refugees against INS. Ve-
ed States. Most Nicaraguan refu-
la's temporary order allowing refu-
gees chose Miami. Once in Miami,
gees to settle outside the South
Texas border area will remain in ef-
the refugees were issued temporary
work permits.
fect during the postponement. That
Last December, INS decided
gives the Nicaraguans coming
most of the Nicaraguans were eco-
across the Texas border a wider
nomic, not political refugees, and
"window of opportunity" through
took steps to limit the flow. The
which to head for South Florida, as
hundreds have already done.
agency said asylum applicants would
have to have their cases decided at
Robert Rubin, attorney for the
refugees, said this would allow a
the border, instead of going to other
"more orderly" departure from the
cities and obtaining work permits.
area. Vela's original order gave ref-
ugees a 72-hour window to leave
South Texas, setting off a scramble.
INS spokesman Duke Austin said
967 refugees were given permis-
sion to leave Tuesday. Forty per-
cent were headed for Miami, mak-
ing it the top destination.
Bentsen said the soaring numbers
of Central American refugees, driv-
en by an exodus from Nicaragua, are
"comparable to the Cuban boatlift."
The former Democratic vice-
presidential candidate called for fed-
eral aid to local governments deal-
ing with the refugees, citing a $35
million emergency fund created for
that purpose under the 1986 Immi-
gration Reform and Control Act.
23
Cin
1-12-89
PAGE
Amnesty Seekers Relieved to
Find Test Easier Than Expected
By GINGER LYNNE THOMPSON, Times Staff Writer
Blanca Quintero has lived ner-
"It was SO easy." said Quintero.
vously in this country for 15 years.
who has taken night classes for the
Afraid that she was "not smart
last year. "They asked questions
enough" to become a legal resident.
that you hear every day, like, 'Who
the Mexican native avoided the
was the first President of the
government for years and lived
United States?' and 'Who can de-
quietly and anonymously with her
clare war in this country?'
two children.
Quintero, who has worked as a
Maria Lafarga and her husband.
housekeeper for five years for John
who both got perfect scores on the
Gavin. former U.S. ambassador to
test, agreed.
Mexico, said, "I was afraid to go out
"I can't believe how easy it was. I
because I thought the police were
was so nervous when I came in
going to get me and send me back
here," said Lafarga, who hopes to
to Mexico."
work as a supermarket cashier. "I
But Wednesday. Quintero said
feel like a new person."
she was "set free" it was
To take the test. immigrants
much easier than she expected.
must fill out an appointment card.
She was one of 16 amnesty
available at all INS offices, and the
applicants to earn permanent resi-
agency will notify applicants of the
dency by. passing a 15-question
time and date of their exam
exam, administered by the Immi-
through the mail. Applicants have
gration and Naturalization Service
18 months from the time of earning
at its Wilshire Boulevard office for
their temporary residency card to
phase two of its amnesty program.
complete the second phase of the
More than 800,000 immigrants
program.
applied for amnesty in the Los
The test, to be given on Thurs-
Angeles area under the first phase
day nights starting Jan. 19. will be
of the program from May, 1987, to
administered by videotape to
May, 1988. In the second phase.
groups of immigrants. Applicants
these applicants must demonstrate
must sign a statement at the top of
a knowledge of English, civics and
the test that says they have studied
U.S. history in order to obtain
at least 40 hours of English and U.S.
permanent residency status.
history, and then they have to
INS officials said they expect
answer nine of the 15 questions
300,000 of the applicants to follow
correctly to pass.
Quintero's lead by taking the mul-
"If they fail the test the first
tiple-choice exam at one of the 16
time, they can take it as many
INS offices throughout the area.
times as they need to pass, free of
Others may choose Lo prove their
charge." Ezell said.
English proficiency by taking INS-
But if the applicants who took
approved classes at one of 300
the test Wednesday are any indica-
schools in the area and thus would
tion, passing is not going to be a
not have to take the test. Appli-
problem. Fifteen of the 16 test
cants younger than 16. or 65 years
takers passed-five with perfect
and older. are exempt, officials said.
scores.
Harold Ezell, INS Western re-
gional commissioner, said his staff
is negotiating with religious and
community groups in hopes that
they will become licensed to ad-
minister the test.
"It is going to be tough to find
enough space for everyone LO take
the test, so we are hoping to get
Catholic charities, local schools and
other groups involved to help out,"
Ezell said.
24
THE KANSAS CITY STAR.
DATE: 1-9-89
PAGE:
22A
Cuban's death spurs fear of more suicides
talked to him that day.
By Phil Jurik
I told him, This is your da
staff writer
"Serving deportation papers in
for liberty, Alfredo,' Cros
eavenworth prison offi-
Leavenworth really has shaken
land recalled. "He said, I hop
L
cials conducted a "psy-
them up. These people have told
so." He just looked very desper-
chological autopsy" last
ate and far away.
week to learn why a Cuban
me
they'd rather die than go
"When he walked out, he
refugee, detained at the U.S.
Penitentiary two years after
back to Cuba."
thought he had it. He was sure
ne was going to get to see his
completing his prison sentence,
-George Crossland,
mom.'
Milled himself.
co-founder of the Mariel Assistance Program
But Aguilera told a detainee
To others. there was no mys-
who was later released to a
very.
Kansas City halfway house of
Alfredo Aguilera, 34, had re-
cause of deportation rumors.
sessing a machine gun and of
nis plan, Crossland said.
cently been denied release.
Immigration officials last
aggravated assault. He was
"He said if he didn't get but
Freedom was not in his foresee-
month began serving Leaven-
convicted again in 1983 of gun
this time, he felt there was no
able future.
worth detainees with papers
possession.
поре. And he was going to kill
"It's awful hard to hang on,"
that mark the first step toward
He remained behind bars,
himself if he could figure out a
said George Crossland, co-
deportation to Cuba.
partly because he was among
way,' said Crossland, who said
founder of the Mariel Assis-
"Serving deportation papers
125,000 Cubans who sailed to
he spoke with the former de
uance Program, which aids Cu-
in Leavenworth really has shak-
the United States in 1980 on a
tainee. The Justice Department
ban detainees at Leavenworth.
en them up," Crossland said.
boat lift from Mariel.
refused to allow reporters to
It's miserable there."
"These people have told me
Immigrants from Mariel who
interview that man.
Crossland and other advo
over and over and over they'd
commit crimes in the United
Aguilera was told Dec. 9 he
cates for detainees fear that
rather die than go back to Cuba.
States are placed in detention
would not be freed. His mother.
other Cubans, haunted by a new
The whole country is a prison."
indefinitely after completing
Elvira Ramos of Miami, re-
direat of being deported from
But prison officials said the
their prison sentences.
ceived a brief letter from him
Leavenworth and by continuing
deportation papers were not
Justice Department officials
two days before he died, ac-
confinement with no release in
causing problems among the
say they established that policy
cording to The Associated
sight, will choose Aguilera's
detainees.
to protect U.S. citizens. Many of
Press.
moute.
Prison officials requested
the Mariel immigrants had
"I don't know what to do, but
"I bet within six months,
Aguilera's mental autopsy, con-
been imprisoned in Cuba and
you should also know that noth-
you'll see three or four more of
sisting of interviews with peo-
were considered dangerous, in-
ing matters," he wrote. "It's
these if they can figure out a
ple who knew him and back-
cluding Aguilera, they said.
just that anything is better than
way, Crossland said.
ground reports, to reconstruct
"What we're talking about
this slow agony.'
Fashioning a rope from strips
his state of mind last month,
nere is a serious criminal," said
Aguilera showed no signs of
of blanket, Aguilera hanged
said Fred Fry. a prison spokes-
Daryl Borgquist, a Justice De-
despondency, Fry said.
himself in his cell shortly be-
man. Findings will not be made
partment spokesman. "It's not
"Obviously, if he had, we
fore 3 a.m. Dec. 30.
public.
surprising his release request
would'v taken extra precau-
Advocates think Aguilera is
But Crossland, of Overland
was denied."
tions, he said.
the first detainee to have com-
Park. said he sensed Aguilera's
Aguilera had been impri-
Crossland does not fault the
mitted suicide since November
anguish the day the detainee
soned in Cuba for trying to flee
prison.
1987, when riots by Cuban in-
made his final, unsuccessful
the country.
"The burden on the prison
mates at correctional facilities
plea for freedom.
He was given a release re-
staff is incredible," he said.
100 Atlanta and Oakdale, La., led
Aguilera had awaited free-
view before a panel of immi-
'There's no way those guys can
to guarantees of regular re-
dom since finishing his prison
gration officials on Oct. 19.
keep up with it all. The problem
wiews of release appeals.
sentence in October 1986. He
Another volunteer handled
is the whole crazy immigration
The riots started partly be-
was convicted in 1982 of pos-
Aguilera's case, but Crossland
process."
25
FEDERAL COMPUTER WEEK
12/12/88
PAGE:
46
PEOPLE
MacRae and her co-workers
needed more of a challenge.
MacRae knows about "local
the kind of manager she has
Not that she already hadn't
hacking" because she 5 done it
become. "In a situation where
faced plenty of challenges:
herself and done it well enough
you have a tight time line,
pursuing her education at Har-
to sell her own computer game
you being directive." she
vard. Yale and the Massachu-
to Atan and Texas Instruments
said. "The time pressure means
setts Institute of Technology,
Inc. Experimenting on her
you can't wattle around."
then educating others as a
home computers note the
Incrementalism is the central
teacher at the University of
plurai: MacRae and her husband
tenet of her management phi-
Maryland and at a university in
have seven computers at home
losopiry, she said. largely be-
the Middle East.
inspired her to turn Manicais,
cause the budget constraints
Then. at DOE, she worked
an African game played with
on federal agencies render
her way through a variety of
stones on a game board, into a
plans uncertain. If emergencies
posts including economic analy-
video game.
arise, budget priorities have to
see and forecasting, statistical
She no longer has time to
be rearranged. The fire in
surveys, and management and
work on video games. Even
Oakdale. La in 1987 at INS'
administrative direction.
with two years under her belt
Immigrant Detention Center
and no deadline as pressing as
and INS' increasing drug.
PROFILE
LAPS was. she still finds her job
interdiction work are examples
challenging, she said.
of how circumstances can shift
"We'd like to make our
money from systems to other
Ask her what that varied
current systems more user-
more immediate needs, MacRae
experience gave her to bring
friendly, improve our interface
said.
to INS. and two words emerge
for all systems." she said,
again and again: flexibility and
Brued Scope
outlining future plans. "We'd
user. Flexibility means buying
like to include our 'hackers' in
For MacRae, information tech-
and building systems "broad
that by giving them INS design
noking goes beyond computers
enough in scope" that they can
standards, which don't exist
Power to the People
and records management. Her
be the basis for a larger system
yes." Groups are at work on
believe IR the disersity you get in
division also is responsible for
or can surfice alone if circum-
standards. but she emphasized
firing computing power to your
radio surveillance equipment.
stances prevent further expan-
that standards will not be
users It's arry inefficient in wait for
voice-privacy radios. micro-
sion. Flexibility, she explained.
the information systems propie to
handed down from on high. She
wave towers and alien registra-
is why she prefers PCs over
come set you wgt. Basicativ I'm any
wants to go into the field and
tion-card production.
included to support local hecters.
dumb terminals.
ask users what they need.
The advantages you E by name
Last year INS procured an
At DOE. the information
Her other priority is to
people de them OUR stay are great.
optical storage system to assist
systems focus was on "a big
distribute ev: more power to
with registration-card produc-
maintrame computer. I doe
end users through placing min-
tion. storing umages of photo-
believe in that," she said. "I
computers at major points of
graphs and signatures.
believe in the diversity you get
entry with heavy workloads,
MacRae Drives Automation Success at INS
MacRae's division is working
in giving computing power to
MacRae said.
on fingerprint technology for
your users. It's very inefficient
As she distributes more
immigrant IDs and special fea-
Systems chief backs broad strategy for information technology
to wait for the information
power to her users, MacRae
tures to help detect false
systems people to come set you
will have to orchestrate their
immigrant cards.
By LEIGH RIVENBARK
is tun. but it's not fun to do it
up. Basically I'm very inclined
didn't have a very good rela-
far-fung activities. but she has
"The new card will have
to support local hackers. The
50 more times and put II in
tionship with the contracting
pienty of practice in leading a
fraud-preventive features
When Elizabeth Chase MacRae
place." she said.
advantages you get by having
office. but now we do.
group. whether as head of
such as features of the paper
came to the Immigration and
MacRae sounds like & team
people do their own stuff are
The resulting project, the
information systems or as con-
that will show up in ultraviolet
Naturalization Service in late
great"
player, speaking of past agency
Legalization Application Proc-
ductor of the Falls Church, Va.
light." she said. There is no way
1986. she was walking into a
For example. several INS
history as if she were with INS
Concert Band. Like the video
essing System (LAPS). was in
to prevent all fraud. MacRae
difficult situation at an agency
users wrote their own dBase
at the time. but in referring to
place on time. "It was an
game earlier in her career. the
added, so INS continues to
with a troubled record in
what "we" did she never
or Lotus programs to track
extraordinary effort. Everyone
band is something for which she
devise new techniques as
automation.
glosses over the rough times.
workloads. INS has set up a
is making time. She's flex-
just pitched in and worked."
people find ways to overcome
Now. two years into
"When an organization which
clearingbouse of such locally
ible.
MacRae recalled. The major
old ones.
MacRae's tenure as associate
has not been very much auto-
written programs "so if Denver
impact of designing and imple-
MacRae spent 12 years at the
commissioner for information
mated starts off. it tends to bite
needs it and Buffaio has it. they
menting a system so quickly
Department of Energy before
can share." MacRae said. In
systems. that reputation is
off more than it can chew.
was that bugs remained in the
coming to INS. "Energy was
changing. INS successfully has
People's expectations were
time the clearinghouse may
system. but INS' staff was
exciting in the 70s when there
automated immigrant legaliza-
raised and then dumped."
give awards for the best locally
prepared for problems. she said.
was an energy crisis." but by
written INS programs.
tion. is updating its automated
But things began to change.
When LAPS went live. "there
1986, with the crisis over. she
lookout system for catching
Congress passed the Immigra-
were people standing around
illegal aliens and is moving with
tion Reform and Control Act of
acting as midwives that's an
confidence into new technoio-
1986. and INS hired MacRae.
apt analogy, midwives.'
gies, from optical image storage
She credits the immigration
INS had attempted a general
to fingerprint identification sys-
reform act with giving INS not
case-tracking system a few
tems.
only the funds for automation
years before the LAPS project,
In a relatively short time,
but also the push to get started:
but the plans proved too ambi-
MacRae has helped steer the
a six-month deadline for de-
tious. MacRae said. "There's a
agency away from potential
signing. installing and impie-
saying in the ADP area. 'You
disaster. In 1985 and 1986 INS'
menting an immigrant legaliza-
never know what a user wants
automation program had begun
tion system for more than 100
until you give him what he asks
with high hopes and ended with
INS posts.
for.' We tried to do too much
a crash. Contracting irregular-
The reform act certainly got
all at once. Although we didn't
ties in huge ADP procurement
people moving." MacRae said.
create a system that worked.
prompted Congress to an off
"We could not have done
we learned great deal"
INS automation funds.
legalization without automa-
Because-LAPS originally was
The
general
state
INS
time. We-ail knew you couldn't
designed implement the
reflected high
really put 2 system together in
reform act and handle legaliza-
interest in automation but low
six months."
tion of illegal aliens. the number
drive in getting automation into
But INS had no choice
of LAPS stations around the
the field. according to MacRae.
between what they knew
country has been decreasing as
We were on the verge of
couldn't be done and what
the government's amnesty pro-
automating without funds for
Congress said had to be done.
grams for illegal aliens reach
completing it. Things were
The information systems staff
their deadlines. But INS is by
haifway in place.
gets the credit for meeting that
no means scrapping the system.
"With the extreme interest
seemingly impossible deadline,
Instead. INS is moving it
in automation, everybody
Mackae said.
forward. linking LAPS with a
wanted everything at once, so
The momentum of working
fraud data base designed to
we were continually getting the
very hard and working together
catch false identity and work
new things and leaving the rest
has arried through. know the
documents. MacRae said.
untinished Doing a protutype
information systems people
The LAPS project showed
26
Los Angeles Time
DATE:
1/12/
PAGE:
1, BarT I
Jurors at GAF Trial Distrusted
Chief Witness for Government
By SCOT J. PALTROW, Times Staff Writer
NEW YORK-Two former jurors in the
mer brokerage chairman has been
GAF Corp. stock manipulation trial dis-
cooperating with prosecutors to try
closed that a number of jurors doubted the
to get a light sentence. Jefferies,
truthfulness of the government's main
implicated by former stock specu-
lator Ivan F. Boesky in illegal
witness, Boyd L. Jefferies, the former
chairman and chief executive of the Los
securities schemes, pleaded guilty
to two felony counts in 1987 and
Angeles-based securities firm Jefferies
has been living at his home on the
Group Inc.
grounds of a country club in Indian
Joann Crawford, 51, a management em-
Wells, near Palm Springs.
ployee at New York Telephone Co., also
Lozada, a management consul-
said that in discussing the case among
tant who works for nonprofit col-
themselves. just after a federal judge
leges, said that despite his own
declared a mistrial on Tuesday. some jurors
skepticism, he didn't totally dis-
indicated "prejudice" against Jefferies be-
count Jefferies' testimony, adding
cause of his wealth and a remark he had
that while on the stand Jefferies
made about "menial jobs."
gave the appearance of telling the
truth. But, Lozada said, "at least
Needed More Evidence
one other juror was more skeptical
GAF and its vice chairman. James T.
about: his statements and his be-
Sherwin, are accused of plotting with
lievability, because he is an admit-
Jefferies & Co., the brokerage subsidiary of
ted criminal."
Jefferies Group. to bid up the price of Union
Crawford said a few jurors
Carbide stock in 1986. GAF at the time was
seemed prejudiced against Jefferies
preparing to sell a big block of Carbide
because of "his station in life," she
shares. U.S. District Judge Mary Johnson
said. "They resented it" Several of
Lowe declared a mistrial Tuesday because
the jurors were blue-collar or cleri-
a prosecutor had delayed turning over to
cal workers. She said they had been
defense lawyers a report suggesting that a
influenced by the beginning of
crucial piece of evidence had been tam-
Jefferies' testimony, when he re-
pered with.
counted his background and talked
Jury selection is due to begin today for a
about working on a ranch for
retrial. But it may be delayed after a
several years immediately after
hearing this morning before the U.S. 2nd
leaving college. He referred to the
Circuit Court of Appeals in New York on a
work as performing "menial jobs."
"That sort of stuck in some of
request by defense lawyers to dismiss the
their [the jurors'] minds," she said.
case.
Crawford and Leo Lozada, 38. who
The Jefferies case is the first of a
served as jury foreman, said in interviews
family of related cases, stemming
Wednesday that although they both had
from the guilty pleas of Boesky and
doubts about Jefferies' testimony, most
former investment banker Dennis
jurors felt they hadn't heard enough evi-
B. Levine, to come to trial. There
dence to have made up their minds about
was some concern among attorneys
the case.
about whether jurors would be able
"There was a consensus [after the
to follow the jargon and complexi-
mistrial] that. at the point the trial was at.
ties of stock trading and Wall
Street finance.
we did not have a good enough feeling one
But both Lozada and Crawford
way or the other." Lozada said. "We would
praised efforts by Judge Lowe and
have had to hear more testimony or see
Assistant U.S. Atty. Carl H. Loew-
more evidence."
enson Jr. to ensure that all terms
The jurors said they had followed the
were explained in simple language.
judge's instruction not to discuss the case
"I did not find it difficult to follow,"
among themselves while the trial was still
she said.
under way.
However, on Tuesday, another
The mistrial was declared after Jefferie
juror, William Patten, had said in
had testified for one week and the govern
an interview that the trial at times
ment was still presenting its case. Th
had come close to being too com-
government was expected to call at least
plex for the jurors to follow.
one additional witness-James Melton, the
But Lozada and Crawford said
top trader at Jefferies & Co.-to try to
they were pleased with what they
directly corroborate Jefferies' account.
had learned during the trial about
Lozada said that ne and other juror
how the stock market works. "This
wouldn't have aptepted Jefferies' testimo-
27
was a hell of an education," Lozada
ny without corroboration because the for
said.
DATE:
NATIONA REVIEW
PAGE: 16
RICO Run Amok
THE WORLD MAY never know if Drexel Burnham,
Wall Street securities firm that pioneered the
modern junk-food market and by that means helped
to restore power to corporate stockholders, was guilty
of the charges to which it is currently negotiating a
guilty plea. In truth, Drexel Burnham had little choice,
whether innocent or guilty.
By taking action against the company under the
RICO law, intended for use against organized crime,
federal prosecutors were able to impose on the com-
pany financial sanctions that threatened to ruin it
before the trial. Once Drexel was able to limit the
financial costs of conviction by advance agreement,
the calculation was plain and imperative. The costs
of pleading guilty: $650 million in fines and restitu-
tion. The costs of insisting on a fair trial: bankruptcy
and ruin. When criminals make such threats to com-
panies, we call it "the protection racket." When fed-
eral prosecutors and the SEC do so, we give them
favorable newspaper headlines.
In other words, RICO has abolished the presump-
tion of innocence. That is a legal innovation that is
hard to justify even if it leads to the jailing of mur-
derers. It is doubly difficult to support when its vic-
tims are stockbrokers whose clients, supposedly the
victims of their activities, make no complaint. The
most lasting legacy of Mr. Rudolph Giuliani, the U.S.
Attorney for Southern New York, who has led the
battle against Drexel, may well be to have destroyed
the credibility of a guilty plea. These are not the best
credentials for Mr. Giuliani's rumored run for the
mayoralty of New York.
28
LEGAL TIMES
DATE:
1-9-89
PAGE:
16
ANALYSIS
A Friendly Judiciary,
With Slots to Fill,
Awaits New President
As Reagan's opportunity for
reshaping the federal bench comes to
a close, a survey of key appointments
shows the groundwork has been well
laid for a conservative revolution.
BY HERMAN SCHWARTZ
The most significant reshapings are at
6th Circuit struck down a similar Ohio
the U.S. Courts of Appeals, where these
statute. Nor can one fail to note that some
y the time his second term expires
"regional Supreme Courts" make law for
of the decisions against individual rights
B
on Jan. 20, 1989, President Ronald
groups of states and where the administra-
were legally sound, for neither the Cons-
Reagan will have appointed 83
tion has had the freest hand. It is here that
titution nor other law provides a remedy
circuit judges out of 169 authorized posi-
the truly ideological appointments have
for all the world's ills and injustices.
tions, leaving eight seats vacant, and 292
been made, with special emphasis on id-
But many of these new judges have ig-
district judges out of the 575 authorized,
eologues and law professors like Robert
nored precedent or unambiguous law or.
leaving 18 slots unfilled. Of his 375 ap-
Bork (no longer on the bench), Pasco
when the choice was available, have
pointments, 30 are women and 23 are
Bowman, Frank Easterbrook, Douglas
chosen the side of authority to reject a
black, Hispanic, or Asian-American.
Ginsburg. Alex Kozinski, Daniel Manion,
claim that rights were violated. Creating
What difference has this spate of ap-
Richard Posner, Laurence Silberman, and
and expanding court-shutting devices like
pointments made? Are the Reagan judges
Stephen Williams. By December 1987,
standing, government immunity to suit,
far more conservative than others? Have
Reagan appointees had achieved a major-
and political questions; rewriting the anti-
they been able at least to begin the con-
ity on some of the circuits-the 2nd Cir-
trust laws virtually to eliminate concern
servative revolution in the courts? Have
cuit in New York, the 6th and 7th circuits
about economic concentration and the
there been any other consequences from
in the Midwest, and the D.C. Cir-
preservation of small business; and nar-
this kind of appointment?
cuit-and were near a majority elsewhere.
rowly interpreting Supreme Court prece-
Answers to these questions are not easy.
Together with the appointees of Presidents
dent have been among the most common
A fundamental shift in judicial direction
Richard Nixon and Gerald Ford, the con-
techniques. In the process, the Reagan
can come only from the Supreme Court,
servatives were in command of most
judges have transformed at least two of the
and until Justice Lewis Powell Jr.'s un-
Courts of Appeals.
circuits-the 7th and the D.C. cir-
expected retirement in 1987 provided the
Obviously, the decisions of the Reagan
cuits-into forums hostile to civil-rights
opportunity, there had been no such shift.
judges have not been uniformly hostile to
and civil-liberties claimants. Judicial
But lower-court judges with strongly held
individual rights. Obedience to the Su-
profiles of a few key figures who are still
views can affect the outcomes of numer-
preme Court or strong circuit precedent,
on the bench follow.
ous decisions that never reach the Su-
regardless of personal unhappiness with
Richard Posner
preme Court and that sometimes point the
these decisions, and even the judges' own
way in new directions. What is the record
beliefs or objective legal analyses, have
Judge Posner of the 7th Circuit Court of
so far?
sometimes produced surprisingly liberal
Appeals has concentrated on antitrust and
At the trial-court level, the Reagan-
results.
similar economic issues, going at the law
wrought change so far does not seem
Judge Ralph Winter of the 2nd Circuit,
with a zeal that even a sympathetic cor-
great, partly because many of the likely
for example, has been relatively sympa-
porate lawyer described in the Antitrust
differences are in the fact-finding and
thetic to criminal defendants, and Judge
Bulletin as "almost religious," marked by
management of specific trials, and such
Posner of the 7th Circuit has not tried to
the absence of "a judicial and restrained
matters take time to become noticeable.
reduce access to the courts with standing
approach to finding the law.
Civil-rights lawyers have complained
and similar devices. Reagan judges on the
about some Reagan judges and been
8th Circuit upheld a constitutionally
pleasantly surprised by others.
dubious Minnesota abortion statute, al-
though a trio of Reagan appointees on the
(continued)
29
Posner's basic idea is to construe nar-
struction contracts for minority busi-
By narrowly defining "excessive
rowly the antitrust laws to allow a great
nesses. The dissenting appellate judge
force,' Easterbrook has also tried to
deal of anti-competitive behavior and to
pointed out that the city council had evi-
protect local governments against those
skirt inconsistent Supreme Court deci-
dence that between 1978 and 1983. only
beaten up by the police. Professor James
sions. In 1986, a group of 21 state at-
two-thirds of one percent of city contracts
Wilson, who studied Easterbrook's record
torneys general attacked Posner and the
had gone to minorities and that, as one city
on civil liberties, concluded that the judge
7th Circuit in a Supreme Court petition for
councilman put it, "the general conduct in
is "as 'result-oriented, unprincipled,
ignoring the high court's rulings and
the construction industry in this area, and
and 'non-neutral' as the liberals he and his
doning such practices as allowing
the state and across the nation, is one in
colleagues have so often criticized on
petitors to form group boycotts to exclude
which race discrimination
is wide-
these very grounds."
other competitors, permitting manu-
spread" fact disputed by no one at the
Alex Kozinski
facturers to prohibit advertising price re-
hearing and virtually beyond argument.
ductions, and allowing sellers to insist that
Wilkinson has also generally favored
Affirmative action was a target not only
if a customer wants a very desirable pro-
the prosecution in criminal cases and usu-
for Wilkinson but also for Alex Kozinski
duct, the customer has to take a second,
ally opposes civil-rights claimants.
of the 9th Circuit. In 1987, in Associated
less desirable item.
On the other hand, Wilkinson tried to
General Contractors V. San Francisco,
But antitrust law is not the only arena in
have the full 4th Circuit rehear a case in
813 F.2d 922, involving a system of pref-
which Posner has justified the conserva-
which publisher Larry Flynt was ordered
erences in municipal contracts created by
tives' pleasure at his appointment. He be-
to pay damages to the Rev. Jerry Falwell
the San Francisco Board of Supervisors
lieves that prisoners injured by prison doc-
for invading Falwell's right to privacy.
for minority (10 percent), female (two
tors should look for a lawyer in the open
Flynt's Hustler magazine had run a parody
percent). and local businesses. Kozinski
market. (The other members of his panel
of a Campari Liqueur ad in which Falwell
applied a very restrictive interpretation of
in the 1983 case. Marriott V. Faulkner,
allegedly committed incest with his
the Supreme Court's racial-preference
697 F.2d 761, disagreed.) He called for
mother as his "first time. Except for
cases to strike down the minority prefer-
changes in the law of habeas corpus in a
Wilkinson, the circuit lined up in id-
ences. while upholding the other prefer-
concurrence in a 1985 case. Phelps V.
eological camps. Some observers have
ences. Even though he admitted that the
Duckworth. 772 F.2d 1410. With the con-
suggested that Wilkinson's eloquent con-
city had made a very careful analysis of
currence of another Reagan appointee and
cern for First Amendment values resulted
the problem and that no witnesses had
against a vigorous dissent in Menora V. 11-
from his three years as editor of the
spoken against the preferences. Kozinski
linois High School Association, 683 F.2d
Norfolk Virginian-Pilot. In February
concluded there had been no-finding of
1030. in 1982 he overturned a district
1988, the Supreme Court unanimously
prior discrimination by the board. a pre-
judge's ruling against a high-school bas-
agreed with Wilkinson in its decision in
requisite to such relief. despite lower court
ketball association rule that prevented
Flynt v. Falwell, 108 S. Ct. 876 (1988).
findings and evidence to the contrary.
Jewish players from wearing yarmulkes,
Frank Easterbrook
Kozinski also seems to have ignored
even though the District Court found the
governing Supreme Court decisions in a
caps created no safety hazard.
Easterbrook has been on the 7th Circuit
1986 ruling that a Santa Barbara. Calif.,
After studying Posner's record through
only since spring 1985, but he has already
regulation that controlled mobile-home
1985, Professor James Wilson of Cleve-
established himself as a brilliant mani-
park rents might be a so-called taking. re-
land-Marshall College of Law concluded
pulator of legal doctrine, usually to stop
quiring the city to compensate the mobile-
in a 1986 law-review article that Posner
litigants from suing public officials.
home landlords for the reduced value. As
and the even more conservative Reagan
In a 1986 prison case, Chapman V.
three other judges pointed out. at least
appointee Judge Frank Easterbrook usu-
Pickett, 801 F.2d 912, concerning a pris-
three Supreme Court cases. as well as
ally reject First Amendment. equal-
oner who was kept in solitary confinement
those of numerous other courts. had rejec-
protection, and due-process arguments. as
for 289 days because his Moslem religious
ted rent-regulation challenges. often
well as most complaints from criminal
beliefs prevented him from handling
without even bothering to hear arguments.
defendants and prisoners.
dishes on which pork had been served,
Kozinski relied on a lone dissent by
Easterbrook, in dissent, not only wanted
Rehnquist in a 1983 case that the Court
J. Harvey Wilkinson
to rule against the prisoner but also to open
had refused to hear "for lack of a sub-
up and overrule decisions in the case made
stantial federal question.'
"Conservatives couldn't be happier
eight years earlier and not even challenged
with Judge Wilkinson,' concluded The
by the prison administrators.
Silberman and Starr
Wall Street Journal in February 1988 of
In another case decided during his first
Judge Laurence Silberman of the D.C.
this 4th Circuit conservative. "He's as
year on the bench, Easterbrook was will-
Circuit quickly established himself as one
good as we anticipated he would be.
ing to allow Social Security Administra-
of the most zealous ideological ap-
rejoiced then Assistant Attorney General
tion judges who ruled against beneficiaries
pointees, whereas Judge Kenneth Starr, an
William Bradford Reynolds.
to refuse to make specific fact findings,
early appointee to that same bench, was
And no wonder. In Croson v. City of
even though this was required by statute;
something of a centrist. On affirmative
Richmond, 822 F.2d 1355, which the Su-
other members of the circuit refused to go
action, however, such distinctions would
preme Court is reviewing this term, Wil-
along with him (Stephens V. Heckler, 766
vanish; and both took aim at it in August
kinson killed a Richmond City plan that
F.2d 284). In still other cases, he at-
1987. In a 2-1 decision, in Hammon V.
set aside 30 percent of municipal con-
tempted to create procedural barriers
Barry, 826 F.2d 73, with Judge Abner
against Social Security recipients and
Mikva in angry dissent, the two Reagan
others claiming government benefits.
appointees brushed aside substantial evi-
dence of discrimination at the D.C. Fire
(continuied)
30
Department and gave a narrow reading to
generate spirited debate as the selection of
a recent group of Supreme Court decisions
a federal district or appellate judge with
that had upheld affirmative action. They
life tenure and though that is far from an
reversed the approval of a voluntarily
ideal situation, it means that less attention
adopted affirmative-action hiring plan by a
has been paid to partisan political and id-
lower court judge, who had overridden his
eological considerations.
hostility to race-conscious employment
The conservatives' crusade to pack the
decisions-he had struck down the pro-
courts with ideological zealots has induced
motional provisions-because the judge
more rather than less partisanship. The
found the evidence of past hiring dis-
effect on how the courts are perceived by
crimination to be so strong.
the public and the bar is especially dis-
Silberman and Starr also voted to strike
turbing. It is not hard to imagine the un-
down the independent-counsel statute as
easiness of lawyers arguing cases before
too great an encroachment on the presi-
judges whose appointments they publicly
dent's power. Of the eight Supreme Court
opposed, and the nervousness their clients
justices who reviewed the case in
must feel. On the other side of the bench,
Morrison V. Olson, only Scalia agreed
it takes a remarkably mature and selfless
with them.
person to forget who tried to deny him or
her a highly coveted prize. Disqualifica-
Partisanship Problems
tion is a solution, but hardly an ideal one.
Obviously, because it is still very early,
The polarization that such controversies
it is difficult to make definitive judgments
create can also make it more difficult for
about so subtle a matter as the impact of
judges to work together, to seek common
judges on the law. As Assistant Attorney
ground, and to narrow differences. It may
General Stephen Markman, who took over
harden positions that were far apart to be-
as the Justice Department's point man in
gin with.
judge selection, said in May 1987, "It will
Finally, the determination with which
take five to 10 years before the full impact
the conservatives have pursued their goal
of the process is felt." That seems a bit
of putting reliably staunch conservatives
pessimistic (or optimistic, depending on
on the courts could well produce a mirror-
one's perspective), but the basic idea is
image determination in a liberal adminis-
correct: It is still early, and the single most
tration. This reaction would be par-
important factor-the future direction of
ticularly understandable if there is wide-
the Supreme Court-has not yet been
spread public support for such a move, as
decided at this writing.
there was for President Franklin Roose-
But there are other effects of the con-
velt. Except when he tried to tamper with
servative court-packing campaign, apart
the Supreme Court's independence, he
from the specific case outcomes and shifts
encountered no great public opposition to
in substantive and procedural law. These
his efforts to appoint liberals to the Su-
include the impact on how Americans
preme Court and lower courts. This kind
perceive the courts and on the internal
of action and reaction can only damage the
workings of the institution.
courts even further.
The conservative campaign to tilt the
All of this can impair the aura of objec-
courts in a new direction is not illegiti-
tivity and fairness on which the authority
mate. Those in position to produce such a
of our courts ultimately depends. That
tilt and who think it necessary are con-
would be the gravest harm that the con-
stitutionally and otherwise entitled to do
servative court-packing could inflict.
so.
Such a concentrated effort, however,
introduces an intensely partisan and divi-
sive note into the selection process. Al-
though partisan politics are inevitable,
such considerations have usually played a
very minor role in lower-court ap-
pointments and only a slightly greater role
in Supreme Court nominations. Sen. Pat-
rick Leahy (D-Vt.) once said that "Na-
tional Pickle Week has been as likely to
31
The
Star-Ledger
DATE:
1-12-89
PAGE:
59
NEWHOUSE NEWSPAPERS
Newark, N.J.
"Con artist gets 12 years for
penny stock fraud
"He was driven by organized crime, and
By JOSEPH R. PERONE
the money was going to be distributed to organ-
the Reliance Savings and Loan of Rahway ar
Marshall Zolp, a slick con man and major
ized crime," Sussman said. He said Zolp has
another $250,000 to be transferred "to assoc
stock swindler, was sentenced yesterday to 12
provided information to federal grand juries in
ates in Las Vegas, Nevada."
years in prison for racketeering as part of a
Los Angeles and Louisiana.
During the past 11 years be has been the
plea bargain in which he agreed to testify about
Sussman also said his client's life was
subject of seven different state or federal se
penny stock scams involving organized crime
threatened. He said one time Zolp was kidnaped
curities probes.
figures.
from New Jersey by organized crime figures
Zolp, impeccably dressed in a dark blue
The eloquent flimflam artist showed no
and taken to Long Island. He "was told he was
suit with his hair slicked back, smiled as he
emotion as he was sentenced in federal court
going to be murdered," according to Sussman.
entered the courtroom yesterday. "I stand here
before U.S. District Judge Alfred J. Lechner Jr.
Instead, he maintains, Zolp was beaten "as a
shamed today-disgraced," he said prior to sen-
Zolp, 42. agreed to repay $1.8 million to stock-
warning."
tencing. He told the court his behavior "was
holders of Laser Arms Corp., a bogus company
In a separate incident. Sussman said "an
perhaps out of character" and said his friends
be created to market a phony, self-chilling beer
could not understand how he became involved
can. He also was fined $50,000.
"in the malicious hoax that Laser Arms be-
Several co-conspirators from New Jersey
escape was prevented" as a result of informa-
came."
are serving prison terms for their role in the
tion his client provided to the government about
Lechner pointed out that Zolp's behavior
$2.4 million fraud.
a group of terrorists who are "waiting to be de-
was not out of character.
Zolp, who is in the federal witness protec-
ported." He declined to name them.
"You are a con man. There is no way
tion program, served as "a franchise," or front
A former alcoholic and combat pilot who
around it," Lechner said. "Everything has fallen
man, for mobsters who sought to enrich them-
deserted during the Vietnam war, Zolp used
apart. You've been caught."
selves at the expense of small investors, accord-
charm and cunning to draw savvy investors into
In return for the guilty plea, the govern-
ing to Robert P. Warren, chief of the Fraud
his penny stock frauds. His trademarks included
ment has agreed not to prosecute Zolp for fail-
and Public Protection Division of the U.S. At-
fictitious documents, non-existent directors and
ing to file income tax returns since 1968 and his
torney's Office in Newark.
various aliases.
involvement with any violations regarding Se-
"He was a vehicle for various organized
Zolp created false financial documents and
curities Transfer Inc., Cambridge Capital Corp.
crime figures," Warren said, "to funnel money
a shareholders' report that featured phony offi-
and Post, Hamilton and Druthers, a brokerage
back to them by bilking the public."
cers under the names Robert Wardlaw, Tucker
house.
Warren said Zolp is providing information
Binkley and Seymour Schwartz, according to
Zolp also has agreed to plead guilty to a
to the Securities and Exchange Commission and
U.S. Attorney Samuel A. Alito Jr. The report
criminal contempt charge in Chicago.
included forged signatures and photographs of
the Justice Department regarding "various in-
non-existent officers, including a deceased
vestigations."
actor.
After the sentencing, Warren said Zolp also
Zolp and 10 other defendants conspired
has provided information about a foreign "ter-
from December 1985 to September 1986 "to
rorist organization which he had contact with in
manipulate the price of Laser Arms stock in
jail." He would not name the organization or
violation of the criminal provisions of federal
provide further details about the organized
securities laws," Alito said.
crime probes. He also said Zolp's life has been
Zolp also obstructed justice by ignoring a
threatened.
court order freezing some Laser Arms ac-
Zolp is talking to government investigators
counts. Zolp and others transferred monies
about "crime families mainly in New Jersey,"
from the frozen accounts to other accounts
according to his attorney, Raymond Sussman.
He said the mob provided Zolp with "customer
under his control. Alito said Zolp caused
sales offices and equipment," including a sales
$200,000 to be transferred into an account with
office in a New York car dealership, to further
some Dennv stock scams.
32
The Miami Herald
DATE:
1/12/89
PAGE:
22A
Witness charged with bribery attempt
By LORI ROZSA
and 'sanitize' his previous testi-
before the grand jury in Fort Lau-
Herald Staff Writer
mony, which would extricate Wald-
derdale eight days before and said
A federal grand jury investigation
ron from his legal problems," FBI
Waldron had falsified documents to
involving Palm Beach County devel-
agent Anthony Yanketis wrote in Pi-
Florida National Bank in 1987 to ob-
oper Thomas S. Waldron suffered a
neiro's arrest affidavit.
tain a loan from the bank.
setback Wednesday when FBI
Diane Cossin, spokeswoman for
Pineiro also said he told the grand
agents arrested a man for allegedly
the U.S. attorney's office in Miami,
jury that Waldron had back-dated
trying to bribe the developer.
said she couldn't comment on the
documents and had hidden assets
Javier Revuelto Pineiro of Boca
grand jury investigation, but added
relating to the bankruptcy of Wald-
Raton, who gave damaging testimo-
that anytime a witness is arrested, it
ron's Diamond C Construction Co.,
ny against Waldron before a federal
can jeopardize the entire case.
according to Yanketis.
grand jury, told Waldron he would
Yanketis said Waldron allowed
Pineiro was arrested at the Palm
recant his testimony if Waldron paid
the FBI to tap a phone call Pineiro
Hotel in West Palm Beach Wednes-
him $200,000, the FBI said.
made to him.
day after he allegedly took a
"In return for the $200,000, Pi-
Yanketis said Pineiro told Wald-
$75,000 payment from Waldron,
neiro would return to the grand jury
ron on Nov. 26 that he had testified
FBI agents said.
33
The Hartford Courant
DATE: 1/12/89
PAGE:
A5
Love led defendant
underground, lawyer says
By WILLIAM COCKERHAM
not be shown that she ever robbed a
Courant Staff Writer
bank, cased a bank or drove a get-
away car. It did not happen. She
SPRINGFIELD A 40-year-old
wasn't a bomber, a bank robber or an
woman accused of conspiring to
attempted murderer."
overthrow the U.S. government had
Newman said Patricia Levasseur,
two choices a decade ago, her attor-
who lived with her family in Derby,
ney said Wednesday - join her
Conn., in 1978 under aliases, was not
avowed revolutionary husband un-
unlike any other normal woman.
derground, or never see him again.
"She did everything you'd expect
William Newman told a U.S. Dis-
from a caring mother,' he said. "She
trict Court jury that defendant Pa-
enrolled her children in school, took
tricia Gros. Levasseur - charged
them to doctors' appointments
with seditious conspiracy, racket-
baked cookies for PTA meetings
eering and conspiracy to racketeer
grew a garden."
- is innocent and that whatever she
Newman said he and his client
did to harbor her 42-year-old fugi-
resent the government's use of the
tive husband, Raymond Luc Levas-
term "underground."
seur, was out of love for him and
"Underground? She only joined
their three children.
her husband to be away from the
Newman said Raymond Levas-
seur would have left his family, to
eyes and ears of the government. She
protect them, if they had not used
didn't live in a safe house. She lived
aliases and false identification.
in a home. It wasn't a cell. It was a
The federal government has
marriage," he said. The term cell
charged that the Levasseurs and a
was used in the 1950s to describe
third defendant, Richard C. Wil-
communist groups.
liams, 41, were involved in at least a
Newman said, however, that Le-
dozen bank robberies and bombings
vasseur does subscribe to many of
throughout the Northeast from 1976
her husband's beliefs, including that
until they were arrested in 1984.
the U.S. government supports rac-
ism and repression. On Tuesday,
"The promises of proof you heard
Raymond Levasseur, who prosecu-
from the government [Tuesday] will
tors say was a leader of the radical
not be made in this case," Newman
United Freedom Front, told the jury
told the 10 women and two men
that he is a revolutionary, but denied
sitting in the jury box. "Proof will
being a racketeer or a criminal.
The first witness, a head teller in a
Maine bank allegedly robbed by the
radical group in 1976, was called to
the stand late Wednesday morning.
Aithough she did not identify any of
the defendants, she did describe a
ski-masked robber who stuck a
small revolver in her ribs during the
robbery. Other witnesses are expect-
ed to testify about the robbery.
Among other bank robberies at-
tributed to the group was one at a
branch of New Britain Bank & Trust
Co. in New Britain, in which $89,000
was taken June 25, 1981.
34
NATIONAL REVIEW
PAGE:
17
Mayor Barry's Legacy
T
wo D.C. UNDERCOVER cops were stationed at a
Ramada Inn late last month, where they were
about to make a drug deal with one of the guests, a
former city employee named Charles Lewis. But who
should drop in for a social call on Mr. Lewis but
Mayor Marion Barry?-whereupon the detectives were
recalled from their assignment. After Lewis checked
out, police found traces of cocaine in the room where
he'd just spent four weeks. The mayor had visited him
several times, and a Barry aide had picked up the tab
for his stay. Upon leaving, Lewis vanished.
When the story hit the front page of the Washing-
ton Post, Barry had a lot of explaining to do. He
didn't do it. He admitted only "maybe lack of some
judgments" in his associations and accused the Post
of waging a vendetta against him, perhaps because it
has persisted in reporting on his associations. He im-
plied that the liberal paper was somehow driven by
racist motives, a charge only his most diehard follow-
ers were buying.
Barry has been the subject of several scandals and
many rumors. In his ten years as mayor, 11 city
officials have been convicted on corruption charges,
and his former mistress served time twice. once for
drug dealing and once for refusing to testify whether
she'd supplied Barry himself with drugs. His turn may
be coming: the Justice Department is investigating his
latest indiscretion.
It's a pattern at least as old as Jimmy Walker: a
flamboyant big-city mayor with an ethnic base of
popularity plays fast and loose with the law, then tries
to keep his head out of the noose by appealing to his
followers' shared sense of victimhood. This time the
act isn't flying. Even (or especially) the capital's black
journalists are openly saying he's an embarrassment,
and whites, in this post-Bonfire world, aren't being
bluffed or scared off from criticizing him. Barry has
made D.C.'s city government a bad joke, brought dis-
credit on home rule, and jeopardized whatever chance
the District had of attaining statehood.
35
The Miami Herald
DATE:
1/12/89
PAGE:
26A
Put guilty in prison
I'
T MAY COME as a surprise to some
within the "military-industrial com-
plex," but bribery is not an art. It is a
FOR PROCUREMENT RIPOFFS
crime. Those who practice it are criminals.
That is the message delivered now that
the Justice Department's Operation Ill
deed, for a company of Emerson's size (an-
Wind finally has gusted through the glass
nual sales $6.7 billion), a million-dollar fine
towers of Crystal City, an office complex
is little more than a nuisance, the cost of do-
near the Pentagon teeming with defense
ing business. To change the climate, corpo-
contractors. Indicted for bribery, conspira-
rate executives must go to prison when con-
cy, wire fraud, racketeering, and theft of
victed of bribery or fraud. They must be
Government property were Stuart E. Ber-
held personally responsible for tolerating a
lin, a civilian Navy official with virtually un-
corrupt environment.
checked authority to award contracts; con-
Since 1982 Congress has rewritten de-
sultants Fred Lackner and William Parkin,
fense-procurement laws four times to tight-
who allegedly funneled regular payments to
en procedures and enforcement. Additional
Mr. Berlin: and Teledyne Industries and
changes are warranted; the revolving door,
three of its former vice presidents.
for example, clearly remains a problem.
Hours earlier, Hazeltine Corp., which is a
Still, the tightest law will be corrupted if
subsidiary of Emerson Electric Co., and two
there is greater reward in flouting than
of its executives pleaded guilty to related
obeying it. For too long the rewards of flout-
charges and agreed to pay $1.9 million in
ing and skirting procurement laws have
fines and costs. Teledyne marketing execu-
been higher than the risks.
tive Michael Savaides, who bought and sold
U.S. Attorney Henry Hudson of Alexan-
information, also admitted to conspiring to
dria, Va., says that that is changing, that
bribe Mr. Berlin.
there are more indictments, more pleas.
If corruption in the Pentagon's multibil-
more trials, and more glass to be broken in
lion-dollar purchasing process is as endemic
Crystal City. Good! Let every shard find its
as insiders insist, corporate fines - howev-
target. And let every target know that it has
er stiff - will not change the climate. In-
been hit.
36