Magaziner, [Ira]

A4 SATURDAY, AUGUST 5, 1995 R2 THE WASHINGTON POST Holder Blames White House Lawyers for Dispute Involving Magaziner By Toni Locy terms that "are subject to conflicting correct Magaziner's statement when gaziner did not make misleading and a tremendous amount of time," lawyers made it easy for the doctors Washington Post Staff Writer interpretations and were inartfully it became clear that the working statements and defended him against he said. group to level accusations of wrong- used," Holder said they left Magazi- group was growing and changing inaccurate charges made by politically Reluctant to criticize the govern- Ira Magaziner, President Clinton's doing. By failing to correct the phy- ner "open to charges that portions dramatically. "Instead, the defense motivated plaintiffs." ment lawyers, Magaziner said he re- health care adviser, did not lie about sicians' lawyers, as well as Lamberth were inaccurate." persisted in an attempt to go back Kathryn- Serkes, a spokeswoman viewed the statement before he the makeup of the Clinton Health and the Court of Appeals, when they, Holder got involved last Decem- after the fact and make everyone for the main plaintiff, the Association signed it. But he said he relied on Care Task Force, but simply got bad misstated the facts, Holder said, the, ber when U.S. District Judge Royce who had been involved in the work- of American Physicians and Sur- the lawyers. "I figured, 'Hell, I'm legal advice from the White House Justice Department lawyers allowed C. Lamberth asked him to investi- ing group 'fit' into the original cate- geons, said Holder allowed the ad- new to Washington. If all of them say the confusion to spread. counsel's office and the Justice De- gate whether Magaziner should be gories of [the statement]. ministration to use "the bozo de- this is the way it should be done partment, U.S. Attorney Eric H. It stemmed from "strained" definf-3 prosecuted for perjury for making He said the situation was exacer- fense: We are so incompetent that I said let's make it happen.' Holder Jr. has concluded. tions of "special government employ the statement in connection with a bated by poor lawyering by Justice we can't be held accountable." Essentially, the controversy ees," "members," "consultants" and In an 18-page letter made public civil lawsuit brought by groups seek- Department attorneys, who he said In the February 1993 lawsuit, boiled down to one line in the state- yesterday, Holder placed much of "participants," Holder said, pointing ing access to the task force's work. made tactical mistakes and failed to three groups claimed that the task ment: "Only federal government em- out significant differences in the ways the blame for the controversy on Holder's office and FBI agents inter- correct mischaracterizations of their force headed by first lady Hillary Rod- ployees serve as members of the the Department of Health and Hu-io White House lawyers for drafting a viewed 35 people, including former defense by lawyers on the other side ham Clinton was hiding information working group." The Clinton admin- man Services and the White House sloppily worded statement for Maga- associate attorney general Webster and judges. that would show that the task force istration broadly defined everyone ziner on the membership of the task L. Hubbell and Bernard Nussbaum, classified people on the working A White House spokesman said, and its subcommittees were full of who worked on the task force's group. force's working group. Sources said White House counsel at the time. "The bottom line is that the White people representing special interests. working group as "special govern- He pointed out that it was easy to Magaziner's March 3, 1993, state- They talked to Magaziner for five House counsel's office and the Justice Magaziner said yesterday he is re- ment employees," who can be tem- see why the doctors' group cried foul, ment was written by the late Vin- hours and reviewed thousands of Department attorneys succeeded in lieved that he has been vindicated. porary, unpaid volunteers. By doing because the "horde" of people brought cent Foster and Stephen Neuwirth documents. vindicating Mr. Magaziner by offering "It was very frustrating for me. It's so, the group could work in secret. in by the White House "did not much of the White House counsel's office. The U.S. attorney also criticized a sound legal defense. The counsel's been a terrible hit on my reputation, Holder said that the "tactical" mis- look like 'employees' within the com- Because the lawyers defined White House lawyers for refusing to office has said all along that Mr. Ma- not to mention costing me money takes and "missteps" by government mon understanding of that term." "As phylactic." choices." great and the legislative purpose pro- is apparent, the likelihood of stealth where, as here, the conflict of interest judges said "no smoking gun is needed play" practice is widespread. But the SEC had no proof that the "pay to three-judge panel agreed-that the Blount's lawyers argued-and the stop to such a practice. SEC was correct in wanting to put a For that reason, Williams wrote, the cover for what is much like a bribe." ideas, but they may also be used as the nicate support for a candidate and his Craft Henderson. "They may commu- Judges Judith Rogers and Karen Le- liams wrote on behalf of himself and contributions have two aspects," Wil- "Contributions and solicitation of chusetts and New Jersey. country, including the District, Massa- volving bond dealers throughout the payoffs and political contributions in- investigations of allegations of illegal Justice Department and SEC launched The regulations were drafted as the many other government services. money for schools, sewer systems and governments and agencies to raise Bonds are used by state and local whom they are trying to do business. nating contributions for officials with and dealers from soliciting or coordi- past two years. They also bar brokers whom they have given money in the seeking business from any politician to options are. The rules prohibit bond firms from ute to the campaigns of local officials. handed out to bond firms who contrib- trillion bond market where business is calls a "pay to play" system in the $1.2 the regulations to end what Levitt In April 1994, the SEC approved ing the decision to determine what his Kevin T. Baine, said Blount is review- politician raise money. His lawyer, but also limiting his efforts to help a much he can contribute to a candidate rights by telling him not only how gued that the SEC is violating his the Alabama Democratic Party, ar- But William B. Blount, chairman of greased palm." the market is an invisible hand, not a must ensure that the force that guides the past two years." He added, "We integrity that we have worked for over much closer to operating with the high bringing "our municipal bond market SEC, applauded the court's ruling for Arthur Levitt Jr., chairman of the politician tends to make distorted to bought elections IS that a bought we see it one of the primary reasons people object where you mouth is,' wrote Judge Stephen F. Williams. to a cause; hence the familiar challenge, 'Put your money money on politics. "Giving money is one method of indicating one's devotion ment has "a compelling interest" to curb the influence of dealer in municipal securities, in finding that the govern- Alabama Democratic Party leader, who also is a broker and the D.C. Circuit dismissed the free-speech argument by an The three-judge panel of the U.S. Court of Appeals for dealers and brokers. even though the rules infringe on free-speech rights of bond bar municipal bond firms from making political contributions the Securities and Exchange Commission that effectively A federal appeals court yesterday upheld regulations by Washington Post Staff Writer By Toni Locy Political Contributions Barred On Muni Bond Firms Court Backs SEC Curb