To: pezz who wrote (266 ) 8/3/1998 9:10:00 AM From: Catfish Respond to of 13994
Campaign Investigation of Ickes Reveals Evidence of Wrongdoing THE WALL STREET JOURNAL August 3, 1998 By BRIAN DUFFY, Staff Reporter WASHINGTON -- The departing head of the Justice Department's campaign fundraising investigation has told Janet Reno that he developed evidence of wrongdoing by senior officials of the White House and the Democratic National Committee. Charles LaBella's findings, presented in a lengthy memorandum to Ms. Reno, focus sharply on the fund-raising efforts of Harold Ickes, the former deputy White House chief of staff. They form the basis of Mr. LaBella's recommendation that Ms. Reno seek the appointment of an independent counsel. "It's not exactly that we presented her with a smoking gun," a senior government official said. "But we showed her significant threads of evidence that went right into the White House and to the upper levels of the DNC." Mr. Ickes, who couldn't immediately be reached for comment, has consistently denied any improper fund-raising activity. The White House declined to comment. Mr. LaBella has obtained the cooperation of one Democratic fund-raiser, Johnny Chung, who has provided evidence that top DNC officials knowingly solicited and accepted improper donations from him. Mr. LaBella's prosecutors are negotiating with others who have provided information about senior White House officials' roles in fund-raising efforts in 1995 and 1996. Mr. LaBella is to testify about his findings before a House panel Tuesday, along with Louis Freeh, director of the Federal Bureau of Investigation. In a separate memorandum prepared for Ms. Reno last year, Mr. Freeh also argued for appointment of an independent counsel, noting that since prosecutors had subpoenaed telephone records of President Clinton and Vice President Gore, they already had begun an investigation of the two top officials covered by the special-prosecutor law. Ms. Reno has refused to seek an outside counsel, though a senior adviser says she is considering means that would allow her to do so. Interviews with senior government officials present a picture at sharp variance with the image of the inquiry that Ms. Reno has sought to portray. The attorney general appointed Mr. LaBella to the fundraising task force after complaints by the FBI and senior Justice Department officials that it had stalled. Since then, Ms. Reno has repeatedly told her Republican critics that she based her decision not to seek an independent counsel on the advice of career Justice Department attorneys. But Mr. LaBella, her top attorney and a career federal prosecutor, was frequently excluded from meetings concerning the appointment with Ms. Reno and other Justice Department executives, several officials said. A senior Justice Department official, speaking on behalf of Attorney General Reno, challenged that characterization but said he couldn't rule out that Ms. Reno had discussed the fund-raising inquiry outside of Mr. LaBella's presence. Ms. Reno relied heavily on advice from attorneys assigned to the criminal division's public-integrity section who specialize in election-law violations and the independent counsel law. But those lawyers often refused to talk with Mr. LaBella and senior FBI agents assigned to the inquiry, and the relationship between the two sides was tense. Memos prepared by the public-integrity lawyers for Ms. Reno sometimes didn't mention important evidence, prompting Mr. LaBella to prepare his own reports detailing all information developed by the Justice task force. Complicating matters further was the role of Deputy Attorney General Eric Holder. Mr. Holder played an important role in Mr. LaBella's installation as head the task force in September 1997 and is widely credited with revitalizing the probe. Senior officials said Mr. Holder privately told Mr. Freeh and other top FBI officials last year that he supported an independent counsel. But an official familiar with his thinking said the comment was made in an offhand way. Mr. Holder believes the appointment would be helpful because controversy over the campaign-finance inquiry was hurting morale at the Justice Department. He had supported an independent counsel prior to and just after being named deputy attorney general. Tuesday's testimony by Messrs. Freeh and LaBella likely will increase pressure on Ms. Reno, but she has been unfazed by the prospect. Democrats have accused Rep. Dan Burton, chairman of the House committee investigating fund-raising activities, of improperly pressing Ms. Reno. But GOP Sen. Orrin Hatch of Utah and Republican Rep. Henry Hyde of Illinois, the respective heads of the Senate and House judiciary committees, have demanded copies of Mr. LaBella's report. Mr. Hatch said Sunday that Ms. Reno's persistence in refusing to seek an outside prosecutor could eventually force her resignation.freerepublic.com