Jul 14, 2000 - 07:19 PM
Appeals Court Discloses Secret Dispute in Haley Barbour Probe
By Pete Yost Associated Press Writer
WASHINGTON (AP) - The Republican Party waged a secret battle to
withhold documents from a Justice Department fund-raising
investigation of its former chairman, and won a court ruling
Friday that will keep the materials from a grand jury.
Though the GOP has accused Democrats of stonewalling the
fund-raising investigation, an appeals court ruling disclosed
that Republicans have held up the prosecutors' investigation of
former party chairman Haley Barbour.
A grand jury in 1997 subpoenaed the files of the Republican
National Committee's former general counsel, Benjamin L.
Ginsberg, seeking information on efforts by Barbour and others to
arrange a loan guarantee from a Hong Kong businessman to help
their efforts in the final days of the 1994 election.
Democrats have alleged the transaction funneled illegal foreign
money into the U.S. election. Barbour has said he didn't know
the Hong Kong businessman used foreign funds.
The former RNC general counsel argued the documents were
protected by attorney-client privilege, but a judge ordered him
to turn them over under the crime-fraud exception to
attorney-client privilege. After reviewing the documents, the
judge concluded there was evidence of a crime.
An appeals court, however, sided with the Republicans. The
three-judge panel said the loan guarantee Barbour arranged didn't
violate federal campaign finance laws and could not be used to
pierce the client confidentiality.
"This case does not fall within the crime-fraud exception because
what RNC and its officials are accused of is not criminal," the
judges ruled.
RNC chairman Jim Nicholson said "Haley and the RNC were well
within the limits of the law," contrasting their conduct with
that of "Democrats with close ties to Al Gore" who have been
"convicted of felonies."
Nicholson said Democratic National Committee officials have been
making "false charges ... about Mr. Barbour and the RNC" and
should apologize.
Democratic National Committee spokesman Rick Hess said "this
three-year legal battle by the Republicans shows that they will
go to any lengths and employ any tortured legalism to conceal the
foreign source of their funds."
At issue is a transaction between the National Policy Forum, a
group formed by Barbour, and Hong Kong businessman Ambrous Young.
Prior to the 1994 election, NPF had received a loan from
Republican political committees. As the election drew closer,
Barbour wanted to inject money into the GOP effort to gain
control of Congress and sought a way to have NPF repay the money
it was loaned so the GOP committee could use it to help
candidates.
Barbour arranged a $2.1 million loan guarantee from Young, used
that to secure U.S. bank loan and paid back the money to the GOP
committee in time for them to use it for the election.
The transaction was brought to light by Democrats during
congressional hearings into fund-raising abuses after the 1996
election. The Justice Department has been investigating the
transaction.
The existence of the secret battle over the GOP lawyer's files
wasn't disclosed until Friday's appeals court ruling.
In its 3-0 ruling, the appeals court said the loan guarantee went
to the NPF, not the Republican Party, and therefore "is no
violation" of election laws. The court said it must defer to the
Federal Election Commission, which deadlocked on a 3-3 vote on
whether the transaction was unlawful.
The three judges included Reagan appointees Stephen Williams and
Douglas Ginsburg and Clinton appointee Judith Rogers.
The appeals court ruling also details some of the previously
secret battle.
A lower court judge had demanded that the RNC lawyer turn over
his files.
"The evidence shows that the RNC sought the advice of the general
counsel in an effort to construct the loan ... transaction in a
manner designed to conceal from the FEC the source of the funds,"
the lower court concluded.
The RNC sought "to evade federal election campaign laws," the
lower court judge concluded after reviewing the documents.
=================================================================
Kadosh, Kadosh, Kadosh, YHVH, TZEVAOT
FROM THE DESK OF: <[EMAIL PROTECTED]>
*Mike Spitzer* <[EMAIL PROTECTED]>
~~~~~~~~ <[EMAIL PROTECTED]>
The Best Way To Destroy Enemies Is To Change Them To Friends
Shalom, A Salaam Aleikum, and to all, A Good Day.
=================================================================
<A HREF="http://www.ctrl.org/">www.ctrl.org</A>
DECLARATION & DISCLAIMER
==========
CTRL is a discussion & informational exchange list. Proselytizing propagandic
screeds are unwelcomed. Substance—not soap-boxing—please! These are
sordid matters and 'conspiracy theory'—with its many half-truths, mis-
directions and outright frauds—is used politically by different groups with
major and minor effects spread throughout the spectrum of time and thought.
That being said, CTRLgives no endorsement to the validity of posts, and
always suggests to readers; be wary of what you read. CTRL gives no
credence to Holocaust denial and nazi's need not apply.
Let us please be civil and as always, Caveat Lector.
========================================================================
Archives Available at:
http://peach.ease.lsoft.com/archives/ctrl.html
<A HREF="http://peach.ease.lsoft.com/archives/ctrl.html">Archives of
[EMAIL PROTECTED]</A>
http:[EMAIL PROTECTED]/
<A HREF="http:[EMAIL PROTECTED]/">ctrl</A>
========================================================================
To subscribe to Conspiracy Theory Research List[CTRL] send email:
SUBSCRIBE CTRL [to:] [EMAIL PROTECTED]
To UNsubscribe to Conspiracy Theory Research List[CTRL] send email:
SIGNOFF CTRL [to:] [EMAIL PROTECTED]
Om
