-Caveat Lector-

Billionaire makes plea in Democratic finance scandal

By LINDA DEUTSCH
Associated Press

LOS ANGELES (January 19, 2001 3:22 p.m. EST
http://www.nandotimes.com) - Federal prosecutors say the plea
bargain negotiated with Indonesian billionaire James Riady in the
Democratic campaign finance scandal allows him to withdraw from
the deal if a judge rejects it.

There were no indications the judge plans such action.

The withdrawal provision is one of many that convinced Riady to
return to the United States and enter a guilty plea, said Thom
Mrozek, spokesman for the U.S. Attorney's Office in Los Angeles.

Clauses allowing either side to withdraw if a judge rejects a
plea agreement are standard. This case is unusual because Riady
is from a country that doesn't have an extradition treaty with
the United States, Mrozek said Friday.

"There was no reason for him to return to the United States and
deal with this if he was going to be arrested," Mrozek said.

Prosecutors said Riady and his international conglomerate, Lippo
Group, funneled foreign contributions to the campaigns of Bill
Clinton and other Democrats. Riady is accused of pledging $1
million in 1992 to support Clinton's campaign for president.

Foreign campaign contributions are illegal under U.S. law.

Riady was arraigned Tuesday on a charge of conspiring to defraud
the U.S. government. He has agreed to plead guilty and pay a fine
of $8.6 million.

The plea was not immediately taken because U.S. District Judge
Ronald Lew had undergone eye surgery and was unavailable to
convene court.

Mrozek said lawyers were conferring on a date, which would follow
submission of a required report from the probation department.
That date probably would be at the end of February or beginning
of March.

There was no indication that Riady or the government intended to
withdraw from the deal.

Riady's attorney, Abbe Lowell, did not immediately return a phone
call Friday.

Assistant U.S. Attorney Dan O'Brien, who negotiated the
agreement, has said the lack of an extradition treaty was the
biggest hurdle in arranging the plea bargain.

The agreement states that if the judge rejects it, Riady can
withdraw his guilty plea and return to Indonesia without being
arrested.

However, it also states that if Riady breaches the agreement by
failing to cooperate with the government, the United States will
no longer be bound by it.

"We think this is a significant victory for us," Mrozek said.
"He's not going to serve any time, but he's going to pay a giant
fine. And we have received and are continuing to receive
significant information from him."


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  The Best Way To Destroy Enemies Is To Change Them To Friends
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