-Caveat Lector-
Feds Probe Clinton Commutations
The Associated Press
Feb 23 2001 7:22PM
NEW YORK (AP) - Federal prosecutors are investigating whether
former President Clinton commuted the sentences of four convicted
swindlers in exchange for Hasidic Jewish votes for his wife
during her run for the Senate, The Associated Press learned
Friday.
The four men were members of the Hasidic community of New Square,
which voted overwhelmingly for Hillary Rodham Clinton when she
was elected in November.
U.S. Attorney Mary Jo White is investigating their commutations
as part of a probe that is also said to include the pardon of
fugitive financier Marc Rich, according to a source who spoke on
condition of anonymity.
Julia Payne, a spokeswoman for the former president, referred all
questions to Clinton attorney David Kendall, who did not
immediately return calls for comment.
``Senator Clinton has spoken about these commutations on several
occasions and we do not have anything to add at this time,'' said
her spokeswoman, Karen Dunn.
Mrs. Clinton has said previously that she did not discuss the
men's fate with Hasidic leaders before the election but sat in on
a December meeting with supporters of clemency for them. However,
she said she played no part in her husband's decision.
``I did not play any role whatsoever,'' she said last month. ``I
had no opinion about it.''
It is unusual for a first lady to sit in on a clemency meeting.
The commutations are part of a growing furor over several of the
140 pardons the president made on his last day in office. Also
under scrutiny are two pardons for which Mrs. Clinton's brother
Hugh Rodham received nearly $400,000; two pardons on which her
campaign treasurer performed legal work; and the possible role of
the former president's half-brother, Roger Clinton, in some other
cases.
The AP also learned Friday that Rodham has not yet repaid all the
money he collected to successfully lobbying for two pardons
granted by Clinton.
Legal sources said that Rodham repaid the full $200,000 that
pardon recipient Almon Glenn Braswell sent him as a ``success
fee'' but has managed to repay only part of the billable fees he
collected from the family of Carlos Vignali, whose prison
sentence on drug charges was commuted by Clinton.
The sources, speaking on condition of anonymity, would say only
that Rodham had reimbursed ``a significant amount'' and was
attempting to arrange to repay the rest.
Mrs. Clinton's office reacted with surprise to the news.
``We had been assured yesterday by his attorney that all the
money had been repaid. We only learned late today that it hadn't
been. But we are being told that steps are being taken to ensure
it is all repaid,'' said Jim Kennedy, a spokesman for the
senator.
During her Senate campaign, Mrs. Clinton traveled to New Square,
in suburban Rockland County, and met Grand Rabbi David Twersky.
Many Hasidic communities tend to vote in blocs, and because of
that, politicians aggressively court their leaders.
Mrs. Clinton received 1,400 votes in New Square; her Republican
opponent, Rick Lazio, received 12.
The four Hasidic men - Kalmen Stern, David Goldstein, Benjamin
Berger and Jacob Elbaum - were convicted of stealing more than
$40 million worth of education grants, small business loans and
housing subsidies by creating a fictitious religious school to
receive government money.
Supporters of the men have not denied their guilt but said they
did not keep the money for themselves and gave it instead to a
school and residents of the village.
The men were sentenced in 1999 to 2 1/2 to 6 1/2 years in prison.
Clinton reduced Berger's sentence from 2 1/2 years to two. The
other defendants had their sentences reduced to 2 1/2 years. All
four are still behind bars.
``We have not been made aware of any investigation and therefore
there's nothing to comment about,'' said the men's lawyer, Samuel
Rosenthal.
The disclosure comes a day after another potentially damaging
revelation - Mrs. Clinton's campaign treasurer, William
Cunningham III, received $4,000 in legal fees to prepare two
pardon applications sent to the Justice Department.
At a news conference Friday, Cunningham denied any impropriety.
``I have no qualms about anything I did here,'' he said. ``I am a
former federal prosecutor. I am an experienced defense
attorney.''
Cunningham said neither of the two Arkansas men - restaurateurs
Robert Clinton Fain and James Lowell Manning of Little Rock -
knew President or Mrs. Clinton. Cunningham said that he never
spoke with either of the Clintons about the cases, and that the
two men are supporters of President Bush and made no
contributions to Mrs. Clinton's campaign.
``The work that I did had nothing to do with my responsibilities
as treasurer of the campaign. In the light of day, I think there
was no conflict and no appearance of conflict,'' Cunningham said.
On Friday, Harry Thomason, the Hollywood producer and Clinton
family friend, said he pitched the idea for the two men's pardons
that ultimately were handled by Cunningham.
The men were convicted in 1982 on income tax fraud charges. They
completed their sentences in 1983 but sought pardons because they
were prohibited under Arkansas law to hold liquor licenses and
obtain financing. They were also unable to obtain hunting
licenses.
EDITOR'S NOTE - Associated Press Writer John Solomon in
Washington contributed to this report.
Copyright © 2001 The Associated Press.
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