[House Report 107-454] [From the U.S. Government Publishing Office] Union Calendar No. 269 107th Congress Report HOUSE OF REPRESENTATIVES 2d Session 107-454 ====================================================================== JUSTICE UNDONE: CLEMENCY DECISIONS IN THE CLINTON WHITE HOUSE _______ May 14, 2002.--Committed to the Committee of the Whole House on the State of the Union and ordered to be printed _______ Mr. Burton, from the Committee on Government Reform submitted the following SECOND REPORT On March 14, 2002, the Committee on Government Reform approved and adopted a report entitled ``Justice Undone: Clemency Decisions in the Clinton White House.'' The chairman was directed to transmit a copy to the Speaker of the House. CHAPTER THREE HUGH RODHAM'S ROLE IN LOBBYING FOR GRANTS OF EXECUTIVE CLEMENCY FINDINGS OF THE COMMITTEE HUGH RODHAM'S INVOLVEMENT IN THE VIGNALI COMMUTATION Vignali's clemency petition was false and misleading.Carlos Vignali lied in his clemency petition. First, he continued to maintain his innocence, despite overwhelming evidence of his involvement in selling a substantial amount of cocaine across state lines and a specific finding by the sentencing judge that he lied at trial about his involvement in a large drug distribution network. Second, Vignali claimed that he was a first-time offender, despite the fact that he had a prior criminal record. By not accepting responsibility for his crime and lying about his background, he should not have been eligible for executive clemency. Vignali's supporters provided letters of support that were false and misleading. A key element of the campaign by Carlos Vignali and his father Horacio, was a series of letters on Carlos' behalf from prominent Los Angeles politicians. A number of these letters contained misleading statements calculated to create the impression that Carlos Vignali was innocent. The officials who submitted letters included Representative Xavier Becerra, Representative Esteban Torres, State Assembly Speaker Robert Hertzberg, State Assembly Member Antonio Villaraigosa, State Senator Richard Polanco, Los Angeles County Supervisor Gloria Molina, Los Angeles City Councilmember Mike Hernandez, and Cardinal Roger Mahony, Archbishop of Los Angeles. Los Angeles County Sheriff Lee Baca provided critical support for the Vignali commutation that was inappropriate, given his position. Sheriff Baca had a close relationship with Horacio Vignali that was based on Vignali's political and financial support for Baca. Sheriff Baca has known Horacio Vignali since 1991, and Vignali has been a key political supporter of Baca, giving him at least $11,000 in contributions and raising between $60,000-$70,000 more. Sheriff Baca spoke with the White House in support of the Vignali commutation. In January 2001, Baca received a telephone call from Hugh Rodham in which Rodham told Baca that he would get a call from the White House about Horacio Vignali. Shortly thereafter, Baca received a call from White House staff and spoke in support of Horacio Vignali. Based on Baca's statements in this telephone call, White House staff clearly and justifiably concluded that Baca supported the commutation of Carlos Vignali's sentence. Sheriff Baca continues to claim, without any basis, that he did not support the Vignali commutation. Rather than express regret for his role in the Vignali commutation, Sheriff Baca maintains that he opposed the Vignali commutation and did nothing that could have been interpreted as support for the commutation. However, Sheriff Baca's supposed opposition to the Vignali commutation does not square with the fact that: (1) he drafted a letter that he believed Horacio Vignali would use in the clemency effort and (2) when he was asked squarely by the White House if the President should commute Vignali's prison sentence, he stated that it was ``the President's decision to make,'' rather than express his opposition. These facts, and others outlined in this report, indicate that Sheriff Baca wanted to support the Vignali commutation, but was afraid of creating a paper record that would clearly indicate his support. Sheriff Baca's efforts on behalf of the Vignalis are even more inappropriate given that there were extensive allegations that Horacio Vignali, Carlos' father, was also involved in illegal drug trafficking. It is inappropriate enough for a senior law enforcement official like Baca to support a grant of clemency for an unrepentant, large-scale drug dealer like Carlos Vignali. However, when coupled with credible allegations indicating that Horacio Vignali was a drug dealer, and in fact was the source of cocaine supply for his son, Baca's support of Horacio and Carlos Vignali is even more inappropriate. U.S. Attorney Alejandro Mayorkas provided critical support for the Vignali commutation that was inappropriate, given his position. U.S. Attorney Alejandro Mayorkas called the White House in support of the Vignali commutation. Mayorkas, the top federal prosecutor in Los Angeles, was asked by Horacio Vignali to call the White House in support of his son's clemency petition. Mayorkas then called the White House about the Vignali commutation. While Mayorkas does not recall the details of his conversation, he now concedes that his call conveyed support for the Vignali commutation. Mayorkas supported the Vignali commutation despite his ignorance of the facts of the case and his knowledge that the prosecutors responsible for the Vignali case opposed clemency. Before he called the White House, Mayorkas had spoken twice with Todd Jones, the U.S. Attorney responsible for the Vignali case. Jones told Mayorkas that Vignali was a ``major player'' in drug trafficking, that he was ``bad news'' and that Mayorkas should not ``go there'' when it came to Vignali. Despite these warnings from a prosecutor who was intimately familiar with the Vignali case, Mayorkas still called the White House in support of the Vignali commutation. Mayorkas' support for the Vignali commutation was inappropriate. Mayorkas knew little about the Vignali case. What he did know indicated that Carlos Vignali was an unrepentant, large-scale criminal. These facts alone make his support for the commutation, as a senior federal prosecutor, totally inappropriate. There are a number of allegations that both Horacio and Carlos Vignali were involved in illegal drug trafficking. There are allegations that, in addition to his son, Horacio Vignali was involved in illegal drug trafficking, and that Carlos Vignali was involved in drug trafficking far beyond the conduct that led to his conviction in Minnesota. DEA reports documenting these allegations include the following statements: ``[Horacio Vignali] negotiated with ATF agents to sell a machine gun and stated to them that he had also smuggled heroin into the United States utilizing automobiles.'' ``[Redacted] has also purchased cocaine from Carlos Vignali Jr. of Los Angeles . . . Vignali's father Carlos Vignali aka `pops' owns a body shop, at 1260 Figueroa and is the source of supply for his son.'' ``Carlos Horatio Vignali's role in [George Torres' drug dealing] organization is relatively unknown at this time. It is believed that Vignali functions as a financial partner in the organization.'' These DEA reports are corroborated by law enforcement personnel who indicate that they had received information indicating that both Horacio and Carlos Vignali were involved in large-scale drug trafficking. These charges have never been formally made in court or substantiated by physical evidence. However, the mere existence of such allegations should have precluded senior law enforcement and political officials from supporting a commutation for Carlos Vignali on the strength of his father's reputation. Nonetheless, it appears that no one checked with the DEA prior to granting the commutation. Hugh Rodham provided false and misleading information to the White House in support of the Vignali commutation. Hugh Rodham was paid $204,200 for his work on the Vignali commutation. It appears that, in return for this money, he worked part-time for two months gathering materials in support of Vignali's case and making telephone calls to White House staff. It appears that Rodham's payment in the Vignali matter was contingent upon his success, as he received the $200,000 payment on January 24, 2001, after President Clinton granted clemency to Vignali. Rodham repeatedly provided false information during his communications with the White House. First, and most importantly, Rodham told Bruce Lindsey that the trial attorney who prosecuted Vignali supported the commutation. This was completely false. Second, Rodham told Lindsey that Vignali was a first-time offender when, in fact, he had two prior convictions and two other arrests. Rodham also told Lindsey that Vignali ``did not play a major role in the offense'' when, in fact, Vignali was a major source of cocaine for the Minnesota drug-dealing ring at issue in his case. Hugh Rodham told the White House that First Lady Hillary Rodham Clinton was aware of his lobbying efforts and that the Vignali commutation was ``very important'' to her. Hugh Rodham told White House staff that the Vignali commutation was ``very important to him and the First Lady as well as others.'' This statement is confirmed by the independent recollection of the White House staffer who spoke to Rodham as well as the note that she took contemporaneously. Rodham's statement raises two possibilities: first, that the First Lady was aware of and approved of Hugh Rodham's lobbying efforts; or, second, that Hugh Rodham was lying to White House staff regarding the First Lady's knowledge of his efforts. The White House sought the opinion of powerful Los Angeles political figures, but failed to consult with the prosecutors or judge who understood the Vignali case. White House staff engaged in telephone conversations with a number of outside individuals regarding the Vignali case--Hugh Rodham, Lee Baca, and Alejandro Mayorkas, none of whom knew very much about the Vignali case. It appears that key White House staff gave great weight to the input provided by Rodham, Baca, and Mayorkas, even though they knew little about the case and had mixed motives. White House staff failed to reach out to the prosecutors who had convicted Vignali or the judge who sentenced him. White House staff justified their failure to take this simple action by concluding that they knew that the prosecutors and judge would object, so there was no need to speak to them. However, if the White House had spoken to Todd Jones, Denise Reilly, Andrew Dunne, or Judge David Doty, they would have learned that Carlos Vignali: (1) was not a small- time drug dealer; (2) was unrepentant about his criminal activity; and (3) never cooperated with law enforcement by telling them who supplied him cocaine. The White House ignored the strenuous objections to the Vignali commutation that were lodged by the Pardon Attorney. The Pardon Attorney provided the White House with a report that contained his recommendation against granting the Vignali commutation. This report contained a number of powerful arguments against the commutation, which were apparently ignored by the White House. The existence of the Pardon Attorney's report means that the White House cannot claim that it was totally unaware that Vignali's arguments were completely false. The White House knew that the Vignali clemency petition had no merit, yet decided to grant the commutation anyway. President Clinton's decision raises questions about why the Vignali commutation was granted. Rodham has apparently misled the public about returning to the Vignalis those fees he received in connection with the clemency and ignored former President and Senator Clinton's request that he do so. On February 21, 2001, at the request of former President Clinton and Senator Hillary Rodham Clinton, Rodham promised to return to Horacio Vignali the legal fees he received in connection with the Vignali clemency. But, as of June 2001, Rodham had apparently returned only about $50,000 of the money that Horacio Vignali paid him. Rodham's attorney has confirmed to Committee staff that Rodham has not returned any additional amounts and has no plans to return the remaining $154,000. HUGH RODHAM'S INVOLVEMENT IN THE BRASWELL PARDON Glenn Braswell was under investigation by multiple federal agencies and several state attorneys general when the pardon was granted. Over the past two decades, Braswell has created a dietary supplement empire using false advertising to mislead consumers. After serving time in prison for mail fraud and tax evasion in 1983, Braswell has continued to defraud consumers about the benefits of his herbal remedies. In addition to facing numerous lawsuits, Braswell's companies have been investigated by the Internal Revenue Service, Federal Trade Commission, Food and Drug Administration, and Better Business Bureau. Unsurprisingly, Braswell was under another criminal investigation by federal prosecutors for a massive tax evasion and money-laundering scheme when he was pardoned. Braswell's petition bypassed the traditional route through the Justice Department and went directly to the White House. If the FBI had conducted a background investigation instead of the White House, Braswell's petition would have been rejected quickly. Braswell paid Hugh Rodham $230,000 for successfully obtaining the pardon. Braswell hired Rodham to support his pardon petition for $230,000. For this price, Rodham claims he forwarded a letter of support for Braswell to the White House Counsel's Office and made a follow-up inquiry. According to Rodham, these two actions were the extent of his role in the Braswell pardon. Rodham refunded the $230,000 to Braswell after facing widespread criticism from the media and members of both political parties. HUGH RODHAM'S EFFORTS TO OBTAIN CLEMENCY FOR THE LUMS Gene and Nora Lum, prominent Democratic contributors and fundraisers, were convicted of making illegal conduit contributions and tax offenses. In 1997, the Lums pleaded guilty to making $50,000 in illegal conduit contributions to the DNC. They were sentenced to home detention, confinement in a halfway house and a $30,000 fine. In August 1998, Gene Lum pleaded guilty to tax fraud for filing tax returns claiming more than $7.1 million in false deductions and was sentenced to two years imprisonment. The Lums attempted to obtain executive clemency through Hugh Rodham. Hugh Rodham lobbied the White House as part of the Lums' efforts but failed to secure them a grant of clemency. In December 2000, Nora Lum called one of her husband's criminal attorneys and asked him to send various documents to Hugh Rodham at the White House. He did so. In early January 2001, Rodham called Gene Lum's attorney again and asked him to resend those documents directly to, among others, Meredith Cabe, an associate White House counsel responsible for clemency matters. Subsequently, Rodham telephoned Cabe and discussed the merits of the Lums' pardon request. Cabe then told White House Counsel Beth Nolan and Deputy White House Counsel Bruce Lindsey about her discussion with Rodham. Both told Cabe that the Lums were not going to receive clemency. The Lums and Hugh Rodham have refused to cooperate with the Committee's investigation. Gene and Nora Lum have refused to cooperate with the Committee's investigation. The Lums' daughter, Nicole (with whom Hugh Rodham apparently had some sort of business relationship), has likewise declined to be interviewed by the Committee. Hugh Rodham has also refused to cooperate with the Committee's request for an interview. Therefore, the Committee is unable to obtain a full understanding of the Lums' efforts to obtain executive clemency and Rodham's role in those efforts. INTRODUCTION Unlike Roger Clinton, Hugh Rodham was highly successful in leveraging his relationship with the President and First Lady into lucrative work lobbying for grants of clemency. The Committee is aware of three cases in which Hugh Rodham lobbied the White House for grants of executive clemency: Carlos Vignali, Glenn Braswell, and Gene and Nora Lum. Rodham was successful in two of these cases and was paid over $430,000 for his work. Simply put, Rodham inappropriately used his access to the White House to lobby for grants of clemency, which were not deserved and would not have been granted but for his intervention. Carlos Vignali was a supplier of cocaine to a major drug-dealing ring in Minnesota who never admitted his guilt or cooperated with law enforcement. Yet, because of Hugh Rodham's efforts, he had his sentence cut from 15 to 5 years. Glenn Braswell was a highly successful con artist who had his earlier fraud conviction erased despite that he was under active investigation for tax fraud at the time of the pardon. The fact that Vignali and Braswell received clemency from President Clinton through the efforts of Hugh Rodham undermines public confidence in the President's exercise of the clemency power and in the equality of our laws. I. THE CARLOS VIGNALI COMMUTATION A. The Case Against Carlos Vignali On December 20, 1993, a federal grand jury in Minnesota issued a 34-count indictment against 30 defendants. The indictment resulted from the largest drug investigation in Minnesota history.\1\ According to the indictment, Carlos Vignali and his co-defendants sent large quantities of cocaine to Minnesota by mail from California, converted it to crack, and distributed it quickly on the street.\2\ Vignali was indicted on one count of conspiring to distribute cocaine; two counts of using facilities in interstate commerce with the intent to promote a business enterprise involving narcotics; and one count of illegally using a communication facility to facilitate the distribution of cocaine.\3\ According to the government, Vignali and his associates sold a kilogram of crack a day as late as November 1993.\4\ --------------------------------------------------------------------------- \1\ Superceding Indictment, U.S. v. Vignali (D. Minn. Dec. 30, 1993) (Exhibit 1). See also Drug Ring Case Wrapped up with 2 Convicted, 1 Acquitted, Star Trib. (Minneapolis-St. Paul), Dec. 13, 1994, at 2B. \2\ Id; Superceding Indictment, U.S. v. Vignali (D. Minn. Dec. 30, 1993) (Exhibit 1). \3\ Id. \4\ Drug Ring Case Wrapped up with 2 Convicted, 1 Acquitted, Star Trib. (Minneapolis-St. Paul), Dec. 13, 1994, at 2B. --------------------------------------------------------------------------- The investigation that resulted in Vignali's conviction began locally with a probe of Gerald and Shirley Williams, who were suspected of distributing cocaine.\5\ As the scope of the investigation expanded, Minneapolis narcotics authorities obtained the assistance of federal law enforcement agencies.\6\ Based on information obtained from confidential informants and other sources, authorities initiated a court-ordered wiretap of several residential and cellular telephones to monitor calls to and from Gerald Williams regarding cocaine distribution.\7\ Many of the intercepted conversations to and from Williams' residential and cellular telephones involved coded language and had to be interpreted by investigating officers.\8\ --------------------------------------------------------------------------- \5\ Telephone Interview with Tony Adams, Officer, Minneapolis Police Department, 4th Precinct, Narcotics Division (Mar. 27, 2001). \6\ Id. \7\ Presentence Investigation, U.S. v. Vignali (D. Minn. 1994) at para. 33 (Exhibit 2) (incorporated into Judgment in a Criminal Case as finding of fact). \8\ Id. --------------------------------------------------------------------------- In the course of its wiretap surveillance, authorities intercepted telephone conversations between Vignali and others during which cocaine shipments to Minnesota were discussed.\9\ Authorities ultimately learned that Williams' original supplier of cocaine in California was Dale Evans, who in turn obtained his supply from Jonathan Gray and, later, Carlos Vignali.\10\ The evidence obtained in the investigation indicated a broad level of involvement by Vignali in a multi-state conspiracy to distribute cocaine.\11\ In that context, authorities discovered that, in October 1993, Vignali sold a substantial quantity of cocaine to Todd Hopson in Los Angeles for distribution in the Minnesota area \12\ and supplied an additional six kilograms of cocaine to Minnesota-area distributors through use of the mails and the telephone.\13\ --------------------------------------------------------------------------- \9\ Id. \10\ Id. at para. 31. \11\ Id. at para. 30, 31, 42, 45, 46, 49, 57, 58, 59, 66, 67, 68, 71. See also Telephone Interview with Todd Jones, U.S. Attorney for the District of Minnesota, Department of Justice (May 2, 1001) (describing evidence supporting finding of Vignali's broad level of involvement in conspiracy). Before leaving the U.S. Attorney's Office, Jones obtained, as the lead AUSA in the Vignali investigation, the court orders for the wiretaps; represented the Government at suppression hearings; and presented the case to the grand jury. In 1998, Jones returned as the U.S. Attorney for the U.S. District of Minnesota. \12\ Presentence Investigation, U.S. v. Vignali (D. Minn. 1994) at para. 68 (Exhibit 2) (incorporated into Judgment in a Criminal Case as finding of fact). \13\ Id. at para. 42. --------------------------------------------------------------------------- On November 9, 1993, Minnesota law enforcement executed warrants on several individuals involved in the drug conspiracy, including Dale Evans.\14\ Within Evans' home and vehicles, law enforcement found an AK-47 assault rifle and ammunition, a Desert Eagle pistol and ammunition, a Smith and Wesson 9 millimeter pistol and loaded magazine, a bag containing marijuana, pagers, addresses of other co- conspirators, pictures of him and some of the other co- conspirators target-shooting in California, and various other items.\15\ Searches and arrests of other co-conspirators likewise revealed large amounts of cash, cocaine and other contraband, drug paraphernalia, guns, and ammunition.\16\ As a result of these searches and arrests and with the assistance of Los Angeles law enforcement, Carlos Vignali was arrested in Los Angeles on May 6, 1994,\17\ and extradited to Minnesota for trial.\18\ --------------------------------------------------------------------------- \14\ Id. at para. 85, 87. \15\ Id. at para. 87. \16\ Id. at para. 85-101. See also Telephone Interview with Tony Adams, Officer, Minneapolis Police Department, 4th Precinct, Narcotics Division (Mar. 27, 2001). \17\ Evans immediately cooperated with law enforcement. Id. He told DEA that he worked for Vignali, a.k.a., ``C-Low'' and identified him with a still-shot photograph of Vignali's appearance in a rap video. \18\ Presentence Investigation, U.S. v. Vignali (D. Minn. 1994) at para. 102 (Exhibit 2). When he was arrested, Vignali stated that he knew Gray but had not seen him for about a year; that Gray introduced him to Evans, who was interested in possibly buying his townhouse; and that no one had ever referred to him as ``C-Low.'' --------------------------------------------------------------------------- Vignali's trial began on October 27, 1994. In his opening statement to the jury, Vignali's defense attorney, Danny Davis, repeatedly characterized the alleged drug conspiracy as ``a black drug network'': [T]he indictment that His Honor read for you--it is a sensitive suggestion about the evidence in this case-- and I do it with complete deference to what the court suggested earlier about drugs, and our sensitivities, about race, and our sensitivities--but this conspiracy, the evidence will show, really comes down to a black drug dealing network. One by one those drug dealers, that the prosecution has found it necessary to come in and put on as witnesses, will make clear this is a nationwide black drug-dealing network. You can't get around it. Disabuse yourself that I am prejudiced when I say that. It is a fact. My client is not [black].\19\ --------------------------------------------------------------------------- \19\ Transcript of Trial, U.S. v. Vignali (D. Minn. Oct. 27, 1994) at 113-14. --------------------------------------------------------------------------- Counsel for the co-defendants thereupon moved for a mistrial: Mr. Fenster [Counsel for Melvin Campbell]: [I]t is offensive, what he is doing, and I think that just because he is a defense counsel doesn't excuse him from this kind of offensive behavior, and I think the court--I don't know about a mistrial, maybe that is not appropriate--I am not quite sure what to do, but I think I will move for a mistrial. I think that kind of presentation to the jury is so offensive to the fabric of our law that it is impossible for the jury to now be able to have a fair trial when he's painted the other defendants in a black drug-dealing network. Certainly the prosecution would have a mistrial if they did that. Mr. Cascarano [Counsel for Todd Hopson]: I join in that motion. Mr. Gray [Counsel for Claude Oliver Phillips]: I join in that motion and, if the court doesn't grant it, I move to strike every word that Mr. Davis has said about a black drug network around the nation. And, if he says it again, I ask he be jailed. It is the worst conduct I have seen by a defense lawyer in twenty-four years. Mr. Cascarano: Your Honor, [what] Mr. Davis has done is paint not only the three black defendants as not clothed with the presumption of innocence, but what he has done is he has painted them guilty by virtue of their skin color.\20\ --------------------------------------------------------------------------- \20\ Id. at 115-16. The district court denied the motion for a mistrial. However, it did caution the jury that the defendants' race should play no role in its determination of their guilt or innocence.\21\ Even though the court did not grant a mistrial, Vignali's crude effort to play the race card against his codefendants is highly troubling. Vignali's conduct, through his counsel, is even more troubling when considered in light of the fact that one of his supporters later claimed, without any factual support, that Vignali was the victim of racial prejudice at trial. --------------------------------------------------------------------------- \21\ On appeal, co-defendant Todd Hopson argued that those comments made by Vignali's attorney were so prejudicial that he was entitled to a new trial. U.S. v. Williams, 97 F.3d 240, 244 (8th Cir. 1996). However, the appellate court found that Hopson failed to show prejudice. In particular, the court observed that the jury's verdict indicated that it declined any invitation to use race as a proxy for guilt. In support of that view, the court cited the jury's acquittal of co-defendant Claude Phillips, an African-American, and its conviction of Vignali, a Hispanic, on three of four counts. --------------------------------------------------------------------------- At Vignali's trial, the government presented compelling evidence showing that he conspired to traffic cocaine, aided and abetted the mailing of at least two packages of cocaine from California to Minnesota, and used the telephone to facilitate the sale of cocaine. That evidence included the testimony of various co-conspirators, including Dale Evans, Gerald Williams, and Ronald Nunn. Evans testified that, beginning in March 1993, he bought cocaine from Jonathan Gray and typically mailed that cocaine to Gerald Williams in Minnesota for distribution.\22\ Evans also testified that Gray informed him in 1993 that he was obtaining his cocaine from Vignali.\23\ Evans first met Vignali sometime during the summer of 1993 when they discussed distributing cocaine and agreed on prices.\24\ --------------------------------------------------------------------------- \22\ Transcript of Trial, U.S. v. Vignali (D. Minn. Nov. 16, 1994) at 86. \23\ Id. at 100. \24\ Id. at 101. --------------------------------------------------------------------------- Evans also testified that Todd Hopson, one of the Minneapolis-based cocaine distributors, flew to Los Angeles around October 20, 1993, and met with Evans and Vignali, and Vignali agreed to sell Hopson cocaine.\25\ Hopson, Evans, and a friend of Evans then followed Vignali to an East Los Angeles apartment where Hopson bought between $36,000 and $70,000 of cocaine from Vignali.\26\ Evans testified that prior to leaving Los Angeles for Minnesota, he made arrangements with Carlos Vignali and Jonathan Gray to have an additional six kilograms of cocaine sent to the residence of Todd Hopson's relative in Minnesota.\27\ --------------------------------------------------------------------------- \25\ Id. at 119. \26\ Id. at 120-21. \27\ Id. at 137-43. Transcript of Trial, U.S. v. Vignali (D. Minn. Nov. 17, 1994) at 10-12 (Evans testifying that he planned with Ronald Nunn to pick up Hopson and collect a parcel mailed by Vignali at the residence of Hopson's relative in Egan, Minnesota). --------------------------------------------------------------------------- On October 21, 1993, officers conducted surveillance on Evans, Ronald Nunn, and Todd Hopson.\28\ In the course of that surveillance, officers observed Ronald Nunn picking up Evans at Gerald Williams' apartment in Minneapolis.\29\ Nunn and Evans then drove to Hopson's home in Apple Valley, Minnesota, picked him up, and went to the drop-off location in Eagan, Minnesota.\30\ They picked up a large parcel and returned with it to the Apple Valley residence.\31\ Evans, Nunn, and Hopson detected police surveillance while driving and attempted evasive maneuvers.\32\ After Evans noticed that he was being tailed by undercover surveillance, he paged Vignali and Gray in Los Angeles from his cell phone with the emergency code ``911.'' After he had managed to shake off his pursuers, Evans spoke with Gray and Vignali. They did not realize that their conversation was being monitored by the police. Evans told Vignali that ``[t]hey followed us all around.'' \33\ He further stated that ``[w]e had to shake them, get them off, one in front, back one came, parked down the street, waiting for us, dog, undercrizzovers.'' \34\ Evans testified that by ``undercrizzovers'' he was referring to undercover police and was conveying that he was being chased by the police.\35\ Evans also told Vignali that he had to start ``busting u-turns'' to evade the police.\36\ In response to Evans' report, Vignali asked, ``Is that right? So everything's cool, though?'' \37\ Vignali later asked Evans, ``How long ago was this?'' \38\ As Evans was continuing to talk to Vignali about the ``undercrizzovers,'' Vignali asked, ``Hey, but, you, you, you, um, you made everything straight, right?'' \39\ Vignali also asked, ``Don't you think you should be careful before you bust a move?'' \40\ Evans responded, ``that's what I'm doing.'' \41\ Vignali later paged Evans to determine whether Evans was arrested. --------------------------------------------------------------------------- \28\ Transcript of Trial, U.S. v. Vignali (D. Minn. Nov. 14, 1994) at 184-86 (testimony of Officer Tony Adams). \29\ Id. \30\ Transcript of Trial, U.S. v. Vignali (D. Minn. Nov. 17, 1994) at 16 (testimony of Dale Evans). \31\ Id. \32\ Id. at 14 (Evans testifying that Nunn detected undercover police surveillance). \33\ Transcript of Trial, U.S. v. Vignali (D. Minn. Nov. 22, 1994) at 51 (testimony of Dale Evans); Transcript of Trial, U.S. v. Vignali (D. Minn. Nov. 29, 1994) at 204 (Vignali testifying that Evans paged him ``911''). \34\ Transcript of Trial, U.S. v. Vignali (D. Minn. Nov. 22, 1994) at 51. \35\ Id. at 51, 56 (testifying that he later described to Vignali, ``They were following us, riding and shining''). \36\ Transcript of Trial, U.S. v. Vignali (D. Minn. Nov. 29, 1994) at 276. \37\ Transcript of Trial, U.S. v. Vignali (D. Minn. Nov. 22, 1994) at 51. \38\ Id. at 52. \39\ Id. \40\ Id. at 53. \41\ Id. at 54. --------------------------------------------------------------------------- At trial, Vignali contended that, during his conversation with Evans, he did not know what Evans meant by ``undercrizzovers'' and that he was disoriented because Evans' call had woken him.\42\ Vignali testified that he inferred only that ``something was wrong'' with a $20,000 ``business loan'' that he supplied to Jonathan Gray \43\ and that Evans either lost or someone stole that money.\44\ At trial, prosecutors pointed out that Vignali's defense made no sense. Though he claimed to be confused and ``freshly woken up,'' Vignali cautioned his friend to ``be careful'' and asked if ``everything was cool.'' The trial transcript makes it clear that Vignali's defense was implausible: --------------------------------------------------------------------------- \42\ Transcript of Trial, U.S. v. Vignali (D. Minn. Nov. 29, 1994) at 204. \43\ Vignali claimed that Gray had told him that he needed $20,000 for a short-term business deal involving Stacy Augmon and several other professional basketball players. Transcript of Trial, U.S. v. Vignali (D. Minn. Nov. 29, 1994) at 248-49 (cross examination of Carlos Vignali); Transcript of Trial, U.S. v. Vignali (D. Minn. Dec. 1, 1994) at 39-40 (direct examination by Horacio Vignali); Transcript of Trial, U.S. v. Vignali (D. Minn. Dec. 5, 1994) at 232 (closing argument of Carlos Vignali). According to Vignali, Gray assured him that he would get $25,000 back in a matter of days and that, if the deal fell through, Gray would sell his Porsche to cover Vignali's losses. Transcript of Trial, U.S. v. Vignali (D. Minn. Nov. 29, 1994) at 192-93. Vignali claimed that he had $20,000 in cash to loan Gray because he had saved his allowance since he was a young child and that the resulting stack of $100 bills, which he had ironed and carefully stacked in his closet, represented his ``life savings.'' See Transcript of Trial, U.S. v. Vignali (D. Minn. Dec. 1, 1994) at 40-43. According to Vignali, Gray returned to him the $20,000 and an additional $5,000. See Transcript of Trial, U.S. v. Vignali (D. Minn. Nov. 29, 1994) at 188. Also, according to Vignali, a second ``business loan'' was made when Vignali ``loaned'' Gray $25,000, which, with $5,000 interest, resulted in the $30,000 referred to on the tapes. Id. at 192-95, 273-75. \44\ Id. at 173, 204, 259; Transcript of Trial, U.S. v. Vignali (D. Minn. Dec. 5, 1994) at 232. Dunne. I thought that you said, on direct examination, that you didn't understand what he meant by under --------------------------------------------------------------------------- crizzovers because you had just gotten up? Vignali. Yes, he, he had just woken me up with the page, sir. Dunne. Okay. And you will agree with me, will you not, that the time on this transcript [is 12:09 p.m.], Minneapolis time? \45\ --------------------------------------------------------------------------- \45\ Transcript of Trial, U.S. v. Vignali (D. Minn. Nov. 29, 1994) at 269-70. --------------------------------------------------------------------------- * * * Dunne. You say, when Dale gives you the explanation about the under crizzovers . . . ``Is that right?'' Vignali. Yes. Dunne. Do you say--you don't say to him, ``Dale what are you talking about?'' Vignali. No. Dunne. Okay. And you don't say, ``I don't understand this?'' Vignali. No, sir. Bear in mind that I, I had just freshly woken up.\46\ --------------------------------------------------------------------------- \46\ Id. at 273. --------------------------------------------------------------------------- * * * Dunne. Now you just said that the reason you called . . . [was] that you were concerned about your money? Vignali. Yes sir. Dunne. Concerned enough to say Don't you think you should be careful before you bust a move? Vignali. Yes sir. Dunne. But you don't ask him what the problem is? Vignali. I, I have a little understanding that something wrong is going on, but I'm not exactly sure, he didn't make it clear to me.\47\ --------------------------------------------------------------------------- \47\ Transcript of Trial, U.S. v. Vignali (D. Minn. Nov. 30, 1994) at 10-11. --------------------------------------------------------------------------- * * * Dunne. What do you mean, something is going wrong? Vignali. I have no idea. I wasn't there. Dunne. What did you think was going wrong with your 25,000 dollars? Vignali. I have no idea. Dunne. You have no idea? Vignali. No, sir. I thought maybe, when he told me that it was smashing, maybe something was following him trying--maybe trying to carjack him or something, I don't know--and then he was going to try to tell me, Well I lost your money, or something. I was just concerned about, in that aspect.\48\ --------------------------------------------------------------------------- \48\ Id. at 12-13. --------------------------------------------------------------------------- * * * Dunne. Now let me ask you, during this phone conversation where you are concerned about Dale's busting a move with your 25,000 dollars because someone might carjack him. Do you ever tell Dale: Dale, maybe you should call the police if someone is trying to carjack you? Vignali. I, I didn't, again I will tell you I didn't know exactly what was going on. Dunne. But you thought somebody was trying to carjack him? Vignali. It was, it was the morning. I'm--my head--I had just woken up, I wasn't--it--nothing was clear to me, it never was clear to me.\49\ --------------------------------------------------------------------------- \49\ Id. at 13. Evans testified that he returned to California the day after he escaped the undercover surveillance.\50\ But, before returning to California, he mailed himself the money he obtained for the cocaine.\51\ Evans told Vignali and Jonathan Gray in intercepted telephone conversations that he would meet with them to give them the money.\52\ --------------------------------------------------------------------------- \50\ Transcript of Trial, U.S. v. Vignali (D. Minn. Nov. 17, 1994) at 56. \51\ Id. at 56. \52\ Transcript of Trial, U.S. v. Vignali (D. Minn. Nov. 14, 1994) at 189, 193 (Officer Tony Adams); Transcript of Trial, U.S. v. Vignali (D. Minn. Nov. 17, 1994) at 56-58 (Evans testifying that he received money he mailed to himself in California and took about $80,000 or $90,000 to Vignali and Gray at Vignali's house). --------------------------------------------------------------------------- On October 26, 1993, agents tapped into a phone conversation between Dale Evans and Gerald Williams regarding a new shipment of cocaine, six kilograms sent from Los Angeles to Ronald Nunn's Minnesota home.\53\ That shipment was intercepted by postal inspectors on or about October 28, 1993.\54\ On October 31, 1993, agents overheard a call between Williams, Evans, and Carlos Vignali regarding the October 26th shipment. Evans asked, ``Love [the cocaine shipment] never got there?'' \55\ Williams replied, ``no.'' \56\ Evans stated that they had called the post office to see if the package had arrived.\57\ At that point, Vignali, who was apparently with Evans, got on the telephone, said ``[t]his is the other end,'' and told Williams to send somebody into the post office to find out about the package.\58\ Vignali then said, ``We sent that right down that day'' and told Williams to get on ``good horns [a public telephone].'' \59\ --------------------------------------------------------------------------- \53\ Transcript of Trial, U.S. v. Vignali, (D. Minn. Nov. 22, 1994) at 70 (Evans); Transcript of Trial, U.S. v. Vignali (D. Minn. Nov. 17, 1994) at 59-60, 64-66 (Evans testifying to conversation). See also Presentence Investigation, U.S. v. Vignali (D. Minn. 1994) at para. 57- 58 (Exhibit 2). \54\ Id. at para. 65. \55\ Transcript of Trial, U.S. v. Vignali (D. Minn. Nov. 22, 1994) at 69. ``Love'' was the code word used by the conspirators to refer to cocaine. \56\ Transcript of Trial, U.S. v. Vignali (D. Minn. Dec. 5, 1994) at 164. See also Transcript of Trial, U.S. v. Vignali (D. Minn. Nov. 22, 1994) at 66-68. \57\ Transcript of Trial, U.S. v. Vignali (D. Minn. Dec. 5, 1994) at 164. \58\ Transcript of Trial, U.S. v. Vignali (D. Minn. Nov. 22, 1994) at 70-71. \59\ Transcript of Trial, U.S. v. Vignali (D. Minn. Nov. 17, 1994) at 68. --------------------------------------------------------------------------- During that conversation, a prospective 15-kilogram deal was discussed.\60\ The parties conferred about whether the quantity should be broken up into one or two kilogram shipments or shipped all at once.\61\ They also discussed the prospect that the buyers might not want to pay for the shipment up front before obtaining all of their cocaine.\62\ They further discussed having someone either drive the shipment from California to Minnesota or having someone come down from Minnesota to California.\63\ --------------------------------------------------------------------------- \60\ Id. at 75-76. \61\ Id. at 76. \62\ Id. \63\ Id. at 76-77. That transaction appears not to have been consummated. --------------------------------------------------------------------------- In attempting to explain away these conversations, Vignali argued that the money referred to ``life savings'' he accumulated as a child from his father and ultimately ``lent'' to Jonathan Gray. Vignali supposedly lent Gray, who had been recently released from jail for a crime Vignali knew nothing about, a $20,000 ``business loan'' for a project which Vignali also knew nothing about. This part of Vignali's story met with skepticism from prosecutors: Dunne. Now when you gave Jonathon [Gray] this 20,000 dollars for this loan . . . for this business proposition or whatever, did he show you any kind of contract? Vignali. No, he didn't. Dunne. Did he show you any kind of paperwork about this business proposition? Vignali. No, he did not. Dunne. Did he have you sign anything to validate that you were giving him 20,000 dollars in cash? Vignali. No, sir. * * * Dunne. And do you recall how much money was in your checking account at the time you had 20,000 dollars in a safe in your house? Vignali. No, I never, I never kept much money . . . in the bank, I'm sorry. Dunne. Well, when you have money in a bank you earn interest. Right? Vignali. If it is in your savings account, yes. Dunne. Are you earning any interest on 20,000 dollars in a safe in your house? Vignali. No, but it is in my possession.\64\ --------------------------------------------------------------------------- \64\ Transcript of Trial, U.S. v. Vignali (D. Minn. Nov. 29, 1994) at 240, 243. --------------------------------------------------------------------------- * * * Dunne. In 1992 you file an income tax return where you declared your income was thirteen thousand nine hundred nine dollars? . . . Now the 20,000 dollars that you had in the closet at home, was that part of the thirteen thousand dollars that you made in 1992? Vignali. That was part of the money that I had accumulated over my lifetime. Dunne. Over your lifetime? Vignali. Absolutely. Dunne. Okay. And so all of your life savings you put in . . . the closet in the townhome.\65\ --------------------------------------------------------------------------- \65\ Id. at 247-48. Rather than refute the facts prosecutors had marshaled against him, Vignali argued that the co-conspirators who cooperated with law enforcement made ``sweetheart'' deals for leniency. In particular, Vignali charged that Dale Evans had falsely identified Vignali as his source of cocaine in California because he wanted to conceal the involvement of his family members and close associates in criminal activity.\66\ Nonetheless, the testimony of the cooperating co-conspirators and law enforcement officers and the corroborating physical evidence was overwhelming. The combination of evidence admitted at trial showed beyond a reasonable doubt that Vignali supplied significant quantities of cocaine from California for distribution in Minnesota. --------------------------------------------------------------------------- \66\ Transcript of Trial, U.S. v. Vignali (D. Minn. Dec. 5, 1994) at 232. --------------------------------------------------------------------------- On December 12, 1994, Vignali was convicted of all the crimes for which he was indicted, except one count of using facilities in interstate commerce for the promotion of his drug operation.\67\ All but one of the original thirty defendants in the drug conspiracy either pleaded guilty or were convicted.\68\ At sentencing, the probation office for the federal district of Minnesota submitted to Judge David S. Doty a pre-sentence report. This report recommended an imprisonment range of 151 to 188 months for Vignali.\69\ In determining the proper sentence under the federal sentencing guidelines, Judge Doty found that Vignali was, in fact, a willing participant in the shipment of cocaine to Minnesota on October 20, 1993.\70\ Judge Doty also found that Vignali was accountable for distributing between five and fifteen kilograms of cocaine, rather than the fifteen to fifty kilograms suggested in the pre-sentence report.\71\ Vignali was sentenced to imprisonment for 175 months, about 15 years, on July 17, 1995.\72\ On January 20, 2001, President Clinton commuted Vignali's sentence to time served. --------------------------------------------------------------------------- \67\ Judgment in a Criminal Case, U.S. v. Vignali (D.Minn. July 17, 1995) (Exhibit 3). \68\ Id. Claude Phillips, 50, of Memphis, Tennessee, was acquitted of conspiring to distribute cocaine--the sole count against him in the superceding indictment. Also convicted was Todd Hopson, 23, of Apple Valley, Minnesota. \69\ Id. \70\ Id. Judge Doty also found that, in late October, co-defendant Todd Hopson traveled to California and co-defendant Dale Evans arranged for Hopson to buy additional quantities of cocaine from Vignali. \71\ Id. Judge Doty did so by referring to the testimony of co- defendant Dale Evans. According to Evans, Vignali may have been the source of two packages of cocaine sent to Minnesota--one on October 21, 1993, and the other on October 28, 1993. Judge Doty noted that the second package was, in fact, seized by law enforcement authorities and found to have contained six kilograms of cocaine, and Evans testified at trial that the first package contained four kilograms of cocaine. However, Judge Doty found Evans' testimony regarding the sale of additional quantities of cocaine by Vignali unpersuasive. \72\ Id. --------------------------------------------------------------------------- B. Vignali's Efforts to Obtain Executive Clemency As described below, 55-year old Horacio Carlos Vignali, a successful Los Angeles-area businessman,\73\ apparently used every tool at his disposal to see that his son would not fully serve out his prison sentence. When attempts to have his son released before sentencing and on appeal failed, Horacio, who cultivated political contacts over time through substantial campaign donations, fundraising activity,\74\ and civic involvement, directed his considerable resources to a concerted effort to lobby President Clinton for an eleventh hour pardon of his son. --------------------------------------------------------------------------- \73\ Horacio Vignali, who immigrated to the United States in 1962, has owned several businesses, including parking lots, body shops, and real estate. See Richard Serrano and Stephen Braun, Working the American System, L.A. Times (L.A. Times Mag.) Apr. 29, 2001, at 10. Apparently, Horacio Vignali has been financially successful and owns a $9 million home in Pacific Palisades that apparently once belonged to Sylvester Stallone. Id. \74\ For example, Horacio Vignali has hosted several political fundraisers, including outdoor barbecue fundraisers (for which he became locally well known), and provided food for various political events. Id. --------------------------------------------------------------------------- 1. Initial Efforts to Reduce Vignali's Sentence a. Contacts with Prosecutors in Minnesota Efforts to reduce Carlos Vignali's sentence apparently started soon after Vignali was convicted. According to Assistant U.S. Attorney Andrew Dunne, who prosecuted Vignali in Minneapolis, Vignali's political associates exerted ``a lot of influence'' in Vignali's sentencing.\75\ Dunne explained that he and the other prosecutors working on the case received periodic calls from state representatives in California on behalf of Carlos Vignali after the sentencing.\76\ Characterizing some of the calls as ``perhaps improper influence,'' Dunne recalled that ``they wanted to know: Is there anything that could be done to help reduce the sentence?'' \77\ Denise Reilly, the lead government prosecutor in the Vignali case, likewise confirmed that they ``would get calls from different people--politically placed'' throughout the course of the case.\78\ She characterized the input of those who called ``odd,'' stating ``I don't know how they do things in the rest of the country, but that isn't what we do in Minnesota.'' \79\ Judge Reilly described the incoming calls as inquiring, ``are you sure you know what you're doing?'' and ``are you sure that you have the right person?'' \80\ Judge Reilly believed that the calls came from political officials in Los Angeles.\81\ --------------------------------------------------------------------------- \75\ Richard A. Serrano and Stephen Braun, Drug Kingpin's Release Adds to Clemency Uproar, L.A. Times, Feb. 11, 2001, at A1. \76\ Id. \77\ Id. \78\ Telephone Interview with the Honorable Denise Reilly, Juvenile Court Judge, 4th Judicial District of Minnesota (Hennepin County) (May 11, 2001). \79\ Id. \80\ Id. \81\ Id. --------------------------------------------------------------------------- b. Vignali's Appeal Carlos Vignali appealed his conviction immediately after the verdict. Vignali appealed to the Eighth Circuit Court of Appeals, claiming juror misconduct, witness perjury, improper jury instruction, failure to grant a severance, and improper exclusion of defense evidence. A unanimous appellate court upheld Vignali's conviction, dismissing Vignali's arguments with minimal discussion.\82\ In affirming the district court's ruling, the appellate court agreed that ``there was considerable evidence of Vignali's guilt.'' \83\ Vignali subsequently sought habeas relief, asserting ineffectiveness of counsel.\84\ This claim was also denied.\85\ --------------------------------------------------------------------------- \82\ U.S. v. Williams, 97 F.3d 240 (8th Cir. 1996). \83\ Id. at 246. \84\ NARA Document Production at 2 (Report to the President on Proposed Denial of Executive Clemency for Carlos Anibal Vignali, Jr. (Jan. 12, 2001)) (Exhibit 4). \85\ Id. --------------------------------------------------------------------------- c. Letters to the White House and Justice Department Horacio Vignali was hard at work gathering political support for his son's cause even before filing his son's clemency petition. Vignali had a number of prominent California politicians write letters to the White House in 1996, requesting a ``review'' of Carlos Vignali's case. At least five similarly phrased letters were sent to the White House ``Pardon Secretary'' requesting an examination of the case.\86\ --------------------------------------------------------------------------- \86\ There is no position of ``Pardon Secretary'' at the White House. It is not clear who received and reviewed these letters when they were sent to the White House in 1996. However, the letters were ultimately made part of the Vignali clemency file at the White House Counsel's Office years later in 2000. --------------------------------------------------------------------------- The first letter, dated May 24, 1996, from California Assembly Member Antonio Villaraigosa, stated, ``After reviewing Mr. Vignali's case, I am convinced that he has been falsely linked to a drug ring in Minneapolis, MN, and that his conviction is a product of `guilt by association,' among other factors.'' \87\ Villaraigosa noted that Carlos Vignali had no prior record and that Vignali's ``military academy schooling adds to his superior resume.'' \88\ Villaraigosa was apparently unaware that Vignali both had a prior criminal record and had dropped out of military school.\89\ Under those circumstances, Villaraigosa's characterization of Vignali's resume as ``superior'' was, at best, hyperbole and, at worst, misleading. Villaraigosa has since admitted that he did not independently investigate the details of Carlos Vignali's case and regretted not having done so.\90\ Villaraigosa stated, ``I was convinced at the time . . . that his son was not a major player in this drug ring. I made a mistake in not investigating.'' \91\ Villaraigosa stated that he was moved by Horacio Vignali's emotional plea: ``It was a conversation between fathers as much as anything. . . . He was very distraught.'' \92\ --------------------------------------------------------------------------- \87\ NARA Document Production (Letter from Antonio R. Villaraigosa, Assembly Member, Forty-Fifth District, California Legislative Assembly, to Pardon Secretary, the White House (May 24, 1996)) (Exhibit 5). \88\ Id. \89\ Presentence Investigation, U.S. v. Vignali (D. Minn. 1994) at para. 130 (Exhibit 2). \90\ Mateo Gold, Vignali Case Casts Shadow over Mayor's Race, L.A. Times, Feb. 28, 2001, at B1 (``I wrote that letter without talking to prosecutors on the other end.''). \91\ John Antczak, L.A. Heads Retract Support for Pardon, AP Online, Feb. 13, 2001; See also Mateo Gold and Larry B. Stammer, 2 City Leaders Say They Regret Helping Dealer; Clemency: Cardinal Mahony and Politician Villaraigosa Say They Shouldn't Have Written on Behalf of a Cocaine Convict They Had Never Even Met, L.A. Times, Feb. 13, 2001, at A22. \92\ Matea Gold and Larry B. Stammer, 2 City Leaders Say They Regret Helping Dealer; Clemency: Cardinal Mahony and Politician Villaraigosa Say They Shouldn't Have Written on Behalf of a Cocaine Convict They Had Never Even Met, L.A. Times, Feb. 13, 2001, at A22. It is widely believed that Villaraigosa's involvement in the Vignali matter cost him his election as mayor of Los Angeles to Robert Hahn. See, e.g., Beth Barrett, Villaraigosa's Refusal to Hit Back Cost Him-- Rival's Attack Went Unanswered, Daily News of L.A., June 7, 2001, at N9. --------------------------------------------------------------------------- On May 28, 1996, Los Angeles City Councilman Richard Alatorre wrote in support of Vignali: It is difficult for me to understand why Mr. Vignali received such an exorbitant sentence. It has been pointed out that this may have been due to the fact that his case was grouped together with a much larger case involving the sale of drugs. Others contend that it may have been because of his Latino background, which I hope is not the case.\93\ --------------------------------------------------------------------------- \93\ NARA Document Production (Letter from Richard Alatorre, Councilman, Fourteenth District, L.A. City Council, to Pardon Secretary, the White House (May 28, 1996)) (Exhibit 6). However, Alatorre was not fit to provide a character reference for Vignali or anyone else. Throughout his extensive career in Los Angeles politics, Alatorre was the subject of various public corruption investigations, recently pleaded guilty to federal tax evasion charges, and is himself a proven cocaine user.\94\ --------------------------------------------------------------------------- \94\ Department of Justice Press Release No. 01-062, Former Los Angeles City Councilman Richard Alatorre Charged with Tax Evasion for Failing to Report Bribes; Defendant Agrees to Plead Guilty to Felony Offense, U.S. Attorney's Office for the Central District of California, Apr. 3, 2001. As a result of Alatorre's failing to report bribes, he evaded the payment of at least $12,970 in federal income tax. In addition to pleading guilty, Alatorre has agreed to file an amended 1996 federal income tax return and to pay any penalties and interest assessed by the Internal Revenue Service. Less than a year after being elected to the Los Angeles City Council, Alatorre agreed to pay a record fine of more than $140,000 for improperly financing his campaign for City Council with money he raised as a state lawmaker. Rich Connell and Robert J. Lopez, Alatorre's Fall Belies Early Promise, Achievements, L.A. Times, Jan. 17, 1999, at Al. In 1988, Alatorre was fined for attempting to steer a $722,000 contract to The East Los Angeles Community Union (``TELACU''), a firm that was headed by a longtime friend. Earlier, TELACU had flown Alatorre to a meeting at Lake Tahoe and paid him a $1,000 speaking fee. When Alatorre was on the board of the Metropolitan Transportation Authority (``MTA''), which administers Los Angeles' multibillion-dollar subway and light rail system, Alatorre reportedly solicited contributions of more than $500,000 from organizations with interests before the MTA and the City Council for the benefit of a children's charity he helped create. Rich Connell and Robert J. Lopez, Alatorre's Fall Belies Early Promise, Achievements, L.A. Times, Jan. 17, 1999, at Al; Robert J. Lopez and Rich Connell, MTA Probes Charities Promoted by Alatorre, L.A. Times, July 7, 1997, at Al. That charity exclusively hired Eventually Yours, an event-planning firm founded by Alatorre's third wife, Angie, paying the firm tens of thousands of dollars in fees. Ultimately, Alatorre was fined $8,000 by state and local watchdog agencies for improperly intervening on behalf of the firm before a city licensing agency. That was the maximum fine allowed under state and local laws. Also, in the custody dispute described below, Alatorre conceded to receiving a $13,200 loan (without a repayment plan) from TELACU. At that time, Alatorre was also supporting a TELACU team for a $65 million MTA subway contract and a TELACU partnership for a $2 million city development for a shopping center in his district. The investigation of Eventually Yours broadened an earlier probe of how another firm that was ranked last in competing for a lucrative subway contract, but which Alatorre backed, came to be recommended for that contract. Robert J. Lopez and Rich Connell, MTA Probes Charities Promoted by Alatorre, L.A. Times, July 7, 1997, at Al. That controversy resulted in the resignation of MTA's executive director, who selected the team after it made a $20,000 donation to a golf tournament benefiting a charity of which Alatorre was an honorary chairman. Eventually Yours was also investigated by the California Attorney General's Office for failing to account for hundreds of thousands of dollars in charitable donations it helped raise. Robert J. Lopez and Rich Connell, MTA Probes Charities Promoted by Alatorre, L.A. Times, July 7, 1997, at Al. After repeated press inquiries for information regarding the firm's five-year failure to account for certain contributions, the firm's attorney stated that the firm's forte was in staging ``spectacular'' events--not in faithfully tending to administrative matters. In the course of its investigation, the State Attorney General's Office received an inquiry from State Senator Richard Polanco, generally well known to be an Alatorre ally. According to a State Justice Department official, Polanco stated that he was concerned about the pressure being brought to bear on the firm. The official recounted that Polanco said he knew the people associated with Eventually Yours to be upstanding and asked why they were targeted. In response, Polanco was told that, because the investigation was pending, he could be given no information about the matter. Robert J. Lopez and Rich Connell, MTA Probes Charities Promoted by Alatorre, L.A. Times, July 7, 1997, at Al. In the course of a child custody dispute regarding his niece in which Alatorre's competency to care for the girl was in controversy, Superior Court Judge Henry W. Shatford found that ``Richard Alatorre's credibility has been totally shredded as to his profound declaration [that] he has been clean from the use of cocaine.'' Robert J. Lopez and Rich Connell, Judge Says Test Shows Alatorre Is Using Cocaine, L.A. Times, Sept. 30, 1998, at Al. Judge Shatford arrived at that finding after Alatorre failed a surprise courthouse drug test. The judge ordered the test after Alatorre repeatedly denied using cocaine with an individual on whose behalf he aggressively helped obtain government business. That individual was a waste hauler and demolition specialist who pleaded guilty to possessing and intending to distribute heroin. That individual has publicly stated that Alatorre has written him letters of reference for public contracts, ``attesting to my character.'' Alatorre publicly explained that the white powder his former executive secretary testified to having seen on his nostrils and clothes upon his return from business meetings might have been dandruff, denture powder, or Doritos. Alatorre's former secretary also testified that, following Alatorre's divorce from his second wife when Alatorre was facing financial problems, he began mysteriously producing wads of $100 bills. The secretary claimed that some of the money came after meetings with businessmen and other supporters. After reviewing financial records involving associates of Alatorre with government business interests, Judge Shatford noted that Alatorre had ``questionable conflict of interest financial dealings as a city councilman.'' Id. Ultimately, Judge Shatford stripped Alatorre of guardianship of his niece and barred him from visiting with her until he successfully completed a drug detoxification program. --------------------------------------------------------------------------- On July 22, 1996, State Senator Richard Polanco requested that the White House ``carefully review'' the Vignali case and stated that Vignali had ``no prior criminal record.'' \95\ On July 26, 1996, Archbishop Roger Mahony, Cardinal of the Archdiocese of Los Angeles, wrote to ``add [his] voice recommending that all of the process, the law, and the facts in this case be reviewed fully to determine if justice has been achieved[.]'' \96\ Finally, Congressman Esteban Torres wrote to Attorney General Reno complaining that Vignali was not ``individually tried before a jury of his peers'' and asking that the Attorney General ``carefully review'' Vignali's case.\97\ --------------------------------------------------------------------------- \95\ NARA Document Production (Letter from Richard Polanco, State Senator, Twenty-Second District, California Legislature, to Pardon Secretary, the White House (July 22, 1996)) (Exhibit 7). \96\ NARA Document Production (Letter from Archbishop Roger Mahony, Cardinal of the Archdiocese of Los Angeles, to Pardon Secretary, the White House (July 26, 1996)) (Exhibit 8). \97\ NARA Document Production (Letter from Esteban E. Torres, Member of Congress, U.S. House of Representatives, to Janet Reno, U.S. Attorney General, Department of Justice (July 3, 1996)) (Exhibit 9). Congressman Torres also wrote to the warden of Vignali's prison in Colorado, asking that Vignali be transferred to a prison closer to his family in California. Stephen Braun, et. al, L.A. Politicians Urged Pardon of Cocaine Dealer, L.A. Times, Feb. 12, 2001, at A1. --------------------------------------------------------------------------- Even these initial stages of lobbying for Carlos Vignali involved a significant amount of misinformation. For example, Villaraigosa, Alatorre, Polanco, and Torres all claimed in their letters that Carlos Vignali had no prior criminal record. In fact, Vignali had two prior criminal convictions for fighting in a public place and vandalism and two prior arrests for reckless driving and inflicting corporal injury on a cohabitant.\98\ It is unclear whether the political figures writing on Vignali's behalf were aware of Vignali's criminal history and chose to disregard it or were misinformed by those lobbying on Vignali's behalf. --------------------------------------------------------------------------- \98\ Presentence Investigation, U.S. v. Vignali (D. Minn. 1994) at para. 117, 118 (Exhibit 2). --------------------------------------------------------------------------- Los Angeles City Councilman Richard Alatorre's claims of racial prejudice were similarly baseless. Alatorre claimed that ``others contend'' Vignali's sentence was the result of racial prejudice. However, the Committee is unaware of any allegations, other than Alatorre's own letter, that Vignali received unfair treatment because of his ethnic background. In fact, Vignali's attorney argued at trial that Vignali was innocent because he was Hispanic and, therefore, could not have been part of the ``black drug dealing network'' of his codefendants. Indeed, Vignali's black codefendants appealed their convictions on the basis of the potentially prejudicial statements by Vignali's lawyer.\99\ --------------------------------------------------------------------------- \99\ U.S. v. Williams, 97 F.3d 240, 244 (8th Cir. 1996). --------------------------------------------------------------------------- 2. Vignali's Clemency Petition After Carlos Vignali's appeal failed, the Vignali family began to pursue a grant of executive clemency to get him out of prison. Horacio Vignali initially reached out to Danny Davis, Carlos' criminal defense lawyer, to assist with efforts to obtain presidential clemency for him.\100\ However, Davis, who represented Carlos Vignali at trial in Minnesota, declined because he calculated the probability of obtaining clemency for Carlos as ``a snowball in Hades.'' \101\ Sometime thereafter, Horacio Vignali himself embarked on a campaign to obtain a presidential grant of clemency for his son.\102\ --------------------------------------------------------------------------- \100\ Richard A. Serrano and Stephen Braun, Drug Kingpin's Release Adds to Clemency Uproar, L.A. Times, Feb. 11, 2001. \101\ Id. \102\ Id. --------------------------------------------------------------------------- Carlos Vignali's clemency petition was filed with the Justice Department on August 24, 1998. Vignali's brief petition laid out his reasons for seeking a commutation: Vignali loaned $25,000 to a friend, which were [sic] interpreted through slang taped telephone conversations to involve the purchase of drugs. No drugs were seized from Vignali, and he was convicted solely on the testimony of a codefendant who received leniency. The taped conversations did not mention either drugs or money but were interpreted to have those subjects. Vignali was tried in Minnesota where he had never been or had any significant contacts with. * * * The sentence of 175 months for a 21 year old, first time, nonviolent offender with no significant prior record is unwarranted. Based solely on a $25,000 loan to a friend, falsely interpreted telephone recordings, and a codefendant's highly rewarded testimony, the punishment does not fit the crime as proved. The concept of holding minor players responsible for any and all drugs of a conspiracy, irregardless of whether that minor play [sic] had any knowledge or nexus with those drugs, undermines the concept of fairness. No drugs were introduced at trial as to Vignali, who never visited Minneapolis where the case was tried, yet he was held responsible for the drugs involved in a 30 defendant conspiracy, when he knew, at best, two people. By the end of 1998, Vignali will have served, with good time, almost five years, which is the mandatory minimum for the drugs which could have been bought with his loan.\103\ --------------------------------------------------------------------------- \103\ NARA Document Production (Petition for Commutation of Sentence ) (Exhibit 10). The Vignali clemency petition was a poorly drafted rehash of issues that had been thoroughly addressed at trial and on appeal. Unlike most successful clemency petitions, Vignali's petition continued to maintain actual innocence. Yet, it failed to present any new facts suggesting Vignali was indeed innocent. These flaws were easily recognized when the petition was reviewed by individuals familiar with the Vignali case. In short, the pardon petition made a number of misleading statements, including the following: ``Vignali loaned $25,000 to a friend, which were [sic] interpreted through slang taped [sic] telephone conversations to involve the purchase of drugs.'' Vignali's claim that he was simply engaged in a business deal--not a drug deal--was thoroughly disproved at trial. As described above, literally dozens of pieces of evidence pointed to Vignali's involvement in a drug deal, including the testimony of his co-conspirators, wiretap evidence, and the actual proceeds of the drug deal. In the course of reviewing Vignali's clemency application, the White House was apparently not persuaded by Vignali's explanation at trial. On the last page of a copy of the report from the Justice Department's Pardon Attorney to President Clinton declining to recommend Vignali's application for clemency, a handwritten note by a White House staffer reads ``Need to XC for Bruce [Lindsey]. Definitely isn't simply making a loan[.]'' \104\ --------------------------------------------------------------------------- \104\ NARA Document Production (Report to the President on Proposed Denial of Executive Clemency for Carlos Anibal Vignali, Jr.) at 4 (Exhibit 4) (handwritten note on last page of Report). --------------------------------------------------------------------------- ``[Vignali] was convicted solely on the testimony of a codefendant who received leniency.'' As described above, the testimony of several witnesses proved Vignali's role in the conspiracy. The testimony of those witnesses was consistent with and independently corroborated by wiretap interceptions of communications among the co-conspirators, search warrant evidence obtained from lawful searches of the co-defendant's homes and drug stash houses, and visual police surveillance. Thus, as the Eighth Circuit noted on direct appeal, Vignali's conviction was supported by considerable evidence. Agreements with defendants for cooperation in exchange for leniency at sentencing are a widely-used tool used by prosecutors to obtain evidence in criminal cases. Such agreements are contemplated by the Federal Sentencing Guidelines as a basis for downward departure from the applicable guideline imprisonment range. Moreover, Vignali's sentence was commuted to a term shorter than even those of defendants who actually cooperated with the Government. This makes the clemency decision particularly egregious. ``Vignali was tried in Minnesota where he had never been or had any significant contacts with.'' This is a red herring. Physical presence within the district where a criminal defendant is to be tried has never been held to be a requirement in determining venue. It is well-settled that the appropriate focus for determining venue is the place of the crime and that the inquiry into the place of the crime may yield more than one appropriate venue or even a venue in which the defendant has never set foot.\105\ In this case, Vignali was charged with, among other things, aiding and abetting the distribution of cocaine using facilities in interstate commerce and conspiring to distribute cocaine. As described above, the evidence that Vignali facilitated the interstate sale of cocaine and conspired in Los Angeles to distribute cocaine in Minnesota included testimony of cooperating co-defendants (which was corroborated by wiretapped communications among the co-conspirators), search warrant evidence, and visual police surveillance. That evidence amply showed an interdependence between Vignali and the Minnesota-area distributors. Therefore, under prevailing case law, venue in the U.S. District of Minnesota was clearly proper. --------------------------------------------------------------------------- \105\ U.S. v. Cabrales, 524 U.S. 1 (1998); U.S. v. Stewart, 256 F.3d 231 (4th Cir. 2001). --------------------------------------------------------------------------- ``The sentence of 175 months for a 21-year old, first time, nonviolent offender with no prior record is unwarranted.'' First, Vignali was not a ``first time, nonviolent offender.'' Vignali's counsel, Danny Davis, similarly misrepresented Vignali's criminal record when he told the jury in closing argument that Vignali had ``[n]o prior criminal record'' and cited ``his unblemished past.'' \106\ Hugh Rodham, who was retained to lobby the White House on Vignali's behalf, likewise misrepresented Vignali's criminal record to the White House Counsel's Office. In fact, Vignali had two prior convictions and arrests. He was convicted in 1989 for fighting in a public place and received a $183 fine. He was also convicted of vandalism to which he pleaded no contest and received 12 months probation and was ordered to pay restitution and complete 82 hours of community service work. In the course of his arrest for vandalism, Vignali stated that he was associated with ``The 87th Street West Side Boys'' in Los Angeles.\107\ According to police records, Vignali also admitted that he was a member of the West Covina Mob.\108\ In 1988, Vignali was arrested for reckless driving.\109\ Finally, Vignali was arrested in 1990 for inflicting corporal injury on a spouse/cohabitant, but that case was dismissed. Second, Vignali's sentence reflected the gravity of his participation in a large-scale conspiracy in which he served as the source of cocaine. It also reflected both Vignali's obstruction of justice in lying about his actual role in the conspiracy before a judicial tribunal and his obdurate refusal to accept any responsibility for his crimes. --------------------------------------------------------------------------- \106\ See Transcript of Trial, U.S. v. Vignali (D. Minn. Dec. 5, 1994) at 229-30. \107\ Presentence Investigation, U.S. v. Vignali (D. Minn. 1994) at para. 117, 118 (Exhibit 2). \108\ Id. at para. 117-18. \109\ Id. --------------------------------------------------------------------------- ``No drugs were introduced at trial as to Vignali[.]'' Although this assertion appears to be true from the trial record, the implication that Vignali's verdict is therefore unsupported by sufficient evidence is misleading. In fact, the appellate court noted that Vignali's verdict was well-supported by the evidence admitted at trial. In sentencing Vignali under the federal sentencing guidelines, the trial judge determined how much cocaine was attributable to Vignali. Because the parcels of cocaine attributable to Vignali had long since been distributed or consumed, the judge looked to the testimony of co-defendant Dale Evans. According to Evans, Vignali was the source of two packages of cocaine sent to Minnesota, one on October 21, 1993, and the other on or about October 28, 1993. The judge found that Evans' testimony as to the amount of cocaine in the second package was corroborated by the postal inspector's seizure of the parcel and finding that it contained six kilograms of cocaine. In contrast, the judge found that Evans' uncorroborated testimony as to additional quantities of cocaine was not reliable. Nonetheless, he found that Evans' testimony was credible so as to establish that Vignali knowingly participated in distributing cocaine on more than one occasion. Given the strength of the available evidence, the judge's determination that between five and fifteen kilograms of cocaine were attributable to Vignali did not require the physical presence of those parcels in court. ``[Vignali] was held responsible for the drugs involved in a 30 defendant [sic] conspiracy, when he knew, at best, two people.'' The evidence admitted at trial against Vignali showed that he was a member of a large-scale drug conspiracy and facilitated the distribution of cocaine in Minnesota by supplying Dale Evans, Gerald Williams, and Todd Hopson with significant quantities of cocaine from Los Angeles. As such, Evans' association with the other members of the conspiracy was irrelevant to any issue material to the government's case. The facts prove that every substantive assertion in Vignali's commutation petition was false and misleading. The petition could have been easily refuted by anyone with a basic familiarity with Vignali's underlying conviction. The question then is how the White House came to believe that Carlos Vignali deserved an executive grant of clemency. 3. Supporters of Vignali's Clemency Petition In 2000, a number of prominent California politicians wrote to the White House in support of Vignali's release. Some were the same individuals who wrote to the White House on Vignali's behalf four years earlier. In addition, a number of prominent Californians called the White House and the Justice Department to further press their arguments. The distortions of fact in the Vignali clemency petition were repeated throughout the campaign to win Vignali's release. a. Letters of Support from Prominent California Politicians It appears that from the earliest stages of his efforts to obtain a commutation for his son, Horacio Vignali attempted to enlist the support of various state and federal politicians and other prominent Californians. By the time that the White House reviewed Vignali's clemency petition in January 2001, seven different political figures had drafted letters to the White House or Justice Department in support of Carlos Vignali's petition. Horacio Vignali apparently used a number of different tactics to convince these individuals to sign onto his cause. Perhaps most significantly, Horacio Vignali became a major political contributor to top federal, state, and local officeholders after his son was convicted in 1994.\110\ This made him a well-known figure in the Los Angeles political community. Horacio Vignali contributed reportedly more than $160,000 to state and federal office holders after his son was incarcerated.\111\ He reportedly gave $25,000 to former Governor Pete Wilson in 1994 and held a fundraiser for Governor Gray Davis in 2000 that raised $75,000, including $25,900 from himself.\112\ Horacio Vignali also reportedly gave $23,500 to Davis before he became Governor \113\ and $35,000 to the Democratic Party.\114\ In addition, he made large contributions to a number of Los Angeles city and county officials and held fundraisers and other political events at his Los Angeles estate. While these contributions clearly gave Vignali the access he needed to make his case to key political figures, it is less clear why his case was received so positively. Most of the politicians who endorsed Carlos Vignali's clemency petition now admit that their actions were a mistake and claim that they took the positions they did out of a misplaced sympathy for a father who was deeply hurt by his son's imprisonment. --------------------------------------------------------------------------- \110\ Did Politics Sway Clinton to Free Drug Dealer, L.A. Times, Feb. 13, 2001, at A8. \111\ Mateo Gold and Larry B. Stammer, 2 City Leaders Say They Regret Helping Dealer; Clemency: Cardinal Mahony and Politician Villaraigosa Say They Shouldn't Have Written on Behalf of a Cocaine Convict They Had Never Even Met, L.A. Times, Feb. 13, 2001, at 22; Rob Morse, Still Have Bill to Kick Around, S.F. Chron., Feb. 14, 2001, at A2; Dominic Berbeo, Hertzberg Had Part in Pardon Flap, Daily News of L.A. (Valley Edition) Feb. 16, 2001, at N1. \112\ Ted Rohrlich and Robert Lopez, Convict's Father a Wealthy, Well-Liked Mediator on the L.A. Political Scene; Profile: Horacio Carlos Vignali Has Donated Thousands Across Party Lines. He Puts Emphasis on Strengthening the Latino Community, Aides Say, L.A. Times, Feb. 13, 2001, at A23. \113\ Id. \114\ Dominic Berbeo, Hertzberg Had Part in Pardon Flap, Daily News of L.A. (Valley Edition) Feb. 16, 2001, at N1. --------------------------------------------------------------------------- i. Congressman Xavier Becerra Congressman Becerra conceded that the Vignalis were not members of his constituency but that Horacio had been a friend and contributor of his for five years.\115\ The Vignalis have donated at least $11,000 to Becerra's political action committee, Leadership of Today and Tomorrow, between 1998 and 2001,\116\ $2,475 to Becerra's congressional campaigns, and $3,500 to Becerra for the mayor's race.\117\ --------------------------------------------------------------------------- \115\ Id. \116\ Id. Dominic Berbeo, Hertzberg Had Part in Pardon Flap, Daily News of L.A. (Valley Edition) Feb. 16, 2001, at N1. \117\ Id. Mateo Gold and Larry B. Stammer, 2 City Leaders Say They Regret Helping Dealer; Clemency: Cardinal Mahony and Politician Villaraigosa Say They Shouldn't Have Written on Behalf of a Cocaine Convict They Had Never Even Met, L.A. Times, Feb. 13, 2001, at 22. --------------------------------------------------------------------------- Congressman Becerra has explained to the press that he was initially approached by Horacio Vignali and Congressman Esteban Torres, who wanted to see if Becerra could assist the Vignali family.\118\ After Horacio Vignali asked for Becerra's help, Becerra called the U.S. Attorney for the Central District of California, Alejandro Mayorkas.\119\ Becerra asked Mayorkas about the case and whether a commutation could be granted. Becerra recalls that Mayorkas looked into the case and called him back a few days later, telling him that the conviction was justified but that the sentence was too harsh.\120\ --------------------------------------------------------------------------- \118\ Id. \119\ Richard A. Serrano and Stephen Braun, U.S. Attorney Pursued Clemency Case, L.A. Times, Feb. 13, 2001, at A1. \120\ Richard Serrano and Stephen Braun, Working the American System, L.A. Times, Apr. 29, 2001, at A1. --------------------------------------------------------------------------- Becerra also called Pardon Attorney Roger Adams about the Vignali case.\121\ Becerra apparently called Adams on October 13, 1998, asking about the procedures followed by the Office of the Pardon Attorney. On October 14, 1998, Adams sent Becerra a lengthy letter explaining the conditions under which the Office of the Pardon Attorney considered cases for commutation. Adams noted that ``commutation of sentence is usually recommended only in exceptional circumstances, such as unwarranted disparity or severity of sentence, the rendering of an important service to the government not taken into account at sentencing, or terminal illness. . . . Since President Clinton has been in office, he has granted clemency only in three commutation cases.'' \122\ --------------------------------------------------------------------------- \121\ Interview with Roger Adams, Pardon Attorney, Department of Justice (Feb. 27, 2001). Mateo Gold and Larry B. Stammer, 2 City Leaders Say They Regret Helping Dealer; Clemency: Cardinal Mahony and Politician Villaraigosa Say They Shouldn't Have Written on Behalf of a Cocaine Convict They Had Never Even Met, L.A. Times, Feb. 13, 2001, at A22. \122\ Justice Department Document Production Mayorkas 00029-30 (Letter from Roger Adams, Pardon Attorney, Department of Justice, to Xavier Becerra, Member of Congress, U.S. House of Representatives (Oct. 14, 1998)) (Exhibit 11). --------------------------------------------------------------------------- Becerra then drafted a letter to the White House in support of Vignali. On November 21, 2000, Becerra wrote the following to President Clinton: [I write to] add my voice to those recommending a full evaluation of this case to determine if justice has been achieved in the case of Mr. Vignali. . . . In the interest of redeeming the life of a young man, I respectfully urge you to weigh a few factors in Mr. Vignali's favor. Prior to Mr. Vignali's conviction, he had no criminal record whatsoever. Although convicted of drug possession and the illegal sale of drug narcotics, his parents remain highly disturbed by a variety of factors in play at Carlos' trial and believe that when Carlos loaned money to a friend he unwittingly became connected with the convicted narcotics ring. It is my understanding that neither drugs nor drug money was found in his possession.\123\ --------------------------------------------------------------------------- \123\ NARA Document Production (Letter from Xavier Becerra, Member of Congress, U.S. House of Representatives, to President William J. Clinton (Nov. 21, 2000)) (Exhibit 12). After the commutation, Becerra explained his actions as follows: ``Knowing that justice is not yet blind to color in America and with time running out for the review of the Vignali case, I added my voice to that of other community leaders . . . asking for a review of the case.'' \124\ --------------------------------------------------------------------------- \124\ Mateo Gold and Larry B. Stammer, 2 City Leaders Say They Regret Helping Dealer; Clemency: Cardinal Mahony and Politician Villaraigosa Say They Shouldn't Have Written on Behalf of a Cocaine Convict They Had Never Even Met, L.A. Times, Feb. 13, 2001, at A22. --------------------------------------------------------------------------- Unlike others, Becerra has not apologized for his role in the Vignali case. Rather, he has steadfastly maintained that he did nothing wrong and did not even explicitly support Vignali's clemency grant. Becerra stated that he wrote the letters to urge the White House to make sure that justice had been served in the Vignali case.\125\ He has said that he never specifically asked President Clinton to commute Carlos Vignali's sentence, despite the fact that he wrote about the case and even called the White House on January 19, 2001, to see where the case stood.\126\ --------------------------------------------------------------------------- \125\ Richard Serrano and Stephen Braun, Working the System, L.A. Times, Apr. 29, 2001, at A1. \126\ Id. Congressman Becerra's position should be contrasted with that of former Associate White House Counsel Meredith Cabe, who characterized the congressman's involvement as ``advocacy.'' Interview with Meredith Cabe, former Associate Counsel to the President, the White House (Mar. 16, 2001). --------------------------------------------------------------------------- ii. Congressman Esteban Torres In addition to his 1996 letters to the Justice Department and the warden of Vignali's prison, Congressman Torres wrote to the White House in support of Vignali's clemency request. In an August 4, 1998, letter, Torres requested President Clinton's ``careful review and immediate consideration of approval of his petition.'' \127\ It is unclear why Torres wrote on Vignali's behalf. --------------------------------------------------------------------------- \127\ NARA Document Production (Letter from Esteban E. Torres, Member of Congress, U.S. House of Representatives, to President William J. Clinton (Aug. 4, 1998)) (Exhibit 13). --------------------------------------------------------------------------- Congressman Torres' son-in-law, James Casso, apparently became aware of the Vignali case while working as Congressman Torres' district director. More importantly, after Congressman Torres' retirement in 1999, Casso went into private practice as an attorney and apparently maintained his contacts with the Vignalis. In that capacity, Casso apparently played a significant role in introducing the Vignalis to Hugh Rodham. Unfortunately, Casso has declined to be interviewed by the Committee about this matter. iii. State Senator Richard Polanco State Senator Richard Polanco, who wrote to the White House ``Pardon Secretary'' in 1996, wrote to the President once again in 2000, specifically requesting a presidential grant of clemency for Vignali. Polanco, who received $20,000 in political contributions from Horacio Vignali throughout his career,\128\ sent his letter to the White House on December 6, 2000. At the time, Polanco was the Chair of the Latino Legislative Caucus and purported to write on behalf of the Caucus: --------------------------------------------------------------------------- \128\ Antonio Olivo and Tina Daunt, Speculation Swirls over Polanco Exit from Race, L.A. Times, Mar. 11, 2001, at B1. The Caucus respectfully requests you commute Mr. Vignali's sentence and that he be released immediately. We believe that Mr. Vignali was convicted despite the fact that the criminal investigation did not reveal any guns, drugs, or illegal money in Mr. Vignali's possession. Mr. Vignali was a 22-year-old investor and did not have any contacts demonstrating his involvement --------------------------------------------------------------------------- in the sale or purchase of drugs. * * * Given the facts of the case and Mr. Vignali's conduct during incarceration, the Caucus has investigated the impact of Mr. Vignali's release. We are convinced that Mr. Vignali will return to his family in southern California. Mr. Vignali's family is a loving, embracing family and is committed to supporting him.\129\ --------------------------------------------------------------------------- \129\ NARA Document Production (Letter from Senator Richard G. Polanco, Senate Majority Leader, California State Senate, to President William J. Clinton (Dec. 6, 2000)) (Exhibit 16). It is not clear whether Polanco obtained the approval of all 23 members of the California Latino Legislative Caucus before he wrote the President on their behalf. However, it is clear that Senator Polanco spread misleading information about Carlos Vignali in his letter. Rather than being an investor in a legitimate business enterprise, as suggested by Polanco, Vignali was convicted by a jury of providing large amounts of cocaine for distribution. His conviction was upheld by an appellate court. As for the lack of contacts demonstrating his involvement in the sale of drugs, as claimed by Polanco, Vignali's own words, captured on government wiretaps, show that he was part of a cocaine distribution conspiracy. Also of interest is Senator Polanco's claim that the Latino caucus had ``investigated'' the impact of Vignali's release. Polanco has not made it clear what steps he took to investigate the impact of the commutation. Given the inaccuracies in Polanco's letter, the Caucus' investigation appears to have been incomplete or, more likely, nonexistent. iv. Los Angeles County Supervisor Gloria Molina Unlike many other individuals who supported Vignali's bid for clemency, Los Angeles County Supervisor Gloria Molina did not receive political contributions from Horacio Vignali. Rather, she came to know Horacio Vignali through her husband, Ron Martinez, a Los Angeles affirmative action consultant.\130\ After receiving a ``constant barrage of requests'' from Horacio to support his son's bid for clemency, Molina agreed to write such a letter.\131\ In her December 20, 2000, letter, Molina stated the following: --------------------------------------------------------------------------- \130\ Ted Rohrlich, et. al, Molina, Hertzberg Wrote Letters for Convict's Pardon, L.A. Times, Feb. 16, 2001, at B1. \131\ Id. While I usually do not write letters in support of individuals I do not know personally, I am making this request because I do know Mr. Vignali's family and have reviewed his case carefully. What I have learned is that Mr. Vignali is a young man who made a mistake in his life and is immensely remorseful and has demonstrated a genuine interest to re-join the community.'' \132\ --------------------------------------------------------------------------- \132\ NARA Document Production (Letter from Gloria Molina, Supervisor, 1st District, Board of Supervisors, County of Los Angeles, to President William J. Clinton (Dec. 20, 2001)) (Exhibit 18) (cover sheet reflecting transmission from Rodham to Lindsey, attached). Molina also noted Vignali's good record in prison, where he excelled in his work details and received a GED.\133\ It is unclear how Molina came to the understanding that Carlos Vignali was ``immensely remorseful'' for his actions. To the contrary, Carlos and Horacio Vignali have steadily maintained Carlos' innocence ever since his arrest in 1994, and Carlos, to date, has never cooperated with authorities by revealing the identities of his narcotics sources. --------------------------------------------------------------------------- \133\ Id. --------------------------------------------------------------------------- Molina's ignorance of the most basic aspect of the Vignali case--whether Vignali claimed to be innocent or guilty of the charges--seriously undermines her claim to have ``reviewed his case carefully.'' It has also been reported that Molina shared her draft letter of support with Horacio Vignali before it was provided to the White House.\134\ Therefore, Horacio Vignali was aware of the inaccuracies in the letter and still allowed it to be presented to the White House. While Molina told Horacio Vignali that her letter ``probably would do no good,'' \135\ it was provided to Bruce Lindsey the day after it was written. Hugh Rodham faxed the Molina letter to Dawn Woollen, Bruce Lindsey's assistant, on December 21, 2000, with a notation stating, ``Dawn, enclosed please find a copy of the letter we discussed.'' \136\ --------------------------------------------------------------------------- \134\ Richard Serrano and Stephen Braun, Clinton Brother-in-Law Was Paid $400,000 to Help Win Clemencies, L.A. Times, Feb. 22, 2001, at A1. \135\ Ted Rohrlich, et. al, Molina, Hertzberg Wrote Letters for Convict's Pardon, L.A. Times, Feb. 16, 2001, at B1. \136\ NARA Document Production (Fax Cover Sheet, Dec. 21, 2000) (Exhibit 18) (all capitalization omitted). --------------------------------------------------------------------------- Molina has not explicitly renounced her representations in the Vignali case. She has, however, said that she will not write any more letters like her Vignali letter because prosecutors and judges know the facts better than political figures like herself.\137\ --------------------------------------------------------------------------- \137\ Rene Sanchez, Powerful Supporters Retreat on Pardon, Wash. Post, Feb. 24, 2001, at A6. --------------------------------------------------------------------------- v. Los Angeles City Councilmember Mike Hernandez Horacio Vignali cultivated a close relationship with Los Angeles City Councilmember Mike Hernandez, beginning with Hernandez's 1993 campaign, to which Vignali contributed $2,500. Vignali also hosted a day-long retreat at his estate for Hernandez and his staff. On December 4, 2000, Hernandez wrote to the President, asking him to ``strongly consider commuting the sentence of Carlos A. Vignali[,] Jr.'' \138\ Hernandez argued, ``Although convicted, you will hopefully note, that no evidence was presented that Mr. Vignali had any involvement with illegal narcotics prior to the last three months leading up to his arrest.'' \139\ Hernandez also noted Vignali's accomplishments in prison, including receiving his GED and being named the prison's ``Student of the Year.'' \140\ --------------------------------------------------------------------------- \138\ NARA Document Production (Letter from Michael Hernandez, Councilman, First Council District, City of Los Angeles, to President William J. Clinton (Dec. 4, 2000)) (Exhibit 17). \139\ Id. \140\ Id. --------------------------------------------------------------------------- Hernandez's arguments were completely irrelevant as to Vignali's suitability for a commutation. Even assuming Hernandez was correct that Vignali was a large-scale drug dealer for only three months, that hardly seems to be a powerful argument in favor of executive clemency. Moreover, Carlos Vignali was suspected by law enforcement authorities of trafficking narcotics well before he was actually arrested.\141\ --------------------------------------------------------------------------- \141\ See infra, section 4.a, California Law Enforcement and Political Officials Supported Vignali's Clemency Petition Despite Serious Allegations Against Horacio and Carlos Vignali--There Were Extensive Allegations of Drug Trafficking Against Horacio Vignali and Carlos Vignali. --------------------------------------------------------------------------- The extent to which the White House relied on Hernandez's letter is unclear. It is certain, though, that Hernandez was a questionable source for any kind of character reference, especially one involving drug charges. In August 21, 1997, Hernandez was arrested and charged with one felony count of cocaine possession.\142\ He subsequently posted $10,000 bond and checked himself into a drug-treatment hospital.\143\ Hernandez ultimately pleaded guilty and entered a drug diversionary program, which allowed him to complete his rehabilitation and, upon successful completion, avoid the felony conviction.\144\ --------------------------------------------------------------------------- \142\ Beth Shuster, Back from the Bottom, L.A. Times Mag., Feb. 6, 2000, at 10. \143\ Michael Fleeman, He Just Said Yes--An Interview with L.A. City Councilman Mike Hernandez, L.A. Times Mag., Jan. 1998. \144\ Id. --------------------------------------------------------------------------- vi. Cardinal Roger Mahony Cardinal Roger Mahony, the Archbishop of Los Angeles, also wrote in support of Vignali. Given that the Cardinal was not a political figure, his letter may have carried particular weight with the White House. However, Cardinal Mahony's December 11, 2000, letter, like those of the political figures who supported the Vignali clemency, was misleading. Mahony stated that ``prior to [Vignali's] conviction, he had no criminal record or arrests.'' \145\ As described above, this claim was false. Cardinal Mahony also stated that there were ``mitigating factors'' in the Vignali case, such as the fact that ``neither drugs nor drug money was found in Carlos Vignali Jr.'s possession.'' \146\ Cardinal Mahony's recitation of these irrelevant facts gives the impression that there was no evidence linking Vignali to narcotics trafficking. To the contrary, Vignali's fellow drug dealers testified against him, and his voice was captured on intercepted telephone conversations, discussing the shipment of cocaine to Minnesota. --------------------------------------------------------------------------- \145\ NARA Document Production (Letter from Cardinal Roger Mahony, Archbishop of Los Angeles, to President William J. Clinton (Dec. 11, 2000)) (Exhibit 19). \146\ Id. --------------------------------------------------------------------------- The Cardinal has issued a statement accepting some responsibility for his actions in the Vignali case. In particular, he claimed, ``The purpose of the letter was to seek a further review of the facts, the law and the processes used in his case. I made it clear that I was incapable of making a judgment about his guilt or innocence.'' \147\ However, the Cardinal's letter did no such thing and even concluded that ``the granting of clemency to Carlos Vignali, Jr. is worthy of your consideration. His relatives, a very respected, active and well-known Latino family, are committed to assist Carlos, Jr. to again become a contributing member of society.'' After the public learned of Cardinal Mahony's role in the Vignali case, the Cardinal conceded, ``Regardless of the merits of the case, I made a serious mistake in writing to the president and I broke my decades-long practice of never sending a letter on behalf of any person whom I did not know personally. I apologize for not following my own principles in this matter.'' \148\ --------------------------------------------------------------------------- \147\ Mateo Gold and Larry B. Stammer, 2 City Leaders Say They Regret Helping Dealer; Clemency: Cardinal Mahony and Politician Villaraigosa Say They Shouldn't Have Written on Behalf of a Cocaine Convict They Had Never Even Met, L.A. Times, Feb. 13, 2001, at A22. \148\ Id. --------------------------------------------------------------------------- b. Support from Los Angeles County Sheriff Lee Baca The White House has cited the support of Los Angeles County Sheriff Lee Baca, along with the support of U.S. Attorney Alejandro Mayorkas, as being instrumental to the President's decision to grant clemency to Carlos Vignali. However, Baca has publicly claimed that he did not support the grant of clemency for Vignali but, rather, believed that he should serve out his sentence.\149\ Yet, when Baca's actions in the Vignali case are carefully examined, it is clear that he was close to Horacio Vignali and took a number of actions that could be seen by the White House as supporting a grant of clemency for Carlos Vignali. In light of these facts, it is troubling that Baca has refused to acknowledge the effect of his actions in the Vignali matter. --------------------------------------------------------------------------- \149\ Beth Shuster, Baca Admits Call, Not Advocacy on Felon's Clemency, L.A. Times, Feb. 23, 2001, at A1; Telephone Interview with Leroy Baca, Sheriff, County of Los Angeles (June 22, 2001). --------------------------------------------------------------------------- i. Sheriff Baca's Relationship with the Vignalis Sheriff Baca met Horacio Vignali in 1991 through ``Latinos for Riordan,'' a group which supported the election of Richard Riordan as Mayor of Los Angeles.\150\ Beginning in 1993, Baca and Horacio Vignali began having one-on-one contacts, including lunches and other social meetings.\151\ Over the course of the years that followed, Baca became friends with Horacio Vignali and his wife, Luz, and even visited the Vignali home on five or six occasions.\152\ Vignali became a major supporter of Baca. Vignali contributed $11,000 to Baca's campaigns for Sheriff between 1994 and 2001.\153\ Vignali also hosted three fundraisers for Baca at the C&H Body Shop, each of which raised, according to Baca, between $60,000 and $70,000 for his campaign.\154\ --------------------------------------------------------------------------- \150\ Telephone Interview with Leroy Baca, Sheriff, County of Los Angeles (June 22, 2001). \151\ Id. \152\ Id. \153\ Id. \154\ Id. As described below, the C&H Body Shop was the location of a heroin trafficking arrest and was alleged to be a location where cars were altered to facilitate the transportation of narcotics and drug proceeds. --------------------------------------------------------------------------- Baca first learned of Carlos Vignali's trouble with the law through his own deputies. In 1994, detectives from his narcotics bureau went to the C&H Body Shop to arrest Carlos Vignali.\155\ Vignali had already been indicted in Minnesota, and detectives had just been able to identify the person previously known as ``C-Low'' on surveillance tapes as Carlos Vignali. When the detectives went to the C&H Body Shop, Horacio told them that Carlos Vignali was not there.\156\ After the detectives left, Horacio called Baca to ask why the detectives had been there and why they were looking for his son.\157\ Baca, who at the time was Chief of Field Operations for Region II of the Los Angeles County Sheriff's Office,\158\ told Horacio that he would look into the matter.\159\ Baca called the detective who had been by the body shop and asked him why he was looking for Carlos Vignali.\160\ The detective explained the matter to Baca, and Baca called Horacio back and explained that he should have his son meet with detectives at the body shop. Baca made a point of not informing Horacio Vignali why investigators were looking for Carlos and simply told Horacio that he should have his son show up at the body shop to speak to investigators.\161\ Shortly thereafter, Carlos did show up at the body shop, and he was arrested. --------------------------------------------------------------------------- \155\ Id. \156\ Id. \157\ Id. \158\ Baca was elected Sheriff in November 1998, shortly after the death of his predecessor, Sherman Block. Id. \159\ Id. \160\ Id. \161\ Id. --------------------------------------------------------------------------- After Carlos Vignali's arrest, Baca's information about the Vignali case came from Horacio Vignali. Baca learned of Carlos' conviction, and Horacio often mentioned his son's plight to Baca when they spoke.\162\ Horacio Vignali told Baca that he believed his son was innocent and that he was spending significant sums in legal fees to appeal the conviction. Baca claims that he consistently believed that Carlos Vignali was guilty of the charges against him. He even claims to have had a heated discussion with Horacio Vignali where he told him that he believed that Carlos was guilty and responsible for his own predicament.\163\ --------------------------------------------------------------------------- \162\ Id. \163\ Id. --------------------------------------------------------------------------- Despite Sheriff Baca's apparent lack of sympathy for Carlos' situation, Horacio Vignali continued to mention Carlos to Baca. In 1996, Horacio informed Baca that, because he was afraid of flying, he was having difficulty visiting his son in prison in Colorado.\164\ He asked for Baca's help in having Carlos moved to a prison closer to the Vignali's home in Los Angeles. On November 1, 1996, Baca wrote a letter to Vignali's probation officer. In that letter, Baca argued that more frequent contact between the Vignali family and Carlos would help the family and Carlos deal with his imprisonment. Baca also referred to Horacio Vignali's ``cooperation'' with the Sheriff's Department: --------------------------------------------------------------------------- \164\ Id. Mr. Vignali, a highly respected businessman, cooperated with the initial investigation that enabled Sheriff's Department investigators to arrest his son for the offenses he was convicted of. This level of cooperation is rare and it reflects very highly on Mr. Vignali's integrity. That is why I am writing this letter.\165\ --------------------------------------------------------------------------- \165\ Justice Department Document Production Mayorkas 00014 (Letter from Leroy Baca, Sheriff, County of Los Angeles, to Joan L. White, U.S. Probation Officer (Nov. 1, 1996)) (Exhibit 20). However, Baca's glowing reference to Horacio's role in Carlos' arrest is misleading. First, Baca seems to ignore the fact that Horacio's first response after being contacted by Sheriff's Department investigators who wanted to speak to his son was to call his friend who was a chief in the Sheriff's Department. If Horacio Vignali was truly trying to cooperate with law enforcement, he would have told his son to meet with investigators rather than contact his politically powerful friend at the Sheriff's Department. More importantly, Baca intentionally did not tell Horacio Vignali that the Sheriff's Department intended to arrest Carlos. Rather, he told him only that they wanted to speak to him. In this instance, it appears that Sheriff Baca behaved professionally and appropriately. However, to the extent that Baca's letter portrays a father who knowingly participated in arrangements to have his son arrested, it is misleading. ii. Sheriff Baca's Involvement in the Vignali Clemency Effort In late 2000, Horacio Vignali again approached Sheriff Baca, this time asking for his help in obtaining a grant of clemency for Carlos. Horacio asked Baca to write a letter to the President in support of the grant of clemency.\166\ Baca recalls that Horacio showed him other letters of support he had obtained, including one from Representative Becerra.\167\ Horacio also mentioned that Hugh Rodham was helping him obtain a grant of clemency.\168\ However, Baca declined to write any letter in support of Carlos Vignali's request for a commutation.\169\ Baca informed Committee staff that he told Horacio that his son was guilty and would not receive the commutation that he wanted.\170\ Baca believes that Horacio was upset by his refusal to write a letter regarding the commutation request.\171\ After Baca had spoken with Horacio Vignali, he began to reconsider his refusal to write a letter and decided that he could write a general letter in support of Horacio Vignali.\172\ He drafted such a letter, signed it, and gave the original to Horacio Vignali.\173\ The letter drafted by Baca did make a number of strong statements in support of Horacio Vignali, but it did not mention Carlos at all: --------------------------------------------------------------------------- \166\ Telephone Interview with Leroy Baca, Sheriff, County of Los Angeles (June 22, 2001). \167\ Id. \168\ Id. \169\ Id. \170\ Id. \171\ Id. \172\ Id. \173\ Id. This letter will confirm my support for Mr. Carlos Vignali, Sr., as a man of the highest integrity and trustworthiness. I have known Mr. Vignali for many years and have witnessed his consistent support of law enforcement and especially the policing effort of the Los Angeles County Sheriff's Department. . . . I am confident that Mr. Vignali will fulfill any commitment he makes regarding any matter entrusted to him.\174\ --------------------------------------------------------------------------- \174\ NARA Document Production (Letter from Leroy Baca, Sheriff, County of Los Angeles, to President William J. Clinton (Dec. 8, 2000)) (Exhibit 21). After Horacio read the letter, he told Baca he did not believe he could use the letter because it did not help his son.\175\ Indeed, Baca believes his letter was never forwarded to the White House by Vignali.\176\ --------------------------------------------------------------------------- \175\ Telephone Interview with Leroy Baca, Sheriff, County of Los Angeles (June 22, 2001). \176\ Id. --------------------------------------------------------------------------- After giving his letter to Horacio Vignali, Sheriff Baca did not have any further involvement with the Vignali matter until he received a phone call from Hugh Rodham in early January 2001.\177\ Baca received a message from Rodham and called the number Rodham left, which turned out to be the number for the White House switchboard.\178\ Baca was then connected with Rodham.\179\ Rodham told Baca that he was working for Horacio Vignali and that Baca would be receiving a telephone call from the White House Counsel's Office regarding ``Vignali, Sr.'' \180\ Baca claims he told Rodham he had nothing to say about Carlos Vignali and believed Carlos deserved whatever he got.\181\ But, Baca indicated he would discuss Horacio Vignali with the Counsel's Office.\182\ --------------------------------------------------------------------------- \177\ Id. \178\ Id. \179\ Id. \180\ Id. \181\ Id. \182\ Id. --------------------------------------------------------------------------- Several days after Rodham's telephone call, Baca received a message from someone else at the White House.\183\ Baca returned the call to the man who had left the message, but, when he asked for that person, he was transferred to a woman who identified herself as an assistant of the man whom Baca sought.\184\ It appears this woman was Dawn Woollen, assistant to Deputy White House Counsel Bruce Lindsey.\185\ Woollen asked Baca what he could tell her about Horacio Vignali.\186\ Baca told Woollen ``nice things'' about Horacio Vignali, particularly, that he was deeply devoted to his family and very disturbed by his son's imprisonment.\187\ Woollen then asked Baca whether President Clinton should commute Carlos Vignali's prison sentence.\188\ According to Baca, he answered that he was not familiar with the facts of the case and that it was the President's decision to make.\189\ Woollen's recollection of the call is significantly different. She remembers that Baca ``expressed support for the Vignali commutation'' but that he was uncomfortable writing a letter in support of Vignali.\190\ According to Baca, he had no further involvement in the Vignali case after his conversation with Woollen.\191\ --------------------------------------------------------------------------- \183\ Id. \184\ Id. \185\ Interview with Dawn Woollen, Administrative Assistant to Deputy White House Counsel Bruce Lindsey, the White House (Sept. 25, 2001). \186\ Telephone Interview with Leroy Baca, Sheriff, County of Los Angeles (June 22, 2001). \187\ Id. \188\ Id. \189\ Id. \190\ Interview with Dawn Woollen, Administrative Assistant to Deputy White House Counsel Bruce Lindsey, the White House (Sept. 25, 2001). \191\ Id. --------------------------------------------------------------------------- iii. Conclusion Sheriff Baca has maintained that he never supported a grant of clemency for Carlos Vignali. Rather, Baca claims that he was opposed to the commutation. After the pardon was granted, he even made a public statement that ``I maintain and espouse a policy that those persons convicted of a crime should serve their full and complete sentence.'' \192\ Moreover, Sheriff Baca has taken the position that it was not reasonable for the White House to interpret his call as conveying support for the commutation of Carlos Vignali's sentence.\193\ However, if the account of Dawn Woollen, the assistant to Deputy White House Counsel Bruce Lindsey, is accurate, Sheriff Baca's position is disingenuous. In addition, Sheriff Baca took a number of discrete actions that assisted the effort to get Carlos Vignali out of prison. As such, the White House was justified in believing that Baca supported a grant of clemency for Vignali. --------------------------------------------------------------------------- \192\ Beth Shuster, Baca Admits Call, Not Advocacy on Felon's Clemency, L.A. Times, Feb. 23, 2001 at A1. \193\ Telephone Interview with Leroy Baca, Sheriff, County of Los Angeles (June 22, 2001). --------------------------------------------------------------------------- Baca knew or should have known that his actions would assist the effort to get Carlos Vignali out of prison. When Baca wrote a letter to President Clinton vouching for Horacio Vignali's character, he knew that he was providing Vignali with a letter that would be used to get Carlos Vignali out of prison. When he agreed to speak with White House staff about Horacio Vignali, he knew the only reason the White House wanted to know about Horacio Vignali was that they were considering a grant of clemency for Carlos Vignali. It is difficult to conceive what Sheriff Baca thought he was doing if not assisting in the effort to get Carlos Vignali out of prison. Indeed, the White House interpreted Baca's call as supporting a grant of clemency to Carlos Vignali. It appears that Sheriff Baca's support for Vignali, together with that of U.S. Attorney Alejandro Mayorkas (as described below), was instrumental to the White House decision to grant clemency. At a Committee hearing, Deputy White House Counsel Bruce Lindsey stated that ``the Los Angeles sheriff indicated he supported a commutation.'' Lindsey also stated that: I originally was probably negative. After the call from the . . . sheriff of Los Angeles and our office reached out to the U.S. attorney in Central District of California and Los Angeles, I decided that given the community support and their position that into the county in which he would go to live, that they would be aware of the crime situation, if you will, in their community, and if they were not concerned about him coming back to their community, that I thought it was an appropriate commutation.\194\ --------------------------------------------------------------------------- \194\ ``The Controversial Pardon of International Fugitive Marc Rich,'' Hearings Before the Comm. on Govt. Reform, 107th Congress 387, 426 (Mar. 1, 2001). Sheriff Baca has been careful to point out that in none of his calls or letters did he expressly advocate support for a grant of clemency for Carlos Vignali. Nonetheless, it is likely that the careful language in the Sheriff's letters resulted from his own desire to avoid creating evidence that he supported the commutation rather than from any lack of desire to help the Vignali family. Indeed, an internal White House note confirms this view. The note indicates that Hugh Rodham told Dawn Woollen that ``Sheriff Baca from LA is more than happy to speak with you about [Vignali] but is uncomfortable writing a letter offering his full support.'' \195\ This note supports the conclusion that Sheriff Baca's actions had the effect of assisting Horacio Vignali's effort to get his son out of prison but did not want to create a paper trail showing that he helped a convicted cocaine dealer get out of prison. --------------------------------------------------------------------------- \195\ NARA Document Production (Note from Dawn Woollen, Secretary to Deputy White House Counsel Bruce Lindsey, the White House, to Bruce Lindsey, Deputy White House Counsel, the White House) (Exhibit 22) (NARA cover sheet, reflecting that document came from Lindsey's file, attached). --------------------------------------------------------------------------- The most troubling aspect of Sheriff Baca's involvement is his continued claims that he was opposed to the Vignali commutation. In his public statements since the commutation and his interview with Committee staff, Baca maintained that Vignali was guilty and should not have had his sentence commuted. Moreover, Sheriff Baca believes there was nothing inappropriate about his role in the Vignali matter. However, when Sheriff Baca was asked squarely by the White House Counsel's Office whether the President should commute Vignali's sentence, he said he was not familiar with the facts of the case and it was a decision that only the President could make. If Baca believed Vignali was guilty, as he claims to have, and was opposed to a commutation, he should have shared his views with the White House. It is troubling that Sheriff Baca would make self-serving statements to the Committee and the press that he was opposed to the commutation yet refused to express meaningful opposition when given the opportunity. Sheriff Baca's actions, which are troubling enough when viewed in isolation, are even more troubling when considered in light of two additional facts. First, Horacio Vignali was a major financial supporter of Baca's campaign, contributing $11,000 and raising tens of thousands of dollars more. Second, as discussed below, law enforcement knew of numerous allegations that Horacio Vignali himself was involved in trafficking cocaine. Thus, the top law enforcement officer in Los Angeles County supported a grant of clemency for a cocaine trafficker, the son of a major financial supporter and alleged narcotics trafficker. Sheriff Baca's involvement in the Vignali matter was inexcusable, especially for a law enforcement officer. c. Support from U.S. Attorney Alejandro Mayorkas As described below, the government attorneys who actually convicted Vignali vehemently opposed the Vignali commutation. In the face of this opposition, the intervention of Los Angeles-area U.S. Attorney Alejandro Mayorkas is particularly troubling. According to President Clinton's Deputy Counsel, Bruce Lindsey, the White House Counsel's Office ``reached out'' to Mayorkas regarding Vignali's clemency petition.\196\ Why the White House reached out to Mayorkas--who had no role in prosecuting Vignali in Minneapolis--rather than to the federal prosecutors who convicted Vignali is far from clear. Equally unclear and of greater concern is why the White House gave greater weight to Mayorkas' position than it did to the strenuous objections of the U.S. Attorney's Office that actually convicted Vignali and the Pardon Attorney's negative recommendation. --------------------------------------------------------------------------- \196\ ``The Controversial Pardon of International Fugitive Marc Rich,'' Hearings Before the Comm. on Govt. Reform, 107th Congress 426 (Mar. 1, 2001). --------------------------------------------------------------------------- i. Mayorkas' Initial Exposure to the Vignali Matter Sometime in the first quarter of 1999, Mayorkas received a call from Representative Xavier Becerra.\197\ During that conversation, Becerra informed Mayorkas that he had received information regarding an appeal of Carlos Vignali's conviction.\198\ Becerra sent Mayorkas a copy of the brief and asked him to look into the matter.\199\ Becerra attached to the brief a few letters submitted by various community leaders in support of Carlos Vignali's case.\200\ Because some of those letters were addressed to a ``Pardon Secretary,'' Mayorkas believes he assumed Carlos Vignali was seeking clemency.\201\ --------------------------------------------------------------------------- \197\ Telephone Interview with Alejandro Mayorkas, former U.S. Attorney for the Central District of California, Department of Justice (June 15, 2001). \198\ Id. \199\ Id. Mayorkas did not read the brief. After he received it, he put it in a file. \200\ Id. \201\ Id. --------------------------------------------------------------------------- According to Mayorkas, he treated Congressman Becerra's call as he did other inquiries from congressmen, which he received frequently.\202\ In this case, he consulted Minnesota U.S. Attorney Todd Jones, whose office tried the original case against Vignali.\203\ In fact, Mayorkas called Jones twice.\204\ In the first call, which occurred shortly after the inquiry from Representative Becerra, Mayorkas called Jones to obtain information on the status of Carlos Vignali's case.\205\ In response, Jones told Mayorkas that Carlos Vignali was ``a major player'' in drug trafficking.\206\ Jones told Mayorkas, ``don't go there,'' when it came to Vignali--he was ``bad news.'' \207\ Jones also told Mayorkas he should call Assistant U.S. Attorney Andrew Dunne for further details regarding the case.\208\ Mayorkas noted that he might have asked Jones during the call if his office was interested in receiving Carlos Vignali's cooperation, but he does not specifically recall.\209\ Mayorkas relayed what he learned back to Congressman Becerra.\210\ --------------------------------------------------------------------------- \202\ Id. \203\ Id. Telephone Interview with Todd Jones, U.S. Attorney for the District of Minnesota, Department of Justice (May 2, 2001); Power of Words from High Places, L.A. Times, Feb. 14, 2001, at B10; Richard A. Serrano and Stephen Braun, U.S. Attorney Pursued Clemency Case, L.A. Times, Feb. 13, 2001, at A1. Jones believed that Mayorkas received inquiries from Horacio Vignali and was reaching out to Jones to look into Vignali's case. Telephone Interview with Todd Jones, U.S. Attorney for the District of Minnesota, Department of Justice (May 2, 2001). Specifically, Jones opined, ``Why [was Mayorkas calling him]? Because the old man was calling him. Horacio was contacting [Mayorkas] and his U.S. Attorney's Office seeking support for a commutation.'' Richard A. Serrano and Stephen Braun, U.S. Attorney Pursued Clemency Case, L.A. Times, Feb. 13, 2001, at A1. \204\ Id. Telephone Interview with Todd Jones, U.S. Attorney for the District of Minnesota, Department of Justice (May 2, 2001); Power of Words from High Places, L.A. Times, Feb. 14, 2001, at B10; Richard A. Serrano and Stephen Braun, U.S. Attorney Pursued Clemency Case, L.A. Times, Feb. 13, 2001 at A1. \205\ Telephone Interview with Alejandro Mayorkas, former U.S. Attorney for the Central District of California, Department of Justice (June 15, 2001); Telephone Interview with Todd Jones, U.S. Attorney for the District of Minnesota, Department of Justice (May 2, 2001) (Jones noting that December 2, 1999, is the likely date); Richard A. Serrano and Stephen Braun, U.S. Attorney Pursued Clemency Case, L.A. Times, Feb. 13, 2001 at A1. \206\ Telephone Interview with Todd Jones, U.S. Attorney for the District of Minnesota, Department of Justice (May 2, 2000). \207\ Id. In an Interview with Committee staff, Mayorkas denies having been told this. Also, Jones recalls that, during their discussion, Mayorkas referred to Horacio Vignali as a ``player in the community in Los Angeles, a pillar in the community.'' Richard A. Serrano and Stephen Braun, U.S. Attorney Pursued Clemency Case, L.A. Times, Feb. 13, 2001, at A1. See also Telephone Interview with Todd Jones, U.S. Attorney for the District of Minnesota, Department of Justice (May 2, 2001) (describing that Mayorkas also told Jones that Horacio Vignali was ``a big guy in the community''). Mayorkas sternly denies ever having told Jones that Horacio Vignali was a pillar--or player--in the community. Telephone Interview with Alejandro Mayorkas, former U.S. Attorney for the Central District of California, Department of Justice (June 15, 2001). According to Mayorkas, he just does not talk like that. \208\ Telephone Interview with Todd Jones, U.S. Attorney for the District of Minnesota, Department of Justice (May 2, 2001). Telephone Interview with Alejandro Mayorkas, former U.S. Attorney for the Central District of California, Department of Justice (June 15, 2001) (Mayorkas stating that he recalls having been referred to a line attorney as well as the general fact of their conversation but cannot specifically recall what was discussed). \209\ Id. \210\ Id. --------------------------------------------------------------------------- Jones also referred Mayorkas to a line attorney who handled the case for specifics regarding Carlos Vignali's conviction.\211\ As described below, that line attorney was probably Assistant U.S. Attorney Andrew Dunne, who tried the government's case with former Assistant U.S. Attorney Denise Reilly. Jones believes that Mayorkas may have followed up with Dunne. Mayorkas cannot recall whether he spoke with Dunne but believed that such a conversation may have taken place. Unfortunately, the Committee was unable to interview Dunne to confirm the conversation because of objections from the Department of Justice. However, if such a conversation took place, Mayorkas would have likely gained even more specific information regarding the scope of Vignali's criminal activity. --------------------------------------------------------------------------- \211\ Id. Telephone Interview with Todd Jones, U.S. Attorney for the District of Minnesota, Department of Justice (May 2, 2001) (Jones noting that he referred Mayorkas to Dunne ``for the gory details''). --------------------------------------------------------------------------- After looking into the Vignali case for Representative Becerra, Mayorkas actually met Horacio Vignali for the first time. Over the next two years, Mayorkas would see Horacio Vignali at various community events and at several one-on-one meetings with Vignali. When Mayorkas saw Horacio Vignali, Vignali would usually mention his son's case and tell Mayorkas how much anguish he was suffering as a result of his son's imprisonment. Sometime early in 1999, Horacio Vignali spoke to Mayorkas about executive clemency.\212\ Mayorkas told Horacio the only way he knew that Carlos' sentence could be reduced was for him to cooperate with law enforcement and receive a reduction of his sentence under Federal Rule of Criminal Procedure 35.\213\ Mayorkas does not recall Horacio Vignali's response to that comment.\214\ --------------------------------------------------------------------------- \212\ Telephone Interview with Alejandro Mayorkas, former U.S. Attorney for the Central District of California, Department of Justice (June 15, 2001). \213\ Id. \214\ Id. --------------------------------------------------------------------------- ii. Mayorkas Calls the White House In early January of 2001, Horacio Vignali called Mayorkas and, noting that a petition for the commutation of his son's sentence was pending, asked Mayorkas if he would call the White House.\215\ During that conversation, Horacio Vignali stated that other individuals, including Sheriff Baca and Archbishop Mahoney, had made similar communications.\216\ After Horacio Vignali's call, Mayorkas called the Justice Department to see if it was proper for him to contact the White House regarding a clemency matter in which he did not have a prosecutorial role.\217\ The Justice Department referred Mayorkas to the Office of the Pardon Attorney.\218\ Mayorkas spoke to an unidentified female lawyer at the Pardon Attorney's Office and asked if it was permissible for him to make a call to the White House regarding clemency.\219\ Mayorkas recalls telling the attorney that: (1) the case he intended to weigh in on was not in his jurisdiction; (2) he did not know the defendant but knew the parents; and (3) he intended only to speak to the integrity of the parents.\220\ According to Mayorkas, the Office of the Pardon Attorney permitted him to call the White House.\221\ Mayorkas noted that the attorney with whom he spoke did not express the slightest reservation about his intention to call the White House.\222\ --------------------------------------------------------------------------- \215\ Id. \216\ Id. \217\ Id. \218\ Id. \219\ Id. \220\ Id. \221\ Id. \222\ Id. --------------------------------------------------------------------------- Before calling the White House, Mayorkas called Minnesota U.S. Attorney Todd Jones and informed him of his intention to weigh in with the White House.\223\ Indeed, Jones also recalls that Mayorkas initiated a second contact with him regarding the Carlos Vignali matter and specifically asked him how he came out on Vignali's clemency request.\224\ Jones told Mayorkas that he opposed commutation of Vignali's sentence.\225\ He did not recall whether Mayorkas indicated an intent to weigh in with the White House but noted that the conversation was very brief.\226\ Jones was troubled by Mayorkas' inquiries about the Vignali case and his subsequent lobbying on behalf of Vignali, believing that only the U.S. Attorney who prosecuted the case should have been involved in recommending a grant of clemency and that, if a prosecutor was not so involved, he should ``stay the hell away from it.'' \227\ Jones remarked that if the roles were reversed, he would never have weighed in on the Vignali case.\228\ --------------------------------------------------------------------------- \223\ Id. \224\ Telephone Interview with Todd Jones, U.S. Attorney for the District of Minnesota, Department of Justice (May 2, 2001). See also Richard A. Serrano and Stephen Braun, U.S. Attorney Pursued Clemency Case, L.A. Times, Feb. 13, 2001, at A1. \225\ Telephone Interview with Todd Jones, U.S. Attorney for the District of Minnesota, Department of Justice (May 2, 2001); Telephone Interview with Alejandro Mayorkas, former U.S. Attorney for the Central District of California, Department of Justice (June 15, 2001). \226\ Telephone Interview with Todd Jones, U.S. Attorney for the District of Minnesota, Department of Justice (May 2, 2001); Richard A. Serrano and Stephen Braun, U.S. Attorney Pursued Clemency Case, L.A. Times, Feb. 13, 2001, at A1. \227\ Telephone Interview with Todd Jones, U.S. Attorney for the District of Minnesota, Department of Justice (May 2, 2001). \228\ Id. --------------------------------------------------------------------------- Mayorkas then called Deputy White House Counsel Bruce Lindsey.\229\ Mayorkas believes that Horacio Vignali suggested he call Lindsey and provided him Lindsey's contact information.\230\ Mayorkas' call was returned by Associate White House Counsels Meredith Cabe and Eric Angel.\231\ Mayorkas indicated that Horacio Vignali had asked him to make the call.\232\ Also, according to Mayorkas, he told Cabe and Angel that he was not familiar with the facts of the case and did not know the defendant but knew the parents to be good people.\233\ In that conversation, he also noted that the federal prosecutors in Minnesota who convicted Vignali opposed commutation of Vignali's sentence.\234\ Mayorkas does not recall having expressed support for Vignali's clemency request during that call.\235\ But, he observed that the fact of his call conveyed support for the commutation, noting, ``By virtue of the fact of the phone call, there's no question that I conveyed support for the commutation.'' \236\ --------------------------------------------------------------------------- \229\ Id. \230\ Id. \231\ Id. See also Telephone Interview with Meredith Cabe, former Associate Counsel to the President, the White House (Mar. 16, 2001) (corroborating that she and Angel spoke with Mayorkas); Interview with Eric Angel, Associate Counsel to the President, the White House (Mar. 28, 2001) (corroborating that he and Cabe spoke with Mayorkas). \232\ Telephone Interview with Alejandro Mayorkas, former U.S. Attorney for the Central District of California, Department of Justice (June 15, 2001). \233\ Id. \234\ Id. \235\ Id. \236\ Id. --------------------------------------------------------------------------- Mayorkas' belief, in hindsight, that his call to the White House conveyed support for Vignali's clemency request was correct. Statements of various staff members at the White House involved in the clemency process indicated that they thought that Mayorkas supported the commutation. Chief of Staff John Podesta plainly believed that Mayorkas actually supported commutation of Vignali's sentence.\237\ Also, in testimony before the Committee, Deputy White House Counsel Bruce Lindsey stated that Mayorkas, ``while saying he didn't know much about the facts, felt like that the family was a good environment for which [sic] Mr. Vignali would get the proper supervision.'' \238\ Associate White House Counsel Meredith Cabe likewise confirmed that Mayorkas supported Vignali's petition, said he thought well of the Vignali family, and believed that the family would support Vignali after his release.\239\ According to Cabe, Mayorkas explained his views in the Vignali case by asserting that most drug sentences were disproportionate.\240\ --------------------------------------------------------------------------- \237\ Richard Serrano, L.A. Leaders' Support Cited in Decision to Free Vignali, L.A. Times, Feb. 19, 2001, at A1. \238\ ``The Controversial Pardon of International Fugitive Marc Rich,'' Hearings Before the Comm. on Govt. Reform, 107th Congress 387 (Mar. 1, 2001). \239\ Interview with Meredith Cabe, former Associate Counsel to the President, the White House (Mar. 16, 2001); Interview with Eric Angel, former Associate Counsel to the President, the White House (Mar. 28, 2001). \240\ Interview with Meredith Cabe, former Associate Counsel to the President, the White House (Mar. 16, 2001); Interview with Eric Angel, former Associate Counsel to the President, the White House (Mar. 28, 2001). Mayorkas strenuously denies having said this. Telephone Interview with Alejandro Mayorkas, former U.S. Attorney for the Central District of California, Department of Justice (June 15, 2001). According to Mayorkas, he was never in a position to opine about the appropriateness of Vignali's sentence. And, if he was asked whether he holds that position now, the answer would be ``no.'' And, if one were to ask whether he espoused that position then, his answer would be ``no.'' According to Mayorkas, ``Some sentences are too lenient. Others are too harsh.'' But, regarding the term ``disproportionate'' as relating to Vignali's sentence, Mayorkas stated that he ``never talked like that.'' --------------------------------------------------------------------------- iii. Conclusion Alejandro Mayorkas acted inappropriately in supporting the commutation of Carlos Vignali's sentence. Mayorkas made three major mistakes in the Vignali matter. First, Mayorkas should have realized that by calling the White House regarding Horacio Vignali, he was conveying support for the commutation of Carlos Vignali's sentence. Mayorkas now understands that his call had such an effect, but there is no reason that Mayorkas should not have understood this simple fact when he called. Mayorkas understood that the White House was considering the commutation of Vignali's sentence. He knew that the only reason the White House wanted to hear from him was so that it could evaluate whether to grant the commutation. Therefore, when he provided a positive character reference for Horacio Vignali, he should have known it would have a positive effect on Carlos Vignali's commutation petition. Second, just as Mayorkas should have known the effect of his actions, he should have known he was weighing in on a matter about which he knew very little. Mayorkas was aware that the prosecutor responsible for the Vignali case, Todd Jones, was against the commutation. In fact, he pointed this fact out to White House staff during his conversation with them. However, Mayorkas should have also known that, as a U.S. Attorney, he was providing confusing signals to the White House. He should have realized he was abusing his office by providing a character reference in a clemency case in which his office had no involvement. Finally, Mayorkas did not know Horacio Vignali well enough to offer a character reference. Mayorkas' relationship with Horacio Vignali consisted of seeing Vignali at various community events and only two or three one-on-one meetings for dinner or drinks. Mayorkas now concedes that he did not know Vignali well enough to call the White House and provide a character reference. But, Mayorkas' concession raises questions as to why he made the call at all. Three possibilities are apparent: first, that Mayorkas is simply an overly compassionate person who provided help when he should not have; second, that he wanted to help a well-connected, wealthy, and politically powerful businessman; and third, that he felt pressure to help Vignali because so many other Los Angeles political figures were helping him. Most likely, Mayorkas assisted Vignali out of a combination of all three of these factors. However, of all of the people who were involved in helping Carlos Vignali, Mayorkas appears to have most clearly accepted responsibility and apologized for his actions. After his involvement in the Vignali matter came to light, Mayorkas explained to his staff: I called the White House counsel's office and informed the office that I was not familiar with the facts of the case, that the prosecuting U.S. attorney was against the commutation, and that I was calling because I knew the parents to be upstanding people. I understand that my telephone call conveyed support for the commutation. In hindsight, it was a mistake for me to place that call [to the White House] and I am sorry that I did so. I allowed my compassion for the parents to interfere with my judgment.'' \241\ --------------------------------------------------------------------------- \241\ U.S. Attorney Apologizes for Role in Vignali Pardon, City News Service, Feb. 23, 2001. In addition, the responsibility for the Vignali commutation cannot be pinned entirely on Mayorkas, as some White House staff have attempted to do. In various settings, White House staff have pointed to the involvement of Mayorkas, along with Sheriff Baca, as being central to the President's decisionmaking. Deputy White House Counsel Bruce Lindsey testified that he changed his mind regarding the Vignali matter after the White House heard from Baca and Mayorkas. Associate White House Counsel Meredith Cabe stated that Mayorkas' opinion was ``significant'' because ``very few prosecutors advocate clemency in any form.'' But, the White House was not justified in relying on the support offered by Baca or Mayorkas to any determinative extent. While they both made statements that amounted to support for Horacio Vignali, and as such, support for the commutation, they both also made it clear that they knew little about the case against Carlos Vignali. It appears that the White House was looking for reasons justifying commutation and as such used the support of Mayorkas and Baca as a fig leaf to rationalize its decision. 4. California Law Enforcement and Political Officials Supported Vignali's Clemency Petition Despite Serious Allegations Against Horacio and Carlos Vignali a. There Were Extensive Allegations of Drug Trafficking Against Both Horacio and Carlos Vignali The Committee has learned of numerous allegations made to law enforcement as long as twenty-five years ago that Horacio Vignali was involved in cocaine trafficking and other illegal activity. The Committee has also discovered other allegations that Carlos Vignali was involved in drug sales even more extensive than those for which he was prosecuted in Minnesota. Although the information the Committee obtained consists solely of allegations against Horacio and Carlos Vignali, it is extremely significant. These reports allege long-term criminal activity on the part of Horacio Vignali, in particular, that Horacio Vignali was involved in the cocaine trade and was the source of supply for his son. Despite the availability of these reports to Sheriff Baca and U.S. Attorney Mayorkas, both chose not to exercise any due diligence before supporting Vignali's clemency plea. Although the White House and the Justice Department also had access to these reports, it apparently did not consider them. Even though these serious allegations have not been proven, the mere fact of their existence--without additional information--should have ruled out the possibility of executive clemency for Carlos Vignali. Instead, these reports were never considered. While the extensive DEA reports regarding Horacio and Carlos Vignali are being made public only now, it appears that suspicions about Horacio Vignali's role in drug trafficking were widespread and well-known to law enforcement. In interviews with Committee staff, Todd Jones and Denise Reilly, who were responsible for the investigation and prosecution of Carlos Vignali in Minnesota, both indicated they believed that Carlos Vignali was not the ``end of the line'' and were aware of the widespread belief among investigators that Horacio Vignali was involved in drug trafficking with his son.\242\ Law enforcement officers in California had even more detailed knowledge regarding allegations against Horacio and Carlos Vignali. According to a number of investigators working for local law enforcement in Southern California, both Horacio and Carlos Vignali had been the subjects of major drug investigations.\243\ As the following reports indicate, a number of law enforcement agencies apparently received credible information indicating that Carlos and Horacio Vignali were personally involved in large-scale drug dealing. These same agencies also received allegations indicating that the Vignalis were part of a large organized drug-dealing ring headed by George Torres. --------------------------------------------------------------------------- \242\ Telephone Interview with the Honorable Denise Reilly, Juvenile Court Judge, 4th Judicial District of Minnesota (Hennepin County) (May 11, 2001); Telephone Interview with Todd Jones, U.S. Attorney for the District of Minnesota, Department of Justice (May 2, 2000). \243\ In the course of its inquiry, the Committee has learned that while the White House was reviewing Carlos Vignali's clemency petition, Horacio Vignali and associates of Vignali were part of an Organized Crime Drug Enforcement Task Force (``OCDETF'') investigation in the Los Angeles area. Various federal and California law enforcement agencies were investigating Carlos and Horacio Vignali's involvement in supplying narcotics before Carlos' conviction in Minneapolis and Horacio Vignali's personal and business relationship with alleged California drug figure George Torres. In this case, the OCDETF investigation was being conducted by the federal government in cooperation with various agencies of the California State Department of Justice. --------------------------------------------------------------------------- The first series of reports indicates that there were allegations of drug dealing against Horacio Vignali dating back to 1976. Among those reports is a DEA-6, an internal investigative report, which notes: [Horacio] Carlos VIGNALI \244\--Co-owner of the C & H Auto Body Shop. His drug relationship with the [redacted] Organization is also unknown. VIGNALI however is a close personal friend of [redacted]. In November, 1975, he negotiated with ATF Agents to sell a machine gun and stated to them that he had also smuggled heroin into the United States utilizing automobiles. Since current intelligence indicates that the remainder of the [redacted] Family in Los Angeles, [redacted] are still dealing in multi-kilogram quantities of heroin, it is recommended that a grand jury probe be initiated with the object of eliminating the remaining [redacted] Organization in Los Angeles by obtaining indictments on [redacted] possibly other members of their organization such as [redacted] [Horacio] Carlos VIGNALI, [redacted].\245\ --------------------------------------------------------------------------- \244\ The DEA report refers to ``Carlos Vignali,'' but it clearly means Horacio Vignali, or ``Carlos Vignali, Sr.,'' as he is known to many of his associates. The date of birth listed for Vignali, as well as other personal information, appears to correspond to that of Horacio Vignali. \245\ DEA Document Production V-DEA-00009 (DEA-6-Internal Investigative Report (Feb. 18, 1976)) (Exhibit 23). --------------------------------------------------------------------------- A December 1, 1976, DEA report contains similar information: [Horacio] Carlos VIGNAL [sic]--the [redacted]s used his body shop in Los Angeles to take heroin out of the drive shafts of vehicles brought into the United States from Mexico.\246\ --------------------------------------------------------------------------- \246\ DEA Document Production V-DEA-00012 (DEA-6-Internal Investigative Report (Dec. 1, 1976)) (Exhibit 24). A more recent set of DEA reports contains additional allegations that Horacio Vignali was involved in drug trafficking. They also show that the DEA received information indicating Horacio was involved in the drug trade with his son --------------------------------------------------------------------------- Carlos. A March 19, 1993, report states: The ``traps'', (hidden compartments) were built into the truck through Carlos VIGNALI Jr. for $5,000.00. [Redacted] has also purchased cocaine from Carlos VIGNALI Jr. of Los Angeles. . . . VIGNALI's father Carlos VIGNALI aka ``pops'' owns a body shop, at 1260 Figueroa and is the source of supply for his son.\247\ . . . An associate of VIGNALI, Jorge TORRES aka ``G'' owns [NUMBERO UNO] Market on Jefferson St. in Los Angeles. Across the street from the Market, TORRES maintains a warehouse full of luxury vehicles and tractor trailers used to transport cocaine. The warehouse also has a penthouse complete with a casino where TORRES and VIGNALI gamble. . . . Cocaine purchased from VIGNALI Jr. went to [redacted] of Shreveport, La.\248\ --------------------------------------------------------------------------- \247\ This information casts the following testimony from Horacio Vignali at Carlos' trial in a new light: ``I treated him like my best friend, my partner. Anything he needed, I would always provide for him. Always. It doesn't matter. I always provided for him.'' See Transcript of Trial, U.S. v. Vignali (D. Minn. Dec. 1, 1994) at 297. \248\ DEA Document Production (DEA-6-Internal Investigative Report (Mar. 19, 1993)) (Exhibit 25). The Committee has received additional information from a DEA report that it is not releasing because it could identify confidential informants.\249\ In this report, an informant alleges, based on his direct knowledge, that Carlos Vignali sold hundreds of kilograms of cocaine. Additionally, Vignali is alleged to have stated that he had ties to the relative of a prominent South American cocaine dealer. Like the other information in the DEA reports, these allegations are unproven. --------------------------------------------------------------------------- \249\ See DEA Document Production V-DEA-00028-29 (DEA-6-Internal Investigative Report (Apr. 26, 1993)) (Exhibit 26). The Committee has reviewed an unredacted copy of this report but is not releasing it for the reason described above. --------------------------------------------------------------------------- In addition to the reports listed above, two recent reports indicate that the DEA received information linking Horacio Vignali to a large-scale drug dealing organization headed by George Torres.\250\ A September 25, 1997, DEA Case Initiation Report describes the Torres organization: --------------------------------------------------------------------------- \250\ At trial, Carlos Vignali conceded that Torres was a friend of the family and, in particular, of his father. Transcript of Trial, U.S. v. Vignali (D. Minn. Nov. 29, 1994) at 227. Carlos appears to have used a variation of George Torres' name--``Charles Torres''--when he subscribed for his pager. Because Carlos used that pager to communicate with his coconspirators in trafficking cocaine, he used ``Charles Torres'' to conceal his true identity. [Torres' organization] has been in existence since the middle 1980's when it was closely associated with the [redacted] family in their drug trafficking. By the early 1990's this group were [sic] transporting approximately 1,800 kilograms of cocaine into the Los Angels [sic] area from Mexico. At that time they were smuggling the cocaine using the [redacted] TORRES's tractor-trailer trucks, concealing the drugs inside laundry detergent and jalapeno chilli [sic] cans. [Redacted.] Since that time TORRES has continued to be involved in drug trafficking and information shows that his organization supply [sic] various drug trafficking organizations throughout the United States. TORRES' organization has used illicit profits derived from drug trafficking to buy legitimate businesses and properties throughout Los Angels [sic] and southern California. . . . Investigators believe that the organization uses these businesses to laundry [sic] its drug proceeds.\251\ --------------------------------------------------------------------------- \251\ DEA Document Production V-DEA-00110 (DEA Case Initiation Report (Sept. 25, 1997)) (Exhibit 27). A September 16, 1998, DEA report about Torres reported the --------------------------------------------------------------------------- following: To date, the investigation shows that the TORRES organization is involved in the importation and distribution of drugs throughout the United States. Latest intelligence reveals that this group is distributing approximately one hundred (100) kilograms of cocaine per month. [Redacted.] George TORRES is the head of this organization. TORRES' direct associates include [redacted] Carlos Vignali. [Redacted] Carlos Horatio [sic] VIGNALI's role in the organization is relatively unknown at this time. It is believed that VIGNALI functions as a financial partner in the organization. VIGNALI has been involved in organizing meetings between TORRES and individuals with extensive criminal backgrounds.\252\ --------------------------------------------------------------------------- \252\ DEA Document Production (Case Initiation Report on the George Torres Cocaine Trafficking Organization, Sept. 16, 1998) (Exhibit 28). --------------------------------------------------------------------------- The report goes on to describe the scope of Torres' activities: The TORRES organization has used its profits from drug trafficking to purchase legitimate businesses and properties throughout the Southern California area--The grocery and wholesale business are cash intensive thus making it easy to launder illicit funds through them. In 1996, TORRES' businesses had sales of approximately $50,000,000. Investigators believe that TORRES uses these businesses, properties and vehicles to launder his drug profits. Members of the TORRES organization have been involved in various acts of violence. In 1996, TORRES was arrested for being a felon in possession of a firearm. The Los Angeles Police Department (LAPD) has named TORRES a suspect in two murders. One involved a disgruntled employee and the other involved the owner of a property adjacent to one of TORRES' businesses. TORRES has been known to intimidate and threaten others and in so doing likes to portray himself as a Mafia member. He often uses his associates to carry out these acts of intimidation.\253\ --------------------------------------------------------------------------- \253\ Id. This troubling report regarding Horacio Vignali and George Torres was received just one month after Carlos Vignali applied for executive clemency. b. The Extensive Allegations Against Horacio and Carlos Vignali Were Never Considered by Sheriff Baca, U.S. Attorney Mayorkas, or the Clinton White House The allegations made against Horacio Vignali, Carlos Vignali, and George Torres are serious. However, with respect to the decision to commute the sentence of Carlos Vignali, the key fact is that these allegations existed, and none of the individuals involved in the clemency process conducted sufficient due diligence to find these reports. Both Sheriff Lee Baca and U.S. Attorney Alejandro Mayorkas, who made supportive calls to the White House on the Vignalis' behalf, had access to this information. In addition, the White House should have been provided with this information as part of the clemency process. However, it appears that Baca, Mayorkas, and the White House were all unaware of the extensive allegations against the Vignalis. Committee staff asked Sheriff Baca whether he was aware of any allegations that Horacio Vignali was involved in drug trafficking. Baca replied that he was not aware of any such allegations.\254\ Baca readily admitted that he would be the person to know if there were any such allegations against Vignali.\255\ Sheriff Baca was also asked if he was familiar with George Torres. He stated that he knew Torres and ``know[s] him to be a legitimate businessman.'' \256\ As he himself conceded, Sheriff Baca, the top law enforcement officer in Los Angeles County, should have known if a businessman of Horacio Vignali's or George Torres' caliber was alleged to have been involved in drug dealing.\257\ Therefore, it is troubling that Baca is completely unaware of the allegations against Vignali and Torres. It appears that rather than investigate these allegations against Horacio Vignali and close down what might have been a major conduit for drugs into the Los Angeles area, Sheriff Baca maintained a warm relationship with Vignali and vouched for him as a ``man of the highest integrity and trustworthiness.'' Indeed, Baca held three fundraisers at Vignali's C&H Body Shop, which itself was alleged to be a locus for unloading drugs and outfitting vehicles for smuggling drugs. --------------------------------------------------------------------------- \254\ Telephone Interview with Leroy Baca, Sheriff, County of Los Angeles (June 22, 2001). \255\ Id. \256\ Id. \257\ According to a November 10, 1992, DEA report, the gang enforcement unit at the Los Angeles County Sheriff's Department discovered that a vehicle used by Carlos Vignali was registered to a company that owned cars ``associated with various gangs.'' DEA Document Production V-DEA-00024 (DEA-6, Report of Investigation, ``Carlos Anibal Vignali,'' (Nov. 10, 1992)) (Exhibit 29). --------------------------------------------------------------------------- Committee staff also asked Alejandro Mayorkas whether he was aware of allegations that Horacio Vignali was involved in drug trafficking.\258\ Mayorkas expressed great surprise that Horacio Vignali was the subject of these kinds of allegations.\259\ When informed of the allegations, Mayorkas immediately stated that if he had been aware of the allegations, he would have ruled out any possibility of involvement in Carlos Vignali's clemency petition. Mayorkas also confirmed that it would not have mattered to him that the allegations against Horacio Vignali were not proven. Mayorkas stated that ``an allegation is enough--the world consists of the caught and the uncaught. Allegations alone would have eliminated the possibility [of my involvement].'' \260\ --------------------------------------------------------------------------- \258\ Telephone Interview with Alejandro Mayorkas, former U.S. Attorney for the Central District of California, Department of Justice (June 15, 2001). \259\ Id. \260\ Id. --------------------------------------------------------------------------- Mayorkas conceded that he did not exercise any due diligence regarding the Vignalis prior to his weighing in on the clemency proceedings with the White House.\261\ In other words, he did not consult his criminal chief or the head of his narcotics division at the Los Angeles-area U.S. Attorney's Office to determine whether his own office had an investigative or prosecutorial interest in the Vignalis, which might have conflicted with his assistance to the Vignalis.\262\ Mayorkas explained that his failure to conduct due diligence resulted from his belief that he was not supporting Carlos Vignali's clemency petition. Since he did not view himself as providing support for the grant of clemency, Mayorkas did not believe that he needed to investigate Vignali's background. However given what he knows in hindsight about the Vignalis and about how his call to the White House was interpreted by White House staff, Mayorkas conceded it was perhaps an error for him to have taken his involvement in the clemency proceedings so lightly.\263\ --------------------------------------------------------------------------- \261\ Id. \262\ Id. \263\ Id. --------------------------------------------------------------------------- While Mayorkas' acceptance of responsibility is commendable, his actions in this matter remain less than commendable, especially for the top federal prosecutor in Los Angeles. Mayorkas has explained that his actions in this matter were motivated by his sympathy and compassion for a father who appeared to be distraught by the imprisonment of his son. Because he failed to conduct due diligence and look into Horacio Vignali's background before contacting the White House, Mayorkas ended up providing assistance to a man who was alleged to be a drug dealer and the source of cocaine for his son. Like Sheriff Baca, Mayorkas was a senior law enforcement official charged with protecting his communities. By becoming involved in the Vignali matter without being fully aware of the facts, both did the public a profound disservice to the rule of law. There is no indication that the White House was ever made aware of the additional allegations against Horacio and Carlos Vignali. Unlike many other last-minute pardons and commutations, the Vignali commutation was filed with and processed by the Justice Department. Although the Vignali petition was filed with the Justice Department in August 1998,\264\ there is no indication that the Justice Department discovered these allegations against Horacio and Carlos Vignali during its background check. The memorandum prepared by the Pardon Attorney, Roger Adams, for President Clinton makes no mention of these allegations. There is also no indication that they were provided to the White House in any other form. However, it is possible that the White House would have learned about these allegations if it had reached out to the prosecutor who had tried Vignali's case or the judge who sentenced him. Rather, they reached out to Horacio Vignali's friends and associates in Los Angeles who knew little about the Vignali case but were ready to provide a favorable reference. --------------------------------------------------------------------------- \264\ NARA Document Production (Petition for Commutation of Sentence) (Exhibit 10). --------------------------------------------------------------------------- Therefore, the failure of the White House to receive this information appears to be the result of the skewed, ad hoc system set up by President Clinton to churn out pardons and commutations in the waning days of his presidency. This was a system that necessarily catered to the wealthy and the well- connected. If White House staff had approached the Vignali matter in a deliberate manner and had spoken to the individuals who knew the most about Carlos Vignali's conviction, they likely would have learned this information. While it is not certain that this information regarding the drug dealing allegations against Horacio and Carlos Vignali would have changed President Clinton's mind, it clearly should have been considered. C. The White House's Review of Vignali's Clemency Request Carlos Vignali's clemency petition was first filed with the Justice Department in August 1998, but it first came under serious consideration much later, in December 2000, when Hugh Rodham was hired by the Vignali family and approached the White House about a grant of clemency for Carlos Vignali. Rodham's contacts with the White House started a process culminating in the January 20, 2001, commutation of Vignali's sentence. The process by which the White House considered the Vignali petition was remarkable and disturbing for a number of reasons: Hugh Rodham made a number of misrepresentations to the White House regarding the Vignali matter. Nevertheless, the White House continued to rely on his word and granted the commutation he so desperately sought. The White House sought input from a number of Vignali's supporters yet never contacted the prosecutors who tried the Vignali case or the judge who sentenced him. The White House ignored the strenuous objections lodged by the Pardon Attorney who had considered the position of the prosecutors who tried the Vignali case. The White House apparently relied heavily on letters and statements of support by California politicians and law enforcement figures despite the fact that they either misstated the Vignali case or were completely unaware of the facts of the case. The White House has subsequently misstated the facts of Vignali's case in an attempt to justify the unjustifiable. 1. Hugh Rodham's Hiring In connection with its investigation, the Committee requested that Hugh Rodham produce records to the Committee and participate in an interview with Committee staff. Rodham refused both requests, citing attorney-client privilege. Rodham made a blanket invocation of the privilege even though the privilege does not apply to the vast majority of Rodham's activities. For example, Rodham's contacts with third parties, like White House staff, are not covered by the attorney-client privilege. Therefore, by using the attorney-client privilege to avoid any inquiry from the Committee, Rodham is simply seeking to avoid questions about his activities rather than to protect any legitimately privileged information. Despite Rodham's unreasonable invocation of privilege, the Committee was able to piece together a number of Rodham's activities. It appears that the Vignalis hired Rodham late in 2000. According to Luis Valenzuela, a close friend of Horacio Vignali,\265\ James Casso, the son-in-law and former district director of former Congressman Esteban Torres, introduced Horacio Vignali to Rodham sometime around October 2000.\266\ At that time, Valenzuela attended a dinner at Barrangas restaurant in Los Angeles where he met with Horacio Vignali, Casso, Rodham, and three members of the Lum family.\267\ The Lums were seeking presidential pardons through Hugh Rodham at that time, and it is possible Rodham introduced the Lums to Horacio Vignali as a way of marketing his services. After dinner, the Lums left the restaurant, and Horacio Vignali discussed his son's clemency matter with Rodham.\268\ At that point, Horacio Vignali explained the background of his son's underlying conviction and provided Rodham with a binder of materials regarding his son.\269\ Rodham indicated that he would review the matter, ``make some calls,'' and get back to Horacio Vignali.\270\ For that initial consultation, Rodham charged Horacio Vignali $4,200.\271\ Valenzuela was not privy to any further meetings or discussions between Rodham and Vignali.\272\ --------------------------------------------------------------------------- \265\ Valenzuela is a Los Angeles-area real estate executive and a member of the Congressional Hispanic Caucus Institute. \266\ Telephone Interview with Luis Valenzuela, Vice President, NAI Capital Commercial Real Estate Services (Oct. 30, 2001). Presently, Casso, who served as Congressman Torres' district director until Torres' retirement in 1999 and unsuccessfully ran for Congress, is an attorney with the Los Angeles firm of Alavarez-Glasman & Colvin. \267\ Id. According to Valenzuela, Nora Lum, her sister, Kathy Nojima, and her daughter, Nickie, attended the dinner. Because Gene Lum was then in prison for a tax evasion conviction, he was apparently unable to attend the dinner. According to Valenzuela, Casso might have represented the Lums on various real estate matters. Gene and Nora Lum, who operated an Oklahoma natural-gas pipeline company, received 10- month sentences after pleading guilty in October 1997 to funneling $50,000 in illegal contributions to the 1994 re-election campaign of Senator Edward Kennedy and to an unsuccessful congressional campaign in Oklahoma. Federal Document Clearing House, Department of Justice, New Jersey Attorney Sentenced in Campaign Finance Case, Oct. 12, 2000 (summarizing Campaign Task Force prosecutions). They admitted making the donations through ``straw donors,'' including their daughter and Michael Brown, son of the late Commerce Secretary Ron Brown. The fundraisers gave Michael Brown thousands of dollars in shareholder fees and corporate perks, and Brown then gave the money to friends to give to Kennedy's re-election campaign. \268\ Telephone Interview with Luis Valenzuela, Vice President, NAI Capital Commercial Real Estate Services (Oct. 30, 2001). \269\ Id. \270\ Id. \271\ Id. See also City National Bank Document Production (Check from Horacio C. and Luz C. Vignali to Rodham & Fine, P.A. for $4,200.00 (Nov. 22, 2000)) (Exhibit 30). \272\ Telephone Interview with Luis Valenzuela, Vice President, NAI Capital Commercial Real Estate Services (Oct. 30, 2001). --------------------------------------------------------------------------- Due to the refusal of Horacio Vignali, Hugh Rodham, and James Casso to cooperate with the Committee, little is known about the agreement that was reached between Rodham and Vignali after the Barrangas dinner. What is clear is that Rodham agreed to help Carlos Vignali obtain a commutation from President Clinton, and that Horacio Vignali agreed to pay $200,000 to Rodham, contingent on Rodham's success in getting Carlos Vignali out of prison. Horacio Vignali paid Rodham on January 23, 2001, three days after Carlos Vignali received his commutation. Vignali's bank records make it appear that Vignali originally wrote a check for $200,000 to Rodham & Fine, Rodham's law firm, but then converted those funds into a cashier's check.\273\ That cashier's check was purchased by Maria Cisneros, the office manager for Horacio Vignali's Morvis Corvis Corporation.\274\ It is unknown whether Vignali altered his payment method at Rodham's request. Hugh Rodham deposited the funds on January 24, 2001.\275\ --------------------------------------------------------------------------- \273\ See Turnberry Bank Document Production (Check from Horacio C. and Luz C. Vignali to Rodham & Fine for $200,000 (Jan. 23, 2001)) (Exhibit 31); City National Bank Document Production (Application for Cashier's Check (Jan. 23, 2001)) (Exhibit 32); First Union Document Production (Deposit Slip and Cashier's Check for $200,000 (Jan. 26, 2001)) (Exhibit 33). \274\ See City National Bank Document Production (Application for Cashier's Check (Jan. 23, 2001)) (Exhibit 31); City National Bank Document Production (Morvis Corvis Business Account Agreement (Mar. 5, 2001)) (Exhibit 34) (describing Maria Cisneros as ``office manager''). \275\ First Union Document Production (Deposit Slip and Cashier's Check for $200,000 (Jan. 26, 2001)) (Exhibit 33). In several contexts, Valenzuela appears to have been involved in funding Horacio Vignali's payment to Rodham. On January 12, 2001, Horacio Vignali wrote a check for $200,000 to City National Bank. On the memo of that check, Vignali noted ``CC: Luis Valenzuela.'' See City National Bank Document Production (Exhibit 35). In a separate transaction, on January 26, 2001, a cashier's check for $200,000 was purchased, apparently on Horacio Vignali's behalf, and made payable to Luis Valenzuela. See City National Bank Document Production (Exhibit 36). It appears that the check was later endorsed by Cisneros and ultimately deposited into Horacio's personal account. Accordingly, it appears that Vignali contemplated paying Valenzuela but changed his mind. See City National Bank Document Production (Deposit Slip for $200,000 (Jan. 26, 2001)) (Exhibit 37). In an interview with Committee staff, Valenzuela did not know that his name had been put on the checks until after it was done and, in any case, never came into possession of any of the money. Telephone Interview with Luis Valenzuela, Vice President, NAI Capital Commercial Real Estate Services (Oct. 30, 2001). But, Valenzuela speculated that his name appeared on both instruments because Vignali probably intended for him to act as an escrow agent for the money if/ when Carlos Vignali was released. According to Valenzuela, this was probably done ``so the representation could be made to [Hugh Rodham] that the money was in escrow.'' Valenzuela believes that such a representation was made only because ``[Horacio] is a very cautious guy.'' Valenzuela believes that he was designated as an escrow agent without having been notified only because he and Horacio are ``like brothers.'' --------------------------------------------------------------------------- By December 2000, Hugh Rodham was apparently actively working on Carlos Vignali's clemency petition. This is evidenced by a December 9, 2000, letter to Rodham wherein Horacio Vignali forwarded a number of letters of support for Carlos Vignali.\276\ The letter begins, ``[p]ursuant to your conversation with Jaime Casso, I am enclosing the testimonial letters I have been able to secure as of today.'' \277\ --------------------------------------------------------------------------- \276\ NARA Document Production (Letter from Horacio Vignali to Hugh Rodham (Dec. 9, 2000)) (Exhibit 14). \277\ Id. --------------------------------------------------------------------------- 2. Hugh Rodham's Initial Approach to the White House In mid-December 2000, Rodham first approached Bruce Lindsey regarding the Vignali case. It appears that Lindsey was Rodham's main White House contact. Chief of Staff John Podesta testified that he did not know Hugh Rodham was advocating Carlos Vignali's petition. White House Counsel Beth Nolan equivocated about her knowledge of Hugh Rodham's involvement. Specifically, Nolan answered, ``I don't think I knew that, but I may have known that.'' \278\ Lindsey explained his interactions with Rodham in the Committee's March 1, 2001, hearing: --------------------------------------------------------------------------- \278\ ``The Controversial Pardon of International Fugitive Marc Rich,'' Hearings Before the Comm. on Govt. Reform, 107th Congress 412 (Mar. 1, 2001). Mr. Rodham called to ask me to take a look at a commutation application for Carlos Vignali, indicated that he was a first-time offender, that his application was supported by the Sheriff of Los Angeles County, that it was supported by the U.S. Attorney in Los --------------------------------------------------------------------------- Angeles. * * * [H]e also told me it was supported by the trial attorney who actually tried the case in Minnesota. That turned out probably not to be correct. * * * [He] [t]old me it was supported by the U.S. Attorney in Los Angeles, by the Sheriff of Los Angeles County, by the Cardinal Archbishop Diocese and Archdiocese in Los Angeles, Cardinal Mahoney, by several Congressmen, former Congressmen, city council people. . . . I indicated to him that it was--that he had served six years approximately. I indicated to Mr. Rodham that that was the kind of application the President actually was interested in looking at. He was interested in looking at first-time drug offenders who did not play major roles in the crime and that we would take a look at it.\279\ --------------------------------------------------------------------------- \279\ Id. at 361-62. Based on Bruce Lindsey's testimony, in his initial presentation to Lindsey, Rodham made a number of serious misrepresentations. First, he claimed that Vignali was a first- time offender. As described above, this is plainly false because Vignali had two prior convictions and two other arrests. In addition, Vignali was an admitted gang member. Second, when Rodham told Lindsey that Vignali was a ``first- time drug offender who did not play a major role in the crime,'' Rodham misstated the case against Vignali. As explained above, Vignali was a major source of cocaine and was sentenced accordingly. Third, Rodham informed Lindsey that the Vignali petition was ``supported by the trial attorney who actually tried the case in Minnesota.'' While Lindsey could bring himself only to concede that Rodham's statement was ``probably not correct,'' it is, in fact, utterly false.\280\ The only question is whether Rodham's lie was his own creation, calculated to mislead the White House or whether he was fed the lie by the Vignalis or others working on their behalf. Rodham's lie regarding the position of the Minnesota U.S. Attorney's office was no small matter. It was apparently passed on by Lindsey to Meredith Cabe and Eric Angel, the White House lawyers working on the pardon. Both noted they had originally believed that the prosecutors supported the commutation and then learned that their information was not accurate.\281\ Rodham's misinformation also found its way into White House documents analyzing the Vignali matter. In a chart dated January 9, 2001, a White House staffer stated that ``acc. to representatives, U.S. Atty in Minneapolis (who prosecuted him) supports [clemency.]'' \282\ --------------------------------------------------------------------------- \280\ There are only three possible prosecutors Rodham could have been referring to: Todd Jones, Andrew Dunne, or Denise Reilly. Committee staff interviewed Jones and Reilly, and they were strongly opposed to the commutation. Committee staff were not able to interview Dunne, but Jones informed Committee staff that Dunne helped him prepare the Minnesota U.S. Attorney Office's formal opposition to the Vignali commutation. Therefore, it is certain that he opposed the commutation as well. It is clear now that no attorney involved in prosecuting Vignali supported the commutation, and it was just as clear when Hugh Rodham made his misrepresentation to the White House. \281\ Interview with Meredith Cabe, former Associate Counsel to the President, the White House (Mar. 16, 2001). \282\ NARA Document Production (chart of former Associate White House Counsel Eric Angel) at 6 (Exhibit 38). --------------------------------------------------------------------------- After Lindsey spoke to Rodham, Lindsey referred the Vignali matter to Meredith Cabe, the Associate White House Counsel responsible for clemency issues. Cabe conducted a brief review of the two-page clemency petition but did not read any of the appendices submitted with the petition.\283\ Cabe also stated that she frequently received materials from Lindsey regarding the Vignali case.\284\ Presumably, Lindsey received these materials from Hugh Rodham and other outsiders interested in the Vignali case. --------------------------------------------------------------------------- \283\ Interview with Meredith Cabe, former Associate Counsel to the President, the White House (Mar. 16, 2001). \284\ Id. --------------------------------------------------------------------------- Despite Hugh Rodham's efforts to mislead, the White House was able to obtain accurate information about Carlos Vignali. Thanks to the Pardon Attorney, the White House learned that Carlos Vignali had prior convictions and that the U.S. Attorney in Minnesota opposed his commutation. However, it is surprising that having caught Hugh Rodham providing patently false information, the White House staff would go ahead and recommend that Rodham's client receive a commutation anyway. 3. The Justice Department's Input on the Vignali Case Long before the Vignali case was brought to the White House's attention by Hugh Rodham, staff in the Justice Department Pardon Attorney's office had been considering the Vignali petition. The petition was initially filed with the Department in August 1998. Some point after that date, the Pardon Attorney's office conducted a background investigation of Vignali. Such a report would typically involve contacts with the prosecutors and FBI, a review of a report from the Bureau of Prisons, the presentence report, and the judgment and commitment order.\285\ In the fall of 2000, the Pardon Attorney forwarded a draft report to the Deputy Attorney General recommending the denial of Vignali's clemency petition. A staff member of the Deputy Attorney General would typically review the Pardon Attorney's recommendation and provide the Pardon Attorney's recommendation and her own comments to the Deputy Attorney General for his review. The Deputy Attorney General could then sign off on the Pardon Attorney's recommendation and provide it to the President for his consideration. --------------------------------------------------------------------------- \285\ Interview with Deborah Smolover, Associate Deputy Attorney General, Department of Justice (Mar. 12, 2001). --------------------------------------------------------------------------- However, the usual Justice Department process was not followed in the Vignali case. In November 2000, the White House instructed the Deputy Attorney General's office to stop sending recommendations for clemency denials to the President.\286\ The White House told the Deputy Attorney General's office that it was interested in favorable clemency recommendations, specifically favorable pardon recommendations, and to place a priority on forwarding such favorable recommendations to the White House.\287\ As a result of this directive, the Deputy Attorney General stopped forwarding to the White House negative clemency recommendations prepared by the Pardon Attorney.\288\ --------------------------------------------------------------------------- \286\ Id. \287\ Id. \288\ Id. --------------------------------------------------------------------------- This was almost the fate of the Pardon Attorney's report regarding Carlos Vignali. At some point in the fall of 2000, the Pardon Attorney prepared a report that strongly recommended against the Vignali commutation.\289\ The report was forwarded to the Deputy Attorney General's office, where it was reviewed by Deborah Smolover, the Associate Deputy Attorney General responsible for supervision of the Office of the Pardon Attorney. Smolover stated that the Vignali report was not signed off on by the Deputy Attorney General or forwarded to the White House because it fell into the category of reports that the White House staff had earlier said it did not want to receive--negative clemency recommendations.\290\ However, after an inquiry from the Pardon Attorney, Roger Adams, Smolover sent the Vignali report back to Adams and told him that he could sign off on the memo and send it to the White House.\291\ Adams believed it was important for the Justice Department to be on the record as opposed to the Vignali commutation, so he signed the memo and sent it to the White House on January 12, 2001.\292\ --------------------------------------------------------------------------- \289\ Id. \290\ Id. \291\ Interview with Roger Adams, Pardon Attorney, Department of Justice (Feb. 27, 2001). \292\ Id. --------------------------------------------------------------------------- The failure of the Deputy Attorney General to sign off on the recommendation against the Vignali commutation is disturbing. Deborah Smolover could not recall any cases other than Vignali's where the Pardon Attorney, rather than the Deputy Attorney General, signed off on a recommendation memorandum.\293\ Moreover, she did not ascribe any significance to the fact that Pardon Attorney Roger Adams, rather than Eric Holder, signed it. However, Roger Adams stated that Holder refused to sign two or three denial recommendations because he ``didn't want to sign any more denials.'' \294\ But, Smolover stated that Holder would not have allowed Adams to send any recommendation with which he did not agree to the White House.\295\ In addition, Smolover could not offer any reasonable explanation why Holder refused to sign the denial recommendation at issue but allowed Adams to send it to the White House under Adams' own signature. In the Marc Rich case, Holder's actions made it clear that he was attempting to please his superiors in the White House while trying to maintain some credibility as a prosecutor serious about law and order. He failed miserably in the Rich case, first by failing to warn prosecutors that the Rich case was being considered and then by taking the position that he was ``neutral, leaning towards favorable'' on the pardon if it helped the Middle East peace process. It appears that Holder took a similarly irresolute position in the Vignali case--allowing his subordinate to oppose the Vignali commutation while refusing to go on the record against a commutation the President apparently wanted to grant and the President's own brother-in-law supported. --------------------------------------------------------------------------- \293\ Interview with Deborah Smolover, Associate Deputy Attorney General, Department of Justice (Mar. 12, 2001). \294\ Interview with Roger Adams, Pardon Attorney, Department of Justice (Feb. 27, 2001). \295\ Interview with Deborah Smolover, Associate Deputy Attorney General, Department of Justice (Mar. 12, 2001). --------------------------------------------------------------------------- The report recommending against the Vignali commutation was an important one. For the first time, it made the White House aware of a number of key facts in the Vignali case,\296\ including Vignali's role in the offense and the basis for his sentencing. Adams pointed out that Vignali had two prior convictions and two prior arrests and that he had not disclosed the arrests on his petition, as was required. Adams included in his report the opposition of the Minnesota U.S. Attorney's Office: --------------------------------------------------------------------------- \296\ NARA Document Production (Report to the President on Proposed Denial of Executive Clemency for Carlos Anibal Vignali, Jr. (Jan. 12, 2001)) (Exhibit 4). Adams noted that ``Petitioner's defense counsel used th[e] fact [that he was the sole Hispanic charged] to argue his client's innocence to the jury, characterizing the case as involving a `black drug dealing network,' and emphasizing that petitioner was not black.'' United States Attorney B. Todd Jones strongly opposes clemency for petitioner, noting that petitioner's persistent claims of innocence are undermined by [the] --------------------------------------------------------------------------- strength of the evidence presented against him: Th[e] testimony [of the cooperating coconspirators] was consistent and independently corroborated by Title III wiretap interceptions, search warrant evidence and police surveillance. The evidence clearly established that Carlos Vignali, Jr., was a member of the charged drug conspiracy and facilitated the distribution of narcotics in the Twin Cities by supplying Evans, Williams and Hopson with substantial quantities of cocaine from Los Angeles, California. Mr. Jones noted that the two main cooperating coconspirators, Williams and Evans, received sentences of 180 months and 95 months respectively. He concluded by stating: The sentence imposed by Judge Doty reflects the seriousness of the defendant's role in a large scale narcotics conspiracy as the California source of cocaine to Evans, Williams, and Hopson. To my knowledge Vignali has refused to accept personal responsibility for his criminal activities and has never expressed sincere remorse for his conduct. In light of the exacting standards generally applicable in pardon cases, this case does not warrant such a commutation.\297\ --------------------------------------------------------------------------- \297\ Id. After quoting the Minnesota U.S. Attorney, Roger Adams offered --------------------------------------------------------------------------- his position on the Vignali commutation: In applying for clemency, petitioner has to a large degree merely recycled arguments already rejected by the jury and courts. He continues to deny his guilt, and his petition contains misleading statements and misstatements of fact. As for his allegation that he has no connection to Minnesota, the jury convicted him of the offense of supplying large quantities of cocaine to distributors in that state. Moreover, his contention that his sentence is excessive fails in light of the sentencing record, which establishes that the district court accorded him leniency in refusing to adopt two enhancements recommended by the presentence report. For all these reasons, I recommend that you deny his petition.\298\ --------------------------------------------------------------------------- \298\ Id. It appears that the Pardon Attorney's report had an impact on the White House staff. Next to the portion of the report discussing Judge Doty's sentence of Vignali, a White House staffer wrote a note reading, ``He recommended other cases--was he contacted?'' \299\ Apparently, members of the White House staff were aware that Judge Doty recommended commutations for Serena Nunn and Kim Willis, making his opposition to the Vignali commutation even more significant. Despite this inquiry from a White House staffer, Judge Doty was never contacted. More importantly, at the end of Roger Adams' report, a White House staffer wrote, ``Need to XC for Bruce. Definitely isn't simply making a loan--& do we believe the gang thing? USA is actually against--maybe we shd call & ck the recs we've been told of?'' \300\ Apparently, the report dispelled any beliefs the White House might have had regarding Carlos Vignali's story that the $25,000 he had been paid was simply payback on a loan he had made to friends. The notation ``USA is actually against--maybe we shd call & ck the recs we've been told of'' indicates that the Adams report was the first clear enunciation received by the White House that the Minnesota U.S. Attorney was actually opposed to the commutation. It also indicates that learning of this fact cast some doubt on other information that had been shared with the White House, likely by Hugh Rodham. Despite the clear doubts expressed by the White House staffer's notes on the Adams memo, apparently little was done to follow up on those doubts. The White House staff never followed up with either the prosecutors or the judge in the Vignali case. --------------------------------------------------------------------------- \299\ Id. \300\ Id. --------------------------------------------------------------------------- 4. The Final Decision on the Vignali Commutation a. Contacts Between the White House and Interested Parties In addition to reviewing the Pardon Attorney's comments on the Vignali commutation petition, White House staff contacted a number of individuals regarding Vignali. First, Meredith Cabe recalls that Representative Xavier Becerra was advocating for the Vignali commutation. \301\ According to other White House staff, Representative Becerra ``peppered'' the White House with calls on Vignali's behalf.\302\ Together with her colleague Eric Angel, Cabe also spoke to U.S. Attorney Alejandro Mayorkas. According to Cabe, Mayorkas said he supported the petition but admitted he was not familiar with the details of the case.\303\ Cabe also recalls that Mayorkas stated that most drug sentences were disproportionate and that this one likely was as well.\304\ Eric Angel recalls that Mayorkas expressed support for the Vignali family and opined that Carlos Vignali would have a strong support network if he were released. Angel also recalled that Mayorkas made general comments about the length of Vignali's sentence and a statement to the effect that ``a lot of these sentences are too long and this one was long too.'' \305\ --------------------------------------------------------------------------- \301\ Interview with Meredith Cabe, former Associate Counsel to the President, the White House (Mar. 16, 2001). \302\ Richard Serrano and Stephen Braun, Working the American System, L.A. Times, Apr. 29, 2001, at A1. \303\ Interview with Meredith Cabe, former Associate Counsel to the President, the White House (Mar. 16, 2001). \304\ Id. \305\ Interview with Eric Angel, former Associate Counsel to the President, the White House (Mar. 28, 2001). --------------------------------------------------------------------------- In an interview with Committee staff, Dawn Woollen, Deputy White House Counsel Bruce Lindsey's administrative assistant, conceded that she wrote a note to Lindsey that indicated, among other things, that ``Sheriff Baca from LA is more than happy to speak with you about him but is uncomfortable writing a letter offering his full support.'' \306\ According to Woollen, her note reflected a telephone conversation with Hugh Rodham around early January 2001.\307\ Within a week of having spoken with Hugh Rodham, Woollen ``very briefly'' spoke to Sheriff Baca about the Vignali matter.\308\ Originally, Sheriff Baca left a telephone message for Lindsey, but, as per Lindsey's request, Woollen returned Baca's call.\309\ During that conversation, according to Woollen, Sheriff Baca ``expressed his support for the Vignali commutation.'' \310\ According to Woollen, Baca also told her he was uncomfortable writing a letter offering his full support for the petition but did not say why.\311\ --------------------------------------------------------------------------- \306\ Interview with Dawn Woollen, Administrative Assistant to Deputy White House Counsel Bruce Lindsey, the White House (Sept. 25, 2001). NARA Document Production (Handwritten Note from Woollen to Lindsey) (Exhibit 22). \307\ Interview with Dawn Woollen, Administrative Assistant to Deputy White House Counsel Bruce Lindsey, the White House (Sept. 25, 2001). \308\ Id. This conversation with Sheriff Baca was the witness' only conversation with Sheriff Baca about the Vignali clemency matter. \309\ Id. \310\ Id. With Committee staff, Woollen was unequivocal about her understanding about Baca's support for the petition. When asked by Committee staff what the specific basis was for her understanding as to Baca's position, Woollen replied, ``Sheriff Baca said that he supported [the commutation].'' Woollen further stated that ``it was clear that Sheriff Baca was supporting the commutation.'' \311\ Id. --------------------------------------------------------------------------- Contrary to statements Baca has made to this Committee, according to Woollen, at no point during his conversation with her did he say that he was unfamiliar with the facts associated with Vignali's clemency petition or cite any unfamiliarity with the underlying conviction as a basis for not commenting on Vignali's clemency petition.\312\ Finally, according to Woollen, Sheriff Baca did not express any support for Carlos Vignali's father or even mention the name ``Horacio.'' \313\ The degree to which Baca and Woolen disagree about the nature of their conversation gives rise to serious concern. --------------------------------------------------------------------------- \312\ Id. \313\ Id. --------------------------------------------------------------------------- Despite the general nature of the White House's discussions with Mayorkas and Baca, their support has been described as being important in the decision to grant clemency to Vignali. Cabe understood the qualifications offered by Mayorkas but still viewed his support as ``significant'' because ``few prosecutors advocate clemency in any form.'' \314\ Similarly, Bruce Lindsey stated: --------------------------------------------------------------------------- \314\ Interview with Meredith Cabe, former Associate Counsel to the President, the White House (Mar. 16, 2001). I originally was probably negative. . . . But after I received a call from the sheriff of Los Angeles and our office reached out to the U.S. Attorney in the central district of California and Los Angeles, I decided that given the community support and their position that into the county in which he would go to live, that they would be aware of the crime situation, if you will, in their community, and if they were not concerned about him coming back to their community, that I thought it was an appropriate commutation.\315\ --------------------------------------------------------------------------- \315\ ``The Controversial Pardon of International Fugitive Marc Rich,'' Hearings Before the Comm. on Govt. Reform, 107th Congress 426 (Mar. 1, 2001). The White House's reliance on the support for the commutation voiced by Baca and Mayorkas should be juxtaposed against the fact that the White House made no attempt to speak to the prosecutors or judge involved in the Vignali case. Judge David Doty, who sentenced Vignali, has stated that he was surprised by the commutation \316\ and that, if the White House had contacted him, he would have argued against a commutation for Vignali.\317\ Judge Doty believes Vignali was an unsuitable candidate for clemency first because his sentence was appropriate: ``Carlos deserved what he got . . . I hit him in the middle, not in the low end. . . . And I didn't max him out.'' \318\ Judge Doty also noted that Vignali was not a small-time offender: ``[He] provided funds to the conspiracy, provided places and was involved in the direct transfers. He was a big player. He was one of the top two or three defendants.'' \319\ Judge Doty also pointed out that Carlos Vignali had never admitted his crime, noting that Vignali ``was non-repentant.'' Even after I sentenced him, he claimed he had been railroaded.'' \320\ Judge Doty's strong position against the Vignali commutation is even more significant given his longstanding opposition to mandatory minimum sentences for drug offenses and his support for clemency for two other drug offenders he had sentenced.\321\ --------------------------------------------------------------------------- \316\ Los Angeles Cardinal Regrets Role in Pardon, N.Y. Times, Feb. 13, 2001, at A26. \317\ Drug Kingpin's Release Adds to Clemency Uproar, L.A. Times, Feb. 11, 2001, at A1. \318\ Bob von Sternberg and Pam Louwagie, Judge Who Sentenced Dealer in Minnesota Questions Clemency, Star Trib. (Minneapolis, MN) Feb. 15, 2001, at A1. \319\ Richard Serrano and Stephen Braun, Vignali Case Built on Informants, Wiretaps, L.A. Times, Feb. 15, 20001, at A1. \320\ Richard Serrano and Stephen Braun, Drug Kingpin's Release Adds to Clemency Uproar, L.A. Times, Feb. 11, 2001, at A1. \321\ Bob von Sternberg and Pam Louwagie, Tale of a Prodigal Father, Star Trib. (Minneapolis, MN) Feb. 18, 2001, at A1; Bob von Sternberg and Pam Louwagie, Judge Who Sentenced Dealer in Minnesota Questions Clemency, Star Trib. (Minneapolis, MN) Feb. 15, 2001, at A1. Judge Doty wrote in support of grants of clemency for Serena Nunn and Kim Allen Willis, two small-time drug offenders who had been sentenced to 15 year terms in prison. Judge Doty as well as prosecutors and investigators involved in the Nunn and Willis cases agreed that they were truly low-level drug offenders who had been caught up in a larger conspiracy and were suitable candidates for clemency. --------------------------------------------------------------------------- Similarly, the White House never consulted the lawyers who prosecuted Vignali. Meredith Cabe stated that she did not consult with the prosecutors because the Justice Department had already been in contact with them and their position on the commutation was already clear. However, Cabe's explanation is less than satisfactory. Just because the White House knew that the prosecuting office opposed a grant of clemency for Vignali did not eliminate the need to actually speak to the prosecutors who had tried the case. If the White House staff had discussed the grant of clemency with the U.S. Attorney or his staff, it is possible that the prosecutors could have explained the scope of Vignali's drug-dealing activities, his utter lack of remorse, or the suspicions regarding his other drug-dealing activities or those suspected of his father. b. Contacts Between the White House and Hugh Rodham In the final days of the Clinton Administration, it appears that Hugh Rodham had several contacts with White House staff about the Vignali matter. Rodham spoke to Bruce Lindsey twice more about Vignali after his initial conversation in December 2000 and Meredith Cabe once about Vignali. Rodham's counsel described the two subsequent contacts with Bruce Lindsey as follows: ``he subsequently submitted and discussed letters of recommendation, and he made a final follow up inquiry.'' \322\ Meredith Cabe stated that Rodham called her about the Lums, for whom Rodham had been requesting executive clemency, and brought up Vignali.\323\ Cabe recalled that Rodham was concerned that the White House was getting bad information about Vignali and believed that someone had accused Vignali of being in a gang.\324\ --------------------------------------------------------------------------- \322\ Letter from Nancy Luque, Counsel for Hugh Rodham, Reed Smith, to the Honorable Dan Burton, Chairman, Comm. on Govt. Reform (Feb. 28, 2001) at 2 (within Appendix I). \323\ Interview with Meredith Cabe, former Associate Counsel to the President, the White House (Mar. 16, 2001). \324\ Id. --------------------------------------------------------------------------- No one on the White House staff has made it clear how Rodham's lobbying was viewed by the President or his staff. In their defense, White House staff have claimed that they never figured out that Rodham represented Vignali or was receiving a large fee from Vignali for his work. When questioned in a Committee hearing, Lindsey was vague about whether the President was informed about Rodham's role in the Vignali matter: Mr. LaTourette. I am interested in what took place in front of the President, and the meeting that you remember, Ms. Nolan, whether these guys were there or weren't there, was the fact that Hugh Rodham was advocating this position, or was advocating that Mr. Vignali receive a pardon [or] commutation, was that discussed in your presence? Was Hugh Rodham's name invoked to the President of the United States in this meeting? Ms. Nolan. I don't know, Mr. LaTourette. Mr. LaTourette. How about you, Mr. Lindsey? Mr. Lindsey. I don't recall. I don't have a specific memory of mentioning it. I wouldn't have hesitated to mention it. I just don't recall. Mr. LaTourette. You don't remember. How about you, Mr. Podesta? Mr. Podesta. With the caveat that I gave earlier, in the meeting I was in where Vignali was discussed, Mr. Rodham's name did not come up.\325\ --------------------------------------------------------------------------- \325\ ``The Controversial Pardon of International Fugitive Marc Rich,'' Hearings Before the Comm. on Govt. Reform, 107th Congress 412 (Mar. 1, 2001). The hazy recollection of senior White House staff therefore makes it impossible to know whether Rodham's name was invoked in the discussions that White House staff had with the President. c. Hugh Rodham's Invocation of First Lady Hillary Clinton One critically important document makes it clear that, at a minimum, Hugh Rodham invoked the First Lady's name in lobbying for Vignali's commutation. That document, a note handwritten by Dawn Woollen, the administrative assistant of Deputy White House Counsel Bruce Lindsey, states, ``Hugh says this is very important to him and the First Lady as well as others. Sheriff Baca from LA is more than happy to speak with you about him but is uncomfortable writing a letter offering his full support.'' \326\ --------------------------------------------------------------------------- \326\ NARA Document Production (Handwritten Note from Dawn Woollen, Administrative Assistant to Deputy Chief of Staff Bruce Lindsey, the White House, to Bruce Lindsey, Deputy Chief of Staff, the White House) (Exhibit 22). --------------------------------------------------------------------------- In an interview with Committee staff, Woollen recalled having spoken with Hugh Rodham about the Vignali matter on at least five occasions.\327\ After one such conversation, around early January 2001, Woollen wrote the previously described note to Lindsey.\328\ When presented with that note during her interview with Committee staff, Woollen confirmed that the note was accurate.\329\ But, independent of what she wrote on the note, Woollen could not recall what Rodham said about the First Lady's knowledge of the Vignali issue.\330\ --------------------------------------------------------------------------- \327\ Interview with Dawn Woollen, Administrative Assistant to Deputy Chief of Staff Bruce Lindsey, the White House (Sept. 25, 2001). All of those conversations took place over the phone. Id. \328\ Id. \329\ Id. \330\ Id. --------------------------------------------------------------------------- At the very least, Woollen's note reflects attempts by Hugh Rodham to capitalize financially on his association with the First Family by invoking his sister's support for the Vignali petition without her knowledge. After Hugh Rodham's role in clemency proceedings pending before President Clinton was publicly disclosed, Senator Hillary Rodham Clinton asserted that she ``knew nothing about [her] brother's involvement in these pardons'' and that she ``did not have any involvement in the pardons that were granted or not granted.'' \331\ In fact, when Senator Clinton was asked by the media about pardons President Clinton granted in the final hours of his administration, she replied, ``I was very disturbed to learn that my brother, Hugh Rodham, received fees in connection with two clemency applications. . . . Hugh did not speak with me about these applications.'' \332\ When asked about President Clinton's last-minute pardons generally, she stated, ``you'll have to talk with people who were involved in making them, and that leaves me out.'' \333\ Indeed, according to Senator Clinton, her involvement in pardon matters pending before the President was limited to passing on ``envelopes'' that were given to her.\334\ The Woollen note leaves only two possibilities: (1) that Hugh Rodham indeed told Hillary Clinton about his efforts on behalf of Carlos Vignali and that Hillary Clinton was not being candid when she stated that Hugh did not speak to her about Vignali; or (2) Hugh Rodham was lying when he told Woollen that the Vignali case was ``very important'' to the First Lady. The first possibility raises serious questions about the conduct of the former First Lady, and the second possibility raises serious questions about the conduct of Hugh Rodham. --------------------------------------------------------------------------- \331\ Sumana Chatterjee, Hillary Clinton Addresses Pardons Involving Brother, Campaign Aide, Knight Ridder (Washington Bureau) Feb. 23, 2001. \332\ James V. Grimaldi and Peter Slevin, Hillary Clinton's Brother Was Paid for Role in 2 Pardons, Wash. Post, Feb. 22, 2001, at A1. \333\ Jackie Judd, Senator Hillary Clinton Answers Questions About Her Brother's Involvement in Two Presidential Pardons, ABC World News Tonight, Feb. 22, 2001. \334\ Sumana Chatterjee, Hillary Clinton Addresses Pardons Involving Brother, Campaign Aide, Knight Ridder (Washington Bureau) Feb. 23, 2001. --------------------------------------------------------------------------- d. The President's Decision to Grant the Commutation White House staff have been vague in describing the process the Vignali commutation went through. Cabe indicated that staff had a mixed opinion regarding the Vignali case until the end of the process, when they were all in agreement to recommend Vignali for a commutation.\335\ White House documents seem to confirm vacillation in the White House's position on the matter. One document about the Vignali case states, ``Lean no,'' \336\ and another states, ``STAFF: mixed(?)'' \337\ Cabe also indicated that Vignali was considered together with a number of other drug cases in which the defendant had been ``oversentenced.'' \338\ Cabe recalls that others in this group were Lau Ching Chin, Derek Curry, Peter Ninemire, and Loretta De-Ann Kaufman.\339\ These parts of Cabe's recollection are confirmed by documents. A chart of potential pardons and commutations maintained by Associate White House Counsel Eric Angel with the heading ``Disparate Sentencing Commutation Cases'' includes Vignali's name with the notations: --------------------------------------------------------------------------- \335\ Interview with Meredith Cabe, former Associate Counsel to the President, the White House (Mar. 16, 2001). \336\ NARA Document Production (chart of ``Disparate Sentencing Commutation Cases'') at 21 (Exhibit 39). \337\ NARA Document Production (alternate chart of ``Disparate Sentencing Commutation Cases'' at 11 (Exhibit 40). \338\ Interview with Meredith Cabe, former Associate Counsel to the President, the White House (Mar. 16, 2001). \339\ Id. Arg is he is not guilty--loaned $25K to a friend, which he args was falsely interpreted to be part of drug conspiracy; aged 24 at time of offense, with no significant criminal record; args he had minor role; DOJ states that petitioner was supplier for major cocaine distribution organization and has two 1989 convictions for fighting in public place and vandalism; 1990 arrest for corporal injury to spouse or cohabitant, dismissed. DOJ says U.S. Attorney strongly opposes. DOJ recommends denial.\340\ --------------------------------------------------------------------------- \340\ NARA Document Production (Exhibit 39). A separate column of Angel's chart discusses who supported the --------------------------------------------------------------------------- Vignali commutation: Reps. Becerra, Torres ask for ``every consideration'' because parents are friends; Council of CA State Legislators also ask for consideration; Archbishop of LA supports; acc. To representatives, U.S. Atty in Minnesota (who prosecuted him) supports; LA Sheriff Lee Baca and LA US Atty Alejandro Mayorkas support; Maria E[chaveste] has inquired.\341\ --------------------------------------------------------------------------- \341\ Id. Given President Clinton's silence regarding his pardons and commutations, it is impossible to know which factors led to his decision to commute Vignali's sentence. Clearly, there were a number of outside factors contributing to the President's decision: a White House staff generally supportive of the decision; pressure, including misleading statements, from Hugh Rodham; and pressure from California political figures. On January 20, 2001, President Clinton commuted Carlos Vignali's sentence to time served, reducing his 15-year sentence to only about 5 years. 5. The White House Has No Justification for the Vignali Commutation The process by which the President actually reached the decision to grant the Vignali commutation is still a mystery. Apparently, the President did not reach his decision to grant the commutation until January 19, after a meeting with his staff. Since the President has never answered questions about the Vignali matter, the Committee has not been able to determine which facts influenced his decisionmaking. The President's failure to speak out on the Vignali matter leaves a number of key questions unanswered: To what extent did Hugh Rodham's representation of Carlos Vignali play a role in the President's decision to grant Vignali's commutation? Did First Lady Hillary Rodham Clinton support the effort to obtain the Vignali commutation? Did the President or the First Lady know that Rodham was being paid $200,000 for obtaining the Vignali commutation? When did the President make the decision to commute Vignali's sentence and why? In the absence of answers to these questions, the Committee must examine the arguments offered by the White House to justify the Vignali commutation. These arguments, set forth below, are all spurious. ``Vignali was a minor participant in a large drug conspiracy.'' It appears that the White House based its decision on the belief that Vignali was only a minor participant in the Minnesota-area drug dealing scheme. As Lindsey testified before the Committee: I actually believe the judge made a specific finding that [Carlos Vignali] was responsible for five to 15 kilos, which is I think 11 to 33 pounds. I think the total amount of money he was involved with was $2,500-- $25,000 excuse me. So I don't think it is correct that he was responsible for $800,000; and in fact, I believe there was a specific finding that he was not. There was also I believe a specific finding that he was not an organizer, leader of the conspiracy.\342\ --------------------------------------------------------------------------- \342\ ``The Controversial Pardon of International Fugitive Marc Rich,'' Hearings Before the Comm. on Govt. Reform, 107th Congress 362 (Mar. 1, 2001). In applying the federal sentencing guidelines to Vignali's case, Judge Doty indeed attributed five to fifteen kilograms of cocaine to Vignali, rather than the fifteen to fifty kilograms suggested in the pre-sentence report.\343\ Judge Doty nevertheless enhanced Vignali's offense level because he found that Vignali committed perjury by denying that he was involved in the distribution of cocaine.\344\ The judge also concluded that Vignali's role as a supplier of cocaine tended to make him more culpable than other co-defendants.\345\ These conclusions led the judge to give Vignali a sentence on the upper end of the guideline range.\346\ Therefore, Bruce Lindsey's heavy reliance on Judge Doty's finding that Vignali was responsible for only five to fifteen kilograms of cocaine appears highly disingenuous. Indeed, Judge Doty sentenced Vignali to 175 months imprisonment despite his belief that the evidence adduced at trial supported a finding that Vignali supplied between five and fifteen kilograms of cocaine. Lindsey completely ignored the judge's finding that Vignali perjured himself when he denied any involvement in supplying narcotics. For Lindsey to accept that Vignali was responsible for supplying between five and fifteen kilograms of cocaine would have required that Lindsey accept that Vignali perjured himself at trial and refused to accept responsibility for what he had done. It is difficult to believe that Lindsey would recommend that such a person be granted executive clemency.\347\ --------------------------------------------------------------------------- \343\ Judgment in a Criminal Case, U.S. v. Vignali (D. Minn. July 17, 1995) (Exhibit 3). \344\ Id. \345\ Id. \346\ Id. \347\ Judge Doty was never contacted by the White House about Vignali's clemency application. L.A. Cardinal Regrets Role in Pardon, N.Y. Times, Feb. 13, 2001, at A26; Richard A. Serrano and Stephen Braun, Drug Kingpin's Release Adds to Clemency Uproar, L.A. Times, Feb. 11, 2001 at A1. Referring to the Vignali commutation, Judge Doty stated ``I have no idea why it happened, but we are all aghast.'' Los Angeles Cardinal Regrets Role in Pardon, N.Y. Times, Feb. 13, 2001 at A26. According to Judge Doty, Carlos Vignali never acknowledged responsibility or showed remorse for his crime, ``He was non-repentant. . . . Even after I sentenced him, he claimed he had been railroaded.'' Richard A. Serrano and Stephen Braun, Drug Kingpin's Release Adds to Clemency Uproar, L.A. Times, Feb. 11, 2001 at A1. --------------------------------------------------------------------------- The White House's reliance on Judge Doty's findings regarding the amount of cocaine Vignali supplied was irresponsible and misleading for another reason. The judge's finding was a highly technical decision relating to the offense level computed under the Federal Sentencing Guidelines. Under those guidelines, a different base offense level is applied if the offender supplies between 5 and 15 kilograms of cocaine than if he deals between 15 and 50 kilograms of cocaine. When deciding whether to grant Vignali's clemency request, one would think the White House would be more interested in an evaluation of who Vignali was and what he was doing in a generalized sense than in trying to defeat a technical application of the sentencing guidelines. If the White House had wanted such an evaluation, it could have turned either to the Pardon Attorney's recommendation or the submission of the U.S. Attorney in Minnesota. In his submission, U.S. Attorney Todd Jones explained that Vignali was involved in a far larger network of drug dealing than that which was alleged in the case against Vignali in Minnesota. As former U.S. Attorney Todd Jones noted in an interview with the Committee, ``the fact the Vignali was convicted as a Category 1 dope dealer doesn't mean that he's innocent, just that he was smart.'' \348\ --------------------------------------------------------------------------- \348\ Telephone Interview with Todd Jones, Partner, Greene Espel (May 2, 2001). --------------------------------------------------------------------------- ``Vignali's sentence was disproportionate in comparison to his co-conspirators.'' In testimony before the Committee and in various public statements, the White House has argued that the leniency granted to similarly situated codefendants provided a basis for the President's grant of clemency to Carlos Vignali. This position is wholly without merit. A number of Carlos Vignali's co-conspirators received leniency because they, unlike Vignali, cooperated with law enforcement. Vignali, on the other hand, took his chances with the jury and lost, receiving 175 months in prison. A brief review of the sentences given to other major defendants in the Vignali case demonstrates that Vignali's sentence was fair and proportionate. Gerald Williams: Williams was convicted of conspiring to distribute cocaine. Judge Doty found that he was the main distributor, organizer, and leader of the drug conspiracy. The government recommended an imprisonment term of 360 months to life, but Williams received a sentence of 120 months. Judge Doty departed from guideline range because of ``substantial and valuable assistance'' Williams provided to law enforcement in breaking up the distribution ring. Dale Evans: Evans was convicted of conspiring to distribute cocaine. Evans was a California source to distributors in Minnesota. At trial, Evans testified that he was sending an average of one to two kilos of cocaine to Minnesota per week during 1993. Evans obtained that cocaine from Jonathan Gray and Vignali. The government recommended an imprisonment term of 135-168 months, but Evans received a sentence of 95 months. Judge Doty departed from the guideline range because Evans provided law enforcement with ``substantial and valuable'' assistance in breaking up the ring. Shirley Williams: Williams was convicted of conspiring to distribute between 15 and 50 kilos of cocaine for finding buyers of cocaine for her son, Gerald. The government recommended a 151-188 month term of imprisonment, but Judge Doty sentenced Williams to 75 months in jail. Judge Doty ordered a downward departure because of the substantial assistance Williams provided law enforcement. Melvin Campbell: Melvin Campbell was convicted of using a telephone to conspire in selling cocaine. Campbell was another California source to distributors in Minnesota. He distributed large amounts of cocaine and cocaine paste with Shirley and Gerald Williams and cooked crack for distribution. The government recommended imprisonment for 12-18 months, but Judge Doty sentenced Campbell to 48 months. He ordered an upward departure because of Campbell's significant involvement in the conspiracy, the substantial amount of drugs he distributed, and his criminal history. Jonathan Gray: Jonathan Gray was convicted of conspiring to distribute more than 5 kilos of cocaine. In 1993, Gray and Vignali supplied cocaine from California to Dale Evans in Minnesota. The government recommended 151-188 months in jail, and Judge Doty sentenced Gray to 170 months. Gray was the defendant most similarly situated to Vignali as he was a California source of cocaine for the Minnesota distribution network and refused to cooperate with law enforcement. Gray's sentence was almost identical to Vignali's. Tony Speank: Tony Speank was convicted of conspiring to manufacture and distribute between 1.5 and 5 kilos of cocaine and cocaine base. The government recommended a sentence of 210-262 months, but Judge Doty sentenced Speank to 58 months. Judge Doty granted a downward departure because of the ``substantial and valuable'' assistance Speank provided law enforcement. Todd Hopson: Todd Hopson was convicted of conspiring to distribute cocaine; using facilities in interstate commerce to promote a drug enterprise; possession with intent to distribute and distribution of more than 5 kilos of cocaine; and use of telephone for promotion of drug enterprise. The government recommended 235-293 months in jail. Judge Doty sentenced Hopson to 235 months imprisonment. Judge Doty found that the low end of the range adequately reflected the nature and circumstances of Hopson's offense and his past criminal conduct. As shown above, in those cases where Judge Doty exercised leniency in sentencing codefendants who were at least as culpable as was Vignali, Judge Doty specifically found that each of those codefendants provided ``substantial and valuable'' assistance to law enforcement. By contrast, Carlos Vignali and Todd Hopson, both of whom were charged with conspiring to distribute substantial amounts of cocaine and various other federal narcotics offenses, chose not to cooperate. Furthermore, they failed to express the least remorse about or assume responsibility for their roles in the distribution ring. As such, there could have been no reasonable expectation of leniency from the sentencing judge. Accordingly, the White House's position that Vignali's sentence was overly harsh or disproportionate as compared with his codefendants is wholly without merit. Having thoroughly considered the available evidence, Judge Doty sentenced Vignali under the applicable standards set forth under the law. ``Vignali's sentence was an unfair and overly harsh result of mandatory minimum sentencing laws.'' Although the rationale for President Clinton's commutation of Carlos Vignali's sentence remains unclear, the former president has said he believes mandatory sentences ``in many cases are too long for nonviolent offenders.'' \349\ Documents and statements obtained by the Committee indicate that the White House considered Vignali's petition together with a number of other drug cases in which the defendant had been ``oversentenced.'' \350\ Associate White House Counsel Meredith Cabe, who was responsible for clemency matters for the White House Counsel's Office, recalled that others in that group were Lau Ching Chin, Derek Curry, Peter Ninemire, and Loretta DeAnn Kaufman.\351\ Cabe's appreciation that Vignali's petition was considered as a ``mandatory minimum'' case is borne out by a chart of potential pardons and commutations maintained by Associate White House Counsel Eric Angel, who worked with Cabe on clemency matters.\352\ --------------------------------------------------------------------------- \349\ Bob von Sternberg and Pam Louwagie, Judge Who Sentenced Dealer in Minnesota Questions Clemency; Clinton Commuted Cocaine Supplier Carlos Vignali's Sentence, Star Trib. (Minneapolis, MN) Feb. 15, 2001. \350\ Interview with Meredith Cabe, former Associate Counsel to President, the White House (Mar. 16, 2001). \351\ Id \352\ See, e.g., NARA Document Production (chart of ``Disparate Sentencing Commutation Cases'') (Exhibit 39). --------------------------------------------------------------------------- U.S. District Judge David Doty, who sentenced Vignali, has long been a critic of mandatory federal sentencing guidelines for drug offenses.\353\ In Judge Doty's view, ``most drug sentences are exceedingly long and onerous.'' \354\ But, in Vignali's case, Judge Doty felt that ``Carlos deserved what he got.'' \355\ In explaining the sentence he imposed on Vignali, Judge Doty stated, ``I based the sentence on his criminal history score--he didn't have much. And I kicked it up because of the amount of drugs involved.'' \356\ According to Doty, the sentence he imposed was slightly more than the midpoint of the guideline range.\357\ Doty observed, ``I hit him in the middle, not in the low end. And I didn't max him out.'' \358\ --------------------------------------------------------------------------- \353\ Bob von Sternberg and Pam Louwagie, Judge Who Sentenced Dealer in Minnesota Questions Clemency; Clinton Commuted Cocaine Supplier Carlos Vignali's Sentence, Star Trib. (Minneapolis, MN) Feb. 15, 2001. \354\ Id. \355\ Id. \356\ Id. \357\ Id. \358\ Id. --------------------------------------------------------------------------- D. The Aftermath of the Vignali Commutation 1. The Response from Hugh Rodham The Vignali commutation proved to be almost as controversial as the Marc Rich and Pincus Green pardons. News of Hugh Rodham's involvement in the Vignali matter first surfaced around February 21, 2001. Former President Clinton issued a statement indicating that he and former First Lady Hillary Rodham Clinton were unaware that Hugh Rodham had been paid for his work on the Vignali and Braswell matters: ``Neither Hillary nor I had any knowledge of such payments . . . We are deeply disturbed by these reports and have insisted that Hugh return any monies received.'' \359\ Hillary Clinton added, ``I was very disturbed to learn that my brother, Hugh Rodham, received fees in connection with two clemency applications[.] Hugh did not speak with me about these applications.'' \360\ Rodham responded to the statement from the former President and Senator Clinton with a statement from his own attorney, Nancy Luque: --------------------------------------------------------------------------- \359\ James V. Grimaldi and Peter Slevin, Hillary Clinton's Brother Was Paid for Role in 2 Pardons, Wash. Post (Feb. 22, 2001) at A1. \360\ Id. My client, Hugh Rodham, today acceded to his family's request that he return legal fees earned in connection with pardon requests. My client did not advise President or Senator Clinton of his involvement in these requests. He believes they were unaware until this week of his work on his client's behalf. Hugh Rodham has done absolutely nothing wrong. He has returned these fees solely because his family asked that he do so. Their request, presumably made because of the appearance of impropriety, is one he cannot ignore. There was, however, no impropriety in these matters.\361\ --------------------------------------------------------------------------- \361\ Statement by Nancy Luque, Counsel for Hugh Rodham, Reed Smith (Feb. 21, 2001). Luque's initial statement suggested that Rodham returned all of the fees he was paid for obtaining the Braswell pardon and the Vignali commutation. She soon backtracked, and conceded to the press that he had returned only $300,000 of the fees.\362\ The press still reported that Rodham had agreed to refund all $434,000 he was paid by Braswell and Vignali.\363\ --------------------------------------------------------------------------- \362\ David Johnston, Hollywood Friend Had Clinton's Ear for 2 Late Pardons, N.Y. Times, (Feb. 24, 2001) at A8. \363\ Id. --------------------------------------------------------------------------- However, the Committee's review of Rodham's bank records shows that as of June 2001 Rodham had returned only $280,000 of the $434,000 he was paid for his work on the Vignali and Braswell matters. On February 21, 2001, Rodham wrote checks for $230,000 and $50,000 to the Coale, Cooley, Leitz, McInerny law firm.\364\ It appears that the funds were then forwarded by the Coale, Cooley firm to Reed Smith, Nancy Luque's law firm. Then, on February 23, 2001, Reed Smith issued a check for $230,000 to Glenn Braswell \365\ and a check for $50,000 to Morvis Corvis Corporation, one of Horacio Vignali's companies.\366\ When Luque forwarded the $50,000 to Vignali, she stated that ``a check for the balance will be forwarded directly.'' \367\ Communications between Committee staff and Rodham's attorney have confirmed that Rodham has not to date returned any additional amounts and has no plans to return the remaining $154,000 to Vignali.\368\ --------------------------------------------------------------------------- \364\ First Union Document Production (Check numbers 1321 and 1322 from Rodham & Fine, P.A. IOTA [sic] to Coale, Cooley Liets, McInerny & Broadus, for $230,000.00 and $50,000, respectively) (Feb. 28, 2001)) (Exhibit 41) (in globo). John P. Coale, a name partner in Coale Cooley, is a well-known personal injury lawyer with strong ties to the Clinton Administration. \365\ Reed Smith Document Production (Check from Reed Smith to Glenn Braswell for $230,000 (Feb. 23, 2001)) (Exhibit 42). \366\ Reed Smith Document Production (Check from Reed Smith to Morvis Corvis Corporation for $50,000 (Feb. 23, 2001)) (Exhibit 43). \367\ Letter from Nancy Luque, Partner, Reed Smith, to Carlos Vignali, Morris [sic] Corvis Corp. (Feb. 21, 2001) (Exhibit 44). \368\ In her discussions with Committee staff, Luque indicated that she advised against refunding any of the money and that Rodham did so against her advice. It is also interesting to note that Roger Clinton believes that Hugh Rodham should not have been forced to return the money: GAnyway, Huey [Rodham] has been sort of hung out to dry, and I want to make that clear. He is a great man. I love him. He didn't do anything wrong. But he was just tired of the crap. And tired of the hounding, and he did what he thought it was going to take to get rid of it. You know what? He is a lawyer, he was entitled to do what he wanted --------------------------------------------------------------------------- to do. Larry King Live, CNN, June 21, 2001. Roger Clinton has an interesting point insofar as Hugh Rodham was asked to return $434,000 he earned lobbying for executive clemency when Roger was not asked to return any of the money he earned in connection with the Gambino matter and Jack Quinn was not asked to return fees he earned in connection with the Marc Rich matter. Therefore, it appears that Rodham misled the public when he suggested he returned all of the fees when he, in fact, ignored the request from former President Clinton and Senator Clinton that he do so. The lack of any further demands from former President Clinton and Senator Clinton that Rodham return the fees suggests that their initial demand was motivated by media pressure, rather than a genuine sentiment that Hugh Rodham should return the funds. 2. The Florida Bar's ``Investigation'' of Hugh Rodham Shortly after news of Rodham's role in the Vignali and Braswell grants of clemency came to light, a complaint was filed against Rodham with the Florida Bar Association. The Florida Bar rules, like those of most other states, prohibit excessive fees and the receipt of contingent fees in criminal cases. Rule 4-1.5(a)(1) states that ``[a]n attorney shall not enter into an agreement for, charge, or collect an illegal, prohibited or clearly excessive fee.'' \369\ Rule 4- 1.5(f)(3)(B) states that a ``lawyer shall not enter into an agreement for, charge, or collect . . . a contingent fee for representing a defendant in a criminal case.'' \370\ --------------------------------------------------------------------------- \369\ Rule 4-1.5(a)(1), Rules Regulating the Florida Bar. \370\ Rule 4-1.5(f)(3)(B), Rules Regulating the Florida Bar. --------------------------------------------------------------------------- The facts of the Rodham case not being in dispute, it seems that the one issue examined by the Florida Bar was whether Rodham's work constituted ``representing a defendant in a criminal case.'' Indeed, there is mixed opinion regarding how Rodham's work on the pardons should be characterized. Jack Quinn took the position that his lobbying for Marc Rich's pardon did constitute representation in a criminal case and that is why he met the exemption in Executive Order 12834, which otherwise would have prohibited him from lobbying his former colleagues in the White House Counsel's Office. If Quinn's reasoning were to prevail in the Rodham case, it seems clear that Rodham would have violated the Florida Bar Rules against receiving contingent fees in a criminal case. On the other hand, Federal District Court Judge Denny Chin rejected the claims of Jack Quinn and the other Marc Rich lawyers that their work lobbying for the pardons of Rich and Pincus Green were protected by the attorney-client privilege and attorney work product protection. Judge Chin ruled that their work lobbying for a pardon could not be considered legal work entitled to the attorney-client privilege or work product protection.\371\ If Judge Chin's ruling were to be followed by the Florida Bar, it is less likely that Rodham could be sanctioned for violating the Florida Bar rules. However, it is still possible that he could be punished for charging an excessive fee in relation to the amount of work he performed on the pardons. --------------------------------------------------------------------------- \371\ In re Grand Jury Subpoenas (No. M11-189 (DC)) (S.D.N.Y. Mar. 9, 2001). --------------------------------------------------------------------------- Rather than conducting a serious inquiry into the facts or the law, it appears that the Florida Bar has declined to look into the Rodham matter at all. On July 16, 2001, the Florida Bar grievance committee voted unanimously to close the Rodham case. In its letter closing the case, the Florida Bar described its investigation and reasons for closing the case. It appears that the investigation consisted solely of reading press accounts of Rodham's involvement in lobbying for pardons and requesting a written response to the allegations from Rodham's counsel. The Florida Bar considered first whether Rodham's fees were improper and ruled that they were not for two main reasons. First, it determined that the clemency process was not a judicial proceeding. Contingent fees are prohibited in criminal cases, largely because the ``right to competent counsel should not be tied to the compensation paid to the attorney.'' \372\ However, the Florida Bar concluded that ``clemency is different from other post-conviction avenues of appeal. It cannot be said that, based on existing rules and ethics opinions, accepting a contingency fee for assistance in a clemency proceeding is improper per se.'' \373\ Second, it determined that Rodham's fees could not be characterized as ``excessive,'' despite the fact that he was paid $434,000 for minimal work. The Bar Committee concluded that ``it would be highly unusual for The Florida Bar to become involved in a determination of reasonableness of attorney's fees in the absence of a complaint of an interested party, one who actually suffered harm directly. We may consider doing so when a compelling public interest arises . . . [We] did not find a compelling public interest in the matters involved.'' \374\ --------------------------------------------------------------------------- \372\ Letter from Barry W. Rigby, Chief Branch Disciplinary Counsel, The Florida Bar, to J. Christian Adams, Counsel, Adams Law Firm (July 16, 2001) (Exhibit 45). \373\ Id. \374\ Id. --------------------------------------------------------------------------- Second, the Florida Bar considered whether Rodham engaged in dishonest conduct in his efforts to obtain the Vignali and Braswell grants of clemency. The Florida Bar concluded: There has been no evidence presented or made available to The Florida Bar: 1) that Mr. Rodham violated rules or procedures relating to the pardons in question; 2) that monies were intended as improper payment to persons involved in the pardon process; or 3) that there was any other deceit or dishonesty on his part.\375\ --------------------------------------------------------------------------- \375\ Id. The Bar then noted that it had attempted to obtain information about Rodham from the U.S. Attorney's Office for the Southern District of New York but was declined.\376\ At no time did the Florida Bar approach this Committee seeking information about Rodham, which would have been shared readily with the Bar. --------------------------------------------------------------------------- \376\ Id. --------------------------------------------------------------------------- As this report has made clear, Hugh Rodham engaged in dishonest conduct on a number of occasions with respect to his work on the Vignali commutation. Rodham passed on misleading information to the White House, he made misleading arguments to White House staff about Vignali's case for clemency, and he told outright lies to White House staff, for example, that the attorney who prosecuted Vignali supported his commutation. The Florida Bar should review this report and take appropriate action against Rodham. 3. The Message Sent by the Vignali Commutation The Vignali commutation will have two practical consequences. First, Carlos Vignali has been released from prison approximately nine years ahead of schedule. There is no evidence that Vignali is reformed or that he has in any way changed his life since being convicted. He has never admitted his guilt, he has never cooperated with law enforcement, and he has never admitted that he did anything wrong. However, the Vignali commutation has a significance beyond the early release from prison of an unrepentant cocaine dealer. With his commutation, President Clinton sent a message that there is a double standard of justice between the rich and the poor. Twenty-eight other people were convicted along with Vignali for participating in the cocaine distribution ring. Carlos Vignali was the only person in that distribution ring to receive executive clemency. Yet, other participants in the conspiracy received stiffer prison sentences, despite the fact that they served more minor roles in the conspiracy than Vignali. For example, Todd Hopson was sentenced to over 19 years in prison and is still in prison today. While Hopson was clearly guilty, police have stated that his sentence was excessive.\377\ After Vignali received his commutation, Hopson observed, ``I didn't pay anybody, I didn't have anybody walk my application up to the White House and put it in front of the President. I didn't have those connections.'' \378\ Even Todd Hopson, a convicted cocaine dealer, can understand the message sent by President Clinton: if you can afford to hire the right person--especially a relative of the President--you can get out of prison, even if you are clearly guilty of a serious crime. --------------------------------------------------------------------------- \377\ Fox Special Report with Brit Hume (Feb. 27, 2001). \378\ Richard A. Serrano and Stephen Braun, Working the American System, L.A. Times, Apr. 29, 2001, at L.A. Times Mag. 10. --------------------------------------------------------------------------- The Vignali commutation also sent a message to the nation's law enforcement officers. Many law enforcement officers risk their lives on a daily basis to stem the flow of illegal drugs into our neighborhoods. Indeed, Carlos Vignali and his 28 co- conspirators were apprehended only after a painstaking investigation that included wiretaps and undercover surveillance. When one of the ringleaders of a cocaine distribution ring receives executive clemency solely because he hired the president's brother-in-law to represent him, it mocks the efforts of law enforcement and indicates a dangerously lax attitude towards fighting the war on drugs. Tony Adams, the Minneapolis narcotics detective who played a key role in apprehending Vignali and who has risked his life in the line of duty,\379\ understood the significance of President Clinton's actions. Adams observed that ``it's like, basically, you've just been told that this kid, he's untouchable.'' \380\ Adams stated that the Vignali commutation ``more or less tells us that America's system has been bought if you have money.'' \381\ The bitterness of Adams, and presumably a number of other law enforcement officers, is clear in Adams' statement that ``politicians always get in front of this camera and say ``We're trying to take dope off the streets. We're trying to put dope dealers in jail.'' Well, you just let one out, a big one.'' \382\ Adams suggested that ``the politicians in L.A. or Washington, D.C., should finish the nine years that he has left on his time, and I'm standing right by that.'' \383\ --------------------------------------------------------------------------- \379\ The danger of Adams' work is underscored by the fact that on April 20, 2001, he was shot at by a suspect. Adams was unharmed. David Chanen, Man Fires at Officer, But Nobody is Hurt, Star Trib., Apr. 20, 2001, at 9B. \380\ Richard A. Serrano and Stephen Braun, Working the American System, L.A. Times, Apr. 29, 2001, at L.A. Times Mag. 10. \381\ Fox Special Report with Brit Hume (Feb. 27, 2001). \382\ ABC World News Now (Feb. 23, 2001). See also Duncan DeVille Document Production (Letter from Duncan DeVille, Assistant U.S. Attorney for the Central District of California, Department of Justice, to Alejandro Mayorkas, U.S. Attorney for the Central District of California, Department of Justice (Mar. 2, 2001)) (Exhibit 46) (citing Mayorkas' assistance in the Vignali matter as the basis for resignation). \383\ Fox Special Report with Brit Hume (Feb. 23, 2001). --------------------------------------------------------------------------- II. THE PARDON OF A. GLENN BRASWELL Another of the recipients of President Clinton's misplaced mercy on his final days in the White House was Almon Glenn Braswell. Braswell was convicted in 1983 of mail fraud, perjury, and tax evasion in connection with selling herbal remedies purporting to encourage hair growth, remove cellulite, and increase breast size.\384\ More alarmingly, Braswell was under investigation by the Food and Drug Administration, the Federal Trade Commission, the Internal Revenue Service, and several state attorneys general when his pardon was granted.\385\ In addition, as the President was granting Braswell a pardon, federal investigators in Los Angeles were examining a massive tax evasion and money-laundering scheme allegedly conducted by Braswell.\386\ How such an unmeritorious application received President Clinton's attention may be explained by a $230,000 payment from Braswell to Hugh Rodham, the President's brother-in-law. \387\ --------------------------------------------------------------------------- \384\ Douglas Pasternak, Another Dubious Pardon, U.S. News & World Rep., Feb. 12, 2001, at 26. \385\ Id. \386\ Peter Slevin, Another Pardon Stirs Controversy; Herbal Marketer Faces U.S. Tax Evasion Probe, Wash. Post, Feb. 6, 2001, at A3. \387\ See Letter from Nancy Luque, Partner, Reed Smith, to the Honorable Dan Burton, Chairman, Comm. on Govt. Reform (Feb. 28, 2001) (within Appendix I). --------------------------------------------------------------------------- A. Braswell's History of Misconduct In the decades prior to Hugh Rodham's involvement, Braswell created a dietary supplement empire by intentionally misleading consumers with false claims of health benefits.\388\ These fabricated claims led to Braswell's conviction in 1983 on perjury, tax evasion, and mail fraud charges.\389\ According to his pardon petition, Braswell was convicted of tax evasion for creating a system in which he would intentionally overpay for corporate services and, in return, receive cash payments that were not reported as income to the IRS.\390\ With respect to the mail fraud conviction, Braswell devised a scheme to defraud consumers by placing false and misleading advertisements in magazines throughout the United States.\391\ These advertisements depicted phony ``before and after'' photographs purportedly revealing how Braswell's products promoted hair growth and breast enlargement.\392\ Mr. Braswell was sentenced to three years' imprisonment and five years' probation for these crimes,\393\ but he received parole after serving only seven months in prison.\394\ --------------------------------------------------------------------------- \388\ Kurt Eichenwald and Michael Moss, Pardon for Subject of Inquiry Worries Prosecutors, N.Y. Times, Feb. 6, 2001, at A1. \389\ NARA Document Production (Almon Glenn Braswell's Petition for Pardon (Jan. 12, 2001)) (Exhibit 47). \390\ Id. \391\ Id. The House Select Committee on Aging held a hearing in 1984 examining the fraudulent claims of dietary supplement marketers such as Braswell. ``In Quackery: A $10 Billion Scandal,'' Hearings Before the House Select Committee on Aging, Subcommittee on Health and Long-term Care, 98th Cong. (May 31, 1984). Regarding Braswell's companies in particular, a Postal Service official testified, ``one hundred and thirty-eight false representation complaints were filed against 50 different medical-cosmetic products marketed by Braswell, Inc.'' Id. at 137. The cases were concluded through 32 false representation orders and 15 consent agreements. \392\ Id. at 138. \393\ Richard A. Serrano, Man's Pardon for ``83 Crime Can't Aid Him in L.A. Probe, L.A. Times, Feb. 7, 2001, at A4. \394\ Douglas Pasternak, Another Dubious Pardon, U.S. News & World Rep., Feb. 12, 2001, at 26. --------------------------------------------------------------------------- Braswell's conviction was just the beginning of his legal troubles. Braswell pled no contest to grand theft after being arrested for burglary at the home of a former employee.\395\ He was sentenced to two years' probation to run concurrently with his federal sentence.\396\ Additionally, the Federal Trade Commission brought charges against Braswell in 1983. The FTC contended that his companies lacked adequate scientific evidence supporting the claims of their hair-loss products and that the companies declined to pay refunds promised to customers.\397\ Braswell's companies settled FTC charges by paying $610,000 in civil penalties, and the FTC permanently barred them from making performance claims for any product without reliable scientific evidence.\398\ --------------------------------------------------------------------------- \395\ ``Swindlers, Hucksters and Snake Oil Salesman: Hype and Hope Marketing Anti-Aging Products to Seniors,'' Hearing Before the Senate Special Committee on Aging, 107th Cong. 27 (prepared statement of E. Vernon F. Glenn, Attorney, Law Offices of E. Vernon F. Glenn). Glenn represented several clients in a defamation lawsuit against Braswell. \396\ Id. \397\ Federal Trade Commission Press Release, Braswell Prohibited Permanently from Advertising Baldness ``Cures'' Without FDA Approval of Product, Under Federal Trade Commission Consent Judgment, Sept. 16, 1983. \398\ Id. --------------------------------------------------------------------------- For over a decade, the herbal remedy dealer managed to evade the attention of federal regulators. In 1995, the Food and Drug Administration issued an import alert on products manufactured by Gero Vita International, Braswell's principal mail-order marketer of natural medicines.\399\ The FDA determined that Gero Vita was promoting certain products as ``drugs'' that could cure various ailments without first receiving FDA approval.\400\ The alert enabled FDA to seize Gero Vita products imported into the United States. It was in effect at the time President Clinton pardoned Braswell on January 20, 2001, and it was still in effect as of January 2002.\401\ Also in 1995, the National Advertising Division of the Council of Better Business Bureaus concluded that Gero Vita could not substantiate claims for one of its products claiming to be an ``Anti-Aging Pill.'' \402\ The company advertisement declared that the pill ``improves memory . . . Sex Drive! And reduces chance of Heart Attack by 83%!'' \403\ The Better Business Bureau warned consumers that these proclamations were ``exaggerated and overstated'' and ``misleading.'' \404\ --------------------------------------------------------------------------- \399\ Michael Isikoff, The Bush Clan's Donor Problem, Newsweek, Sept. 29, 2000, at 2000 WL 33208288. \400\ Id. \401\ See Food and Drug Administration Import Alert #66-41, Unapproved New Drugs Promoted in the U.S., Sept. 28, 2000. \402\ Michael Isikoff, The Bush Clan's Donor Problem, Newsweek, Sept. 29, 2000, at 2000 WL 33208288. \403\ Id. (quoting Gero Vita Advertisement) \404\ Id. --------------------------------------------------------------------------- Three sports celebrities were also victims of Glenn Braswell's fraudulent practices. Race-car driver Richard Petty, Hall of Fame quarterback Len Dawson, and baseball Hall of Famer Stan Musial filed suit against Braswell in 1997 for falsely portraying these celebrities as endorsing a Braswell product that purportedly treats prostate cancer.\405\ In peddling Prostata, Braswell inappropriately and inaccurately warned that the sports figures ``waited too long and are suffering'' from prostate problems.\406\ He then mailed brochures featuring the celebrities' photographs with their bogus endorsement to over 17 million addresses.\407\ As a result, subsequent sales of Prostata associated with those brochures totaled over $5 million.\408\ The lawsuit accused Braswell of defamation, invasion of privacy, unfair trade practices, and intentionally inflicting emotional distress.\409\ In his two-hour deposition, Braswell invoked his Fifth Amendment privilege against self- incrimination 196 times.\410\ According to the sports stars' attorney, the lawsuit was eventually settled out of court for ``significant money.'' \411\ --------------------------------------------------------------------------- \405\ Joan McKinney, New ``Snake-Oil'' Industry Roasted, Baton Rouge Advoc., Sept. 11, 2001, at 1A. \406\ Lucy Morgan, Bush Brothers Pop Up in Potion Peddler's Magazine, St. Petersburg Times, Sept. 29, 2000, at A1. \407\ ``Swindlers, Hucksters and Snake Oil Salesman: Hype and Hope Marketing Anti-Aging Products to Seniors,'' Hearing Before the Senate Special Committee on Aging, 107th Cong. 26 (prepared statement of E. Vernon F. Glenn, Attorney, Law Offices of E. Vernon F. Glenn). \408\ Id. \409\ Lucy Morgan, Bush Brothers Pop Up in Potion Peddler's Magazine, St. Petersburg Times, Sept. 29, 2000, at A1. \410\ Isabel Vincent, The Canadian Connection to Clinton Pardon, Nat'l Post, Mar. 3, 2001, at B1. \411\ Id. --------------------------------------------------------------------------- Undeterred by the settlement, the FDA's import alert, and the Better Business Bureau's consumer warning, Gero Vita continued to publish deceiving advertisements. In 1998, the editors of Consumer Reports wrote, ``We see a lot of misleading marketing, but what spews out of Gero Vita Industries rivals the worst.'' \412\ Continuing its censure, Consumer Reports described Gero Vita's unsolicited booklet mailings as ``masquerading as science. The booklets cite actual studies, but twist the findings to support the company's own unsubstantiated claims.'' \413\ --------------------------------------------------------------------------- \412\ Consumer Reports, quoted in Peter Slevin, Another Pardon Stirs Controversy; Herbal Marketer Faces U.S. Tax Evasion Probe, Wash. Post, Feb. 6, 2001, at A3. \413\ Id. --------------------------------------------------------------------------- Despite drawing the attention of law enforcement agencies, various federal regulators, consumer advocate groups, and plaintiffs' attorneys, Braswell has continued to use misleading advertising to promote his products. Since the Prostata lawsuit, Braswell has been sued twice more for misrepresenting the results of medical research.\414\ Arthritis specialist Dr. Joel Kremer filed suit against two Braswell companies for creating the appearance in an advertisement that Dr. Kremer's research supported the effectiveness of a Braswell arthritis product.\415\ According to the lawsuit, the advertisement also falsely portrayed Dr. Kremer as endorsing an anti-arthritis elixir,\416\ an allegation similar to the one Braswell settled in the Prostata lawsuit. In a similar lawsuit, Braswell allegedly misused another doctor's research once again for an anti-arthritis product.\417\ This lawsuit asserts that Gero Vita distorted Dr. John Prudden's research to support the claim that the Gero Vita product supposedly rebuilt joints and stopped arthritis.\418\ These suits were still pending as of September 2001.\419\ --------------------------------------------------------------------------- \414\ ``Swindlers, Hucksters and Snake Oil Salesman: Hype and Hope Marketing Anti-Aging Products to Seniors,'' Hearing Before the Senate Special Committee on Aging, 107th Cong. 28-29 (prepared statement of E. Vernon F. Glenn, Attorney, Law Offices of E. Vernon F. Glenn). \415\ Kim Martineau, Doctor Sues Firms Over Claims in Ad, Times Union (Albany, NY) Sept. 2, 2000, at B4. \416\ Id. \417\ ``Swindlers, Hucksters and Snake Oil Salesman: Hype and Hope Marketing Anti-Aging Products to Seniors,'' Hearing Before the Senate Special Committee on Aging, 107th Cong. 28-29 (prepared statement of E. Vernon F. Glenn, Attorney, Law Offices of E. Vernon F. Glenn). \418\ Id. \419\ Id. at 29. --------------------------------------------------------------------------- Braswell was under criminal investigation by federal prosecutors in Los Angeles for tax evasion when President Clinton pardoned him in January 2001.\420\ The federal inquiry focused on whether Braswell transferred millions of dollars offshore through a shell company to evade IRS detection.\421\ Federal investigators described Braswell's actions as ``a massive tax evasion and money-laundering scheme.'' \422\ Court documents also allege that Braswell and his employees attempted to conceal documents from the government.\423\ These allegations are based on documents and company computers seized from Braswell's principal holding company, G.B. Data Systems, after IRS agents raided the office in 1999.\424\ Should any charges be brought based on these allegations, federal prosecutors anticipate that Braswell will argue that his pardon included the pending tax evasion investigation.\425\ Moreover, if Braswell were convicted on tax evasion charges, the pardon could lessen his sentence by neutralizing past felonies.\426\ In either scenario, the legal consequences of the pardon could potentially reward Braswell with unjustified leniency. --------------------------------------------------------------------------- \420\ Peter Slevin, Another Pardon Stirs Controversy; Herbal Marketer Faces U.S. Tax Evasion Probe, Wash. Post, Feb. 6, 2001, at A3. \421\ Id. \422\ Id. \423\ Michael Isikoff, The Bush Clan's Donor Problem, Newsweek, Sept. 29, 2000, at 2000 WL 33208288. \424\ Id. \425\ Michael Moss, Officials Say Investigation Will Go On Despite Pardon, N.Y. Times, Feb. 8, 2001, at A24. A former White House spokesman said that the President did not intend for the pardon to cover anything other than the felonies Braswell committed in 1983. Richard A. Serrano, Man's Pardon for ``83 Crime Can't Aid Him in L.A. Probe, L.A. Times, Feb. 7, 2001, at A4. The Justice Department also concluded that the U.S. Attorney's Office in Los Angeles could continue its investigation of Braswell's potential felonies involving his offshore corporations and accounts. \426\ Michael Moss, Officials Say Investigation Will Go on Despite Pardon, N.Y. Times, Feb. 8, 2001, at A24. --------------------------------------------------------------------------- B. Consideration of the Braswell Pardon by the Clinton White House The active criminal investigation into Braswell might have disqualified him if normal pardon procedures were followed.\427\ Yet, Braswell's petition bypassed the traditional route through the Justice Department and went directly to the White House.\428\ Legal experts agree that had the FBI conducted the background investigation instead of the White House, Braswell's application would have been rejected quickly.\429\ A former pardon attorney at the Justice Department during the Carter Administration said, ``If it had gone through normal channels, it never would have gotten through. Nobody ever gets a pardon when they are under active investigation for other offenses--ever.'' \430\ Margaret Colgate Love, the Justice Department's pardon attorney from 1990 to 1997,\431\ concurred that evidence of an ongoing investigation should stop a president from issuing a pardon because the ``law-abidingness'' of the individual is a critical threshold in determining whether a petitioner is deserving.\432\ Love described the final Clinton pardons as ``an accident waiting to happen.'' \433\ --------------------------------------------------------------------------- \427\ Kurt Eichenwald and Michael Moss, Pardon for Subject of Inquiry Worries Prosecutors, N.Y. Times, Feb. 6, 2001, at A1. \428\ Id. \429\ Id. \430\ Tim Nickens, Pardon of Man Under Investigation Questioned, St. Petersburg Times, Feb. 8, 2001, at 6B. \431\ Leon Bruneau, Clinton Aides Testify Before Congress on Pardon Controversy, Agence France-Presse, Mar. 1, 2001, at 2001 WL 2352895. \432\ Peter Slevin, Clinton Termed Unaware of Braswell Probe; Spokesman Says Pardon Covered Only '83 Case, Not Possible New Charges, Wash. Post, Feb. 7, 2001, at A20. \433\ Leon Bruneau, Clinton Aides Testify Before Congress on Pardon Controversy, Agence France-Presse, Mar. 1, 2001, at 2001 WL 2352895. --------------------------------------------------------------------------- How such an undeserving petitioner received the President's ultimate grant of forgiveness can be explained by Braswell's powerful and high-priced connections. Braswell was represented in his pardon bid by Kendall Coffey, a former U.S. Attorney appointed by President Clinton \434\ and an attorney for former Vice President Al Gore during the Florida vote recount.\435\ However, it is unclear whether Coffey called on his own influence with the Clinton Administration to obtain the Braswell pardon. Rather, it appears that Coffey's main contribution to the pardon effort was to hire Hugh Rodham. --------------------------------------------------------------------------- \434\ Coffey's tenure as U.S. Attorney ended under an ethical cloud. After losing a major drug trafficking trial in February 1996, Coffey visited the Lipstik Adult Entertainment Club, charged a $900 magnum of Dom Perignon champagne to his American Express card, and retired to the club's private champagne room with one of the dancers. David Adams, Top Lawman Quits After Topless Bar Tale, St. Petersburg Times, May 18, 1996, at 1A. Reports indicate that, after the dancer rebuffed Coffey's advances towards her, Coffey grabbed the dancer, pulled her towards him, and bit her left upper arm. The bite broke the dancer's skin and drew blood, according to the dancer's husband. After meeting with then-Attorney General Janet Reno about the incident, Coffey resigned as U.S. Attorney. Federal Attorney Resigns, Tampa Tribune, May 18, 1996, at 1. \435\ Tim Nickens, Pardon of Man Under Investigation Questioned, St. Petersburg Times, Feb. 8, 2001, at 6B. --------------------------------------------------------------------------- On January 12, 2001, Coffey sent a note to Rodham requesting his assistance. The note suggested that Rodham could earn a very large sum of money for his work.\436\ In his note regarding Braswell, Coffey wrote: --------------------------------------------------------------------------- \436\ Kendall Coffey Document Production 0003 (Memorandum from Kendall Coffey, Attorney, to Hugh Rodham, Attorney (Jan. 12, 2001)) (Exhibit 48). Along with this note, Coffey attached a copy of Braswell's pardon petition. The client proposes $20,000 for a best efforts submission and an $80,000 success payment. Both numbers are negotiable, especially the latter. The initial payment can be wired Tuesday a.m. if the representation is accepted.\437\ --------------------------------------------------------------------------- \437\ Id. Rodham accepted the representation but not before negotiating a fee of $230,000 for his work if successful.\438\ On January 17, 2001, two days before the pardon was issued, Coffey sent Rodham a fax at the White House.\439\ The fax included a three-page letter written by Coffey to the President expounding on the merits of the Braswell case.\440\ With Braswell's crime-ridden background in mind, in addition to the current investigation for tax fraud, excerpts from Coffey's letter would be laughable if not for the gravity of the situation. In the letter, Coffey describes Braswell as a ``visionary'' with an ``exemplary record of business accomplishments'' who is ``truly deserving of the extraordinary measure of mercy embodied in a Presidential pardon.'' \441\ Coffey also opined that ``[g]ranting a pardon to bring justice and healing to a man's life would further the extraordinary legacies that have defined your Presidency.'' \442\ --------------------------------------------------------------------------- \438\ See Letter from Nancy Luque, Partner, Reed Smith, to the Honorable Dan Burton, Chairman, Comm. on Govt. Reform (Feb. 28, 2001) (within Appendix I). News reports indicated that Rodham received $200,000 for his work on Braswell's pardon, but, according to Rodham's attorney, Braswell made one payment of $30,000 and then transferred $200,000 by wire to Rodham's law firm. Based on this information and Coffey's note to Rodham, the $30,000 payment likely was for a ``best efforts submission'' by Rodham that he would receive regardless of outcome. The $200,000 wire transfer likely was received as a ``success payment.'' \439\ Kendall Coffey Document Production 0004-07 (Fax from Kendall Coffey, Attorney, Kendall Coffey, P.A., to Hugh Rodham (Jan. 17, 2001)) (Exhibit 49). \440\ See id. \441\ Id. \442\ Id. --------------------------------------------------------------------------- At this point, Coffey's work pushing the Braswell pardon was finished,\443\ and Braswell's fate was placed in Rodham's hands. In the final days of the Clinton Administration, Rodham contacted Meredith Cabe of the White House Counsel's Office at least twice.\444\ He forwarded Coffey's letter of support for Braswell to Cabe, and he made a follow-up inquiry.\445\ According to Rodham's attorney, these two actions were the extent of Rodham's role in the Braswell pardon, a role for which he received $230,000.\446\ Despite the huge reward for success, his close relationship with the President, and his living in the White House, Rodham claims he never discussed either Braswell or Vignali with President Clinton or Hillary Clinton.\447\ However, the small circle of aides advising the former President admit that Clinton and Rodham may have had private discussions to which staffers were not privy.\448\ --------------------------------------------------------------------------- \443\ Kendall Coffey Document Production 0001-02 (Record of Professional Services Rendered Regarding Braswell Clemency Application (Feb. 4, 2001)) (Exhibit 50). \444\ Letter from Nancy Luque, Partner, Reed Smith, to the Honorable Dan Burton, Chairman, Comm. on Govt. Reform (Feb. 28, 2001) (within Appendix I). \445\ Id. \446\ Id. \447\ Id. \448\ Christopher Marquis and Michael Moss, A Clinton In-law Received $400,000 in 2 Pardon Cases, N.Y. Times, Feb. 22, 2001, at A1. --------------------------------------------------------------------------- Among the staffers assisting the President with the pardon petitions were members of the White House Counsel's Office. Meredith Cabe recalls discussing the Braswell pardon with Rodham.\449\ In fact, another associate counsel at the White House, Eric Angel, was also aware that Rodham was involved with the Braswell case.\450\ When asked how he knew of Rodham's advocacy, Angel responded, ``I think his name was on an envelope or Meredith mentioned it.'' \451\ Based on the pardon petition and the White House's cursory investigation, Angel did not oppose the Braswell pardon and remembers no other staff member opposing the Rodham-backed pardon either.\452\ --------------------------------------------------------------------------- \449\ Interview with Meredith Cabe, former Associate Counsel to the President, the White House (Mar. 16, 2001). \450\ Interview with Eric Angel, former Associate Counsel to the President, the White House (Mar. 28, 2001). \451\ Id. \452\ Id. --------------------------------------------------------------------------- One of the President's closest advisors, White House Counsel Beth Nolan, was also aware that Rodham was advocating Braswell's petition.\453\ Ms. Nolan knew that Mr. Rodham circumvented the Justice Department and filed the Braswell petition directly with the White House.\454\ In fact, Nolan brought the Braswell pardon to Cabe's attention.\455\ Ms. Nolan personally handed the Braswell file to Cabe and Angel.\456\ Nolan then requested that Cabe inspect the petition because Nolan believed it was the type of case in which the President was interested.\457\ Finally, both Cabe and Nolan recall discussing the Braswell petition in a meeting with the President.\458\ Despite Rodham's oddly intense interest in an obscure herbal remedy dealer from South Florida, Nolan claims that she was unaware Rodham was receiving a fee for his advocacy.\459\ Cabe explained that the President had a ``general articulation'' of types of cases he wanted to consider.\460\ She recalled that President Clinton believed that felons convicted a long time ago, but who now abided by the law, deserved to have their civil rights restored.\461\ Based on general agreement among White House staff, Braswell fell into this category and deserved clemency.\462\ --------------------------------------------------------------------------- \453\ ``The Controversial Pardon of International Fugitive Marc Rich,'' Hearings Before the Comm. on Govt. Reform, 107th Cong. 413 (Mar. 1, 2001) (testimony of Beth Nolan, former Counsel to the President, the White House). \454\ Id. at 382. \455\ Interview with Meredith Cabe, former Associate Counsel to the President, the White House (Mar. 16, 2001). \456\ Interview with Eric Angel, former Associate Counsel to the President, the White House (Mar. 28, 2001). \457\ Interview with Meredith Cabe, former Associate Counsel to the President, the White House (Mar. 16, 2001). \458\ Id. ``The Controversial Pardon of International Fugitive Marc Rich,'' Hearings Before the Comm. on Govt. Reform, 107th Cong. 413 (Mar. 1, 2001) (testimony of Beth Nolan, former Counsel to the President, the White House). \459\ Id. \460\ Interview with Meredith Cabe, former Associate Counsel to the President, the White House (Mar. 16, 2001). \461\ Id. \462\ Id. --------------------------------------------------------------------------- In a carefully worded statement, President Clinton issued a similar claim.\463\ The former President said he had no knowledge that Rodham received a contingency fee for his work on the Braswell application and insisted that Rodham return any monies received.\464\ The President's careful use of the phrase ``contingency fee'' leaves open the possibility that he was aware Braswell was paying Rodham, but not the details of their arrangement. Rodham's attorney Nancy Luque mailed a $230,000 check to Braswell on February 23, 2001,\465\ after Rodham's conduct was widely reported and criticized in the press.\466\ --------------------------------------------------------------------------- \463\ Jerry Seper, Hillary's Brother Returns Cash for Pardon Work, Wash. Times, Feb. 22, 2001, at A1. \464\ Id. \465\ Letter from Nancy Luque, Partner, Reed Smith, to Glenn Braswell (Feb. 23, 2001) (Exhibit 42). \466\ Reports detailing Rodham's receipt of over $200,000 from Braswell appeared on the front page of The New York Times, Washington Post, Washington Times, Wall Street Journal, Los Angeles Times, and USA Today. --------------------------------------------------------------------------- In the face of widespread criticism from Republicans and Democrats alike, Luque somehow maintained that ``Hugh Rodham has done absolutely nothing wrong.'' \467\ Most disagreed with Luque's viewpoint. President Clinton declared that he and Hillary were ``deeply disturbed'' by news reports of Rodham's actions.\468\ In a separate statement, Hillary Clinton stated her belief that ``the payments should be returned immediately.'' \469\ Other critics more forcefully condemned Rodham. Terry McAuliffe, Chairman of the Democratic National Committee, declared, ``What he did was absolutely wrong.'' \470\ The DNC Chairman called on Rodham to ``fully account for his actions.'' \471\ --------------------------------------------------------------------------- \467\ Christopher Marquis and Michael Moss, A Clinton In-law Received $400,000 in 2 Pardon Cases, N.Y. Times, Feb. 22, 2001, at A1. \468\ Jerry Seper, Hillary's Brother Returns Cash for Pardon Work, Wash. Times, Feb. 22, 2001, at A1. \469\ Id. \470\ Christopher Marquis and Michael Moss, A Clinton In-law Received $400,000 in 2 Pardon Cases, N.Y. Times, Feb. 22, 2001, at A1. \471\ Id. --------------------------------------------------------------------------- As for Braswell, he has been unable to steer clear of allegations of misconduct. In addition to the federal tax evasion inquiry ongoing in Los Angeles, Braswell was subpoenaed to testify before a Senate Committee investigating health scams in September 2001.\472\ At the hearing, the former chief executive officer of a Braswell company testified that its products are ``laden with lies and deception'' \473\ and that Braswell continues to ``prey on the elderly and infirmed.'' \474\ Due in part to advertisements containing ``outright false statements,'' Braswell's companies generate annual revenues of approximately $200 million.\475\ The companies are organized to create the appearance of foreign ownership in ghost locations so any individual or agency seeking to locate the company will be delayed.\476\ In response to these weighty allegations, Braswell invoked his Fifth Amendment right against self- incrimination and refused to answer questions posed by the Committee.\477\ Braswell similarly refused a request for an interview by Committee staff.\478\ --------------------------------------------------------------------------- \472\ William M. Welch, Senate Probes ``Anti-Aging'' Claims, USA Today, Sept. 10, 2001, at A7. \473\ ``Swindlers, Hucksters and Snake Oil Salesman: Hype and Hope Marketing Anti-Aging Products to Seniors,'' Hearing Before the Senate Special Committee on Aging, 107th Cong. 8 (testimony of Mike O'Neal, former Chief Executive Officer, GB Data Systems) \474\ Id. at 11. \475\ See id. at 8-9. \476\ Id. at 9. \477\ Dennis Camire, President of Dietary Supplement Firm Takes Fifth in Senate Questioning, Gannett News Service, Sept. 11, 2001, at 2001 WL 5112568. \478\ Letter from James C. Wilson, Chief Counsel, Comm. on Govt. Reform, to Henry F. Schuelke, III, Partner, Janis, Schuelke and Wechsler (February 26, 2002) (within Appendix I). --------------------------------------------------------------------------- III. HUGH RODHAM'S EFFORTS TO OBTAIN CLEMENCY FOR THE LUMS A. Background on Gene and Nora Lum Gene and Nora Lum were prominent Democratic contributors and fundraisers who gave more than $90,000 to the Democratic Party and raised at least $250,000 more.\479\ The Lums were especially close to former DNC Chair and Commerce Secretary Ron Brown. In 1992, at the request of Ron Brown, the Lums established the Asian Pacific Advisory Council to organize the Asian-Pacific American community and raise funds for the Democratic National Committee. In 1993, the Lums purchased an oil and gas company in Oklahoma and named it Dynamic Energy Resources. They hired Secretary Brown's son, Michael, to work at Dynamic Energy Resources. Although he did little work for the Lums, he was given $500,000 in company stock and a country club membership worth $60,000.\480\ --------------------------------------------------------------------------- \479\ Jerry Seper, Brown Son Gets Probation and Fine; Illegal Donations Made in '94 Races, Wash. Times, Nov. 22, 1997, at A2; John Solomon, Couple to Plead Guilty to Illegal $50,000 Donation, Associated Press Political Service, May 22, 1997, at 1997 WL 2527905. \480\ Jerry Seper, Couple Jailed for Gifts to Democrats, Wash. Times, Sept. 10, 1997, at A10. --------------------------------------------------------------------------- Many of the Lums' political contributions were illegal, and in 1997 the Lums pleaded guilty to making $50,000 in illegal conduit contributions to the DNC and the campaigns of Senator Edward Kennedy and Stuart Price. Their daughter, Trisha Lum, and Michael Brown also pled guilty to misdemeanor charges of making conduit contributions. As part of their plea agreement, Gene and Nora Lum were sentenced to 5 months in home detention and 5 months in a halfway house and were ordered to pay a $30,000 fine.\481\ In August 1998, Gene Lum also pleaded guilty to tax fraud for filing tax returns claiming more than $7.1 million in false deductions.\482\ In June 1999, Gene Lum was sentenced to two years in prison.\483\ --------------------------------------------------------------------------- \481\ Press Release 01-182, Thai Businesswomen Sentenced On Campaign Financing Charges, Department of Justice, Apr. 20, 2001. In particular, the Lums pleaded to using Dynamic Resources to funnel $50,000 in illegal contributions to the 1994 re-election campaign of Senator Edward Kennedy and to Stuart Price's unsuccessful congressional campaign in Oklahoma. James Rowley, The Justice Department Opposes Giving Convicted . . ., Associated Press Political Service, Oct. 15, 1997, at 1997 WL 2555487; Federal Document Clearing House, Department of Justice, ``New Jersey Attorney Sentenced in Campaign Finance Case,'' Oct. 12, 2000 (summarizing Campaign Task Force prosecutions). The Lums admitted making the donations through ``straw donors,'' including their daughter, Trisha, and Michael Brown. James Rowley, ``The Justice Department Opposes Giving Convicted . . .,'' Associated Press Political Service, Oct. 15, 1997, at 1997 WL 2555487. The Lums also admitted to having given Brown thousands of dollars in shareholder and consulting fees, which were given to friends to forward to Kennedy's re-election campaign. Id. \482\ Id. \483\ Press Release 01-182, Thai Businesswomen Sentenced On Campaign Financing Charges,'' Department of Justice, Apr. 20, 2001. --------------------------------------------------------------------------- B. Hugh Rodham Approaches the White House About the Possibility of a Pardon for the Lums The Committee has attempted to interview Gene Lum, Nora Lum, and their daughter Nicole Lum. All three have refused to cooperate with the Committee's investigation. Hugh Rodham also refused to cooperate with the Committee's request for an interview. Therefore, it is difficult to obtain a full understanding of the Lums' efforts to obtain executive clemency. However, sufficient evidence exists to conclude that the Lums did attempt to obtain executive clemency and that Hugh Rodham lobbied the White House as part of that effort. It is not clear why Rodham lobbied on behalf of the Lums or why their request was rejected. It appears that the Lums had a relationship with Hugh Rodham predating their efforts to obtain executive clemency. The Lums' daughter Nicole described Hugh Rodham was a ``business associate and a friend.'' \484\ This relationship is supported by the fact that, on January 26, 2001, Hugh Rodham paid Nicole Lum $20,420.\485\ However, Nicole Lum refused to elaborate on the nature of the relationship between Hugh Rodham and her family or the purpose of the payment made by Rodham. --------------------------------------------------------------------------- \484\ Notes of Conversation Between Pablo E. Carrillo, Counsel, Comm. on Govt. Reform, and Nicole Lum (Aug. 28, 2001). \485\ See First Union Document Production (Check number 1314 from Rodham & Fine, P.A. IOTA Account to ``Ms. Nikki Lum'' for $20,420 (Jan. 26, 2001)) (Exhibit 51). --------------------------------------------------------------------------- In late 2000, the Lums apparently began their efforts to obtain executive clemency. In December 2000, Nora Lum called Joel Wohlgemuth, the attorney who represented her husband in his tax case, and asked him to compile a variety of documents related to their criminal cases and send them to Hugh Rodham at the White House.\486\ Wohlgemuth then compiled a packet of documents relating to both the tax case against Gene Lum and the campaign fundraising case against Gene and Nora Lum.\487\ Wohlgemuth sent the documents to Rodham at the White House in late December 2000.\488\ In early January 2001, Rodham called Wohlgemuth and said that the Justice Department did not have the documents Wohlgemuth had sent to the White House and asked him to resend them directly to Meredith Cabe, the associate White House Counsel responsible for vetting clemency applications, and one other person whose name Wohlgemuth could not recall.\489\ Wohlgemuth also asked the Lums' criminal attorneys in their campaign finance-related case to forward the Lums' presentence report directly to Cabe.\490\ On January 18, 2001, Cabe received the Lums' presentence report from Caplin & Drysdale.\491\ --------------------------------------------------------------------------- \486\ Telephone Interview with Joel Wohlgemuth, Partner, Norman, Wohlgemuth, Chandler & Dowell (Jan. 17, 2002). \487\ Id. \488\ Id. The Federal Express package addressed to Hugh Rodham at the White House that contained the documents was reportedly dated December 28, 2000, at 11:11 a.m. The Lawyer's Column, Lobbyist? Who's a Lobbyist? When It Comes to Clemency, They Are Most Likely Advocates, Wash. Post, Mar. 5, 2001, at E8. Because Rodham needed the documents immediately at that point, Wohlgemuth sent the documents directly to him through the Usher's Office so that it would not be subject to, and therefore delayed by, onerous security measures that might have had the package rerouted through an offsite location for screening. Telephone Interview with Joel Wohlgemuth, Partner, Norman, Wohlgemuth, Chandler & Dowell (Jan. 17, 2002). \489\ Id. \490\ Telephone Interview with Cono Namorato and Scott Michel, Partners, Caplin & Drysdale (Jan. 17, 2002). This was the extent of Namorato and Michel's involvement in the Lums' clemency matter. Id. At no time did they speak to Hugh Rodham about that, or any other, matter. Id. \491\ Id.; NARA Document Production (Cover Letter and Presentence Investigation Report from Scott Michel, Partner, Caplin & Drysdale, to Meredith Cabe, former Associate Counsel to the President, the White House (July 16, 1997)) (Exhibit 52). --------------------------------------------------------------------------- In January 2001, Hugh Rodham telephoned Meredith Cabe and spoke to her about the prospects of obtaining pardons for Gene and Nora Lum.\492\ Cabe found the case Rodham presented in support of the Lums unimpressive, so she ``just heard him out.'' \493\ Cabe relayed the substance of her discussion with Rodham about the Lums to Beth Nolan and Bruce Lindsey. Cabe also recalls that later, shortly before the end of the Clinton Administration, she again raised the issue of the Lum pardons with Nolan and Lindsey, and they made it clear to Cabe that the Lums were not going to receive pardons. While Cabe did not know why the Lum pardons were not seriously considered, one anonymous White House source told the press that ``senior White House aides had spread the word that clemencies would not be available for those who had been convicted in the past of campaign finance irregularities involving the Democratic Party.'' \494\ --------------------------------------------------------------------------- \492\ Interview with Meredith Cabe, former Associate Counsel to the President, the White House (Mar. 16, 2001); James V. Grimaldi & Lois Romano, Two Others Rodham Helped Didn't Win Pardons; Clinton Relative Called White House on Behalf of Former Fundraisers, Wash. Post, Feb. 26, 2001, at A1. According to one unnamed source, during that conversation, ``[Rodham] was expressing some interest in the prospects of the Lums [sic] getting a pardon. He wanted to know where it stood, what the likelihood of a pardon might be.'' Stephen Braun and Richard Serrano, More Clemency Lobbying by Rodham Alleged; Commutations; Former President Clinton's Brother-In-Law Called a White House Lawyer About a Pardon For a Couple Convicted of Illegal Campaign Contributions, L.A. Times, Feb. 26, 2001, at A1. \493\ Interview with Meredith Cabe, former Associate Counsel to the President, the White House (Mar. 16, 2001). \494\ Stephen Braun and Richard Serrano, More Clemency Lobbying by Rodham Alleged; Commutations; Former President Clinton's Brother-In-Law Called a White House Lawyer About a Pardon For a Couple Convicted of Illegal Campaign Contributions, L.A. Times, Feb. 26, 2001, at A1. --------------------------------------------------------------------------- Hugh Rodham has refused to participate in an interview with Committee staff regarding his pardon efforts. However, Rodham's attorney has publicly stated that Rodham ``did not represent the Lums. He was asked to represent them. He declined.'' \495\ Luque also publicly noted that Rodham ``did not represent [the Lums] in any way, shape or form in connection with any pardon request'' and that Rodham ``did not advocate on [the Lums'] behalf.'' Luque's statement is in direct conflict with Meredith Cabe's clear recollection that Hugh Rodham called her about the Lum pardons and lobbied her on behalf of the Lums. Ultimately, Luque modified her earlier public statement when she noted that Rodham in fact played ``a negligible role'' in pursuing executive clemency for the Lums.\496\ --------------------------------------------------------------------------- \495\ Stephen Braun and Richard Serrano, More Clemency Lobbying by Rodham Alleged; Commutations; Former President Clinton's Brother-In-Law Called a White House Lawyer About a Pardon For a Couple Convicted of Illegal Campaign Contributions, L.A. Times, Feb. 26, 2001, at A1. \496\ David Johnston and Don Van Natta, Jr., White House Logs Said To Show Pre-pardon Visits, N.Y. Times, Feb. 27, 2001, at A20. --------------------------------------------------------------------------- It remains unclear what, if any, amount of money was paid by Rodham to the Lums. Also unclear is whether there was any arrangement for a success fee in the event that Rodham was successful. The refusal of Rodham and the Lums to cooperate with the Committee only heightens the suspicion that some sort of financial arrangement, similar to Rodham's payment arrangement with Horacio Vignali and Glenn Braswell, existed in this case. IV. FAILURE OF KEY PARTIES TO COOPERATE IN THE HUGH RODHAM INVESTIGATION A. Hugh Rodham Hugh Rodham was a central figure in both the Vignali and Braswell matters. However, he extended only partial cooperation to the Committee. On February 21, 2001, Chairman Burton sent Hugh Rodham a letter posing a number of questions regarding his work lobbying for pardons and commutations for various individuals.\497\ This letter also requested Rodham to produce records to the Committee regarding his lobbying efforts. On February 28, 2001, Nancy Luque, counsel for Rodham, provided brief answers on behalf of Rodham.\498\ On March 7, 2001, Luque provided to the Committee records regarding Rodham's efforts to obtain a pardon for Glenn Braswell.\499\ However, Luque did not provide any records regarding Rodham's efforts to obtain a commutation for Vignali, claiming they were all protected by the attorney-client privilege. Shortly thereafter, Chairman Burton requested that Rodham participate in an interview with Committee staff.\500\ Rodham refused to participate in an interview but continued to offer to respond to written questions. Therefore, the Committee did send Rodham two letters asking questions regarding his role in the Vignali matter.\501\ Rodham did provide extremely brief responses to these questions. However, he refused to provide to the Committee any documents relating to his work on the Vignali matter. Rodham's refusal to provide records relating to the Vignali matter was not justified by the attorney-client privilege, and it appears that Rodham's invocation of the privilege was overbroad and made to hinder the Committee's investigation. --------------------------------------------------------------------------- \497\ Letter from the Honorable Dan Burton, Chairman, Comm. on Govt. Reform, to Hugh Rodham (Feb. 21, 2001) (within Appendix I). \498\ Letter from Nancy Luque, Partner, Reed Smith, to the Honorable Dan Burton, Chairman, Comm. on Govt. Reform (Feb. 28, 2001) (within Appendix I). \499\ Letter from Nancy Luque, Partner, Reed Smith, to the Honorable Dan Burton, Chairman, Comm. on Govt. Reform (Mar. 7, 2001) (within Appendix I). \500\ Letter from the Honorable Dan Burton, Chairman, Comm. on Govt. Reform, to Nancy Luque, Partner, Reed Smith (Mar. 13, 2001) (within Appendix I). \501\ Letter from the Honorable Dan Burton, Chairman, Comm. on Govt. Reform, to Hugh Rodham c/o Nancy Luque, Partner, Reed Smith (July 30, 2001) (within Appendix I); Letter from the Honorable Dan Burton, Chairman, Comm. on Govt. Reform, to Hugh Rodham c/o Nancy Luque, Partner, Reed Smith (Sept. 21, 2001) (within Appendix I). --------------------------------------------------------------------------- B. Horacio and Carlos Vignali On March 9, 2001, Chairman Burton sent a letter to Edward Rucker, counsel for Horacio and Carlos Vignali, posing a number of questions regarding the effort to win a commutation for Carlos Vignali.\502\ On March 15, 2001, Rucker responded, stating that, in light of the criminal investigation into the Vignali matter, it would be ``inadvisable'' to respond to the questions or produce documents to the Committee.\503\ On March 21, 2001, Chairman Burton issued subpoenas to the Vignali's, requiring them to produce records to the Committee regarding the effort to obtain a commutation.\504\ On March 22, 2001, Rucker sent a letter to the Committee stating that his clients invoked their Fifth Amendment right against self-incrimination and, therefore, would not respond to the subpoena.\505\ --------------------------------------------------------------------------- \502\ Letter from the Honorable Dan Burton, Chairman, Comm. on Govt. Reform, to Edward A. Rucker, Esquire (Mar. 9, 2001) (within Appendix I). \503\ Letter from Edward A. Rucker, Esquire, to the Honorable Dan Burton, Chairman, Comm. on Govt. Reform (Mar. 15, 2001) (within Appendix I). \504\ Subpoena of Comm. on Govt. Reform to Horacio C. Vignali c/o Edward A. Rucker, Esquire (Mar. 21, 2001) (within Appendix II); Subpoena of Comm. on Govt. Reform to Carlos A. Vignali c/o Edward A. Rucker, Esquire (Mar. 21, 2001) (within Appendix II). \505\ Letter from Edward A. Rucker, Esquire, to the Honorable Dan Burton, Chairman, Comm. on Govt. Reform (Mar. 22, 2001) (within Appendix I). See also Letter from the Honorable Dan Burton, Chairman, Comm. on Govt. Reform, to Edward A. Rucker, Esquire (Apr. 4, 2001) (within Appendix I); Letter from Edward A. Rucker, Esquire, to the Honorable Dan Burton, Chairman, Comm. on Govt. Reform (Apr. 6, 2001) (within Appendix I). --------------------------------------------------------------------------- C. James Casso During the Committee's investigation of the Vignali matter, James Casso emerged as a significant figure in the effort to win a commutation for Carlos Vignali. Beginning in July 2001, Committee staff began efforts to interview Mr. Casso. Mr. Casso spoke with staff but initially declined to answer any questions about his involvement in the Vignali matter. Casso explained that he wanted to see if other individuals involved in the investigation were cooperating before he decided whether to cooperate. In late July, Casso informed Committee staff that he would not answer questions in an interview but would like to receive questions in writing from the Committee. Accordingly, on July 25, 2001, Chairman Burton posed a number of written questions to Casso.\506\ However, Casso failed to respond to this letter, necessitating a number of telephone calls from Committee staff. Eventually, Casso hired a lawyer and refused to cooperate with the Committee. On August 27, 2001, Mark Overland, Casso's attorney, wrote to the Chairman and stated that Casso was ``unable to provide'' the requested information.\507\ Overland later explained that Casso could not provide the information because he had an attorney-client relationship with the Vignalis that prohibited him from discussing his work for the Vignalis. This representation was in direct conflict with earlier assurances given by Casso to Committee staff, namely that he never represented the Vignalis. It appears that Casso, like Hugh Rodham, invoked the attorney- client privilege in an overbroad and unjustified manner to avoid answering questions about his involvement in the Vignali matter. --------------------------------------------------------------------------- \506\ Letter from the Honorable Dan Burton, Chairman, Comm. on Govt. Reform, to James M. Casso, Partner, Alvarez-Glasman & Colvin (July 25, 2001) (within Appendix I). \507\ Letter from Mark E. Overland, Partner, Shapiro, Borenstein & Dupont, to the Honorable Dan Burton, Chairman, Comm. on Govt. Reform (Aug. 27, 2001) (within Appendix I). --------------------------------------------------------------------------- D. Glenn Braswell The Committee contacted Glenn Braswell's attorney, Henry F. Schuelke, and requested that Braswell participate in an interview on February 26, 2002. Through his attorney, Braswell declined to be interviewed \508\ and provided no documentation regarding his relationship with Kendall Coffey and Hugh Rodham. --------------------------------------------------------------------------- \508\ Letter from James C. Wilson, Chief Counsel, Comm. on Govt. Reform, to Henry F. Schuelke, III, Partner, Janis, Schuelke & Wechsler (February 26, 2002) (within Appendix I) (confirmation letter). --------------------------------------------------------------------------- E. Kendall Coffey Kendall Coffey represented Glenn Braswell in his efforts to obtain clemency. On February 16, 2001, the Committee requested all records relating to Coffey's work on the Braswell pardon. Coffey's attorney provided records relevant to the Committee's request. These records raised a number of questions, and the Committee requested an interview with Coffey to resolve several issues regarding his role in the Braswell matter in an April 10, 2001, letter. After not receiving a response from Coffey or his attorney, the Committee again requested that Coffey participate in an interview in a letter dated June 12, 2001.\509\ On July 27, 2001, Coffey's attorney finally responded to the Committee by claiming that Coffey was ``unable to participate in an interview'' due to attorney-client privilege.\510\ Without Coffey's full cooperation, the Committee has been unable to resolve questions about the relationship between Braswell, Coffey, and Rodham. --------------------------------------------------------------------------- \509\ Letter from the Honorable Dan Burton, Chairman, Comm. on Govt. Reform Committee, to Jon A. Sale, Partner, Sale & Kuehne (June 12, 2001) (within Appendix I). \510\ Letter from Jon A. Sale, Partner, Sale & Kuehne, to the Honorable Dan Burton, Chairman, Comm. on Govt. Reform Committee (July 27, 2001) (within Appendix I). --------------------------------------------------------------------------- F. Gene and Nora Lum The Lums likewise refused to cooperate with the Committee's investigation. On September 26, 2001, the Committee had Gene and Nora Lum served with a subpoena duces tecum.\511\ For almost two months, both avoided repeated requests by the Committee for compliance with its subpoena. After numerous delays, the Lums finally replied to the Committee's subpoena by claiming that they had no responsive documents.\512\ On February 12, 2002, Gene Lum declined to be interviewed by Committee staff unless he was granted immunity from prosecution.\513\ Nora Lum likewise declined to cooperate with the Committee's investigation.\514\ --------------------------------------------------------------------------- \511\ Subpoena Duces Tecum from the Comm. on Govt. Reform to Gene K.H. Lum (Sept. 24, 2002) (within Appendix II); Subpoena Duces Tecum from the Comm. on Govt. Reform to Nora Lum (Sept. 24, 2002) (within Appendix II). \512\ Letter from Gene K.H. Lum to Pablo E. Carrillo, Counsel, Comm. on Govt. Reform (Nov. 14, 2001) (within Appendix I). Despite indications of Rodham's involvement in seeking executive clemency for the Lums and suggestions of some sort of ``business relationship'' between the Lums and Rodham, the Lums claimed that they did not have any records whatsoever relating to Rodham. Id. \513\ Letter from Honorable Dan Burton, Chairman, Comm. on Govt. Reform, to Gene K.H. Lum (Feb. 20, 2002) (within Appendix I) (memorializing request for prosecutorial immunity). \514\ Letter from the Honorable Dan Burton, Chairman, Comm. on Govt. Reform, to Nora Lum (Feb. 20, 2001) (within Appendix I). --------------------------------------------------------------------------- G. Nicole Lum On August 28, 2001, Committee staff briefly spoke to Nicole Lum. During that conversation, Nicole Lum described Hugh Rodham as ``a friend'' and ``a business associate.'' Committee staff then attempted to probe into Nicole Lum's (and her family's) relationship with Rodham and Rodham's efforts to obtain a presidential pardon for Gene and Nora Lum. Nicole Lum indicated that she was unwilling to submit to an interview without her attorney present. However, Nicole Lum ultimately declined to retain an attorney for purposes of the Committee's investigation. On February 12, 2002, February 15, 2002, and February 20, 2002, Committee staff attempted to interview Nicole Lum.\515\ Nicole Lum has not responded to the Committee's repeated requests. --------------------------------------------------------------------------- \515\ Letter from Honorable Dan Burton, Chairman, Comm. on Govt. Reform, to Nicole M. Lum (Feb. 20, 2002) (within Appendix I) (requesting interview and noting telephone calls made on February 12, 2002, and February 15, 2002). --------------------------------------------------------------------------- [Exhibits referred to follow:] CHAPTER FOUR TONY RODHAM'S ROLE IN LOBBYING FOR GRANTS OF EXECUTIVE CLEMENCY FINDINGS OF THE COMMITTEE Tony Rodham's Role in the Case of Edgar and Vonna Jo Gregory
Tony Rodham lobbied President Clinton to grant pardons to Edgar and Vonna Jo Gregory while he was receiving substantial sums of money from the Gregorys. Rodham received $244,769 in salary from the Gregorys over two and a half years and also received another $79,000 in loans from the Gregorys. The Gregorys claim that they paid Rodham this large sum of money for various consulting services that Rodham provided to the Gregorys. However, the Gregorys do not have any documentation reflecting work performed for them by Rodham. Given the fact that the Gregorys do not have any documentary evidence reflecting the $244,769 of work performed for them by Rodham, substantial questions are raised as to what Rodham actually did for the Gregorys that was so valuable. The most valuable thing that Rodham did for the Gregorys was to obtain presidential pardons. Therefore, there is a substantial question as to whether the Gregorys paid Rodham for his efforts to obtain presidential pardons for them. If Rodham was paid to obtain presidential pardons for the Gregorys, it creates the strong appearance of impropriety. The prospect of financial benefit for Rodham would taint Rodham's actions in lobbying for the pardon. Also, if President Clinton knew about Rodham's financial arrangement, it would taint his actions in granting the pardons. Compounding the appearance of impropriety in the Gregorys case is the fact that the pardons were opposed by the Justice Department, the prosecutors responsible for the case, and the Gregorys' sentencing judge. Apparently, the only people in the Clinton Administration who felt that the Gregorys deserved pardons were President Clinton and Deputy White House Counsel Bruce Lindsey, both of whom knew of Tony Rodham's involvement in the matter. Tony Rodham's Role in the Case of Fernando Fuentes Coba Tony Rodham offered to help Vivian Mannerud obtain a pardon for her father, Fernando Fuentes Coba, in exchange for $50,000. When Rodham learned in late 2000 that Mannerud was seeking a pardon for her elderly father, he met with Mannerud and told her that he could help obtain the pardon if she paid him a $50,000 consulting fee. Rodham told Mannerud that he had successfully obtained pardons before and showed her the Gregorys' pardon petition to support his claim. Rodham attempted to convince Mannerud to hire him by making a number of false representations to her. Rodham told Mannerud that he was close personal friends with the Pardon Attorney, Roger Adams. Rodham also told Mannerud that he would use the $50,000 to hire a law firm to handle her case, and that Roger Adams' wife worked at the law firm, which would help her case be treated favorably. All of these representations were completely false and were apparently made to mislead Mannerud as to the purpose of the payment to Rodham. Mannerud rejected Rodham's offer. Mannerud was concerned that Rodham could not guarantee that he could obtain a pardon in exchange for the $50,000. She was also concerned about becoming embroiled in a scandal. Therefore, she rejected Rodham's offer. After Mannerud rejected Rodham's offer, an associate of Rodham came back to Mannerud with another offer. According to Mannerud, a month after she rejected Tony Rodham's proposal, Marilyn Parker, a mutual friend of Rodham's and Mannerud's who attended the initial meeting between them, came back to Mannerud and told her that Rodham now wanted only $30,000 to help her obtain a pardon for her father. Mannerud was still concerned about the nature of Rodham's proposal and rejected it. The actions taken by Rodham and Parker may have been illegal. It appears that Rodham, and maybe Parker, tried to defraud Mannerud. While this effort was unsuccessful, it may have constituted criminal conduct. The Committee recommends that the Justice Department investigate these allegations. INTRODUCTION Like his brother, Hugh Rodham, and his brother-in-law, Roger Clinton, Tony Rodham tried to sell his access to the White House. The Committee has investigated at least two instances in which Tony Rodham was involved in discussions regarding lobbying the White House for presidential pardons. In one case, dealing with Edgar and Vonna Jo Gregory, Tony Rodham was successful and obtained pardons on March 15, 2000. Rodham's efforts on behalf of the Gregorys are troubling given several facts: (1) the Gregorys do not appear to be suitable candidates for presidential pardons; (2) Tony Rodham used his access to the President to lobby for the pardons; and (3) Tony Rodham had an extremely lucrative financial relationship with the Gregorys in which he apparently did very little work other than lobby for the presidential pardons. In the other case, it appears that Tony Rodham attempted to convince Vivian Mannerud, a prominent Democratic donor who was seeking a pardon for her father, that she should hire him to help obtain the pardon. In the course of attempting to convince Mannerud to hire him, it appears that Rodham seriously misled Mannerud about his influence with the Justice Department. Rodham was seeking as much as $50,000 for his work on this matter. While Mannerud did not accept Rodham's offer, Rodham's efforts to obtain money from Mannerud might have been criminal. Although the investigation of Tony Rodham's involvement in clemency proceedings produced important new evidence, the investigation was hampered by Tony Rodham's refusal to cooperate fully with the Committee. Though Rodham produced documents in response to a Committee subpoena, he refused to be interviewed by Committee staff. Rodham's refusal to answer questions regarding his involvement in the Gregory and Fuentes matters limited the ability of the Committee to reach definitive conclusions about certain aspects of those cases. Given Rodham's position that he did nothing improper, it is unclear why he did not want to answer questions from the Committee regarding his actions. I. EDGAR AND VONNA JO GREGORY A. Background Edgar Allen Gregory, Jr., and his wife, Vonna Jo, live outside Nashville and own United Shows of America, a carnival company which puts on the Florida State Fair and more than 30 other carnivals a year.\1\ The Gregorys have felony convictions dating from 1986 relating to their ownership of several banks in the 1970s. From November 1975 to April 1977, the Gregorys owned controlling interests in five Alabama banks.\2\ The Gregorys' banking practices came under fire from regulators, who accused the Gregorys of making unsound loans to other companies they owned and to various associates.\3\ Alabama's banking superintendent closed one of the Gregorys' banks in March 1978.\4\ In a separate matter in January 1978, regulators seized another of the Gregorys' banks, the First Bank of Macon County in Notasulga, Alabama, citing ``unsafe and unsound banking practices.'' \5\ --------------------------------------------------------------------------- \1\ Kevin Sack, Pardoned Couple Say Access Has Served Them Well, N.Y. Times, Mar. 10, 2001, at A9. A news report aired by ``Dateline NBC'' several years ago alleged that ``games of skill and chance'' were rigged in United Shows fairways. At that time, Edgar Gregory said he thought such games were legal but would investigate the allegations. See Gregory Document Production 00004-08 (``Florida State Fair's Midway--United Shows of America, Inc.: Showmanship, Entertainment, Food, Family, Fun, Memories,'' 1998 Fla. State Fair Mag.) (Exhibit 1). \2\ See Kirk Loggins, Local Man Denies Paying Tony Rodham to Seek Pardons, The Tennessean, Mar. 2, 2001, at 1A. \3\ Id. \4\ Id. \5\ Id. --------------------------------------------------------------------------- In 1982, the Gregorys were indicted on charges that they stole $800,000 in connection with their banking activities in the 1970s, sending the bank into bankruptcy.\6\ Subsequently, they were convicted of conspiring to misapply bank funds, making false statements to banks, misapplication of bank funds, and wire fraud.\7\ At that time, Edgar Gregory was sentenced to two years imprisonment and his wife to three years probation.\8\ The Eleventh Circuit Court of Appeals affirmed the conviction in part but also vacated in part.\9\ In 1986, the case was concluded when the Gregorys pleaded guilty to conspiracy and misapplication of bank funds.\10\ On October 1, 1986, Edgar Gregory and his wife were sentenced to 5 years and 3 years probation respectively.\11\ --------------------------------------------------------------------------- \6\ Id.; Marc Lacey and Don Van Natta, Jr., Second Clinton In-Law Says He Helped to Obtain Pardon, N.Y. Times, Mar. 1, 2001, at A1. \7\ Tony Rodham Document Production 000029 (Petition for Pardon After Completion of Sentence for Vonna Jo Gregory, Nov. 10, 1998) (Exhibit 2); Gregory Document Production (Petition for Pardon After Completion of Sentence for Edgar Allen Gregory, Jr., Nov. 10, 1998) (Exhibit 3). See also Florida Officials Investigating Couples State Fair Contract Extension, Associated Press State and Local Wire, Mar. 8, 2001. \8\ Id. \9\ U.S. v. Gregory, 730 F.2d 692, 706 (11th Cir. 1984). See also Florida Officials Investigating Couples State Fair Contract Extension, AP State and Local Wire, Mar. 8, 2001. \10\ Kirk Loggins, Local Man Denies Paying Tony Rodham to Seek Pardons, The Tennessean, Mar. 2, 2001, at 1A. \11\ Tony Rodham Document Production 000029 (Petition for Pardon After Completion of Sentence for Vonna Jo Gregory, Nov. 10. 1998) (Exhibit 2); Gregory Document Production (Petition for Pardon After Completion of Sentence for Edgar Allen Gregory, Jr., Nov. 10, 1998) (Exhibit 3). See also Kirk Loggins, Local Man Denies Paying Tony Rodham to Seek Pardons, The Tennessean, Mar. 2, 2001, at 1A. --------------------------------------------------------------------------- B. Tony Rodham's Relationship with the Gregorys The Gregorys had a relationship with President Clinton predating their relationship with Tony Rodham. The Gregorys made substantial contributions to Bill Clinton when he was running for President in 1992 and continued their contributions throughout President Clinton's two terms in office.\12\ By making large and frequent contributions to President Clinton's campaign, the Gregorys were able to meet with President Clinton a number of times. In total, the Gregorys met with President Clinton at least ten times while he was in office.\13\ --------------------------------------------------------------------------- \12\ According to the Center on Responsive Politics, United Shows, the Gregorys' company, has ranked among the top 6 entertainment industry companies contributing to federal candidates and committees in the last three two-year campaign cycles. According to campaign finance disclosure records, United Shows contributed $50,000 to the DCCC in 2000, $25,000 to the DNC in 1998, and $10,000 to the Democratic Senatorial Campaign Committee in 1998. According to financial disclosure records, the Gregorys also contributed a total of $4,500 to Senator Hillary Rodham Clinton in 1999 and 2000, $11,000 to the New York Senate 2000 Committee, $1,000 to President Clinton in 1995, $4,000 to Vice President Gore, $8,000 to the Tennessee Democratic Party, and $5,000 to the Democratic National Committee in 1992. During 1999 and 2000, the Gregorys, their children, and their company and its employees reportedly contributed a total of $294,000. Although the Gregorys contributed to Republican political interests during that period, eighty-nine percent of the Gregorys' contributions in that interim reportedly went to Democrats. \13\ Telephone Interview with Edgar and Vonna Jo Gregory (Apr. 2, 2001). See also Gregory Document Production (Invitation to birthday party for Hillary Rodham Clinton, Oct. 27, 1997) (Exhibit 4); Gregory Document Production (Facsimile driving instructions from Daniela Castro-Quijada, Tony Rodham & Associates, to Edgar and Vonna Jo Gregory to birthday party for Hillary Rodham Clinton (Oct. 24, 1997)) (Exhibit 5). The Gregorys declined that invitation. See Letter from Deborah L. McGee, Secretary to Howard Vine, Greenberg Traurig, to David Kass, Deputy Chief Counsel, Comm. on Govt. Reform (June 7, 2001) (within Appendix I). --------------------------------------------------------------------------- The Gregorys first met Tony Rodham while President Clinton was campaigning for his second term.\14\ They met Rodham at a small private fundraiser in Washington, D.C.\15\ Rodham apparently used such fundraisers as a venue to solicit business opportunities for his consulting firm \16\ and develop a network of associates from which he could generate cash not only for political purposes but also for his personal use. At the fundraiser, Rodham introduced himself to the Gregorys as he was making the rounds in the room.\17\ The Gregorys cannot recall how many times or in what contexts they subsequently met Rodham.\18\ But, in the period that followed, a substantial business relationship between the Gregorys and Rodham developed. Around August 1997, Rodham approached the Gregorys and asked them to hire him as a consultant for their carnival and music businesses.\19\ Rodham told the Gregorys that he could be helpful to them in securing contracts or other opportunities for their businesses.\20\ Rodham also suggested that he had contacts in the real estate and music businesses.\21\ --------------------------------------------------------------------------- \14\ Telephone Interview with Edgar and Vonna Jo Gregory (Apr. 2, 2001). \15\ Id. \16\ In a televised interview, Rodham described himself as a ``general consultant'' and someone ``who solves problems for people.'' Interview by Larry King, CNN, with Tony Rodham (Mar. 3, 2001) (``I just bring different peoples together. I help them negotiate deals.''). \17\ Telephone Interview with Edgar and Vonna Jo Gregory (Apr. 2, 2001). See Kevin Sack, Pardoned Couple Say Access Has Served Them Well, N.Y. Times, Mar. 10, 2001, at A9. \18\ Telephone Interview with Edgar and Vonna Jo Gregory (Apr. 2, 2001). \19\ Id. \20\ Id. This paragraph was added by the Gregorys to the draft Rodham originally submitted to them. \21\ Id.; Gregory Document Production (Consulting Services Agreement between Tony Rodham & Associates and Anthony D. Rodham and United Shows of America, et al. (June 6, 1998)) (Exhibit 6). --------------------------------------------------------------------------- In August 1997, Rodham provided the Gregorys with a proposed consulting services agreement.\22\ Under Rodham's proposal, he would be retained to provide ``general consulting services'' to United Shows of America.\23\ Rodham proposed that he be paid a retainer of $200,000 in addition to $2,500 per month for his labors.\24\ The Gregorys substantially revised Rodham's proposed agreement before signing it in June 1998. The main change made by the Gregorys was eliminating the $200,000 retainer. With their changes, Rodham received $2,500 per month from the Gregorys as well as a $25,000 ``signing bonus.'' \25\ In addition, the Gregorys agreed to pay at their discretion additional bonuses to Rodham for specific services provided by Rodham.\26\ Rodham also received health benefits and the use of a 1995 Chevrolet Suburban.\27\ --------------------------------------------------------------------------- \22\ Tony Rodham Document Production (Draft of Consulting Services Agreement between Tony Rodham & Associates and United Shows of America (Aug. 1, 1997)) (Exhibit 7). \23\ Id. \24\ Id. \25\ Gregory Document Production (Consulting Services Agreement between Tony Rodham & Associates and Anthony D. Rodham and United Shows of America, et al. (June 6, 1998)) (Exhibit 6). \26\ Id. \27\ Id. See also Letter from Deborah L. McGee, Secretary to Howard Vine, Greenberg Traurig, to David Kass, Deputy Chief Counsel, Comm. on Govt. Reform (June 7, 2001); Gregory Document Production (Certificate of Vehicle Registration Renewal, Dec. 5, 2000) (Exhibit 8); Gregory Document Production (Vehicle inspection report, Dec. 5, 2000) (Exhibit 9); Gregory Document Production (Insurance Enrollment Form submitted by Tony Rodham for life and health insurance to be provided by United Shows of America, Mar. 29, 1999) (Exhibit 10). --------------------------------------------------------------------------- Over the course of his relationship with the Gregorys and United Shows, Tony Rodham received a substantial sum of money. Rodham received a total of $62,985 in 1998,\28\ $85,806.27 in 1999,\29\ $93,978.66 in 2000,\30\ and at least $2,000 in 2001.\31\ In addition to the $244,769 he received in salary from the Gregorys, Rodham also received a substantial sum in personal loans. Rodham apparently had significant expenses resulting from his divorce, and, therefore, he asked the Gregorys to loan him money for expenses ranging from lawyer's fees to school tuition for his son. The Gregorys started loaning Rodham money in early 2000.\32\ In total, the Gregorys made more than ten separate loans to Rodham, all of which were consolidated into one promissory note for $72,000 payable in December 2001 at eight percent interest.\33\ According to the Gregorys, Rodham said that ``he was working on a deal and expected a large payment before the note [was] due.'' \34\ In 2001, the Gregorys loaned Rodham an additional $7,000.\35\ Despite that the loan was due in December 2001, there is no evidence that Rodham has repaid this loan, and the Gregorys' attorney informed Committee staff that he believes that Rodham has not repaid the loan. --------------------------------------------------------------------------- \28\ Gregory Document Production (1998 IRS 1099 for Tony Rodham by United Shows of America) (Exhibit 11). \29\ Gregory Document Production (1999 IRS 1099 for Tony Rodham by United Shows of America) (Exhibit 12). \30\ Gregory Document Production (2000 IRS 1099 for Tony Rodham by United Shows of America) (Exhibit 13). \31\ Telephone Interview with Edgar and Vonna Jo Gregory (Apr. 2, 2001). \32\ Id. \33\ Tony Rodham Document Production 000003-04 (Promissory Note from Tony Rodham to United Shows of America (Dec. 12, 2000)) (Exhibit 14). \34\ Telephone Interview with Edgar and Vonna Jo Gregory (Apr. 2, 2001). \35\ Id. --------------------------------------------------------------------------- From 1998 to 2001, Tony Rodham received a total of $323,769 in salary and loans from the Gregorys. A central question is whether he was paid by the Gregorys to help obtain their pardon or whether Rodham was paid for legitimate business services. The Gregorys have referred to several efforts Rodham made to obtain business for them and their company, United Shows. For example, Edgar Gregory indicated that Rodham had contacts with officials in the United Arab Emirates as part of an unsuccessful effort to bring an ``American-style'' carnival to Dubai.\36\ With the input of his sister, First Lady Hillary Rodham Clinton, Rodham did help the Gregorys obtain a contract to put on an ``old style'' carnival at the White House in 1998 and 2000.\37\ Rodham also obtained information from the State Department for the Gregorys about doing business overseas and reportedly did some unspecified ``public relations'' for the Gregorys.\38\ In an interesting twist, the Gregorys also indicated that Rodham's work for them also included bringing them investment possibilities.\39\ The Gregorys said that Rodham asked them to invest in an overseas telecommunications project and a $118 million hazelnut scheme conceived by Tony and Hugh Rodham.\40\ In essence, the Gregorys make the claim that they paid Rodham to ask them to invest in other schemes in which he was involved. There is no evidence that Tony Rodham's investment advice was in such demand that the Gregorys had to pay to be solicited by Rodham. --------------------------------------------------------------------------- \36\ Letter from Edgar and Vonna Jo Gregory to the Honorable Dan Burton, Chairman, and David Kass, Deputy Chief Counsel, Comm. on Govt. Reform (June 12, 2001) (within Appendix I). See also Telephone Interview with Edgar and Vonna Jo Gregory (Apr. 2, 2001); Kevin Sack, Pardoned Couple Say Access Has Served Them Well, N.Y. Times, Mar. 10, 2001, at A9. \37\ Telephone Interview with Edgar and Vonna Jo Gregory (Apr. 2, 2001). According to the Gregorys, Tony Rodham told them that Hillary Rodham Clinton asked him to contact them about having an ``old-time'' carnival at the White House. Id. \38\ Id. \39\ Kevin Sack, Pardoned Couple Say Access Has Served Them Well, N.Y. Times, Mar. 10, 2001, at A9. \40\ Letter from Edgar and Vonna Jo Gregory to the Honorable Dan Burton, Chairman, and David Kass, Deputy Chief Counsel, Comm. on Govt. Reform (June 12, 2001) (within Appendix I). See also Telephone Interview with Edgar and Vonna Jo Gregory (Apr. 2, 2001); Kevin Sack, Pardoned Couple Say Access Has Served Them Well, N.Y. Times, Mar. 10, 2001, at A9. The latter deal involved growing and exporting hazelnuts from the former Soviet Republic of Georgia. Letter from Edgar and Vonna Jo Gregory to the Honorable Dan Burton, Chairman, and David Kass, Deputy Chief Counsel, Comm. on Govt. Reform (June 12, 2001) (within Appendix I). See also Telephone Interview with Edgar and Vonna Jo Gregory (Apr. 2, 2001); Kevin Sack, Pardoned Couple Say Access Has Served Them Well, N.Y. Times, Mar. 10, 2001, at A9; John F. Harris, Hazelnut Flap Is Building; White House Disavows Clinton In-Law's Foreign Dealings, Wash. Post, Jan. 1, 2000, at A6; Viveca Novak and Jay Branegan, Are Hillary's Brothers Driving Off Course--Hugh and Tony Rodham Are Bill Clinton's In-laws, a Connection That's Brought Them Pain and Gain, Time, Nov. 1, 1999, at 46. In that deal, the Rodhams entered into a partnership with the political rival of President Eduard A. Shevardnadze whose government, then only tenuously in power, enjoyed the support of the Clinton Administration. See Sack, supra (and other cited authority). After the State Department complained that the deal was causing diplomatic tension, the deal was abandoned. Id. Rodham's other international business ventures were equally unimpressive. For example, in 1998, Rodham and Stephen Graham, a business partner, met with Prime Minister Hun Sen of Cambodia in that country in search of new business opportunities. Lisa Getter, Family Ties Put Rodham Brothers In Spotlight, L.A. Times, Mar. 4, 2001, at A1; Robin McDowell, Brother of U.S. First Lady Meets Cambodia Strongman on Business Trip, Associated Press, July 14, 1998. As with Rodham's initiative in the Republic of Georgia, the State Department, which had difficulty with Cambodia's human rights record, expressed concern about Rodham's dealings in that country. See Getter, supra (and other cited authority). Rodham was equally oblivious to the policy implications of his ``business trips'' when he went to Taiwan and met with Taiwanese Vice President Annette Lu. See Getter, supra; Deborah Kuo, ROC Vice President Meets US First Lady's Brothers, Central News Agency (Taipei), June 23, 2000. Taiwanese government officials who attended the meeting ``considered [the meeting] very hush-hush.'' See Getter, supra. According to one such official, ``Nobody wanted to talk about [the meeting] because [Rodham's] brother-in-law was the president--because if China knew about the trip, they might raise issues.'' Id. Not surprisingly, as was the case with Rodham's other attempts to develop international business opportunities, no deal emerged from Rodham's trip to Taiwan. Id. --------------------------------------------------------------------------- Critically, the Gregorys did not provide the Committee with a single document reflecting work performed for them by Tony Rodham. Given the fact that the Gregorys were subpoenaed to provide the Committee with ``[a]ll records reflecting work performed for you or your company by Tony Rodham,'' such records should have been produced to the Committee if they existed. Therefore, it is safe to conclude that the Gregorys do not have a single document reflecting substantive work performed for them by Tony Rodham despite the fact that they paid him $244,769 in salaries and loaned him another $79,000. Such a lack of documentation supports the conclusion that Tony Rodham performed little or no substantive valuable work for the Gregorys apart from the failed effort to stage a carnival in Dubai and the effort to stage carnivals at the White House. The Gregorys attempted to explain the lack of documentation in a letter to Chairman Burton: [We] certainly do not deny he has either sent or brought to us a great deal of information over the years, of which a lot of Tony's ideas were over the telephone and not in writing, that he thought we may be interested in investing in, as a management partner, and/or that he thought we might be interested in taking a financial position in.\41\ --------------------------------------------------------------------------- \41\ Letter from Edgar and Vonna Jo Gregory to the Honorable Dan Burton, Chairman, Comm. on Govt. Reform (June 12, 2001) (within Appendix I). However, since the Gregorys did not produce to the Committee any documentation of the work performed for them by Rodham, it is possible that the large sum of money paid to Tony Rodham by the Gregorys was compensation for Rodham's efforts to obtain pardons for the Gregorys. C. Tony Rodham's Efforts to Help the Gregorys Obtain Pardons In 1998, the Gregorys became interested in seeking presidential pardons, primarily because their convictions undermined their ability to obtain carnival contracts.\42\ In cases where bid applications specifically requested criminal history, the Gregorys were sometimes barred from bidding for contract business.\43\ In some cases, according to the Gregorys, their competitors sent fair officials information regarding their criminal history.\44\ One of the largest problems faced by the Gregorys during this time period related to their role as the primary contractor for the Florida State Fair. The Gregorys took over as primary contractor for the Fair in 1998 and soon found that their criminal convictions were posing a problem for Florida state officials. --------------------------------------------------------------------------- \42\ Telephone Interview with Edgar and Vonna Jo Gregory (Apr. 2, 2001). \43\ Telephone Interview with Edgar and Vonna Jo Gregory (Apr. 2, 2001); Marc Lacey and Don Van Natta, Jr., Second Clinton In-Law Says He Helped to Obtain Pardon, N.Y. Times, Mar. 1, 2001, at A1; Kevin Sack, Pardoned Couple Say Access Has Served Them Well, N.Y. Times, Mar. 10, 2001, at A9; Kirk Loggins, Local Man Denies Paying Tony Rodham to Seek Pardons, The Tennessean, Mar. 2, 2001, at 1A. \44\ Telephone Interview with Edgar and Vonna Jo Gregory (Apr. 2, 2001). --------------------------------------------------------------------------- Faced with the possible loss of significant business relating to state fairs, the Gregorys decided to file for pardons. They consulted with their son, David Gregory, a lawyer, as well as Greenberg Traurig, a prominent Florida law firm.\45\ The Gregorys prepared the relevant paperwork and filed their pardon petition with the Justice Department on November 14, 1998.\46\ It appears that, on that same day, the Gregorys also sent copies of their pardon petitions directly to the White House and requested that President Clinton ``[p]lease personally review the application and exhibits enclosed herein.'' \47\ --------------------------------------------------------------------------- \45\ Id. \46\ Id. See also Gregory Document Production 000144 (Letter from Vonna Jo Gregory to Roger Adams, Pardon Attorney, Department of Justice (Nov. 16, 1998)) (Exhibit 15); Marc Lacey and Don Van Natta, Jr., Second Clinton In-Law Says He Helped to Obtain Pardon, N.Y. Times, Mar. 1, 2001, at A1. \47\ Tony Rodham Document Production 000028 (Letter from Vonna Jo Gregory to President William J. Clinton (Nov. 14, 1998)) (Exhibit 16). --------------------------------------------------------------------------- After the pardon petition was filed, the Gregorys and their Greenberg Traurig lawyers remained in contact with the Justice Department. Mark Schnapp, one of the Gregorys' lawyers at Greenberg Traurig, met with Pardon Attorney Roger Adams and Helen Bollwerk, another staff attorney in the Pardon Attorney's office, to discuss the petition.\48\ Specifically, Schnapp informed them that the Gregorys' convictions were adversely impacting their business in relation to the Florida State Fair.\49\ He also told them that the Gregorys needed the pardons by February 2000 if they were to help with the contracting process in Florida.\50\ Justice Department staff asked the Gregorys or their representatives on several occasions for additional information with respect to the pardon petitions. Throughout their contacts with the Justice Department, the Gregorys and their attorneys believed that the Justice Department was ``understanding,'' and they never developed a sense that the Department viewed their petition negatively. --------------------------------------------------------------------------- \48\ Telephone Interview with Edgar and Vonna Jo Gregory (Apr. 2, 2001). \49\ Id. See also Gregory Document Production (Letter from Bob Crawford, Commissioner, Florida Department of Agriculture and Consumer Services to Roger Adams, Pardon Attorney, Department of Justice (Jan. 28, 2000)) (Exhibit 17) (urging Pardon Attorney to consider Gregorys' clemency application expeditiously because of impending contract negotiations regarding Florida State Fair). \50\ Id. --------------------------------------------------------------------------- Nevertheless, by late 1999 the Gregorys had not received their pardons, and they were growing impatient. The Gregorys approached Tony Rodham for his assistance with the pardon at a party in late 1999 or early 2000.\51\ At this point, Rodham had been on the Gregorys' payroll for a year and a half. Edgar Gregory described his request to Tony Rodham as follows: ``Tony, we've applied for a pardon, and if you can help us in any way, we'd really appreciate it.'' \52\ Gregory recalls that Rodham initially replied, ``I don't really get involved in that'' and suggested that pardons were handled at the Justice Department.\53\ According to Edgar Gregory, Rodham gave them the impression that he could not help much with their pardon petition but that ``if he could do anything, he would.'' \54\ Edgar Gregory stated that he saw Tony Rodham occasionally between late 1999 and March 2000 when he and Vonna Jo Gregory received their pardons. Edgar Gregory occasionally raised the pardon effort with Rodham, even once telling him that the Justice Department was ``putting them through the wringer'' with respect to their pardon applications.\55\ But Rodham said little to encourage them and did not tell them that he had raised the pardons with his brother-in-law or sister.\56\ --------------------------------------------------------------------------- \52\ Telephone Interview with Edgar and Vonna Jo Gregory (Apr. 2, 2001). See also Marc Lacey and Don Van Natta, Jr., Second Clinton In- Law Says He Helped to Obtain Pardon, N.Y. Times, Mar. 1, 2001, at A1. Vonna Jo Gregory believes that Rodham first became aware of their convictions in connection with their bid for the Florida State Fair, but it was in December 1999 that the Gregorys expressed to Rodham disappointment about not having been pardoned and asked him for help. Id. \51\ Id. See also Marc Lacey and Don Van Natta, Jr., Second Clinton In-Law Says He Helped to Obtain Pardon, N.Y. Times, Mar. 1, 2001, at A1. \53\ Marc Lacey and Don Van Natta, Jr., Second Clinton In-Law Says He Helped to Obtain Pardon, N.Y. Times, Mar. 1, 2001, at A1. \54\ Telephone Interview with Edgar and Vonna Jo Gregory (Apr. 2, 2001). \55\ Id. \56\ Id. --------------------------------------------------------------------------- In their interview with Committee staff, the Gregorys and their attorneys attempted to minimize the role of Tony Rodham in obtaining the pardons. They discounted the importance of Rodham's role in obtaining pardons. They claimed that the Justice Department had the predominant role in processing the Gregorys' petition, and since Tony Rodham did not have any influence at the Justice Department, Rodham was not ``necessary'' to the process.\57\ However, common sense and the evidence in this case suggest that the Gregorys' basic story-- that they believed that Rodham was not important to the pardon process--is not true. Rather, Tony Rodham had a significant role in obtaining the pardons, and the Gregorys attached some importance to Rodham's efforts. --------------------------------------------------------------------------- \57\ Id. --------------------------------------------------------------------------- First, the suggestion by the Gregorys and their lawyers that Rodham's participation was not significant because he did not have influence at the Justice Department is absurd. Obviously, when seeking Presidential pardons, it is far more important to have influence and access to the President of the United States than the Pardon Attorney or any other Justice Department staffer. Tony Rodham had this access and used it to lobby for the Gregorys' pardons. Second, Edgar Gregory did more than merely mention his pardon effort to Tony Rodham in an off-hand manner. Gregory provided Rodham with a copy of his pardon petition as well. When Committee staff initially asked Gregory why he provided Rodham with a copy of the petition, he was initially unable to provide an explanation. Then, he suggested that he gave Rodham a copy of the petition just so that Rodham would not be ``blindsided'' by the fact that they had applied for a pardon.\58\ Gregory vehemently denied that he had given Rodham a copy of the petition so that Rodham could hand-carry it to the White House or otherwise influence the pardon process.\59\ If Gregory did provide Rodham with a copy of the pardon petition so that he could hand-carry it to the President or so that Rodham could make a more impressive pitch to the President, it would undermine the Gregorys' claim that they did not place any significance on Rodham's efforts. --------------------------------------------------------------------------- \58\ Id. \59\ Id. --------------------------------------------------------------------------- Despite the Gregorys' protestations, it appears that Rodham did have a significant role in the pardon process. Rodham would not agree to an interview with Committee staff regarding his role in the Gregory pardons. Nevertheless, he did describe some of his activities to the press. According to these reports, Rodham asked President Clinton to pardon the Gregorys.\60\ Specifically, he stated, ``I didn't push. I told the President about Ed Gregory and that he had applied for a pardon. He's what the pardon process is all about.'' \61\ Rodham has recalled publicly that he told President Clinton that the Gregorys' pardon petition had been filed through the Justice Department and argued to the President that pardons for the couple ``made good sense.'' \62\ He told the President that ``[Edgar Gregory] is repentant for what he did'' and ``[the offenses for which the Gregorys were convicted were] white- collar crime[s] involving banking irregularities. He's paid his taxes. He's run a respectful business for 40 years. He's a good guy.'' \63\ It also appears that Rodham claimed that the Gregorys were deeply involved in charitable activities in Tennessee and throughout the country.\64\ Rodham also called Deputy White House Counsel Bruce Lindsey about the Gregory pardons. Lindsey stated that Rodham's call to him was ``mostly concerned about the fact that the application had been pending over in the Justice Department[,] and [he] asked me whether I could try to move it along.'' \65\ Either at that point or subsequently, Lindsey became aware that Rodham had spoken to the President.\66\ --------------------------------------------------------------------------- \60\ Marc Lacey and Don Van Natta, Jr., Second Clinton In-Law Says He Helped to Obtain Pardon, N.Y. Times, Mar. 1, 2001, at A1. \61\ Id. \62\ Id. \63\ Id. \64\ See Interview by Larry King, CNN, with Tony Rodham (Mar. 3, 2001). \65\ ``The Controversial Pardon of International Fugitive Marc Rich,'' Hearings Before the Comm. on Govt. Reform, 107th Cong. 254 (Mar. 1, 2001). \66\ Id. Howard Vine, one of the Greenberg Traurig attorneys representing the Gregorys, also called Deputy White House Counsel Bruce Lindsey and White House Counsel Beth Nolan. Vine describes those calls as ``largely procedural.'' --------------------------------------------------------------------------- D. Deliberations by the Administration According to press reports, the Justice Department opposed the Gregory pardons because the Gregorys did not ``accept the criminality of their actions.'' \67\ The United States Attorney who prosecuted the case as well as the judge responsible for sentencing the Gregorys also opposed the pardons.\68\ According to federal prosecutors, the Gregorys' activities as owners of several small Alabama banks were blatantly fraudulent; such activities included arranging unsecured loans to themselves, their friends, and other companies they owned.\69\ Ginny S. Grande, the assistant U.S. Attorney who prosecuted the Gregorys, noted, ``[The Gregorys] drained the banks that they were majority shareholders in and just ran them into the ground for this interconnecting web of companies they owned. They ran those banks with an iron fist.'' \70\ The question then is why were these recommendations ignored. --------------------------------------------------------------------------- \69\ Kevin Sack, Pardoned Couple Say Access Has Served Them Well, N.Y. Times, Mar. 10, 2001, at A9. \67\ Marc Lacey and Don Van Natta, Jr., Second Clinton In-Law Says He Helped to Obtain Pardon, N.Y. Times, Mar. 1, 2001, at A1. See also Interview with Meredith Cabe, Associate Counsel to the President, the White House (Mar. 16, 2001). However, due to the Bush Administration's refusal to produce to the Committee records relating to the consideration of pardon petitions by the Justice Department and Clinton White House, the Committee has not obtained any records from the Justice Department regarding the consideration of the Gregory pardon. Therefore, the Committee does not know the specific reasons the Justice Department opposed the Gregorys' petition. \68\ Id. \70\ Id. Federal prosecutors have noted that the Gregorys also used the Wilcox County Bank in Camden, Alabama, to buy goods from their other companies. For example, that bank ordered 10,000 job application forms from a company owned by the Gregorys for another bank with 20 employees in a town of 2,000 people. --------------------------------------------------------------------------- There is evidence indicating that the President, not White House staff, was the driving force behind the Gregory pardons. Associate White House Counsel Meredith Cabe, the primary White House lawyer responsible for processing clemency petitions, recalls that Bruce Lindsey and Beth Nolan told her that someone had raised the Gregory case with the President because the President had been asking them about the case.\71\ Former Clinton aides have publicly conceded that President Clinton expressed a strong desire to Justice Department officials to have the Gregorys pardoned.\72\ In speaking to Deputy White House Counsel, Bruce Lindsey, President Clinton ``indicated . . . that he understood that the Gregorys were unable to do business in certain states, and that competitors of the Gregorys were raising their conviction some 17, 18 years ago as a basis as to why various states shouldn't do business with them.'' \73\ According to Lindsey, President Clinton ``thought that was not fair.'' \74\ In testimony before the Committee, Lindsey elaborated as follows: --------------------------------------------------------------------------- \71\ Interview with Meredith Cabe, Associate Counsel to the President, the White House (Mar. 16, 2001). \72\ Marc Lacey and Don Van Natta, Jr., Second Clinton In-Law Says He Helped to Obtain Pardon, N.Y. Times, Mar. 1, 2001, at A1. \73\ ``The Controversial Pardon of International Fugitive Marc Rich,'' Hearings Before the Comm. on Govt. Reform, 107th Cong. 255 (Mar. 1, 2001). \74\ Id. The President's belief on pardons is that if a person makes a mistake, does something illegal, wrong, if they have paid the price for that, if they have gone to jail or they go on probation and then they live a good life from that point on forward, that they should not be denied the restoration of their rights because of that. He certainly would believe that a person 17 years afterwards shouldn't have a conviction be used to keep them from making a living. And, therefore, believed that if, in fact, they had lived a good life, if they had not been in additional trouble from that point[.] \75\ --------------------------------------------------------------------------- \75\ Id. Because Lindsey believed that the Gregorys ``were being financially hurt because of a conviction 17, 18 years ago and that they had done nothing subsequent to be in trouble with the law, that they were deserving of a pardon,'' he recommended that President Clinton consider the petition.\76\ Meredith Cabe did not find the merits of the Gregorys' petition particularly compelling.\77\ For her part, White House Counsel Beth Nolan does not recall her position on the Gregory case. Cabe recalls that Nolan was not opposed to the pardons and recommended that the President review the case.\78\ On March 15, 2000, President Clinton pardoned the Gregorys of their convictions.\79\ --------------------------------------------------------------------------- \76\ Id.; Interview with Meredith Cabe, Associate Counsel to the President, the White House (Mar. 16, 2001). To the extent that the Gregorys believed that a presidential pardon would require that they no longer disclose their convictions when applying for state carnival contracts, it appears that they were wrong. According to Pardon Attorney Roger Adams, a pardon ``does not erase or expunge the record of conviction and does not indicate innocence.'' Letter from Roger Adams, Pardon Attorney, Department of Justice, to Mark Schnapp, Counsel to Edgar and Vonna Jo Gregory, Greenberg Traurig (Mar. 15, 2000) (Exhibit 18). As Adams indicated to the Gregorys, ``On any application or other document which requires the information, a pardon recipient should disclose the fact of his or her conviction.'' Id. \77\ See Interview with Meredith Cabe, Associate Counsel to the President, the White House (Mar. 16, 2001). \78\ Id. \79\ See Gregory Document Production (Letter from Roger Adams, Pardon Attorney, Department of Justice, to Mark P. Schnapp, Counsel to Edgar and Vonna Jo Gregory, Greenberg Traurig (Mar. 15, 2001)) (Exhibit 18) (describing President Clinton's grant of clemency); Gregory Document Production (Warrant of Executive Grant of Clemency for Vonna Jo Gregory, Mar. 15, 2000, and Acknowledgement Form, Mar. 17, 2000) (Exhibit 19); Gregory Document Production (Warrant of Executive Grant of Clemency for Edgar Allen Gregory, Mar. 15, 2000, and Acknowledgement Form, Mar. 17, 2000) (Exhibit 20). See also Gregory Document Production (Letter from Edgar Allen and Vonna Jo Gregory to President William J. Clinton (Mar. 16, 2000)) (Exhibit 21) (thanking President for grant of clemency). --------------------------------------------------------------------------- E. Conclusion There are several troubling facts regarding Tony Rodham's lobbying efforts on behalf of the Gregorys: Tony Rodham was provided with $323,769 by the Gregorys for work for which there is little documentary evidence. Rodham lobbied his brother-in-law, President Clinton, and Deputy White House Counsel Bruce Lindsey in support of the Gregorys' pardons. President Clinton granted the Gregorys' pardons despite the fact that the Justice Department, relevant prosecutors, and the sentencing judge all objected to the pardon. The Gregorys' only qualification for the pardons was that they had a lucrative business which was being adversely impacted by their criminal record and that they had hired the President's brother-in-law. A full understanding of these facts has been further complicated by the refusal of Tony Rodham to cooperate with the Committee and the refusal of the Bush Administration to provide the Committee with all records relating to the consideration of the Gregory pardons. The Committee is able to conclude that Rodham was paid a significant amount of money by the Gregorys and apparently did little for them other than lobby for their pardons. However, there is not sufficient evidence to conclude definitively that the Gregorys hired Rodham for the express purpose of using him to lobby for Presidential pardons. However, the time period during which the Gregorys were seeking presidential pardons and during which they were paying Rodham overlapped substantially; therefore, it is probable that Rodham was paid for his efforts to obtain pardons for the Gregorys. This conclusion is also bolstered by Tony Rodham's subsequent attempted to use his success in the Gregorys' case to obtain payments to help others obtain pardons, described below. It is clear that Rodham had a significant role in obtaining pardons for the Gregorys. Reportedly, those individuals who were familiar with the Gregory case--the Pardon Attorney, federal prosecutors and the sentencing judge--did not believe that they should be pardoned. However, those people who were lobbied by Tony Rodham--President Clinton and Bruce Lindsey-- did believe that they should be pardoned. As in the case of many other questionable grants of clemency issued by President Clinton, the impetus for the Gregory pardons came from the President himself. It appears that the President was interested in the Gregory pardons solely because of his contacts with Tony Rodham. It is fair to conclude that, but for Tony Rodham's lobbying efforts, the Gregory pardons would not have been granted. One of the factors supporting the conclusion that Rodham was indispensable to the Gregorys' pardon effort is the Gregorys' unsuitability for presidential pardons. The Gregorys committed a serious crime, defrauding banks they owned out of substantial funds for their personal benefit. Tony Rodham himself was unable to provide much of a justification for the Gregory pardons: Tony Rodham. The Gregorys are the kind of people that the pardon system is made for. Larry King. Because? Tony Rodham. They are people--well, they're tax-paying citizens. They've been involved in different charitable organizations. They do a tremendous amount of help in their community in Nashville and throughout the rest of the country. Florida, where they do the Florida State Fair every year, they do a tremendous amount of money every year. They do a tremendous amount of money that has gone into the Florida state government's coffers.\80\ --------------------------------------------------------------------------- \80\ Interview by Larry King, CNN, with Tony Rodham (Mar. 3, 2001). It appears that the primary motivation for the pardons was the fact that the Gregorys were finding that their criminal histories were an impediment to receiving state contracts. Of course, such difficulties are the natural and fair result of criminal convictions, not by themselves a justification for pardons. However, there are also unanswered questions about the Gregory case. The most significant question is whether the President or First Lady knew of the financial relationship between Tony Rodham and the Gregorys when Rodham was lobbying the President for the pardons. In his testimony before the Committee, Deputy White House Counsel Bruce Lindsey stated that this financial relationship ``was unknown to me until I read it in paper [this] morning [of the hearing].'' \81\ Lindsey testified that he did not know if the President knew of Rodham's financial relationship with the Gregorys.\82\ In a statement to the press, Hillary Clinton stated that ``[t]hese are people he has known for some time . . . he has a personal relationship with them. He was not paid. I think there's a distinction between someone whom you've known for a number of years . . . and taking money on behalf of people he didn't know and had no personal relationship with.'' \83\ At the time Senator Clinton made her statement about the Gregory case, it had already been publicly disclosed that Tony Rodham was working as a paid consultant. Therefore, her statement that Tony Rodham ``was not paid'' is not accurate. However, her statement does not make it clear whether she knew of Tony Rodham's lucrative financial relationship with the Gregorys at the time he was lobbying the White House for their pardons. --------------------------------------------------------------------------- \81\ ``The Controversial Pardon of International Fugitive Marc Rich,'' Hearings Before the Comm. on Govt. Reform, 107th Cong. 256 (Mar. 1, 2001). \82\ Id. \83\ Hillary Clinton Defends Brother Tony, Associated Press State and Local Wire, Mar. 1, 2001. --------------------------------------------------------------------------- If the President or First Lady did know that Tony Rodham was receiving substantial sums of money from the Gregorys at the time he was lobbying the White House for their pardons, it would cast substantial doubt on the motivations of the President for issuing the pardons. It would appear that the President was not motivated by any genuine belief in the merits of the Gregorys' case, particularly given the fact that such merits did not exist. Rather, it would appear that he was motivated by the desire to help his brother-in-law cash in. Such a case would be a quintessential conflict of interest. However, given the failure of the President to address the details of his decisionmaking in the Gregorys case and other controversial grants of clemency, the public will likely never know his true motivations. II. FERNANDO FUENTES COBA In the course of its investigation, the Committee discovered that Tony Rodham attempted to become involved in lobbying for a presidential pardon for another individual, Fernando Fuentes Coba. In this case, Rodham solicited a large payment from Fuentes' daughter, Vivian Mannerud, in return for the promise to lobby for Fuentes' pardon. It appears that Rodham and an associate of Rodham's made misleading statements to Mannerud in an attempt to get her to pay Rodham to work on the case. The Fuentes case combines the unsavory aspects of Rodham's work on the Gregory matter--a blatant attempt by Rodham to sell his influence--with a potentially illegal attempt to defraud Vivian Mannerud. A. Background on Fernando Fuentes Coba In the late 1970s, Fernando Fuentes Coba started an airline charter business called American Airways Charters, Inc. (``AAC''). AAC took advantage of changes in U.S. law permitting charter flights to Cuba and, over the next several years, built a successful business based on flights between the U.S. and Cuba.\84\ After the Mariel boatlift, Fuentes, AAC, and a number of other companies and individuals were investigated for having violated U.S. law in connection with having facilitated the Mariel Boatlift. In 1982, Fuentes, seven other individuals, and four corporations were indicted for what U.S. customs officials described as a ``big, gigantic conspiracy by the Cuban Government to obtain U.S. currency'' in connection with the Mariel Boatlift.\85\ In late 1982, Fuentes was convicted of conspiring to trade with the enemy and violating the Cuban Assets Control Act in connection with the shipment of goods to Cuba.\86\ Fuentes was sentenced to a term of one-year imprisonment and a $10,000 fine.\87\ After having his appeals rejected, in 1985, Fuentes was ordered to report to prison.\88\ Rather than report, Fuentes fled to Mexico where he remained a fugitive until his death.\89\ --------------------------------------------------------------------------- \84\ Tony Rodham Document Production 000020 (Attachment B to Pardon Application of Fernando Fuentes Coba) (Exhibit 24). \85\ 8 People, 4 Companies indicted in Cuba Sealift, N.Y. Times, Feb. 26, 1982, at A14. \86\ Tony Rodham Document Production 000017 (Attachment A to Pardon Application of Fernando Fuentes Coba) (Exhibit 23). \87\ Id. \88\ Id. \89\ Telephone Interview with Vivian Mannerud (Aug. 28, 2001). Fuentes was sentenced to a term of one year in prison but, according to Mannerud, was ``fearful for his life'' because ``there were drug dealers there'' and he ``would have been lumped in as a communist.'' According to Mannerud, Fuentes ``decided not to go'' to jail for that reason. See also Mark Hosenball, Periscope, Newsweek, Mar. 11, 2002 (noting Fuentes' death). --------------------------------------------------------------------------- While a fugitive, Fuentes apparently became very ill, suffering from heart disease, stroke, two aortic aneurysms, emphysema, and diabetes.\90\ In 2000, Fuentes apparently decided that he wanted to return to the U.S. to receive medical treatment and be close to his family without serving his prison sentence.\91\ Helping Fuentes achieve this goal was his daughter, Vivian Mannerud. Mannerud, a prominent Democratic contributor who has raised or contributed hundreds of thousands of dollars, is also involved in the charter airline business and has arranged a number of high-profile flights between the U.S. and Cuba.\92\ Mannerud was herself embroiled in controversy when she solicited convicted cocaine dealer Jorge Cabrera to contribute to the DNC and arranged for Cabrera to be photographed with President Clinton. Mannerud also had $22,000 in contributions returned by the Senate campaign of Hillary Clinton when the press reported on Mannerud's role in the Cabrera matter.\93\ --------------------------------------------------------------------------- \90\ Tony Rodham Document Production 000021 (Attachment C to Pardon Application of Fernando Fuentes Coba) (Exhibit 25). \91\ Telephone Interview with Vivian Mannerud (Aug. 28, 2001). \92\ For example, Mannerud was instrumental in arranging for Elian Gonzalez's Cuban grandparents to visit the United States. See Carol Rosenberg, Longtime Air Charter Operator Set to Retire, Miami Herald, Nov. 6, 2000, at 1B. She also provided the charter for U.S. celebrities to attend the 1999 game between the Baltimore Orioles and the Cuban national team. \93\ See Carol Rosenberg, Donor Gets Angry at Democrats, Miami Herald, Apr. 21, 2000, at 1B. When her money was returned by the Clinton campaign, Mannerud stated, ``I think . . . they have to stop calling me for money, begging me for money, haunting me for money'' and recommended that the Democratic Party return to her the ``several hundred thousand dollars'' she had given in the preceding years. Id. --------------------------------------------------------------------------- Mannerud initially attempted to resolve her father's case by contacting the U.S. Attorney's office.\94\ Mannerud attempted to negotiate her father's return to the United States, claiming he could stay in a hospital in lieu of incarceration.\95\ When Mannerud concluded that the U.S. Attorney's Office could not give her any guarantees, she and her attorney, Lonnie Anne Pera, prepared a pardon petition on her father's behalf.\96\ --------------------------------------------------------------------------- \94\ Telephone Interview with Vivian Mannerud (Aug. 28, 2001). \95\ Id. \96\ Id. Mannerud did so through the assistance of her attorney in Washington, Lonnie Pera, an aviation attorney. See Tony Rodham Document Production 000005 (Fernando Fuentes Coba Pardon Petition) (Exhibit 22). --------------------------------------------------------------------------- B. The Pardon Attorney Refuses to Process Fuentes' Clemency Petition Around late October 2000, Mannerud sent her father's pardon petition to the Office of the Pardon Attorney at the Department of Justice.\97\ In the petition, Fuentes did not indicate any remorse for his crimes. Rather, he maintained his innocence and claimed selective prosecution and ineffective assistance of counsel.\98\ Fuentes also did not express regret for having fled the United States after his conviction. Rather, he claimed that he fled the country because he ``feared that anti-Castro groups would seriously injure, maim, or kill me in prison.'' \99\ --------------------------------------------------------------------------- \97\ Id. In an interview with Committee staff, Mannerud could not recall exactly when she sent the petition to the Pardon Attorney's Office. She believed that she probably did so about a month before the date on a White House document which states that Fuentes ``just applied'' for a pardon. That document is dated November 27, 2000. Mannerud's recollection that she sent the petition late in 2000 accords with her memory that, whenever she submitted the petition, someone told her that it was ``kind of late'' to apply because there was not enough time for the FBI to conduct its background check. \98\ Tony Rodham Document Production 000025 (Attachment C to Pardon Application of Fernando Fuentes Coba) (Exhibit 25). \99\ Tony Rodham Document Production 000023 (Attachment C to Pardon Application of Fernando Fuentes Coba) (Exhibit 25). --------------------------------------------------------------------------- On November 7, 2000, Pardon Attorney Roger Adams sent a letter to Mannerud's attorney stating that the Justice Department would not process Fuentes' petition because he was a fugitive.\100\ Adams explained that: --------------------------------------------------------------------------- \100\ Telephone Interview with Vivian Mannerud (Aug. 28, 2001). Mr. Coba is ineligible to apply for a presidential pardon. Pursuant to 28 C.F.R. Sec. 1.2 . . . ``[n]o petition for pardon should be filed until the expiration of a waiting period of at least five years after the date of the release of the petitioner from confinement . . . .'' Because Mr. Coba has served none of his prison sentence, he fails to meet this most basic eligibility requirement for pardon consideration. Moreover, the Department of Justice has consistently declined to accept pardon petitions from individuals, such as Mr. Coba, who are fugitives, since the pardon process assumes the Government's ability to implement either of the President's possible decisions regarding a petition--that is, a denial of clemency as well as a grant of clemency. Put another way, it is not reasonable to allow a person to ask that the President grant him a pardon which, if granted, would have the effect of eliminating the term of imprisonment to which he has been sentenced, while at the same time insulating himself from having to serve the sentence if the pardon is denied.\101\ --------------------------------------------------------------------------- \101\ Vivian Mannerud Document Production (Letter from Roger Adams, Pardon Attorney, Department of Justice, to Lonnie Anne Pera, Counsel to Vivian Mannerud, Zuckert Scoutt & Rasenberger (Nov. 7, 2000)) (Exhibit 28). The Justice Department's application of the foregoing policy, whereby it does not even consider pardon petitions from fugitives, stands in marked contrast to how the policy was applied in the Marc Rich and Pincus Green case. Clearly, the policy expressed by Roger Adams in the Fuentes case should have applied equally in the Marc Rich case. In the Rich case, of course, the White House considered and granted the Rich and Green pardons contrary to Justice Department policy. Moreover, the Deputy Attorney General, Eric Holder, expressed his support for the pardons despite the express contrary policy of his own Department. The fact that Fuentes' petition was summarily rejected confirms that Jack Quinn was right in thinking that he needed to circumvent the Justice Department in order to obtain pardons for Marc Rich and Pincus Green. Fuentes' summary rejection by the Justice Department also leads one to speculate that Fernando Fuentes Coba and Vivian Mannerud might have been more successful if they had hired Tony Rodham to lobby for the pardon. Despite the fact that the Justice Department declined to process her father's pardon petition, Mannerud gave the pardon petition to ``a lot of people--anyone who could help make sure that the application wasn't just put on a pile.'' \102\ Among the people to whom Mannerud gave copies of the petition was Joe Perez, a friend of Mannerud's in California, who, according to Mannerud, owns J. Perez & Associates, a travel services company.\103\ Mannerud believed that Perez knew ``one of the Clinton brothers--probably Roger Clinton, because he is in California too.'' \104\ Ultimately, Mannerud understood that Perez was going to speak to ``his contact'' about her father's pardon petition.\105\ But, in hindsight, Mannerud does not know whether Perez did so.\106\ Mannerud also gave a copy of the petition to a friend named Joe Velazquez who, according to Mannerud, ran a Hispanic outreach program and had worked at the Clinton White House.\107\ Mannerud does not know what, if anything, Velazquez did in support of her father's petition.\108\ --------------------------------------------------------------------------- \102\ Telephone Interview with Vivian Mannerud (Aug. 28, 2001). \103\ Id. \104\ Id. In connection with its investigation of Roger Clinton, the Committee learned that Clinton was in business with Perez and a number of other individuals in Los Angeles who were in the business of arranging travel to Cuba. \105\ Id. \106\ Id. \107\ Id. \108\ Id. But see NARA Document Production (Draft of document entitled ``Pending Clemency Matters'' by Meredith Cabe, Associate Counsel to the President, the White House (Dec. 10, 2000)) (Exhibit 29) This document, which was retrieved from the work file of Deputy White House Counsel Bruce Lindsey, indicates that ``Velazquez spoke to POTUS re: case.'' Id. at 3. --------------------------------------------------------------------------- C. Tony Rodham's Attempt to Become Involved in the Fuentes Clemency Effort Tony Rodham became involved in the Fuentes matter in November 2000.\109\ Mannerud was introduced to Rodham at the Mayflower Hotel by their mutual friend, Marilyn J. Parker.\110\ Parker, like Mannerud, was a prominent Democratic contributor. Parker also was involved in business with Tony Rodham. Rodham invested in a Florida company called Environmental Energy Fuels, which has developed a reportedly environmentally- sensitive gasoline additive.\111\ Well before the meeting at the Mayflower Hotel, Parker had offered Rodham, and Rodham accepted, an opportunity to obtain shares in that company.\112\ In August 2001, Parker pleaded guilty to five felonies in connection with $145,000 she paid in bribes to Miami airport officials in return for $1.5 million in no-bid work at the airport.\113\ --------------------------------------------------------------------------- \109\ Telephone Interview with Vivian Mannerud (Aug. 28, 2001). \110\ Id. \111\ Lisa Getter, Family Ties Put Rodham Brothers In Spotlight, L.A. Times, Mar. 4, 2001, at A1. \112\ Id. \113\ Joseph Tanfani, Case Could Bring More Prosecutions, Miami Herald, Aug. 4, 2001, at 20A. --------------------------------------------------------------------------- According to Parker, Mannerud initially spoke to her about her father's pardon matter during a trip in New York.\114\ During that trip, which, according to Parker, occurred around September 2000, Mannerud talked about her father's age and deteriorating physical condition as well as his desire to return to the United States.\115\ Parker offered to write a letter in support of his petition.\116\ According to Parker, the gist of her letter was simply that she knew that Fuentes was aged and in ill health.\117\ Parker had no opinion as to why Mannerud thought that, given her limited knowledge about the matter, her support would have been meaningful.\118\ Parker initially characterized her role as being limited to drafting the letter.\119\ However, she later conceded that she had also arranged and participated in a meeting between Tony Rodham and Vivian Mannerud.\120\ --------------------------------------------------------------------------- \114\ Telephone Interview with Marilyn J. Parker (Dec. 18, 2001). \115\ Id. \116\ Id \117\ Id. \118\ Id. \119\ Id. \120\ Id. --------------------------------------------------------------------------- After discussing the pardon effort with Mannerud in New York, Parker decided that Tony Rodham might be able to assist Mannerud.\121\ Therefore, she called Rodham, and he suggested that Parker and Mannerud meet him for a drink that afternoon in the Mayflower Hotel.\122\ At the hotel, Rodham and Mannerud talked about her father's pardon petition.\123\ According to Parker, the meeting lasted no more than an hour.\124\ Mannerud and Rodham discussed why she was seeking a pardon for her father and what avenues Mannerud had pursued to date.\125\ Rodham then told Mannerud that he could help her obtain the pardon for her father.\126\ Rodham told Mannerud that he had previously helped two individuals obtain pardons and even brought a copy of their clemency petition with him to the meeting.\127\ Rodham then told Mannerud that he would help her if she paid him.\128\ --------------------------------------------------------------------------- \121\ Id. \122\ Id. \123\ Id. \124\ Id. \125\ Telephone Interview with Vivian Mannerud (Aug. 28, 2001). \126\ Id. \127\ Id. Neither Parker nor Mannerud was able to specifically recall the names of the individuals mentioned by Rodham, although Mannerud did remember that they were ``carnival people.'' This reference strongly suggests that Rodham mentioned the Gregorys' case to Mannerud. The petition that Rodham showed to Mannerud was so thick that Mannerud ultimately redrafted her father's petition. \128\ Id. --------------------------------------------------------------------------- Mannerud asked Rodham what exactly he would do to help get the pardon.\129\ Rodham explained that ``it costs money,'' specifically $50,000, which would be paid to Rodham and then ``go to an attorney'' to work on the matter.\130\ When Mannerud pressed Rodham for more details of how exactly he would help get the pardon, Rodham explained that he knew the Pardon Attorney, Roger Adams.\131\ He stated that Adams was from Arkansas and that he had ``known Adams forever.'' \132\ Rodham then told Mannerud that ``after the Administration, we're all out of jobs.'' \133\ Mannerud understood that Rodham was referring to himself and Adams.\134\ Rodham then told Mannerud he would hire a law firm to prepare her father's pardon petition and Roger Adams' wife was associated with this law firm.\135\ When Mannerud asked if he could guarantee that her father would be pardoned, Rodham demurred.\136\ Mannerud then told Rodham that she had had ``her share of scandals'' and wanted no part of Rodham's proposal.\137\ --------------------------------------------------------------------------- \129\ Id. \130\ Id. \131\ Id. \132\ Id. \133\ Id. \134\ Id. \135\ Id. \136\ Id. \137\ Id. --------------------------------------------------------------------------- Mannerud's account of the Mayflower meeting with Rodham is corroborated in large part by Marilyn Parker. Parker does not recall a number of details of the meeting and attributes her poor memory to the fact that Rodham and Mannerud did most of the talking at the meeting.\138\ However, she confirms that Rodham explored with Mannerud ``whether there was any way they could work together'' on the pardon matter.\139\ She also confirms that Rodham mentioned his previous work on a pardon matter.\140\ Parker also confirms that Rodham mentioned he knew a person handling the pardons, a law firm that worked with DOJ on pardons, and that a wife of a Justice Department official worked at the law firm.\141\ Parker also believes that it was possible that Rodham ``expressed his desire to be paid'' for his work on the Fuentes matter but could not recall whether Rodham specifically sought $50,000.\142\ --------------------------------------------------------------------------- \138\ Telephone Interview with Marilyn J. Parker (Dec. 18, 2001). \139\ Id. \140\ Id. \141\ Id. \142\ Id. --------------------------------------------------------------------------- According to Mannerud, in December 2000, about a month after the first meeting, Marilyn Parker called her about the possibility of Rodham helping her with the effort to obtain a pardon for Fuentes.\143\ Parker told Mannerud that Rodham had lowered his asking price and wanted only $30,000.\144\ Mannerud asked once again if there were any guarantees, to which Parker responded that there were not.\145\ Parker asked Mannerud to consider the offer, emphasizing her father's poor health.\146\ Ultimately, Mannerud told Parker in strong terms that she did not want to be involved in such an arrangement with Rodham.\147\ After that discussion, Mannerud had no further discussions about the clemency matter with either Parker or Rodham.\148\ Mannerud continued her efforts to obtain a pardon for her father but was unsuccessful. --------------------------------------------------------------------------- \143\ Telephone Interview with Vivian Mannerud (Aug. 28, 2001). \144\ Id. \145\ Id. \146\ Id. \147\ Id. \148\ Id. --------------------------------------------------------------------------- Parker denies Mannerud's account of this subsequent telephone call. According to Parker, Rodham simply asked her whether she had spoken to Mannerud ``about her father.'' \149\ As for a subsequent conversation with Mannerud, Parker remembered only having asked Mannerud how the pardon effort was going and that Mannerud became upset.\150\ Parker flatly denied having approached Mannerud on Rodham's behalf with a reduced offer of $30,000 for services relating to Fuentes' pardon proceedings.\151\ --------------------------------------------------------------------------- \149\ Id. \150\ Id. \151\ Id. --------------------------------------------------------------------------- D. Tony Rodham's Representations to Mannerud Were Fraudulent Tony Rodham's activities in the Fuentes case go beyond an attempt by Rodham to sell his political access for $50,000. Rather, Rodham's actions were a potentially criminal attempt to defraud Vivian Mannerud of $50,000 by making serious misrepresentations to her about the actions he would take to help her. Almost all of the statements made by Rodham to Mannerud in the course of his efforts to be hired by Mannerud were false. Tony Rodham does not know Roger Adams or his wife.\152\ In fact, Adams has never met Tony or Hugh Rodham. Adams is not from Arkansas and has been to Arkansas only once in his life, in the 1970s.\153\ Adams' wife does not work for a law firm at all, let alone one that handles pardon matters.\154\ In fact, Adams' wife is not even an attorney.\155\ When Committee staff informed Mannerud that Rodham in fact had no relationship with Adams, she stated that she was ``shocked'' because Rodham left no doubt that he was close with Adams and that he intended to use that relationship to obtain the pardon for Fuentes.\156\ --------------------------------------------------------------------------- \152\ Telephone Interview with Roger Adams (Sept. 4, 2001). \153\ Id. \154\ Id. \155\ Id. \156\ Telephone Interview with Vivian Mannerud (Aug. 28, 2001). --------------------------------------------------------------------------- There are several questions about Tony Rodham's actions in this case. First, what is Rodham's response to Mannerud's charges? Second, what was Rodham's motivation for making these false representations to Mannerud? Third, were the actions taken by Rodham and Marilyn Parker criminal? Due to Rodham's refusal to participate in an interview, the Committee has not been able to determine Rodham's response to these charges. However, in the absence of Rodham's cooperation, it still appears that there is substantial corroboration for Mannerud's account. First, Marilyn Parker recalls a number of key details from the first meeting at the Mayflower Hotel. Second, Tony Rodham had in his possession a copy of Fernando Fuentes Coba's pardon petition. Third, Mannerud has provided the Committee with a detailed and credible account. It is difficult to divine Tony Rodham's motivation for making these false representations to Vivian Mannerud. It is possible that Rodham was concerned about the appearance of impropriety if he asked for $50,000 to lobby his sister or brother-in-law for a pardon, especially considering the fact that he was not an attorney. To address this concern, Rodham may have concocted a cover story that he needed the $50,000 to hire a law firm which was close to Roger Adams when in reality no such firm existed and Rodham was going to keep the $50,000 for himself. The final, and most important, question is whether the actions taken by Tony Rodham or Marilyn Parker were criminal. It is certainly possible that Rodham and Parker engaged in a conspiracy to defraud Mannerud. Clearly, Mannerud ended up rejecting the overtures from Rodham and Parker and was never defrauded of any funds. However, the actions by Rodham and Parker may have amounted to a criminal conspiracy.\157\ The Committee does not have sufficient evidence at this point to conclude that criminal conduct took place but strongly recommends that the Department of Justice examine this case and obtain sworn testimony from all of the relevant actors. --------------------------------------------------------------------------- \157\ Based on the information currently available to the Committee, it appears that Tony Rodham and Marilyn J. Parker might be criminally liable for conspiracy under 18 U.S.C. Sec. 371 or 18 U.S.C. Sec. 1343 (wire fraud). Liability as to Rodham and Parker under those statutes turns on the extent to which Rodham and Parker devised or intended to devise a scheme to defraud Mannerud and whether the telephone call by Parker to Mannerud was made interstate and in furtherance of the underlying scheme. If Parker did not conspire with Rodham to defraud Mannerud, it appears that liability as to Parker turns on whether she knowingly and willingly participated in Rodham's fraud scheme. See, e.g., U.S. v. Maxwell, 920 F.2d 1028 (C.A.D.C. 1990). --------------------------------------------------------------------------- [Exhibits referred to follow:] CHAPTER FIVE THE GRANT OF CLEMENCY TO DRUG MONEY LAUNDERER HARVEY WEINIG FINDINGS OF THE COMMITTEE Weinig was properly imprisoned for conspiring to launder millions of dollars in drug money and concealing and furthering an extortion-by-kidnapping scheme.
Weinig, a former Manhattan attorney, conspired to launder about $19 million dollars in drug proceeds through a Swiss bank for the Cali cartel. Members of the money laundering organization, of which Weinig was a part, boasted that they successfully laundered more than $70 million for the cartel. In addition to conducting banking transactions for the organization, Weinig consulted with co-conspirators in furtherance of the organization's activities and stored the drug proceeds in his New York City apartment. Weinig and other co-conspirators at his law firm stole from the Cali cartel about $2.5 million they were supposed to have laundered. This theft exposed Weinig's family to a risk of being harmed by those drug dealers. In the course of investigating the organization's money laundering activities, authorities intervened when they learned that the drug dealers sent a hit man to kill one of Weinig's co- conspirators. Weinig learned that one of his co-conspirators kidnapped an individual as part of a scheme to extort money from the victim's family. Rather than report the kidnapping, Weinig made his office available as a meeting place where the ransom could be delivered and directed his associates at the firm to execute transfer agreements. Weinig's lawyer, a prominent Washington attorney with close connections to the Clinton Administration, lobbied the White House in support of Weinig's clemency petition. Weinig's wife, Alice Morey, retained Reid Weingarten, who was close to the Clinton White House, to lobby for the commutation. In April 2000, Weingarten filed a clemency petition on Weinig's behalf with the Justice Department and the White House. Knowing that the Justice Department would advise the President to reject the Weinig commutation petition, Weingarten lobbied the White House directly, approaching White House Counsel Beth Nolan, Deputy White House Counsel Bruce Lindsey, and Chief of Staff John Podesta. Weingarten chose not to familiarize himself with the facts of Weinig's underlying conviction. Accordingly, he was unable to convey to those he lobbied a full, accurate, factual basis of the merits of Weinig's petition. Two former Clinton Administration officials, David Dreyer and Harold Ickes, lobbied the White House on Weinig's behalf. Alice Morey enlisted the assistance of her cousin, former White House Deputy Communications Director David Dreyer. Dreyer repeatedly raised the Weinig commutation with John Podesta. Ultimately, Podesta recommended that the President grant the Weinig commutation. Dreyer has invoked his Fifth Amendment rights rather than cooperate with the Committee's investigation. Morey also obtained support for Weinig's commutation from former Deputy Chief of Staff Harold Ickes, whose children attended the same school as did her sons. Ickes discussed the Weinig case with President Clinton twice and recommended the commutation of Weinig's sentence. The Justice Department repeatedly and adamantly recommended against the commutation of Weinig's sentence. On several occasions, U.S. Attorney Mary Jo White, whose office convicted Weinig, objected to any reduction of Weinig's sentence. Ultimately, in a report to President Clinton, the Pardon Attorney and Deputy Attorney General Eric Holder voiced their strong opposition to a commutation of Weinig's sentence. Pardon Attorney Roger Adams submitted a report to the President advising against the Weinig commutation. Adams pointed out that Weinig ``was a well-respected lawyer who used his professional skills to assist in laundering millions of dollars that he knew constituted the proceeds of a huge narcotics trafficking enterprise. He was involved in this activity for an extended period of time, and he admits that he engaged in it purely out of greed.'' Adams also informed the President that Weinig ``aided and abetted the extortion of money from an individual he knew had been kidnapped at the direction of a co-defendant in order to coerce the production of a ransom.'' After an apparently cursory review, the White House set aside the Justice Department's negative recommendation and granted Weinig clemency. Support for Weinig's petition from John Podesta and Beth Nolan appears to have been critical. The Associate White House counsels responsible for clemency matters did not support the petition. However, setting aside the negative recommendations of not only the Justice Department but also staff at the White House Counsel's Office, Nolan and Lindsey, who were lobbied by Weingarten, recommended Weinig's clemency to President Clinton. John Podesta, who was lobbied by Weingarten and Dreyer, also recommended to the President that Weinig's sentence be commuted. The White House was unjustified in commuting Weinig's sentence. None of the arguments made by Weinig entitle him to executive clemency. In his petition, Weinig stated three main reasons why his sentence should have been commuted: (1) his sentence was disproportionate and excessive; (2) his contributions to society justified his early release from prison; and (3) one of his children was suffering emotional difficulties as a result of his imprisonment and needed him to return home. The first reason is simply not true. Weinig's sentence was comparable to those received by other co- conspirators who were directly responsible for laundering large amounts of drug money and declined to cooperate with authorities. Weinig's sentence was also comparable to those received by co-defendants who participated in the extortion-by- kidnapping scheme, which Weinig concealed and facilitated. The other two reasons fail to distinguish Weinig from the vast number of other similarly situated felons, who were properly sentenced but whose families have suffered because of their imprisonment. President Clinton's commutation of Weinig's sentence has sent out the wrong message about the United States' commitment to fighting drug trafficking. President Clinton's decision conveyed an appearance of granting special consideration to wealthy, politically well- connected criminals and their relatives. Pardon Attorney Roger Adams foresaw the message sent by the Weinig commutation, warning President Clinton that ``[t]o commute [Weinig's] prison term to the five years he proposes would denigrate the seriousness of his criminal misconduct, undermine the government's legitimate interest in encouraging prompt guilty pleas and truthful cooperation from criminal defendants, and could give the appearance of granting special consideration to economically advantaged, white-collar offenders.'' The Weinig commutation undermines the nation's efforts to fight the illegal drug trade. Complaints are frequently made that U.S. drug laws punish low-level drug criminals too severely yet do not punish high-level drug distributors enough. When a large-scale drug money launderer like Harvey Weinig receives executive clemency after serving five years of an eleven-year sentence, it sends the message that the U.S. is not serious about prosecuting the high-level criminals who make the drug trade possible. The Weinig commutation has eroded the United States' moral authority to press other countries to fight the drug trade within their own borders. The Weinig commutation could harm the efforts of the U.S. government to extradite drug traffickers and money launderers from Latin America. Newspapers in Latin American countries have accused the U.S. of hypocrisy in the Weinig case. For example, in Colombia's leading daily, former Colombian attorney general Gustavo De Greiff, in an op- ed entitled ``The Morality of the Strongest,'' labeled President Clinton's clemency decision ``monstrous.'' I. BACKGROUND Harvey Weinig was among the 36 prisoners whose sentences were commuted on President Clinton's last day in office. Weinig, a former Manhattan attorney, was centrally involved in conspiring to launder about $19 million in drug proceeds through a Swiss bank for the Cali cocaine cartel.\1\ Weinig also actively participated in a kidnapping and extortion plot.\2\ --------------------------------------------------------------------------- \1\ See U.S. Probation Office (S.D.N.Y.) Document Production (Pre- sentence Investigation Report, U.S. v. Weinig (S.D.N.Y. Mar. 19, 1996)) at 14 (Exhibit 1); NARA Document Production (Letter from Mark P. Goodman, Assistant U.S. Attorney for the S.D.N.Y., Department of Justice, to John R. Wing, Member, Weil, Gotshal & Manges (Sept. 20, 1995)) (Exhibit 2). \2\ See U.S. Probation Office (S.D.N.Y.) Document Production (Pre- sentence Investigation Report, U.S. v. Weinig (S.D.N.Y. Mar. 19, 1996)) at 29 (Exhibit 1). --------------------------------------------------------------------------- The efforts that led to Weinig's conviction began in February 1994 when the Federal Bureau of Investigation, the Drug Enforcement Administration, and the New York City Police Department jointly investigated a large international money laundering organization.\3\ Ultimately, the organization was found to have laundered tens of millions of dollars in narcotics proceeds generated in the U.S., Puerto Rico, and other locations.\4\ In connection with that investigation, law enforcement authorities seized almost $5 million in drug proceeds from members of the organization.\5\ --------------------------------------------------------------------------- \3\ Id. at 17. \4\ Id. at 22. \5\ Id. --------------------------------------------------------------------------- A. Weinig and His Co-Conspirators As members of the money laundering organization, Weinig and his law partner, Robert Hirsch, used their firm, Hirsch Weinig, to launder drug proceeds for the benefit of their clients, including members of the Cali cocaine cartel in Colombia.\6\ After Weinig and Hirsch formed their partnership in October 1993, they helped a German resident named Tohmes Peter retrieve large sums of money that had been seized by law enforcement due to a suspicion that the money was related to drug sales.\7\ To assist in the effort, Weinig recruited Richard Spence, a client and former New York City fireman who became a leader of the money laundering organization.\8\ Weinig and Hirsch incorporated Transglobal Import Export Trading Co., Inc., so that Spence could open a corporate bank account through which he could operate his end of the money laundering scheme.\9\ --------------------------------------------------------------------------- \6\ See id. at 19 (describing co-defendants Miguel Omar Garrabito Botero, Amparo Hurtado Valencia, Juliana (last name unknown), and Carlos Lopez as associated with Cali cocaine cartel). \7\ NARA Document Production (Report to the President on Proposed Denial of Executive Clemency for Harvey Weinig) at 2 (Exhibit 3). \8\ See id. \9\ See id. --------------------------------------------------------------------------- Weinig, Hirsch, and Spence divided responsibilities in the money laundering operation. Weinig conducted banking transactions for the organization and consulted with co- conspirators Hirsch and Richard Spence about the organization's activities.\10\ Weinig also stored the proceeds from the money laundering operation in his New York City apartment.\11\ Hirsch coordinated laundering activities with Spence in New York, Tohmes Peter and Juan Guillermo Ocampo in Germany, and Leon Shulum Weinmann and his wife, Rachel, in Switzerland.\12\ As part of the money laundering conspiracy, the Weinmanns received money transfers in Switzerland and remitted them to bank accounts designated by their principals.\13\ Spence was responsible for organizing pickups of the drug money, depositing the money into bank accounts without raising suspicion, and wire-transferring the money to various other accounts with the intent of concealing its nature and source.\14\ --------------------------------------------------------------------------- \10\ U.S. Probation Office (S.D.N.Y.) Document Production (Pre- sentence Investigation Report, U.S. v. Weinig (S.D.N.Y. Mar. 19, 1996)) at 18 (Exhibit 1). \11\ Id. \12\ Id. at 19. Ocampo was previously convicted in New York of selling narcotics, for which he was sentenced to 5 years to life imprisonment and released on parole in or about May 1987. Id. In September 1994, Ocampo was re-arrested in Colombia. Id. \13\ Id. \14\ Id. --------------------------------------------------------------------------- Other co-conspirators included Michael Kalanz, a police officer at the 48th Precinct in the Bronx, who counted, stored (sometimes in his locker at the Precinct), and transported hundreds of thousands of dollars in drug proceeds; Charles Bruno, a New York City fireman who acted as a courier; Alexander Schwartz, a rabbi who picked up drug proceeds throughout the U.S. and returned them to New York City; Latchezar Christov, reportedly a Bulgarian diplomat who received drug proceeds in California and shipped them via overnight courier to New York City; and Gary Salerno, an enforcer of the money laundering organization who intimidated and collected money from various individuals.\15\ --------------------------------------------------------------------------- \15\ Id. at 19-21. See also Joseph B. Treaster, U.S. Says It Uncovered a $100 Million Drug-Money Laundry, N.Y. Times, Dec. 1, 1994, at B1; John J. Goldman, ``White-Collar'' Money Laundry Is Smashed Crime: Lawyers, Rabbis, a Police Officer and an L.A. Diplomat are Among 23 Charged. Ring Handled Tens of Millions of Dollars in Drug Proceeds, Officials Say, L.A. Times, Dec. 1, 1994, at A7. On July 21, 1994, Salerno was arrested by NYPD for extortion involving physical injury and attempted grand larceny; and, on November 16, 1994, he was arrested for conspiracy to traffick in firearms, a federal offense. U.S. Probation Office (S.D.N.Y.) Document Production (Pre-sentence Investigation Report, U.S. v. Weinig (S.D.N.Y. Mar. 19, 1996)) at 20 (Exhibit 1). A contemporaneous search of Salerno's residence uncovered a ``hitman's kit'' containing a garrotte (a device used to strangle and sever the vocal chords of the intended victim), three pairs of handcuffs, a handgun, two rifles, ammunition, a law enforcement badge bearing the name of another, and a bugging device. Id. --------------------------------------------------------------------------- B. The Money Laundering Operation The money laundering conspiracy typically operated as follows. A narcotics trafficker or his representative (for example, Juan Guillermo Ocampo) would contact a member of the money laundering network (for example, Spence and later Hirsch) to pick up a parcel of cash on the street or in a hotel in a particular city.\16\ The cash in those parcels was generated from street sales of cocaine and totaled anywhere from tens of thousands to hundreds of thousands of dollars.\17\ A member of the network, sometimes a courier, would then retrieve the parcel at the given location and deliver it to a leader in the network (for example, Spence) who would count and deposit the money into bank accounts controlled by Weinig, Hirsch, or Spence.\18\ From such accounts, Weinig, Hirsch, or Spence would then transfer the money by wire or other means to the Weinmanns in Switzerland or elsewhere.\19\ Through a foreign money exchange, the drug proceeds would then be auctioned to ``brokers'' who typically bid about 85 cents on the dollar for $10 million to $20 million bundles.\20\ The brokers would then generally have to return 85 percent of the cash to the Weinmanns within a fixed period.\21\ With the proceeds safely laundered, the Weinmanns would send the cash to bank accounts designated by their principals in Colombia.\22\ Members of the organization would ultimately be compensated for their services by receiving about 7 percent of the amount laundered, which between 1993 and 1994 equaled between $70 million and $100 million.\23\ --------------------------------------------------------------------------- \16\ Telephone Interview with Mark Levin, former Special Agent, Drug Enforcement Administration (Mar. 22, 2001). During the federal investigation of Weinig's money laundering activities, Levin was with the New York field division of the DEA and was the primary case agent in the investigation. See also U.S. Probation Office (S.D.N.Y.) Document Production (Pre-sentence Investigation Report, U.S. v. Weinig (S.D.N.Y. Mar. 19, 1996)) at 22 (Exhibit 1). After Peter and Ocampo began contacting Hirsch directly in the U.S., Hirsch contacted Spence, who would arrange for the cash to be picked up and retrieved back to him in New York. Id. Hirsch's increased involvement in the conspiracy was corroborated by his attendance at meetings in Switzerland with, among others, Weinmann and Peter from January 31, 1994, through February 1, 1994. Id. At that meeting, during which the network's laundering activities were discussed, the Weinmanns reportedly stated that they, with Peter's assistance, laundered about $72 million. Id. \17\ Telephone Interview with Mark Levin, former Special Agent, Drug Enforcement Administration (Mar. 22, 2001); U.S. Probation Office (S.D.N.Y.) Document Production (Pre-sentence Investigation Report, U.S. v. Weinig (S.D.N.Y. Mar. 19, 1996)) at 22 (Exhibit 1). \18\ See Telephone Interview with Mark Levin, former Special Agent, Drug Enforcement Administration (Mar. 22, 2001). See also U.S. Probation Office (S.D.N.Y.) Document Production (Pre-sentence Investigation Report, U.S. v. Weinig (S.D.N.Y. Mar. 19, 1996)) at 22-23 (Exhibit 1). \19\ Telephone Interview with Mark Levin, former Special Agent, Drug Enforcement Administration (Mar. 22, 2001); U.S. Probation Office (S.D.N.Y.) Document Production (Pre-sentence Investigation Report, U.S. v. Weinig (S.D.N.Y. Mar. 19, 1996)) at 22-23 (Exhibit 1). Joseph B. Treaster, U.S. Says It Uncovered a $100 Million Drug-Money Laundry, N.Y. Times, Dec. 1, 1994, at B1. \20\ Telephone Interview with Mark Levin, former Special Agent, Drug Enforcement Administration (Mar. 22, 2001); Timothy O'Brien, Embarrassment of Riches: Cartels Use U.S. Lawyers to Launder Drug Fortunes, Asian Wall St. J., May 30, 1995, at A1. \21\ Telephone Interview with Mark Levin, former Special Agent, Drug Enforcement Administration (Mar. 22, 2001); Timothy O'Brien, Embarrassment of Riches: Cartels Use U.S. Lawyers to Launder Drug Fortunes, Asian Wall St. J., May 30, 1995, at A1. \22\ Telephone Interview with Mark Levin, former Special Agent, Drug Enforcement Administration (Mar. 22, 2001); U.S. Probation Office (S.D.N.Y.) Document Production (Pre-sentence Investigation Report, U.S. v. Weinig (S.D.N.Y. Mar. 19, 1996)) at 23 (Exhibit 1). See also Joseph B. Treaster, U.S. Says It Uncovered a $100 Million Drug-Money Laundry, N.Y. Times, Dec. 1, 1994, at B1. \23\ Telephone Interview with Mark Levin, former Special Agent, Drug Enforcement Administration (Mar. 22, 2001); U.S. Probation Office (S.D.N.Y.) Document Production (Pre-sentence Investigation Report, U.S. v. Weinig (S.D.N.Y. Mar. 19, 1996)) at 22-23 (Exhibit 1). When the co- conspirators of the money laundering ring discussed their activities over the phone, they often used coded language to conceal the actual nature of their conversations. For example, they referred to money as ``paper'' and units of $1 million as ``containers.'' Id. at 18. See also Timothy O'Brien, Embarrassment of Riches: Cartels Use U.S. Lawyers to Launder Drug Fortunes, Asian Wall St. J., May 30, 1995, at A1. --------------------------------------------------------------------------- C. Weinig and His Co-Conspirators Run Afoul of the Colombian Cocaine Cartel The organization lost money throughout 1993 and 1994, when law enforcement arrested some of its couriers in San Juan, Puerto Rico, and Houston, Texas, and seized drug proceeds they carried.\24\ In response to those seizures, Weinig, Hirsch, and Spence filed fraudulent claims of ownership with the DEA, typically asserting that the money seized from their couriers represented the proceeds of payment ``for a sale of precious stones [by Spence] . . . acquired and sold overseas.'' \25\ --------------------------------------------------------------------------- \24\ U.S. Probation Office (S.D.N.Y.) Document Production (Pre- sentence Investigation Report, U.S. v. Weinig (S.D.N.Y. Mar. 19, 1996)) at 23 (Exhibit 1). \25\ Id. at 25. On November 4, 1993, the Hirsch Weinig law firm filed a complaint in federal court alleging that a hotel allowed someone to take a suitcase containing $260,000, which was left by Rabbi Alexander Schwartz, one of their couriers. Id. at 24-25. The firm subsequently filed, on February 14, 1994, a claim of ownership with the DEA for entitlement to those proceeds. Id. at 25. The law firm also filed three false claims on July 13, 1994, for $1,053,200 (with respect to a seizure from another courier, Charles Bruno), $1,010, and $802,893. The law firm filed another false claim on March 24, 1994, for $676,392 (with respect to proceeds seized from Gary Salerno). Id. at 25-26. Weinig contended that, despite being aware of the filing of those documents, he was not personally involved in their preparation or filing. Id. --------------------------------------------------------------------------- The organization also lost money when some of its members, including Weinig, Hirsch, and Spence, stole from Colombian drug dealers about $2.5 million they were supposed to have laundered.\26\ To conceal their theft from the Colombians, Weinig, Hirsch, and Spence drafted a bogus indictment and notice of seizure to induce their principals in Colombia into believing that their money was seized by law enforcement when Spence was ``arrested.'' \27\ In October 1994, law enforcement intercepted Weinig's explanation to Hirsch of his theft from the organization: --------------------------------------------------------------------------- \26\ Joseph B. Treaster, U.S. Says It Uncovered a $100 Million Drug-Money Laundry, N.Y. Times, Dec. 1, 1994, at B1. \27\ Id. at 23-24. Weinig asserts that the indictment was created by Hirsch alone. Id. at 24. A member of the organization who was conducting activities from Germany reportedly lost so much money that he began speculating in commodities to recoup the losses but then lost even larger sums on poorly placed market gambles. Timothy O'Brien, Embarrassment of Riches: Cartels Use U.S. Lawyers to Launder Drug Fortunes, Asian Wall St. J., May 30, 1995, at A1. Weinig. And all of the sudden, someone says to me, I --------------------------------------------------------------------------- can put a million in cash in your . . . Hirsch. Oh, God. I'm sick. Weinig. In your, in your attic. I do a quick analysis, and understand that if everything else goes wrong in the world for the rest of my life, a million in cash takes care of everything I'll ever need. Hirsch. That's true. Weinig. And so I said, I'm dealing with people, and I remember this was, this was my approach. We're dealing with people who are total a**holes, who are out of control, who are scumbag, lying, cheats. And I am gonna be in this for the long haul? F**k 'em! F**k 'em! I'm taking a million dollars and let's, let's see you get it from me. That was my approach. Hirsch. But remember the other . . . Weinig. A million f**king dollars. Hirsch. A million dollars, but where, you know . . . Weinig. This is not . . . Hirsch. How much you would have had today? Weinig. This is not, this is dealing with normal Americans. This is dealing with guys I wouldn't take a telephone call from.\28\ --------------------------------------------------------------------------- \28\ See U.S. District Court (S.D.N.Y.) Document Production (Letter from Lev L. Dassin, Assistant U.S. Attorney for the S.D.N.Y., and Mark P. Goodman, Special Assistant U.S. Attorney for the S.D.N.Y., Department of Justice, to the Honorable Kevin Thomas Duffy, U.S. District Court Judge (Mar. 21, 1996)) at 3-4 (Exhibit 4) (transcription of conversation between Harvey Weinig and Robert Hirsch recorded in October 1994). As the foregoing indicates, Weinig believed that because his clients were unsavory he was justified in stealing their drug proceeds. To account for the millions in drug proceeds they stole from their Colombian principals, Weinig, Hirsch, and Spence planned to divide it among themselves and allow Spence to disappear, letting their principals believe that Spence was arrested and imprisoned.\29\ Plainly, Weinig's decision to steal from the Colombian drug traffickers exposed him, his co- conspirators, all of their families, and various innocent bystanders to a considerable risk of harm. --------------------------------------------------------------------------- \29\ Id. --------------------------------------------------------------------------- The theft of the drug money by Weinig, Hirsch, and Spence ultimately led to the unraveling of the money laundering conspiracy and to Weinig's imprisonment. In late 1994, leaders in the Cali cartel apparently decided that Hirsch had stolen money from them and sent two individuals, Miguel Omar Garrabito Botero and Amparo Hurtado Valencia, to ``convince'' him to return the money.\30\ Hirsch indicated that he would attempt to get the money together.\31\ Unknown to Hirsch and the Colombians, law enforcement was monitoring these discussions and approached Hirsch to obtain his cooperation.\32\ Law enforcement also informed Hirsch that the Colombians had decided to kill him and had, in fact, dispatched a hitman to New York.\33\ Once provided with this information, Hirsch began cooperating with the investigation of the money laundering network.\34\ Over the next several months, the money laundering network had meetings to address the actual and the fictitious seizures.\35\ With Hirsch's cooperation, many of those meetings were observed or recorded by law enforcement.\36\ --------------------------------------------------------------------------- \30\ U.S. Probation Office (S.D.N.Y.) Document Production (Pre- sentence Investigation Report, U.S. v. Weinig (S.D.N.Y. Mar. 19, 1996)) at 24 (Exhibit 1). Botero and Valencia similarly threatened Tohmes Peter and Juan Ocampo, both of whom conducted money laundering activities for the organization from Mulheim, Germany. Id. Ocampo's brother was apparently kidnapped in Colombia. Id. There is no doubt that Weinig was aware of the risk of harm his theft from the cartel created. On September 30, 1994, Hirsch told Weinig that Botero was the principal ``of everyone'' in Colombia and explained to him the financial difficulties that arose from the debt owed to Botero. Id. at 27. Weinig acknowledged the problem and said, ``[L]isten, let's not talk about this on the phone.'' Id. In response to Hirsch's request for the telephone number for his private line at the office, Weinig noted that he did not think that his private line was any more secure than the line on which they were speaking. Id. Hirsch also told Weinig that, in a previous conversation with Botero, Botero implied that Ocampo might be dead. Weinig replied, ``[L]et's not talk about it.'' Id. See Joseph B. Treaster, U.S. Says It Uncovered a $100 Million Drug-Money Laundry, N.Y. Times, Dec. 1, 1994, at B1 \31\ U.S. Probation Office (S.D.N.Y.) Document Production (Pre- sentence Investigation Report, U.S. v. Weinig (S.D.N.Y. Mar. 19, 1996)) at 27 (Exhibit 1) (describing that Hirsch, Weinig, and Spence pooled together some of the money they had stolen and sent it to their clients in Colombia). \32\ Telephone Interview with Mark Levin, former Special Agent, Drug Enforcement Administration (Mar. 22, 2001); Timothy O'Brien, Embarrassment of Riches: Cartels Use U.S. Lawyers to Launder Drug Fortunes, Asian Wall St. J., May 30, 1995, at A1. \33\ Id. \34\ Telephone Interview with Lev L. Dassin, former Assistant U.S. Attorney for the S.D.N.Y., Department of Justice (Nov. 26, 2001). \35\ Telephone Interview with Mark Levin, former Special Agent, Drug Enforcement Administration (Mar. 22, 2001); U.S. Probation Office (S.D.N.Y.) Document Production (Pre-sentence Investigation Report, U.S. v. Weinig (S.D.N.Y. Mar. 19, 1996)) at 23 (Exhibit 1). \36\ Id. --------------------------------------------------------------------------- As money owed to the cartel became more of a problem, Weinig decided to extend his criminal activities beyond money laundering. On November 15, 1994, Spence told Weinig that he had kidnapped an individual named James Clooney, who had swindled him out of $237,000 by tricking him into investing in an insolvent company.\37\ Although Clooney had assets that would have enabled Spence to recover part of his loss, Clooney would not return Spence's money.\38\ While Weinig was abroad between November 9 and 13, 1994, Spence had Clooney kidnapped to ``compel him to return the money that he had wrongfully taken.'' \39\ On November 15, 1994, Weinig told Hirsch that Spence ``seized a person.'' \40\ After Hirsch joked with him that Spence ``learned it from the Colombians,'' Weinig continued, ``[Clooney] will be released as soon as his family produces money[.]'' \41\ Hirsch responded, ``Wait a minute. Hold it, hold it. Dick Spence is holding someone hostage and you're sitting here? . . . He's holding a person and you really don't see any problem with that?'' \42\ Hirsch observed that Clooney might notify the authorities, but Weinig replied, ``Well, he's not in a position to call the police at this point, right?'' \43\ Weinig rationalized Clooney's abduction by noting, ``You know [Spence is] kidnapping someone who owes him money here.'' \44\ He continued, ``It's not drug money, it's money. He's lost some good money.'' \45\ Weinig apparently felt that his role as a lawyer might conflict with his participation in a kidnapping. He therefore attempted to justify his involvement to Hirsch: --------------------------------------------------------------------------- \37\ NARA Document Production (Report to the President on Proposed Denial of Executive Clemency for Harvey Weinig) at 3-5 (Exhibit 3); U.S. Probation Office (S.D.N.Y.) Document Production (Pre-sentence Investigation Report, U.S. v. Weinig (S.D.N.Y. Mar. 19, 1996)) at 29 (Exhibit 1); U.S. District Court (S.D.N.Y.) Document Production (Letter from Lev L. Dassin, Assistant U.S. Attorney for the S.D.N.Y., and Mark P. Goodman, Special Assistant U.S. Attorney for the S.D.N.Y., Department of Justice, to the Honorable Kevin Thomas Duffy, U.S. District Court Judge (Mar. 21, 1996)) at 6 (Exhibit 4). \38\ NARA Document Production (Report to the President on Proposed Denial of Executive Clemency for Harvey Weinig) at 3-5 (Exhibit 3); U.S. Probation Office (S.D.N.Y.) Document Production (Pre-sentence Investigation Report, U.S. v. Weinig (S.D.N.Y. Mar. 19, 1996)) at 29 (Exhibit 1); U.S. District Court (S.D.N.Y.) Document Production (Letter from Lev L. Dassin, Assistant U.S. Attorney for the S.D.N.Y., and Mark P. Goodman, Special Assistant U.S. Attorney for the S.D.N.Y., Department of Justice, to the Honorable Kevin Thomas Duffy, U.S. District Court Judge (Mar. 21, 1996)) at 6 (Exhibit 4). \39\ Lev Dassin Document Production at 11 (Letter from John R. Wing, Member, Weil, Gotshal & Manges, to Mary Jo White, U.S. Attorney for the S.D.N.Y., Department of Justice (Feb. 28, 1997)) (Exhibit 5). See also U.S. District Court (S.D.N.Y.) Document Production (Letter from Lev L. Dassin, Assistant U.S. Attorney for the S.D.N.Y., Department of Justice, to the Honorable Kevin Thomas Duffy, U.S. District Court Judge (Mar. 19, 1996)) (Exhibit 6) (transcript of conversation between Harvey Weinig and Robert Hirsch recorded on November 15, 1994). \40\ Id. \41\ Id. \42\ Id. at 5-6. \43\ Id. at 6. \44\ Id. \45\ Id. at 25. We didn't do it. I don't know anything about it. If he tells me a crime is going to be committed, then I have an obligation, I have to disclose it or go to the authorities. . . . But he didn't do that. He just talked to me a few times about ``I couldn't just sit around and wait so I had some goons go talk to the guy and they're gonna make sure the money comes this week.'' \46\ --------------------------------------------------------------------------- \46\ NARA Document Production (Report to the President on Proposed Denial of Executive Clemency for Harvey Weinig) at 4 (Exhibit 3). Clooney was released the following day on the condition that he surrender his artwork and a home mortgage to settle his debt to Spence.\47\ Weinig offered his office as a meeting place where Clooney could convey the ransom and instructed two of his associates to execute transfer agreements when Clooney and his girlfriend arrived at the office.\48\ However, he left before they arrived.\49\ --------------------------------------------------------------------------- \47\ U.S. District Court (S.D.N.Y.) Document Production (Letter from Lev L. Dassin, Assistant U.S. Attorney for the S.D.N.Y., and Mark P. Goodman, Special Assistant U.S. Attorney for the S.D.N.Y., Department of Justice, to the Honorable Kevin Thomas Duffy, U.S. District Court Judge (Mar. 21, 1996)) at 7-8 (Exhibit 4). \48\ Id. at 8. Specifically, Weinig instructed two attorneys at the firm to receive the ransom from Clooney. Id. \49\ Id. --------------------------------------------------------------------------- D. Weinig's Prosecution and Sentencing Robert Hirsch was arrested in September 1994 and, with Spence, subsequently cooperated with authorities in their investigation of the remaining members of the money laundering organization.\50\ On November 30, 1994, Weinig and the remaining members of the organization, including Tohmes Peter, were arrested.\51\ Weinig was subsequently released on bail.\52\ Weinig was indicted on December 22, 1994, and April 20, 1995, with several co-defendants in the Southern District of New York for conspiring to launder drug proceeds, 15 counts of money laundering, two counts of interstate transportation of stolen money, wire fraud, three counts of making false statements to federal authorities, and criminal forfeiture.\53\ On September 21, 1995, Weinig was charged under a separate indictment with interfering with commerce by extortion arising from his participation in Spence's abduction of Clooney.\54\ --------------------------------------------------------------------------- \50\ Telephone Interview with Lev L. Dassin, former Assistant U.S. Attorney for the S.D.N.Y., Department of Justice (Nov. 26, 2001); U.S. District Court (S.D.N.Y.) Document Production (Letter from Lev L. Dassin, Assistant U.S. Attorney for the S.D.N.Y., and Mark P. Goodman, Special Assistant U.S. Attorney for the S.D.N.Y., Department of Justice, to the Honorable Kevin Thomas Duffy, U.S. District Court Judge (Mar. 21, 1996)) at 2 (Exhibit 4). See Telephone Interview with Mark Levin, former Special Agent, Drug Enforcement Administration (Mar. 22, 2001). \51\ U.S. Probation Office (S.D.N.Y.) Document Production (Pre- sentence Investigation Report, U.S. v. Weinig (S.D.N.Y. Mar. 19, 1996)) at 29 (Exhibit 1). See also NARA Document Production (Criminal Complaint, U.S. v. Weinig (S.D.N.Y. Nov. 29, 1994)) (Exhibit 7); NARA Document Production (Affidavit of Special Agent Jeffrey Drubner, In Re Application for Arrest and Search Warrant (S.D.N.Y. Nov. 29, 1994)) (Exhibit 8). The best recollection of those involved in Weinig's arrest is that he was taken into custody at his home, without incident, and outside the view of his children. See, e.g., Telephone Interview with Lev Dassin, former Assistant U.S. Attorney for the S.D.N.Y., Department of Justice (Nov. 26, 2001). \52\ U.S. Probation Office (S.D.N.Y.) Document Production (Pre- sentence Investigation Report, U.S. v. Weinig (S.D.N.Y. Mar. 19, 1996)) at 29 (Exhibit 1). \53\ U.S. District Court (S.D.N.Y.) Document Production (Indictment, U.S. v. Weinig (S.D.N.Y. Dec. 22, 1994)) (Exhibit 9); U.S. District Court (S.D.N.Y.) Document Production (Indictment, U.S. v. Weinig (S.D.N.Y. Apr. 20, 1995)) (Exhibit 10); U.S. Probation Office (S.D.N.Y.) Document Production (Pre-sentence Investigation Report, U.S. v. Weinig (S.D.N.Y. Mar. 19, 1996)) at 4 (Exhibit 1). \54\ U.S. District Court (S.D.N.Y.) Document Production (Indictment, U.S. v. Weinig, S2 95 CR-167 (KTD) (S.D.N.Y. Sept. 21, 1995)); U.S. Probation Office (S.D.N.Y.) Document Production (Pre- sentence Investigation Report, U.S. v. Weinig (S.D.N.Y. Mar. 19, 1996)) at 13 (Exhibit 1). --------------------------------------------------------------------------- Shortly before Weinig was to go to trial on money laundering charges, he pleaded guilty to conspiring to launder drug money for the Cali cocaine cartel and to owning or controlling property that was involved in and traceable to the money laundering conspiracy.\55\ Weinig's plea to those charges resulted in his forfeiture of various personal and business assets, including his summer home, proceeds traceable to his money laundering activities, and personal and business bank accounts.\56\ Weinig also pleaded guilty to knowingly concealing from law enforcement authorities Spence's abduction of Clooney for the purpose of extorting the payment of ransom.\57\ Because he waited until the eve of trial to plead guilty and did not cooperate with law enforcement, Weinig did not receive any credit for cooperation in the plea agreement.\58\ --------------------------------------------------------------------------- \55\ Id. at 14. See also NARA Document Production (Letter from Mark P. Goodman, Assistant U.S. Attorney for the S.D.N.Y., Department of Justice, to John R. Wing, Member, Weil, Gotshal & Manges (Sept. 20, 1995)) (Exhibit 2) (plea agreement). \56\ Id. at 16-17. \57\ Id. at 14. Under 18 U.S.C. Sec. 4 (2000) of the federal criminal code, this offense is referred to as ``misprision of a felony.'' \58\ Telephone Interview with Lev L. Dassin, former Assistant U.S. Attorney for the S.D.N.Y., U.S. Department of Justice (Nov. 26, 2001). --------------------------------------------------------------------------- The documents relating to Weinig's plea show that he failed not only to cooperate with law enforcement but also to accept responsibility for his actions. In his allocution before Judge Kevin T. Duffy, Weinig stated that he originally believed representations made by Hirsch that Tohmes Peter was involved in the ``worldwide distribution of parallel market or greige market goods, including electronic equipment, computer equipment, health and beauty aids, and other commodities[,]'' not money laundering.\59\ But, Weinig conceded that ``[f]rom the very start . . . [he] had misgivings about the highly unconventional nature of the activity in which [Peter] was engaged'' and ``[a]s time went on, [he] deliberately ignored obvious indications that these monies were, in fact, the proceeds of illicit drug transactions, and eventually [he] was fully aware of this fact.'' \60\ Weinig admitted that he ignored the following indicators: DEA statements that the proceeds at issue were drug-related; the ``highly unconventional locations, . . . [h]otel rooms, street corners and empty cars in parking lots where the money was transferred''; that ``[his law] office never saw documents that would ordinarily underlie a commercial transaction''; and that he received ``what [he] perceived to be an unreasonably large amount of money in relation to the business being conducted.'' \61\ However, Weinig argued that, with respect to the money laundering operation, he was less involved than were Hirsch and Spence in the operation's day-to-day operations.\62\ Regarding his role in the kidnapping scheme, Weinig maintained that he was not told about the extortion-by-kidnapping scheme until after Clooney was abducted.\63\ --------------------------------------------------------------------------- \59\ NARA Document Production (Report to the President on Proposed Denial of Executive Clemency for Harvey Weinig) at 6 (Exhibit 3) (quoting transcript of allocution). \60\ Id. \61\ Id. at 6 n.14. \62\ U.S. District Court (S.D.N.Y.) Document Production (Letter from Lev L. Dassin, Assistant U.S. Attorney for the S.D.N.Y., and Mark P. Goodman, Special Assistant U.S. Attorney for the S.D.N.Y., for Mary Jo White, U.S. Attorney for the S.D.N.Y., Department of Justice, to the Honorable Kevin Thomas Duffy, U.S. District Court Judge (Mar. 21, 1996)) at 1 (Exhibit 4). \63\ Id. --------------------------------------------------------------------------- In reply to Weinig's claims, the Government argued that Weinig was in fact centrally involved in the money laundering organization with Hirsch and Spence from its inception and played an important role in the kidnapping.\64\ In support of its position, the Government cited private statements and proffers made by Hirsch and Spence, both of whom cooperated with the Government from the date of their arrest.\65\ In particular, the Government noted that both Hirsch and Spence had consistently stated that Weinig was generally aware of the organization's day-to-day activities and had spoken to them about those activities frequently.\66\ The Government also cited various wiretapped conversations, which clearly and consistently inculpated Weinig.\67\ The Government also argued that the level of Hirsch's and Spence's involvement in the organization was irrelevant to Weinig's sentencing.\68\ According to the Government, Weinig's conduct was ``extremely serious and reprehensible'' and was motivated by ``unmitigated, unrelenting greed and arrogance.'' \69\ With regard to Weinig's role in the extortion scheme, the Government argued that, for sentencing purposes, Weinig's activities should be considered independent of those of the other criminals involved and characterized his conduct, particularly inasmuch as Weinig was a lawyer, as ``chilling.'' \70\ --------------------------------------------------------------------------- \64\ Id. at 1-9. \65\ Telephone Interview with Lev L. Dassin, former Assistant U.S. Attorney for the S.D.N.Y., Department of Justice (Nov. 26, 2001); U.S. District Court (S.D.N.Y.) Document Production (Letter from Lev L. Dassin, Assistant U.S. Attorney for the S.D.N.Y., and Mark P. Goodman, Special Assistant U.S. Attorney for the S.D.N.Y., Department of Justice, to the Honorable Kevin Thomas Duffy, U.S. District Court Judge (Mar. 21, 1996)) at 2 (Exhibit 4). \66\ Id. at 3. \67\ Id. \68\ Id. \69\ Id. at 6. \70\ Id. --------------------------------------------------------------------------- Judge Duffy agreed. On March 22, 1996, he sentenced Weinig to the maximum sentence under federal guidelines--11 years and three months.\71\ Before he did so, John Wing, Weinig's attorney, asked for leniency: --------------------------------------------------------------------------- \71\ U.S. District Court (S.D.N.Y.) Document Production (Transcript of Sentencing Hearing, U.S. v. Weinig, et al. (S.D.N.Y. Mar. 22, 1996)) at 14 (Exhibit 11). Your Honor, when my kids were young, I was familiar with that Sesame Street character Big Bird and a song he used to sing about how everybody makes mistakes, big people, small people, as a matter of fact, law people. It's probably a different version of the doctrine of original sin, but Harvey Weinig made some business mistakes[.] \72\ --------------------------------------------------------------------------- \72\ Id. at 2-3. Wing continued by noting that his client ``did not sit down and make a conscious, knowing decision to initiate and enter into a business of laundering drug proceeds.'' \73\ Rather, according to Wing, Weinig was misled by his law partner, Robert Hirsch, ``a man he liked, respected, trusted, someone he thought was smart,'' into believing that they were handling ``gray market'' forfeiture cases unrelated to narcotics trafficking.\74\ However, Wing conceded that after Weinig learned about the true nature of the business, ``[he] stayed in. [He] made money. He liked having the security.'' \75\ Wing then discussed Weinig's role in the extortion by kidnapping scheme, which he characterized as ``also somewhat bizarre.'' \76\ Wing conceded that, with full knowledge of the abduction scheme, Weinig ``basically let it happen. He didn't stop it.'' \77\ In an attempt to offset the seriousness of Weinig's criminal conduct, Wing mentioned Weinig's character, the harm his behavior visited on his family, and the legal assistance Weinig occasionally made available to various friends without charge.\78\ --------------------------------------------------------------------------- \73\ Id. at 5. \74\ Id. \75\ Id. at 7. \76\ Id. \77\ Id. at 9. \78\ Id. at 9-11. --------------------------------------------------------------------------- Speaking for himself at sentencing, Weinig conveyed to Judge Duffy, among other things, that ``today marks yet another milestone in the nightmare from which I am unable to awake.'' \79\ But Judge Duffy observed the following with regard to Weinig's involvement in the kidnapping scheme: --------------------------------------------------------------------------- \79\ Id. at 11. You know, you talk about a nightmare. Nightmares come from the unconscious, the subconscious. What you are facing is something that you were conscious or you got yourself into. . . . The suggestion has been made that you are a very altruistic person, that you are a great guy . . . . I don't know . . . . What would you have done, Mr. Weinig, if your son Jacob had been kidnapped and some lawyer knew about it . . . and didn't do anything? . . . I insisted on getting the tape and listening to your conversation with Hirsch when you talk about it, very flip, matter of fact. You couldn't care less, but if it had been your son, you would have cared more. . . . You apparently were able to divide yourself in two, outside the office and inside. Even when Clooney came in, your attorney says you let it happen. Sure you let it happen, because you went, and you stuck two young associates with the job of cleaning it up.\80\ --------------------------------------------------------------------------- \80\ Id. at 12-14. With regard to Weinig's involvement in the money laundering --------------------------------------------------------------------------- operation, Judge Duffy noted the following: The suggestion is made that you are not smart or sophisticated. I can't believe that. You thought that the money laundering was coming in gray market goods. But even you admit that you knew where it was coming from, at least at the end. What are we talking about? Well the figures vary, from 72 million dollars, that the Swiss bankers claimed to have laundered, to nineteen, which I understand you are accused of. Nineteen million dollars in drugs is a lot of money. That much drugs is a lot of pain. If [your sons] Samuel or Jacob were the ones who were using the drugs, you would be singing a different story, an entirely different song.\81\ --------------------------------------------------------------------------- \81\ Id. at 14. Judge Duffy thereupon noted that ``if [this case] had been in the old days, I would have given [Weinig] the statutory maximum.'' \82\ On March 22, 1996, Judge Duffy sentenced Weinig to 135 months (11 years and three months) plus three years supervised release and a $100 special assessment.\83\ Even with credit for good behavior, Harvey Weinig would not get out of prison until 2005. --------------------------------------------------------------------------- \82\ Id. \83\ U.S. District Court (S.D.N.Y.) Document Production (Judgment and Commitment Order, U.S. v. Weinig, et al. (S.D.N.Y. Mar. 25, 1996)) (Exhibit 12). See 11-Year Sentence for Lawyers in Drug Case, N.Y. Times, Mar. 23, 1996, at A25. --------------------------------------------------------------------------- After his conviction in federal court, Weinig filed for resignation from the New York Bar with the Appellate Division of the State of New York. That court accepted Weinig's resignation, observing that ``[its] review of the record in this matter reveals that respondent engaged in a course of conduct that can only be described as shocking and reprehensible for anyone, let alone a member of the bar.'' \84\ The court also emphasized that if Weinig had not voluntarily resigned from the bar, a ``serious crimes'' hearing would have commenced with disbarment being ``the only appropriate sanction.'' \85\ --------------------------------------------------------------------------- \84\ In re Weinig, 642 N.Y.S.2d 654, 656 (N.Y. App. Div. 1996). \85\ Id. See also Disciplinary Proceedings; Appellate Division; First Department, N.Y. Law J., May 20, 1996, at 5; Today's News Update, N.Y. Law J., May 20, 1996, at 1. --------------------------------------------------------------------------- II. WEINIG'S EFFORTS TO OBTAIN EXECUTIVE CLEMENCY Soon after Weinig was imprisoned, John Wing, Weinig's criminal defense counsel, wrote a 34-page letter to the U.S. Attorney for the Southern District of New York, Mary Jo White, in which he sought a reduction in his sentence, citing the difference between Weinig's sentence and those of his co- conspirators.\86\ The U.S. Attorney rejected Wing's request.\87\ After that effort, Weinig focused his efforts on obtaining executive clemency. --------------------------------------------------------------------------- \86\ See generally Lev Dassin Document Production (Letter from John R. Wing, Member, Weil, Gotshal & Manges, to Mary Jo White, U.S. Attorney for the S.D.N.Y., Department of Justice (Feb. 28, 1997)) (Exhibit 5); Benjamin Weiser, A Felon's Well-Connected Path to Clemency, N.Y. Times, Apr. 14, 2001, at A1. \87\ Telephone Interview with Lev L. Dassin, former Assistant U.S. Attorney for the S.D.N.Y., Department of Justice (Nov. 26, 2001); Benjamin Weiser, A Felon's Well-Connected Path to Clemency, N.Y. Times, Apr. 14, 2001, at A1. --------------------------------------------------------------------------- A. Weinig Hires Reid Weingarten to Lobby for Clemency After Weinig was sent to prison, his wife, City University of New York law professor Alice Morey, explored ways of getting Weinig out of prison. Perhaps Morey's most important move was to hire Reid Weingarten, a prominent Washington attorney with close connections to the Clinton White House. Weingarten had represented a number of key figures in Clinton-era scandals, including Yah Lin ``Charlie'' Trie, Ron Brown, Mike Espy, and Pauline Kanchanalak. In representing these individuals, Weingarten had frequent contact with senior Clinton White House officials and their attorneys. Weingarten was also well- connected in the Justice Department, having served as a trial attorney in the Public Integrity Section. A friend told Weingarten about the Weinig case in 1998 and asked him to meet with Weinig's wife.\88\ Weingarten met with Morey, who was at her ``wits end'' because of Weinig's imprisonment and the harm his imprisonment had caused to her children.\89\ Weingarten ultimately took the case because ``the general sentiment was that the sentence was `grossly disproportionate.' '' \90\ Accordingly, Weingarten prepared a clemency petition packet on Weinig's behalf and attached letters submitted while Weinig was awaiting sentencing and written in support of the clemency petition itself.\91\ In the petition, Weinig set forth his offenses as follows: --------------------------------------------------------------------------- \88\ Interview with Reid Weingarten, Partner, Steptoe & Johnson (Mar. 23, 2001). \89\ Id. \90\ Id. \91\ Id. See also NARA Document Production (Petition for Commutation of Sentence, Apr. 6, 2000) (Exhibit 13) (letters attached to petition not attached). As to the first count, I assisted various individuals in laundering money, after realizing that the funds were proceeds of illegal drug sales. As to the second count, I became aware, after the fact, that a client of mine had detained an individual who had defrauded my client and owed my client money. I subsequently instructed associates in my law firm to prepare documentation that gave my client a security interest in some of the individual's assets. I did not report to the authorities that my client had previously detained the individual.\92\ --------------------------------------------------------------------------- \92\ Id. Weinig also observed that ``[a]s to my client's abduction of an individual, I did not learn of the kidnapping until after the individual had been released.'' \93\ As bases for the commutation of his sentence, Weinig argued that: (1) his sentence was grossly disproportionate to the sentences given to more culpable co-defendants and to money laundering sentences nationwide; (2) he had made and will continue to make contributions to society; and (3) his family and, in particular, his youngest son needed him to return home.\94\ --------------------------------------------------------------------------- \93\ Id. (attachment). \94\ NARA Document Production (Harvey Weinig's Memorandum in Support of His Petition for Commutation of Sentence, Apr. 6, 2000) at 6 (Exhibit 14) (originally attached to petition). --------------------------------------------------------------------------- Weingarten filed a copy of the petition with the Pardon Attorney's Office at the Justice Department on April 3, 2000,\95\ and with the White House Counsel's Office on April 7, 2000.\96\ Weingarten knew that the support of the prosecuting U.S. Attorney's Office was critical because he had previously represented two clients in clemency proceedings (and prevailed in one of them).\97\ Accordingly, he spoke with Deputy U.S. Attorney Shirah Neiman and Assistant U.S. Attorney Alan Kaufman in the Southern District of New York.\98\ Weingarten knew that the prosecutors office had to be on board or the application was not going anywhere.\99\ In Weingarten's ``spirited'' conversation with Neiman and Kaufman, the prosecutors indicated that they would not recommend commutation of Weinig's sentence.\100\ Therefore, sometime in the fall of 2000, Weingarten turned to Pardon Attorney Roger Adams.\101\ Rather than persuade Adams to support commutation of Weinig's sentence, which he was confident he would not do, Weingarten intended only to have Adams ``soften'' his recommendation against granting Weinig clemency.\102\ Weingarten failed, as is apparent from the Justice Department's report to President Clinton regarding Weinig's clemency petition, which is discussed below. --------------------------------------------------------------------------- \95\ NARA Document Production (Letter from Reid Weingarten, Partner, Steptoe & Johnson, to Roger Adams, Pardon Attorney, Department of Justice (Apr. 3, 2000)) (Exhibit 15); Interview with Reid Weingarten, Partner, Steptoe & Johnson (Mar. 23, 2001). \96\ NARA Document Production (Letter from Reid Weingarten, Partner, Steptoe & Johnson, to Beth Nolan, Counsel to the President, the White House (Apr. 7, 2000)) (Exhibit 16); Interview with Reid Weingarten, Partner, Steptoe & Johnson (Mar. 23, 2001). See also NARA Document Production (Letter from Reid Weingarten, Partner, Steptoe & Johnson, to Roger Adams, Pardon Attorney, Department of Justice (Apr. 3, 2000)) (Exhibit 17) (indicating, in note by Podesta to Nolan, ``I need to discuss this one with you. Can you give me a call[?]''); NARA Document Production (Letter from Beth Nolan, Counsel to the President, the White House, to Reid Weingarten, Partner, Steptoe & Johnson (May 25, 2000)) (Exhibit 18) (drafts of letter attached). \97\ Interview with Reid Weingarten, Partner, Steptoe & Johnson (Mar. 23, 2001). \98\ Id. \99\ Id. \100\ Id. \101\ Id. \102\ Id. --------------------------------------------------------------------------- Weingarten then turned his attention to the White House. When Weingarten's practice occasionally required trips to the White House, he typically met with White House Counsel Beth Nolan, Deputy White House Counsel Bruce Lindsey, or Chief of Staff John Podesta.\103\ Though Weingarten has no specific recollection of meetings he had with any of them regarding the Weinig matter, he is confident that he brought the matter up with them.\104\ Weingarten implored those staff members to review the Weinig clemency petition, telling them ``please read it, it sings.'' \105\ He also communicated that Weinig was a ``small fry in terms of culpability'' and that the Weinig family believed that their youngest son's life was in jeopardy if Harvey Weinig was not released from prison.\106\ --------------------------------------------------------------------------- \103\ Id. \104\ Id. \105\ Id. \106\ Id. --------------------------------------------------------------------------- However, it appears that Weingarten was not well situated to lobby the White House on the Weinig case because he was ignorant of many basic details of the Weinig case. For example, when discussing the Weinig case with Committee staff, Weingarten attempted to characterize Weinig as a low-level white collar criminal.\107\ However, he readily admitted that he ``never, ever, ever got into the facts of the case because I felt that I didn't need to.'' \108\ Regarding the kidnapping- related charge, Weingarten said, ``That could hardly be called a kidnapping. If it was, it was the mildest kidnapping ever. First of all, the facts are in dispute. And, the alleged victim was fed steaks and whores.'' \109\ --------------------------------------------------------------------------- \107\ Id. \108\ Id. \109\ Id. Weinig's trial attorney, John R. Wing, also argued this point in a letter to U.S. Attorney Mary Jo White after Weinig's sentencing. In that letter, Wing argued that Weinig's belief that Clooney was not in danger was shared by law enforcement and that, in fact, ``[i]t was later learned that Clooney was provided with steaks and prostitutes during his `detention.' '' Lev Dassin Document Production (Letter from John R. Wing, Member, Weil, Gotshal & Manges, to Mary Jo White, U.S. Attorney for the S.D.N.Y., Department of Justice (Feb. 28, 1997)) (Exhibit 5). --------------------------------------------------------------------------- Every aspect of Weingarten's response is troubling. First, Weingarten was apparently trusted and respected by White House staff. It is difficult to imagine how, in lobbying the Administration, Weingarten could have accurately conveyed a factual basis for his belief in the merits of Weinig's clemency petition when he ``never, ever, ever'' felt the need to ``[get] into the facts'' of Weinig's underlying conviction. Second, contrary to Weingarten's assertion, the facts most relevant to Weinig's active involvement in the extortion-by-kidnapping scheme were not in dispute. In fact, Weinig admitted most of them in court. Those facts established that Weinig was aware of the scheme to kidnap Clooney and facilitated Clooney's extortion through that scheme. Finally, Weingarten's contention that Clooney's kidnapping was the ``the mildest . . . ever'' because his kidnappers provided him with ``steaks and whores'' fails to reflect the true facts of the crime. As Lev Dassin, the assistant U.S. Attorney who prosecuted the case indicated to Committee staff, ``[H]aving your abductors have sex with prostitutes while you're cowering by the bed on the floor can, in no way, be construed as pleasant.'' \110\ Weingarten failed to appreciate the actual dynamics of Clooney's abduction. The kidnappers, rather than Clooney, apparently partook of the steaks and prostitutes at issue.\111\ This distinction appears to have been lost on Weingarten. Nonetheless, assuming only for the sake of argument that Weingarten's representation that Clooney was treated favorably while abducted is accurate, there is an obvious problem with Weingarten's citing it here. It is simply bizarre for a lawyer, particularly one with Weingarten's background, to suggest that the offense is mitigated by supplying a kidnapping victim with ``steaks and whores.'' --------------------------------------------------------------------------- \110\ Telephone Interview with Lev L. Dassin, former Assistant U.S. Attorney for the S.D.N.Y., Department of Justice (Nov. 26, 2001). \111\ There are additional elements of the crime of which Weingarten was apparently unaware when he spoke with Committee staff. First, as Clooney was being abducted, he was plainly fearful for his life. He cried. See Appellate Brief, U.S. v. Messina, Docket No. 96- 1789 (2d Cir. 1997) at 9 (citing to record). When Spence told co- conspirator Richard Messina on the telephone that Clooney cried while being abducted, Messina responded that he wished he could have been there to have seen Clooney cry. Id. Also, at various times during Clooney's ordeal, a co-conspirator brandished a butterfly knife. Id. Additionally, Clooney noticed that two other co-conspirators had a gun. Id. Finally, Clooney's kidnappers told him several times that he would be harmed if he tried to escape. Id. Had Weingarten bothered to ``get into the facts,'' one hopes that he would have refrained from characterizing Clooney's abduction as ``the mildest ever.'' --------------------------------------------------------------------------- B. Weinig's Wife Seeks Support for His Clemency Petition While Weingarten was meeting with the White House about the Weinig matter, Alice Morey called several public officials and prominent rabbis regarding her husband.\112\ Morey sought these individuals' help in obtaining a commutation of Weinig's prison sentence. Morey's statements to these individuals can be inferred from her February 24, 2000, letter to the Pardon Attorney. In that letter, Morey characterized Weinig's role in the conspiracy as ``exceedingly limited.'' \113\ She also asserted that ``if [Weinig] has to serve the full remainder of his sentence . . . our family will not be able to survive.'' \114\ Morey further observed that ``[w]ith the exception of [Weinig], all of the twenty or so co-defendants in this case received relatively light sentences and most have been out of jail for some time.'' \115\ She continued, ``[I]t is cruelly inequitable that Hirsch and the other major players received sentences so far lighter than that which [Weinig] received, despite [Weinig's] less significant role.'' \116\ --------------------------------------------------------------------------- \112\ Interview with Reid Weingarten, Partner, Steptoe & Johnson (Mar. 23, 2001). \113\ NARA Document Production (Letter from Alice Morey to Roger Adams, Pardon Attorney, Department of Justice (Feb. 24, 2000)) (Exhibit 19). \114\ Id. \115\ Id. \116\ Id. --------------------------------------------------------------------------- Morey's letter to the Pardon Attorney contained many of the same arguments made in Weinig's clemency petition. However, Morey's letter also contained arguments not asserted by others. For example, Morey attempted to distance Weinig from the conspiracy by noting that Tohmes Peter was Hirsch's client, not Weinig's.\117\ However, she conceded that Weinig acted on behalf of Peter ``in a few instances when Hirsch was not available [and] accepted the cash payments that [Peter] made to the firm[.]'' \118\ Nonetheless, Morey maintained that ``[i]nterestingly enough, prior to Hirsch's arrest and subsequent cooperation, the government had little or no evidence that [Weinig] was connected in any way other than as Hirsch's law partner.'' \119\ Morey also argued that the Government had essentially entrapped Weinig, claiming that ``once Hirsch began cooperating with the federal government, he began involving Harvey in his dealings with Peter Tohmes.'' \120\ Morey further argued that the original indictment ``barely mentions'' Weinig, ``perhaps because he had little to do with the illegal activities.'' \121\ --------------------------------------------------------------------------- \117\ Id. \118\ Id. \119\ Id. \120\ Id. \121\ Id. --------------------------------------------------------------------------- Morey's position as to Weinig's activities is totally misleading. Weinig's extensive involvement in the money laundering conspiracy was supported by statements of co- conspirators and corroborated by Weinig's own admissions captured by a wiretap. Contrary to Morey's representation that Weinig's involvement was barely mentioned in the indictment, counts one, five, eleven through seventeen, nineteen, twenty- six through twenty-nine, and thirty through thirty-eight of the April 20, 1995, indictment clearly indicate Weinig's deep involvement in the money laundering conspiracy well beyond his mere partnership in the law firm. Indeed, Morey's characterization of Weinig's business transactions as having been conducted ``in a few instances'' is charitable and, to the extent that it ignores the $19 million Weinig admitted to having laundered for members of the Colombian cartel and Weinig's role in the extortion-by-kidnapping scheme, irrelevant. Regarding Weinig's guilty plea and sentencing, Morey asserted that Weinig pleaded ``[f]or a host of reasons, mostly emotional and financial.'' \122\ Morey also suggested that ``[a]lthough [Weinig's] lawyer had been hopeful that the court would depart downward in sentencing, Judge Duffy sentenced [Weinig] to the top of the guidelines without articulating his reasons.'' \123\ Morey's assertion of why Weinig pleaded guilty seems to confirm that Weinig never fully accepted responsibility for his actions--one of the requirements for receiving a commutation. Indeed, there was never a legitimate expectation of downward departure at sentencing. Weinig provided no meaningful assistance to authorities until immediately before trial, and, as described below, the information he ultimately provided was useless.\124\ Accordingly, Weinig's plea agreement did not contemplate a downward adjustment for substantial assistance to authorities.\125\ --------------------------------------------------------------------------- \122\ Id. \123\ Id. \124\ Telephone Interview with Lev L. Dassin, former Assistant U.S. Attorney for the S.D.N.Y., Department of Justice (Nov. 26, 2001). \125\ Id. --------------------------------------------------------------------------- C. Weinig's Wife Obtains Support From Individuals With Ties to the Administration Alice Morey obtained the assistance of a number of individuals to press her husband's clemency case with the White House. A key individual who helped Morey was her cousin, David Dreyer, who served as a deputy communications director with the Clinton White House and senior advisor to Clinton Administration Treasury Secretary Robert Rubin. Dreyer used his White House contacts to lobby White House Chief of Staff John Podesta.\126\ When asked about Dreyer's role in lobbying for the commutation, Weingarten confirmed that Dreyer ``bugged'' Podesta about the Weinig matter but does not know how many times Dreyer contacted the White House.\127\ Weingarten noted that, because Dreyer was a ``noodge,'' it might have been as many as 20 times.\128\ --------------------------------------------------------------------------- \126\ Interview with Reid Weingarten, Partner, Steptoe & Johnson (Mar. 23, 2001). \127\ Id. \128\ Id. --------------------------------------------------------------------------- Dreyer has publicly noted his fondness for his cousin Alice and that he occasionally saw Weinig at various family functions.\129\ He also observed that his friendship with Podesta, with whom he occasionally jogged in Rock Creek Park, remained strong even after he left the White House.\130\ According to Dreyer, sometime in July 2000 during a visit to Podesta's office, he gave Podesta the cover memorandum from Weinig's clemency petition and ``asked him to take a look at it and explained to him the relationship, and why this mattered[.]'' \131\ Dreyer confirmed that Podesta made no promises but was ``certainly willing to look into it as an act of friendship[.]'' \132\ Dreyer asked Podesta about the matter again during the Fall of 2000 as they were jogging.\133\ Podesta responded by telling Dreyer not to expect any action for several months.\134\ According to Weingarten, Podesta felt that the Weinig clemency matter was a ``good story'' and that a decision could be made ``on the merits.'' \135\ --------------------------------------------------------------------------- \129\ Benjamin Weiser, A Felon's Well-Connected Path to Clemency, N.Y. Times, Apr. 14, 2001, at A1. \130\ Id. \131\ Id. \132\ Id. \133\ Id. \134\ Id. \135\ Interview with Reid Weingarten, Partner, Steptoe & Johnson (Mar. 23, 2001). --------------------------------------------------------------------------- Some insight as to what Dreyer specifically told Podesta, and possibly others in the Administration, about the Weinig matter can be gleaned from a letter that Dreyer submitted to the Pardon Attorney's Office in support of Weinig's petition.\136\ Dreyer noted in the letter that ``[n]o conceivable societal interest is being served by forcing Harvey [Weinig] to remain in prison for the entire length of his maximum sentence.'' \137\ Dreyer cited as bases for clemency: (1) the ``disproportion'' between Weinig's sentence and those of co-defendants ``all more deeply involved [in the money laundering conspiracy and misprision] than he''; (2) the fact that ``Harvey's wife and sons are bearing the brunt of his punishment with enormous force''; and (3) the fact that Weinig was ``a good and decent father'' and ``a contributing member of the community.'' \138\ Apparently content with only a superficial appreciation of the facts, Dreyer noted that the apparent disproportion between Weinig's sentence and those of his co-defendants ``[o]n its face . . . is not fair.'' \139\ As described above, these arguments are based on an incomplete understanding of the underlying case. Perhaps more importantly, characterizing Weinig as a ``contributing member of society'' does not help those unfamiliar with the facts of the case understand that his most significant ``contribution'' was to assist the Cali cartel in flooding the United States with cocaine. --------------------------------------------------------------------------- \136\ Dreyer's letter refers to ``papers filed with your office [seeking] a clemency . . . for Harvey Weinig,'' yet the petition was actually filed with the Justice Department (and the White House Counsel's Office) months later in April 2000. \137\ NARA Document Production (Letter from David Dreyer, Principal, TSD, Inc., to Roger Adams, Pardon Attorney, Department of Justice (Feb. 28, 2000)) (Exhibit 20). \138\ Id. \139\ Id. --------------------------------------------------------------------------- In light of the specious arguments Dreyer set forth in his letter to the Pardon Attorney and also likely communicated to senior Administration officials, Chairman Burton asked Dreyer to participate in an interview with Committee staff and subpoenaed documents from Dreyer.\140\ Dreyer declined the Committee's invitation and asserted his Fifth Amendment rights against self-incrimination rather than produce records. Dreyer's role in lobbying senior Clinton Administration officials for the Weinig commutation was obviously critical. Therefore, it is disappointing that Dreyer would not cooperate with the Committee's investigation. Moreover, it is troubling that Dreyer believed that something about his involvement in the Weinig matter might be incriminating. Nevertheless, the Committee must take his representation at face value and conclude that Dreyer at least believes that he might have incurred criminal liability during the course of his activities. --------------------------------------------------------------------------- \140\ Letter from the Honorable Dan Burton, Chairman, Comm. on Govt. Reform, to David Dreyer, Principal, TSD, Inc. (Mar. 16, 2001) (within Appendix I) (invitation letter); Subpoena from Comm. on Govt. Reform to David Dreyer, Principal, TSD, Inc. (Apr. 4, 2001) (within Appendix II). --------------------------------------------------------------------------- Weinig's wife, Alice Morey, also directly lobbied Harold Ickes, the President's former Deputy Chief of Staff, whose children attended her sons' school.\141\ Ickes and Podesta have publicly stated that, like Dreyer, they were persuaded to support Weinig's petition by the merits of the argument that Weinig's sentence was disproportionate to other sentences imposed in the case.\142\ Ickes, in particular, said, ``I think what really drove it home to me was the disparity in the sentences.'' \143\ They have also stated that they believed that Weinig's sons were suffering considerably from their father's incarceration.\144\ That appears to be the position that Ickes conveyed to President Clinton when the President approached him about the Weinig petition.\145\ Ickes recalled, ``[The President] asked me about it a couple of times. I don't think he was aware of all the nuances, so I told him my view of it. It was the sentencing issue. I said, `Look, this guy was sentenced. He pled guilty. And nobody is claiming that he's a saint.' '' \146\ However, it is not entirely clear why the sentencing disparity--not whether Weinig's crimes merited the sentence Judge Duffy imposed--was the primary focus. It appears in hindsight that the disparity argument was manufactured to compensate for the fact that there were actually no intellectually defensible grounds for the argument that Weinig's sentence should be commuted. --------------------------------------------------------------------------- \141\ Interview with Reid Weingarten, Partner, Steptoe & Johnson (Mar. 23, 2001). \142\ Benjamin Weiser, A Felon's Well-Connected Path to Clemency, N.Y. Times, Apr. 14, 2001, at A1. \143\ Id. \144\ Id. \145\ Id. \146\ Id. --------------------------------------------------------------------------- Reid Weingarten also enlisted Alma Brown, the widow of former Commerce Secretary Ron Brown, in the clemency campaign. Weingarten had represented Ron Brown in various investigations prior to his death and remained friendly with Alma Brown. Knowing that Alma Brown remained close to the White House, Weingarten asked her to write a letter ``putting in a good word'' for Weinig.\147\ Brown initially resisted but eventually did so.\148\ Weingarten believes that Brown also might have spoken to President Clinton about the Weinig matter.\149\ --------------------------------------------------------------------------- \147\ Interview with Reid Weingarten, Partner, Steptoe & Johnson (Mar. 23, 2001). \148\ Id. \149\ Id. --------------------------------------------------------------------------- III. THE WHITE HOUSE'S REVIEW OF WEINIG'S COMMUTATION REQUEST A. The Justice Department's Input in the Weinig Clemency Matter The Justice Department repeatedly, clearly, and adamantly recommended against any reduction of Weinig's sentence, not only at and after sentencing but also during the clemency proceedings. Some time after sentencing, Weinig's defense counsel sent a 34-page letter to U.S. Attorney Mary Jo White seeking a reduction of Weinig's sentence. In response, White rejected the request out of hand. Also, when Weinig sought a commutation of his sentence from the White House, the Justice Department, through Pardon Attorney Roger Adams, voiced its opposition. 1. The U.S. Attorney Strongly Objected to Commuting Weinig's Sentence U.S. Attorney Mary Jo White expressed her opinion on the Weinig commutation in her official comments to the Pardon Attorney. White's position was then communicated by the Pardon Attorney to President Clinton. White disputed Weinig's description of his role in the money laundering conspiracy.\150\ Citing Weinig's admissions at the sentencing hearing and in the recorded conversations with Hirsch, White argued that ``the evidence amply demonstrates both Weinig's knowledge of and enthusiasm to participate in this scheme.'' \151\ White also argued that Weinig ``misstates his role in the extortion scheme,'' and she challenged his argument that ``he should be exonerated on [the misprision] count because his ethical duties as a lawyer prevented him from disclosing confidential information.'' \152\ --------------------------------------------------------------------------- \150\ NARA Document Production (Report to the President on Proposed Denial of Executive Clemency for Harvey Weinig) at 11 (Exhibit 3). \151\ Id. \152\ Id. --------------------------------------------------------------------------- White explained that ``the extortion charge . . . stemmed not from Weinig's failure to interfere with the kidnapping, but rather from his affirmative efforts to conceal and further his client's extortion of Clooney.'' \153\ White also noted that ``the tapes of Weinig's conversations with Hirsch regarding the kidnapping provide perhaps the greatest example of Weinig's shocking lack of morality or care for the rule of law.'' \154\ White described Weinig's ``suggestion that New York [S]tate's ethics rules either compelled, or at least justified, his conduct'' as ``perverse.'' \155\ In particular, she noted that, although Spence was Weinig's client, he plainly did not inform Weinig of the kidnapping because he was seeking legal advice.\156\ White maintained that, to the contrary, Spence sought Weinig's assistance in obtaining ransom from Clooney. She observed that ``[n]othing in the ethics rules governing attorney conduct in New York State (or any other state for that matter) sanctions one's affirmative participation in a crime, let alone the collection of ransom from a kidnap victim, which is exactly what Weinig directed his law firm's associates to do.'' \157\ White also noted that the Appellate Division of the State of New York, which accepted Weinig's resignation from the bar, took grave exception to his interpretation of the state's ethics rules.\158\ --------------------------------------------------------------------------- \153\ Id. at 11. \154\ Id. at 12. \155\ Id. \156\ Id. \157\ Id. \158\ Id. --------------------------------------------------------------------------- White also challenged Weinig's claim of entitlement to commutation because he received a longer sentence than did his co-conspirators.\159\ White noted that several co-conspirators, including Gary Salerno and Tohmes Peter, received significant, comparable jail sentences for their crimes.\160\ White observed that Weinig was not similar to other co-conspirators in that he was a successful attorney and, therefore, had no reason to engage in illegal activity other than ``sheer greed.'' \161\ White further noted that, contrary to co-conspirators Hirsch and Spence, Weinig repeatedly declined to cooperate with the Government and admit his guilt until immediately before trial.\162\ White explained that any disparity existing between Weinig's sentence and those of his money laundering co- conspirators is explained by Weinig's active participation in the kidnapping scheme.\163\ Finally, White argued that Weinig's family situation did not justify commutation of his sentence.\164\ White apparently notified Judge Duffy, the judge who sentenced Weinig, of Weinig's ongoing effort to obtain presidential clemency. Judge Duffy did not comment on the petition ``other than to point out that Mr. Weinig was sentenced within the Guidelines'' range and that the Commutation Application contains no facts not known to the prosecution and the sentencing court at the time of conviction.'' \165\ --------------------------------------------------------------------------- \159\ Id. at 12. \160\ Id. \161\ Id. \162\ Id. \163\ Id. \164\ Id. at 13. \165\ Id. --------------------------------------------------------------------------- 2. The Pardon Attorney Objected to Commuting Weinig's Sentence Roger Adams, the Pardon Attorney, also opposed the Weinig commutation. In his report to the President, Adams pointed out that the length of Weinig's sentence was directly attributable to the following aggravating factors: the extremely large amount of money Weinig helped to launder, Weinig's actual knowledge that the money he laundered was narcotics trafficking proceeds, and Weinig's use of his special skills as an attorney to ensure that the offense would succeed.\166\ The report further stated that, but for those aggravating factors, Weinig's sentence would have been much lower.\167\ The report also noted that Weinig's argument that his sentence was too severe under the sentencing guidelines was meritless because his offense (of assisting in the laundering of millions of dollars that he knew were the proceeds of drug sales) falls comfortably within the category of drug-related financial crimes that Congress sought to punish severely through the money laundering statute and its sentencing guidelines.\168\ --------------------------------------------------------------------------- \166\ Id. \167\ Id. \168\ Id. --------------------------------------------------------------------------- The report refuted Weinig's claim that he learned of Spence's kidnapping of Clooney only after Clooney was released. Weinig's claim is flatly disproved by his contemporaneously recorded telephone conversations with Robert Hirsch. Given that Weinig's claim indicates his unwillingness to accept full responsibility for his role in the extortion scheme, according to the report, Judge Duffy was fully entitled under the sentencing guidelines to consider this fact when determining Weinig's proper sentence.\169\ --------------------------------------------------------------------------- \169\ Id. --------------------------------------------------------------------------- Regarding Weinig's argument that his sentence was unfair in comparison to his co-conspirators, the report notes that, inasmuch as Weinig plainly sought to downplay his involvement in the extortion scheme, he also sought to significantly minimize his role in the money laundering conspiracy, calling himself ``a belated and minor participant.'' \170\ The report correctly notes that this characterization is contrary to the evidence. Although the report concedes that Weinig was less frequently involved in the day-to-day operations of the money laundering scheme, it notes that Weinig participated in the planning and oversight of the operation, wired money when needed, assisted in recovering seized funds, and participated fully in the profits of the enterprise.\171\ The report also noted that, unlike his co-conspirators, Weinig rejected repeated requests from the government for assistance and did not enter into a plea agreement until the eve of trial--nearly 10 months after his arrest and long after his co-conspirators pled guilty.\172\ Accordingly, the report observes that: --------------------------------------------------------------------------- \170\ Id. at 14. \171\ Id. \172\ Id. See NARA Document Production (Letter from Mark P. Goodman, Assistant U.S. Attorney for the S.D.N.Y., for Mary Jo White, U.S. Attorney for the S.D.N.Y., Department of Justice, to John R. Wing, Member, Weil, Gotshal & Manges (Sept. 20, 1995)) (Exhibit 2) (plea agreement). [Weinig] thus has no one but himself to blame for the fact that, unlike his co-defendants, he was not the beneficiary of a government motion for a downward departure at sentencing, since his own choices precluded him from providing the kind of assistance that would have warranted such a request.\173\ --------------------------------------------------------------------------- \173\ See NARA Document Production (Report to the President on Proposed Denial of Executive Clemency for Harvey Weinig) at 14 (Exhibit 3). Critically, the report notes that, under those circumstances, commuting Weinig's sentence as he proposed would ``significantly undermine'' the government's ``legitimate and important policy interests in encouraging early and complete cooperation by criminal defendants.'' \174\ --------------------------------------------------------------------------- \174\ Id. at 14-15. --------------------------------------------------------------------------- Finally, the report maintains that Weinig's remaining arguments for clemency, those relating to a history of and potential for continued community service as well as those relating to family hardship, simply fail to distinguish Weinig from other convicted felons. The report helpfully notes that many felons have enjoyed fewer advantages than has Weinig, have served longer portions of their lengthy sentences, and have had their clemency requests denied by President Clinton. Given the foregoing and the vehement opposition of the prosecuting U.S. Attorney, the report recommended denial of Weinig's petition. The Committee finds the Justice Department's positions, as articulated by both U.S. Attorney Mary Jo White and Main Justice, powerfully persuasive. Their positions reflect a reasoned, thoughtful deliberation of the merits of Weinig's clemency application against criteria traditionally considered when vetting clemency petitions. They also reflect a thorough understanding of Weinig's underlying conviction and the extant record. To accept Weinig's argument requires a willingness to overlook the facts of the underlying conviction and the record. Such willful blindness gives rise to the inference that the ultimate decision to commute Weinig's sentence was motivated by a factor other than the merits of Weinig's petition. B. The White House's Deliberations By late 2000, Weinig's clemency matter was brought before President Clinton for consideration. Despite the Justice Department's opposition to the commutation and the lack of any strong arguments in favor of the commutation, key White House staff supported the commutation. The Weinig commutation, like many of President Clinton's other final clemency grants, is remarkable for the lack of analysis that the case received at the White House. The White House seems to have ignored the strong recommendations of the Pardon Attorney and the Justice Department prosecutors and granted the commutation after only cursory consideration. Support from John Podesta and Beth Nolan appears to have been critical to the decision to grant the Weinig commutation. Podesta had been lobbied by his former staffer, David Dreyer, and Nolan had been lobbied by Reid Weingarten. Eric Angel, an Associate White House Counsel who was working on clemency matters, recalls that Podesta ``asserted himself'' in favor of Weinig at a meeting with the President regarding the Weinig matter.\175\ White House Counsel Beth Nolan also supported the Weinig commutation.\176\ The lower-level staff in the Counsel's Office, Meredith Cabe and Angel, were not as supportive. Angel claims that he was strongly opposed to the commutation because of the seriousness of Weinig's crimes.\177\ Cabe put her opposition in more gentle terms, stating simply that she was ``not a big fan'' of the Weinig case.\178\ According to Cabe, Podesta and Nolan supported the Weinig commutation for two main reasons. First, they believed that Weinig's sentence was disproportionately long, apparently accepting the argument that Weinig was treated unfairly because his co-conspirators received lighter sentences than he did.\179\ Second, one of Weinig's children was suffering from severe emotional distress as a result of his father's incarceration.\180\ --------------------------------------------------------------------------- \175\ Interview with Eric Angel, former Associate Counsel to the President, the White House (Mar. 28, 2001). \176\ Interview with Meredith Cabe, former Associate Counsel to the President, the White House (Mar. 16, 2001). \177\ Interview with Eric Angel, former Associate Counsel to the President, the White House (Mar. 28, 2001). \178\ Interview with Meredith Cabe, former Associate Counsel to the President, the White House (Mar. 16, 2001). \179\ Id. \180\ Id. --------------------------------------------------------------------------- By late December 2000, the White House Counsel's Office was prepared to recommend that Weinig's sentence be commuted. In a December 17, 2000, draft memorandum to the President, Beth Nolan, Bruce Lindsey, and Meredith Cabe recommended clemency but noted opposition by the office of the prosecuting U.S. Attorney.\181\ A December 20, 2000, draft memorandum noted opposition by Deputy Attorney General Eric Holder and recommended that Weinig's sentence be commuted to 108 months ``[s]ince [Weinig] agreed in guilty plea range should be 108- 135 months[.]'' \182\ As the ``rationale'' for the recommendation, Nolan, Lindsey, and Cabe observed that ``[m]ore culpable co-defendants, including the law partner who directed the kidnapping, received shorter sentences and have been released.'' \183\ No mention is made of the substantial assistance provided by the ``more culpable defendants'' to investigating authorities or that a similarly situated defendant (who actively participated in the extortion by kidnapping scheme) received a sentence comparable to Weinig's. Presumably, both of these facts, as well as a correction to the misstatement that Weinig's ``law partner . . . directed the kidnapping,'' were made in the final draft of the memorandum or orally when advising the President. It is also unclear when or why the decision was made to commute Weinig's sentence from 108 months to time served. But, drafts of ``Pending Clemency Matters'' noted that ``Rep. By Reid Weingarten; through JDP; Harold Ickes.'' \184\ --------------------------------------------------------------------------- \181\ NARA Document Production (Draft Memorandum to the President by Beth Nolan, Bruce Lindsey, and Meredith Cabe (Dec. 17, 2000)) (Exhibit 21). \182\ NARA Document Production (Draft Memorandum to the President by Beth Nolan, Bruce Lindsey, and Meredith Cabe (Dec. 20, 2000)) (Exhibit 22). \183\ Interview with Meredith Cabe, former Associate Counsel to the President, the White House (Mar. 16, 2001). \184\ NARA Document Production (Draft Memorandum from Beth Nolan, Bruce Lindsey, and Meredith Cabe to President William J. Clinton entitled ``Pending Clemency Matters'') (Exhibit 23) (entry for Weinig only). --------------------------------------------------------------------------- The only indication of the President's reasoning in the Weinig matter comes from a copy of the summary of Weinig's argument for a commutation. On a note attached to that document, President Clinton wrote, ``M. Cabe--This looks meritorious[.] Advise[.]--BC.'' \185\ At the top of the memorandum itself, President Clinton wrote, ``Reduce to time served.'' \186\ On January 20, 2001, President Clinton commuted Harvey Weinig's 11-year prison term to time served, which reduced Weinig's sentence by 66 months. --------------------------------------------------------------------------- \185\ NARA Document Production (Summary of Harvey Weinig's Petition for Commutation) (Exhibit 24) (note attached). \186\ Id. --------------------------------------------------------------------------- C. The White House Had No Justification for the Weinig Commutation Weinig articulated three main reasons why he was entitled to presidential clemency: (1) that his sentence was disproportionate and excessive; (2) that his contributions to society justified his early release from prison; and (3) that one of his sons was suffering severe emotional difficulties as a result of his imprisonment. The first reason simply was not true. The other two did not justify any reduction in his sentence, much less his release from prison. Weinig's main argument in favor of the commutation was that his sentence was disproportionate and excessive. In support of his claim, Weinig pointed to his main two co-defendants, Richard Spence and Robert Hirsch, both of whom received lighter sentences than he did and who arguably were more involved in money laundering activities. However, Weinig's sentence was stiffer than those received by Spence and Hirsch because they, unlike Weinig, cooperated with law enforcement.\187\ Judge Duffy adjusted their sentences downward because they provided substantial assistance to investigative authorities.\188\ Co- conspirators truly ``equally culpable,'' including Tohmes Peter and Gary Salerno, received sentences comparable to Weinig's 135-month imprisonment term.\189\ --------------------------------------------------------------------------- \187\ Weinig has argued on occasion that he attempted to cooperate with the government but was rebuffed. A close examination of Weinig's claims shows them to be hollow. Between the time when Weinig entered his guilty plea and his sentencing hearing, Weinig apparently attempted to cooperate with the Government. See Interview with Reid Weingarten, Partner, Steptoe & Johnson (Mar. 23, 2001); NARA Document Production (Report to the President on Proposed Denial of Executive Clemency for Harvey Weinig) at 6-7 (Exhibit 3). Specifically, he submitted himself for debriefing regarding the money laundering operation in November 1995. At that time, he told authorities that Robert Hirsch had violated his own cooperation agreement with the government by resuming his money laundering activities. Id. But this fact was already well known to the federal government. Months earlier, in May 1995, and well before his guilty plea, the government already knew about Hirsch's activities and moved for revocation of Hirsch's bail. Id. at 7; see Telephone Interview with Lev L. Dassin, former Assistant U.S. Attorney for the S.D.N.Y., Department of Justice (Nov. 26, 2001). Ultimately, the federal government did reach an agreement with Hirsch whereby Hirsch agreed to plead guilty to money laundering, bank fraud, and making false statements to federal law enforcement authorities and to cooperate with law enforcement. See NARA Document Production (Report to the President on Proposed Denial of Executive Clemency for Harvey Weinig) at 7 (Exhibit 3). Under this agreement, Hirsch received a sentence of three years imprisonment under the federal sentencing guidelines. The prosecutors made this deal with Hirsch primarily because they needed his cooperation to prosecute Weinig. See Telephone Interview with Lev L. Dassin, former Assistant U.S. Attorney for the S.D.N.Y., Department of Justice (Nov. 26, 2001). As the U.S. Attorney informed the Pardon Attorney, ``The predominant reason the Government resigned Hirsch as a cooperator was to assist in prosecuting [Weinig's] trial. If [Weinig] had admitted his guilt earlier, Hirsch would not have been resigned as a cooperating witness.'' NARA Document Production (Report to the President on Proposed Denial of Executive Clemency for Harvey Weinig) at 7 (Exhibit 3). \188\ Telephone Interview with Lev L. Dassin, former Assistant U.S. Attorney for the S.D.N.Y., Department of Justice (Nov. 26, 2001). \189\ Peter received 97 months in prison, and Salerno received 108 months in prison. Leon and Rachel Weinmann were indicted for, among other things, money laundering and, under separate indictment, causing a $20,000 fully endorsed third-party check to be sent from New York City to Switzerland without filing a particular customs report. On May 19, 1995, they pleaded guilty to only the customs violation. U.S. Probation Office (S.D.N.Y.) Document Production (Pre-sentence Investigation Report, U.S. v. Weinig (S.D.N.Y. Mar. 19, 1996)) at 12 (Exhibit 1). But, prior to their sentencing, it was stipulated that (1) the Weinmanns were charged with money laundering in Switzerland; (2) the case against the Weinmanns represented the second largest money laundering prosecution in Swiss history; and (3) the Weinmanns should be extradited as soon as possible to Switzerland for prosecution there. Id. at 13. Accordingly, the Weinmanns waived the preparation of a presentence report; the Government declined to take a position regarding the Weinmann's sentencing; and, for the crime to which they pled guilty, the Weinmanns were sentenced by Judge Kevin T. Duffy to 1 year unsupervised probation, a $1,000 fine each, and a $50 special assessment. Id. The Weinmanns were then escorted to a flight to Switzerland for prosecution. Id. See Swiss Couple to Be Extradited from United States, Official Says, Associated press Worldstream, May 16, 1995. However, Marc Ziegler, who was then the District Attorney for the Canton of Zurich, noted substantial difficulty with his prosecution of the Weinmanns. The prosecution was intended as a test case of Switzerland's money laundering law, which was introduced in 1990. Apparently, the case against the Weinmanns in Switzerland arose out of the same facts that gave rise to the Weinmann's indictment for money laundering in the U.S. Nonetheless, as described below, many of Weinnman's co-conspirators entered into plea agreements, which precluded evidence that could have been used against the Weinmanns in their prosecution in Switzerland. Ziegler attributes his difficulties in prosecuting the Weinmanns to that factor, ambiguities in the Swiss money laundering statute, and the differences between Swiss and American evidentiary law. The current status of the Swiss case against the Weinmanns is unknown. Richard Messina, one of Weinig's co- conspirators in the scheme to extort James Clooney by kidnapping, was sentenced to 151 months incarceration and three years supervised release--a sentence comparable to Weinig's sentence. Judge Duffy sentenced both Weinig and Messina to the upper end of a recommended sentencing range of 121 to 151 months imprisonment. Judge Duffy's rationale for Messina's sentence was very similar to his rationale for sentencing Weinig, an attorney, to 135 months. He found, among other things, that Messina knowingly played a role in the extortion of Clooney and engaged in serious criminal conduct after having been disbarred. See Telephone Interview with Lev Dassin, former Assistant U.S. Attorney for the S.D.N.Y., Department of Justice (Nov. 26, 2001); Appellate Brief, U.S. v. Messina, Docket No. 96-1789 (2d Cir. 1997) at 20 (citing to record for judge's reasons). --------------------------------------------------------------------------- Indeed, in many criminal cases involving multiple co- defendants, the Government obtains cooperation from some defendants to help develop its case against others. Generally, and understandably, there arrives a point in the investigation in which the Government becomes unwilling to make available any more deals with other co-defendants. In such cases, those co- defendants choose to take their chances with the judge and the jury rather than cooperate with the Government. Until the eve of trial, this was Weinig's decision.\190\ Accordingly, Weinig's citing the resulting ``disproportion'' between reduced sentences given to co-defendants who substantially assisted the Government and the sentences of those who decide not to is flawed because it renders his case indistinguishable from all similar cases where cooperation agreements were used to obtain evidence. In other words, Weinig cannot argue that the methods by which law enforcement gathered evidence to convict him is inherently unfair without requiring that all those cases where convictions were obtained by those same means also be reversed. Such a position is obviously untenable. --------------------------------------------------------------------------- \190\ Telephone Interview with Lev L. Dassin, former Assistant U.S. Attorney for the S.D.N.Y., Department of Justice (Nov. 26, 2001). --------------------------------------------------------------------------- The second main argument used by Weinig as a justification for his commutation is that his humanitarian actions justified his early release from prison. The basic thrust of this argument was that, apart from his activities laundering money for the Cali cartel and participating in a kidnapping scheme, Weinig was actually a very nice person. There are several obvious flaws with this argument. First, it should not have been relevant to the President's analysis. Second, there is little evidence that Weinig was a humanitarian in any significant sense. Rather, the letters of support for Weinig in his clemency petition basically show that Weinig, like most people, had friends who liked him. While he may have been nice to his children and friends, it is difficult to ignore that he was laundering millions of dollars in drug money for the Cali cartel. The fact that Harvey Weinig consciously decided to assist and profit from the Cali cartel's efforts to distribute massive amounts of cocaine in the United States should have been both the starting and finishing point in determining his suitability for Presidential clemency. Doubtless, many families around the United States could provide tragic stories supporting the theory that a money launderer for one of the most powerful Colombian drug cartels is not the kind of person that should be described as humanitarian. The final argument used by Weinig to support his clemency effort was that one of his children was suffering emotional difficulties as a result of his imprisonment. It appears that this argument, more than any other, had a great impact upon the President's decision to grant the commutation. John Podesta obliquely referred to this in one of his public comments about the Weinig case: ``I think that people were aware of what he had done, but that ultimately, I think that based on the length of time he had served and based on a humanitarian plea, while a difficult case, it seemed like the right decision.'' \191\ --------------------------------------------------------------------------- \191\ Benjamin Weiser, A Felon's Well-Connected Path to Clemency, N.Y. Times, Apr. 14, 2001, at A1. --------------------------------------------------------------------------- However, the ``humanitarian plea'' made by Weinig did not justify the commutation of his sentence. Thousands of criminals have families adversely impacted by the stigma of criminal conviction or the fact of incarceration. Yet, this fact should serve as a deterrent to crime, not as a reason to let criminals out of prison long before their sentences are completed. One of the letters in support of Harvey Weinig noted, ``Harvey's love for his children has always been a dominant factor in his life, shaping his ideas of how he wants to spend his time, his money and his life.'' \192\ If this were true, Harvey Weinig would have decided not to join a conspiracy to launder millions of dollars of drug money for, or tried to steal millions of dollars from, the Cali cartel. Weinig knew that his money laundering activity was illegal and that it, as well as his attempted theft of the cartel's drug money, exposed his family to considerable danger. He also knew that, if he was caught by authorities laundering drug money or the cartel stealing its money, he would go to prison or be harmed by the Colombian drug traffickers themselves. However, because of what U.S. Attorney Mary Jo White described as ``sheer greed,'' Weinig participated in substantial criminal conduct that ended up harming his family immeasurably. Given that it was Harvey Weinig who harmed his family, it is unclear why that same harm should then be used to justify freeing Weinig from prison. Weinig's plea is reminiscent of the man who kills his parents and then asks for leniency because he is an orphan. Weinig's ``humanitarian plea'' also ignores entirely his role in bringing into the United States large volumes of drugs that harmed innumerable families. --------------------------------------------------------------------------- \192\ NARA Document Production (Letter from Cynthia A. Hayes to the Honorable Kevin Thomas Duffy, U.S. District Court Judge (Dec. 18, 1995)) (Exhibit 25). --------------------------------------------------------------------------- Moreover, as Weinig's situation was no different from that of thousands of other inmates, it is hard to see why President Clinton chose to grant clemency to Weinig, rather than one of the other thousands of inmates whose families were suffering because of their incarceration. In short, the only answer is that President Clinton chose Weinig because he was the person who had the access, through his wife's cousin, David Dreyer, and his lawyer, Reid Weingarten, to make his case to the President and the White House staff. D. Aftermath of the Weinig Commutation President Clinton's grant of clemency to Harvey Weinig has trivialized the seriousness of Weinig's criminal misconduct. Having interviewed law enforcement personnel, it is also clear that the clemency decision has eroded morale among law enforcement personnel who put their lives on the line and work tirelessly to enforce the drug laws on a federal, state, and local level. As a policy matter, the grant of clemency has also undermined the government's legitimate interest in encouraging prompt guilty pleas and truthful cooperation from criminal defendants. Domestically, President Clinton's action conveyed an appearance of granting special consideration to wealthy, politically well-connected criminals and their relatives. Pardon Attorney Roger Adams foresaw the message sent by the Weinig commutation, warning President Clinton that: To commute [Weinig's] prison term to the five years he proposes would denigrate the seriousness of his criminal misconduct, undermine the government's legitimate interest in encouraging prompt guilty pleas and truthful cooperation from criminal defendants, and could give the appearance of granting special consideration to economically advantaged, white-collar offenders.\193\ --------------------------------------------------------------------------- \193\ NARA Document Production (Report to the President on Proposed Denial of Executive Clemency for Harvey Weinig) at 15 (Exhibit 3). It is difficult to disagree with Adams' conclusion. Clearly, many prison inmates have families that have been adversely impacted by their criminal activity. Yet, of all those people, Harvey Weinig received a commutation of sentence. Weinig's commutation did not come as a result of having committed some minor crime--he was a money launderer for the Cali cartel. Rather, Weinig received a commutation because he was wealthy and privileged, could hire a lawyer like Reid Weingarten, and had relatives and friends who knew the President. On an international level, President Clinton's commutation decision has unfortunately sent the message to the world that the United States' commitment to eradicating narcotics trafficking is, to some extent, disingenuous. Former Colombian National Police Chief Rosso Serrano noted that President Clinton ``sent the wrong message to the anti-drug struggle, because it negates the suffering of all the families of those who died to fight trafficking.'' \194\ According to Serrano, ``[The Weinig clemency decision is] very frustrating. [The drug traffickers] must be laughing at us. It's a terrible precedent for those of us who have openly fought this scourge.'' \195\ In an op-ed entitled ``The Morality of the Strongest'' in El Tiempo, Colombia's leading daily, Gustavo De Greiff, a former Colombian attorney general, labeled President Clinton's clemency decision ``monstrous.'' \196\ Likewise, former Colombian president Ernesto Samper, who saw his country decertified and facing sanctions for his apparent lack of cooperation with the United States, described the clemency as ``repugnant.'' \197\ He rhetorically asked, ``What would have happened if, with just a few days left in my presidency, I had set free several drug traffickers arrested in Bogota, and if those same people were found to be helping people in my government?'' \198\ --------------------------------------------------------------------------- \194\ Former Colombian Drug Agent Blasts Clinton's Pardon of Trafficker, Agence France Presse, Mar. 4, 2001. \195\ Colombian General Hits Clinton Commutation, Wash. Times, Mar. 6, 2001, at A13. \196\ Russell Crandall, The Americas: In the War on Drugs, Colombians Die, Americans Are Pardoned, Wall St. J., Apr. 20, 2001, at A15. \197\ Id. \198\ Id. --------------------------------------------------------------------------- Indeed, President Clinton's eleventh-hour commutation of Weinig's sentence prompted government officials and the media in Colombia to accuse the U.S. government of hypocrisy. During the mid-1990s, the Clinton administration openly condemned the Colombian government's ``surrender policy'' toward the Cali cartel. Pursuant to the ``surrender policy,'' the Colombian government allowed reduced prison sentences for drug kingpins who agreed to surrender. And, currently, an important element of the U.S. anti-drug approach is the $1.3 billion U.S. commitment to Plan Colombia--President Andres Pastrana's program to recover control of the country from guerilla factions brutally dominating the Colombian countryside in furtherance of their cocaine production enterprises. But, there can be no doubt that, to the extent that eradicating narcotics trafficking is indeed important to the United States, such a commitment should be reflected in the activities of those charged with the public trust at the highest levels of elected office. [Exhibits referred to follow:] ![]()