Wachtell Murphy 1992 Question Slush Fund Fraud

SEriT BY:tfACnTLL UfTO-N : ^ - 1 5 - 3 3 Ml): 43AM : fiACHTELL UPTON- 5453297;

K E M 0 3 U O M

Apri l 2B, 1992

TO: Herbert K. Wachtal l Paul Vizcarrondo , J r . John r , 5avarese

FROH: D a v i d M. Murphy

RE: LORIIXARD/CTR INQUIRY

Yesterday at Lorlllard (HY) a new issue can* up that we should discuss as scon as possible.

Art Stevens end Bill Allinder would like our view on whether, given WLRAX's moratorium advice. Lorillard may participate in funding through a Shook, Hardy special account the work of a Georgetown pathologist, Bennett Jensen.

According to Allinder, the facts are as follows: Dr." Jensen received **CTR Speelal Project" funds back in '84, which funds have been spent. He now faces funding problems at Georgetown that, again according to Allinder, have something to do with his ties to the industry. Because of his worsening relations with Georgetown, Jensen is looking for a position at another university and could use some funds to tide bin over until he finds a new home.

Shook, Hardy proposes to Mgive hia" 340,000 not for specific research (he's currently working on a vaccine for human patholoma) or with an eye to publication but solely in order to maintain a good relationship with hin and secure his continued help in making contact with other scientists. The money would coma from an expert witness fund administered by Shook, Hardy ("Shook, Hardy special Fund").

Ordinarily, each tobacco company contributes to the shook. Hardy fund and thereafter is not involved in deciding whether to approve specific litigation or legislation related expenditures. This expenditure, however, was brought to Art Stevens' attention by Alllnder because it could be construed _ to violate HMW's moratorium on new special projects funding, *j

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