Union Calendar No. 471105th Congress, 2d Session----- - - - - -- House Report 105-829

INVESTIGATION OF POLITICALFUNDRAISING IMPROPRIETIES AND

POSSIBLE VIOLATIONS OF LAW

INTERIM REPORT

SIXTH REPORTBY THE

COMMITTEE ON GOVERNMENTREFORM AND OVERSIGHT

together with

ADDITIONAL AND MINORITY VIEWSVolume 3 of 4

November 5, 1998.-Committed to the Committee of the Whole Houseon the State of the Union and ordered to be printed

U.S. GOVERNMENT PRINTING OFFICE

51-332 WASHINGTON : 1998

COMMITTEE ON GOVERNMENT REFORM AND OVERSIGHTDAN BURTON, Indiana, Chairman

BENJAMIN A. GILMAN, New York HENRY A. WAXMAN, CaliforniaJ. DENNIS HASTERT, Illinois TOM LANTOS, CaliforniaCONSTANCE A. MORELLA, Maryland ROBERT E. WISE, JR., West VirginiaCHRISTOPHER SHAYS, Connecticut MAJOR R. OWENS, New YorkCHRISTOPHER COX, California EDOLPHUS TOWNS, New YorkILEANA ROS-LEHTINEN, Florida PAUL E. KANJORSKI, PennsylvaniaJOHN M. McHUGH, New York GARY A. CONDUIT, CaliforniaSTEPHEN HORN, California CAROLYN B. MALONEY, New YorkJOHN L. MICA, Florida THOMAS M. BARRETT, WisconsinTHOMAS M. DAVIS, Virginia ELEANOR HOLMES NORTON, Washington,DAVID M. McINTOSH, Indiana DCMARK E. SOUDER, Indiana CHAKA FATTAH, PennsylvaniaJOE SCARBOROUGH, Florida ELIJAH E. CUMMINGS, MarylandJOHN B. SHADEGG, Arizona DENNIS J. KUCINICH, OhioSTEVEN C. LATOURETTE, Ohio ROD R. BLAGOJEVICH, IllinoisMARSHALL "MARK" SANFORD, South DANNY K. DAVIS, Illinois

Carolina JOHN F. TIERNEY, MassachusettsJOHN E. SUNUNU, New Hampshire JIM TURNER, TexasPETE SESSIONS, Texas THOMAS H. ALLEN, MaineMICHAEL PAPPAS, New Jersey HAROLD E. FORD, JR., TennesseeVINCE SNOWBARGER, KansasBOB BARR, Georgia BERNARD SANDERS, VermontDAN MILLER, Florida (Independent)RON LEWIS, Kentucky

KEVIN BINGER, Staff DirectorBARBARA J. COLSTOCK, Chief Counsel

DAVID A. KASS, Deputy Counsel and ParliamentarianLISA SMITH AMAFUNE, Deputy Chief Clerk

PHIL SCHILERO, Minority Staff Director

MAJORITY STAFFKEVIN BINGER, Staff DirectorBARBARA JEAN COMSTOCK, Chief CounselJAMES C. WILSON, Chief Investigative CounselDAVID A. KASS, Deputy Counsel and

ParliamentarianMICHAEL Bopp, Senior Investigative CounselJ. TIMOTHY GRIFFIN, Senior Investigative

CounselKRISTI L. REMINGTON, Senior Investigative

CounselELLIOT S. BERKE, Investigative CounselROBERT J. DOLD, Investigative CounselJASON HOPFER, Investigative CounselJoHN IRVING, Investigative CounselRAE OLIVER, Investigative CounselJIM SCHUMANN, Investigative CounselMICHELLE E. WHITE, Investigative CounselDUDLEY HODGSON, Chief InvestigatorMILT COPULOS, InvestigatorKEVIN DAVIS, InvestigatorG. ANDREW MACKLIN, InvestigatorJOHN T. MASTRANADI, InvestigatorMATT TALLMER, InvestigatorTHOMAs P. BOSSERT, Assistant to Chief

CounselJASON FOSTER, Assistant Systems

AdministratorLAUREL GROVER, Staff AssistantKENNETH FENG, GAO DetaileeROGER STOLTZ, GAO DetaileeRICHARD D. BENNETT, Special Counsel to the

Committee

MINORITY STAFFKRISTIN L. AMERLING, Minority CounselKENNETH M. BALLET, Minority Chief

Investigative CounselPHILIP S. BARNETT, Minority Chief CounselCOURTNEY A. COOK, Minority StaffAssistantSARAH DESPRES, Minority CounselJONATHAN M. FRENKEL, Minority CounselHAROLD W. GOSSETT, Minority Professional

Staff MemberCHRISTOPHER P. Lu, Minority CounselMICHAEL J. RAPHAEL, Minority CounselELLEN P. RAYNER, Minority Chief ClerkJESSICA R. ROBINSON, Minority Staff

AssistantDAVID SADKIN, Minority CounselPHILIP M. SCHILIRO, Minority Staff DirectorANDREW H. SU, Minority Research AssistantAMY R. WENDT, Minority Staff AssistantBARBARA A. WENTWORTH, Minority Research

AssistantMICHAEL T. YANG, Minority CounselMICHAEL J. YEAGER, Minority Counsel

LETTER OF TRANSMITTAL

HOUSE OF REPRESENTATIVES,Washington, DC, November 5, 1998.

Hon. NEWT GINGRICH,Speaker of the House of Representatives,Washington, DC.

DEAR MR. SPEAKER: By direction of the Committee on Govern-ment Reform and Oversight, I submit herewith the committee'ssixth report to the 105th Congress.

DAN BURTON,(III) Chairman.

CONTENTS

P reface ............................................................................................................ ....... PageChapter I: Introduction ........................................................................................... 5Chapter II: Unprecedented Obstacles to the Committee's Investigation ............ 47

Chapter III: The Democrats' Failure to Return Illegal CampaignC on tribu tion s ........................................................................................................ 149

Chapter IV: Unprecedented Infusion of Foreign Money Into the AmericanPolitical System ........................................................................ 1185

Part A: The Riady Family and John Huang: Access and Influence withthe Clinton White House ................................. 1185

Part B: Yah Lin "Charlie" Trie and His Relationship with the ClintonA dm inistration .............................................................................................. 1347

Part C: Johnny Chung: His Unusual Access to the White House andHis Political Donations ........................................ 1671

Part D: The Sioeng Family's Contributions and Foreign Ties ...................... 2131Chapter V: The Failure of Government Agencies to Vigorously Pursue Cam-

paign V iolation s .................................................................................................... 2933Part A: Jorge Castro's Illegal Campaign Contributions, and Why They

Were Never Prosecuted ..................................... 2933Part B: FEC Enforcement Practices and the Case Against Foreign Na-

tional Thomas Kramer: Did Prominent DNC Fundraisers Receive Spe-cial Treatment? . . . . . . . . . . . . . . . . . . . . . . . . . . . .. .. ..... ... ..... . 2983

Chapter VI: The Hudson Casino Rejection ............................................................ 3111Chapter VII: Procedural Background of the Campaign Finance Investigation .. 3863

VIEWSAdditional views of Hon. Dan Burton ............................... 3881Additional views of Hon. Pete Sessions ..................... ......... 3920Minority views of Hon. Henry A. Waxman, Hon. Tom Lantos, Hon. Robert

E. Wise, Jr., Hon. Major R. Owens, Hon. Edolphus Towns, Hon. PaulE. Kanjorski, Hon. Gary A. Condit, Hon. Bernard Sanders, Hon. CarolynB. Maloney, Hon. Eleanor Holmes Norton, Hon. Chaka Fattah, Hon. ElijahE. Cummings, Hon. Dennis J. Kucinich, Hon. Rod R. Blagojevich, Hon.Danny K Davis, Hon. Thomas H. Allen, and Hon. Harold E. Ford, Jr .......... 3923

Additional views of Hon. Thomas M . Barrett ........................................................ 4878

Union Calendar No. 471105TH CONGRESS I REPr. 105-829

2d Session j HOUSE OF REPRESENTATIVES VOL. 3 OF 4

INVESTIGATION OF POLITICAL FUNDRAISINGIMPROPRIETIES AND POSSIBLE VIOLATIONS OF LAW

NOVEMBER 5, 1998.-Committed to the Committee of the Whole House on the Stateof the Union and ordered to be printed

Mr. BURTON, from the Committee on Government Reform andOversight, submitted the following

SIXTH REPORT

together with

ADDITIONAL AND MINORITY VIEWS

On October 8, 1998, the Committee on Government Reform andOversight approved and adopted a report entitled, "Investigation ofPolitical Fundraising Improprieties and Possible Violations ofLaw." The chairman was directed to transmit a copy to the Speakerof the House.

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CHAPTER V, PART A

THE FAILURE OF GOVERNMENT AGENCIES TOVIGOROUSLY PURSUE CAMPAIGN VIOLATIONS

JORGE CASTRO'S ILLEGAL CAMPAIGN CONTRIBUTIONS,AND WHY THEY WERE NEVER PROSECUTED

JORGE CASTRO'S ILLEGAL CAMPAIGN CONTRIBUTIONS,AND WHY THEY WERE NEVER PROSECUTED

INTRODUCTIONIn the course of the Committee's investigation, we learned of an-

other source of foreign money-South America. The Committeelearned that the New York District Attorney's Office conducted aninvestigation into the banking activities of the Castro family ofVenezuela, and had uncovered evidence of illegal campaign activi-ties by that family. The District Attorney's Office turned this inves-tigation over to the Justice Department, which failed to pursue anycharges against the key individuals involved. The Committee fol-lowed up on the New York District Attorney's investigation, andbrought to light the facts of the Castro case.

I. THE KEY PLAYERSA. ORLANDO CASTRO LLANES

Born in Cuba, Castro Llanes was head of a wing of that nation'scommunist party until fleeing the island in 1959 following an al-leged dispute with Fidel Castro.' After landing in Haiti, CastroLlanes went to Miami, and in 1961 or 1962, depending on the ac-count, arrived in Caracas, Venezuela with just $150 in his pocket.2By the 1980s, Castro Llanes had become an influential business-man in Venezuela, earning a fortune in the insurance business. Hebegan aggressively expanding his financial empire, becoming activein banking, real estate, finance companies, radio stations andnewspapers.3 Ultimately, his Grupo Impresas Latinamericanos in-cluded among its holdings, the Banco Progreso in Venezuela, theBanco Progreso de Internacional de Puerto Rico, and the BancoLatinamericano in the Dominican Republic.4

In March 1991, following allegations of money laundering, U.S.Customs inspectors ordered the Banco Progreso accounts at NewYork's Bank America International frozen, along with those of anumber of other banks.5 Castro Llanes turned to his long-timelegal advisor and business associate, Charles Intriago, for assist-ance. Mr. Intriago had known Castro Llanes for over a decade, andhad acted as his principal legal advisor on matters related to theUnited States. In fact, they were so close that Castro Llanes pro-vided $80,000 in start-up capital for Intriago's Money Laundering

1Ramon Maceiras, Orlando Castro: La Historia Apasionante de un Coloso de las MnanzasVenezolanas, (1991) at 49-65.2 Id. at 10.3 See generally id.

4Id.5 Peter Truell, "Too Close for Comfort?; Inquiry Touches Money Laundering Expert's Backer,"New York Times, Apr. 4, 1996, at D1.

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Alert newsletter.6 In addition, Castro Llanes was reportedly seek-ing to have Intriago appointed U.S. ambassador to Venezuela.

7

Intriago also organized a defense team for the Banco Progreso mat-ter which ultimately convinced U.S. Customs to release the ac-counts.8

In 1994, following the collapse of the Venezuelan banking sys-tem, Castro fled to the United States and settled in Miami. Ven-ezuelan banking regulators seized Banco Progreso that December.Castro was later charged in absentia with bank fraud, embezzle-ment, and conspiracy by the Venezuelan government.

9

On April 4, 1996, Castro Llanes was indicted in New York alongwith his son and grandson on charges of a scheme to defraud inthe first degree. He was convicted on grand larceny charges onFebruary 19, 1997, and in April of that year sentenced to a termof 1 to 3 years in prison. The larceny involved defrauding deposi-tors of the Banco Progreso International de Puerto Rico of as muchas $55 million. His crime also cost the government of Venezuelamore than $8 million.

B. ORLANDO CASTRO CASTRO

The U.S.-educated son of Castro Llanes, and uncle of Jorge Cas-tro Barredo, Orlando Castro Castro was president of the BancoProgreso in Caracas, Venezuela. He was convicted along with hisfather and nephew by the Manhattan District Attorney on chargesof bank fraud involving the theft of millions of dollars from a Puer-to Rican bank the family controlled. He was sentenced to a termof 23 to 7 years in prison. 10

C. JORGE CASTRO BARREDO

The grandson of Castro Llanes, Castro Barredo worked in hisgrandfather's banking empire as president of the BancoLatinamericano in the Dominican Republic. In 1992, CastroBarredo made $25,000 in illegal foreign conduit contributions tothe Democratic party. According to his sworn testimony, these con-tributions were made at the direction of family lawyer and DNCTrustee, Charles Intriago. Bank documents show that the contribu-tions were reimbursed shortly thereafter by a Venezuelan firmowned by his grandfather." Castro Barredo was also charged inthe Banco Progreso fraud case.12

The bank fraud case was precipitated when an insurance com-pany controlled by the Castro family overdrew its account at theirDominican Bank, and local banking authorities required the insti-tution to increase its deposits by $3 million. Castro Barredo im-properly withdrew $3.26 million from the family's Puerto Ricanbank and deposited it in the Dominican Republic institution, usinga portion of the money to purchase a yacht.13 Castro Barredo pro-vided testimony to representatives of the Justice Department con-

6 1d7 Interview of James Kindler and Joseph Dawson, Dec. 26, 1997 ("Kindler-Dawson Interview").5 1d.9Id.lo Id."Id.12Id.13 Id.

2937cerning his knowledge of illegal foreign conduit campaign contribu-tions and his testimony was corroborated independently by docu-mentary evidence obtained by the New York District Attorney's Of-fice.1 '

Notwithstanding documentary and testimonial evidence, the Jus-tice Department chose not to bring any charges related to the Cas-tro conduit contributions.'1 On February 19, 1997, Castro Barredowas convicted on the unrelated bank fraud and larceny charges. OnDecember 15, 1997, he was sentenced to a term of 32 to 102years in prison.16

D. MARIA SIRE CASTROMaria Castro is the aunt of Castro Barredo, and the wife ofRafael Castro, another one of Castro Llanes's sons. She made a$20,000 illegal foreign conduit campaign contribution to the DNC,

and a $5,000 illegal conduit contribution to the Maryland StateDemocratic party in 1992.17E. CHARLES INTRIAGO

The relationship between Castro Llanes and Intriago goes backnearly two decades. After first meeting in 1980, Castro Llanes soonbecame one of Intriago's clients.18 Jorge Castro Barredo testifiedabout his social ties with Intriago, making reference to their at-tending Florida Marlins baseball games together.19 Castro Barredoalso told Committee investigators that Intriago was paid a monthlyretainer by Castro Llanes of $20,000 to $25,000 per month andacted as his legal advisor on all matters related to the UnitedStates. He further stated that on one occasion, during the Ven-ezuelan banking crisis of 1994, he was instructed to pay Intriago$100,000 by either Castro Llanes or his associate LuzmeniaBriceno. 20 In 1989, with the help of an $80,000 investment fromCastro Llanes in exchange for a 15 percent interest in the venture,Intriago founded the Money Laundering Alert newsletter.

After getting caught up in a bitterly contested hostile takeoverfight for control of the Banco de Venezuela in 1990, Castro Llanesturned to Intriago for help. He soon faced another potentially criti-cal problem and again turned to Intriago. In March 1991, U.S. Cus-toms officials, suspicious of transactions taking place in accountsheld by a number of Venezuelan banks in New York, moved tofreeze the funds held by those banks. Banco Progreso's account atthe Bank America International was among those affected. Intriagoput together what Jorge Castro Barredo described as a "DreamTeam" 21 of attorneys and political operatives to obtain release ofthe funds and was ultimately successful. 22

1 4Venezuelan Money and the Presidential Election, Hearing, Committee on Government Re-form and Oversight, Apr. 30, 1998 ("Castro Hearing") at 77-78 (Testimony of Joseph J. Dawson).15 See Letter from Lee J. Radek to Richard T. Preiss, Oct. 17, 1997 (Exhibit 1).16 Castro Hearinu at 9 (Testimony of Jorge Castro Barredo).17 Id. at 10, 14 (Testimony of Jorge Castro Barredo).

s Interview of Jorge Castro Barredo, Jan. 19, 1998 ("Castro Interview I").19 Castro Hearing at 39 (Testimony of Jorge Castro Barredo).2 Castro Interview I.2 1 Interview of Jorge Castro Barredo on Sept. 15, 1998.2 2 Id.

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After being subpoenaed to appear before an executive session ofthis Committee, Intriago declined to answer questions, invokingthe Fifth Amendment to virtually all questions posed.23 Intriago'sattorney, did, however, submit a letter on behalf of Intriago to theCommittee, stating in part:

Mr. Intriago is not a government official. He has neverheld a high elected or appointive government position. Hehas never been an employee of, or consultant to, the Demo-cratic National Committee. He is not a "friend" or "associ-ate" of the President, the Vice President, or any other highranking Democratic Party official. He has not applied for,been interviewed for or considered for a government job.He has never had or sought a government contract. Mr.Intriago simply is a respected private lawyer with a pre-viously unblemished record of conduct. 24

This statement, is at best, misleading. According to DNC docu-ments obtained by the Committee, Intriago is listed as an "appli-cant" for a Federal appointment. The documents indicate that hewas involved in the 1992 Florida Presidential campaign, and thatthe recommendation was forwarded on December 16, 1992.25 It in-dicates his "JOB PREF./AREA OF INTEREST" as "LEGL," likelyindicating a legal job preference. It indicates his "AGENCY/DE-PARTMENT PREFERENCE" as "Just," likely indicating the De-partment of Justice.26 The notation also indicates under the title"Job Level", the initials "SL," indicating a senior level position.27

Similarly, the contention that Intriago has never been a "highgovernment official" understates his actual employment history. Hewas a senior congressional staff member early in his career, andserved as a Special Assistant to the Governor of Florida, playinga major role in the development of that state's racketeering laws.He also served as an Assistant U.S. Attorney in Florida.

Mr. Intriago's name also is listed in another DNC documentwhich is a compilation of recommendations for a delegation to at-tend the 1994 Salvadoran election. Intriago's name is first on thelist which also includes such dignitaries as Secretary of Energy BillRichardson, then mayor of Albuquerque Martin Chavez, and promi-nent DNC donor Walter Kaye. 28 The Committee also obtained aletter dated December 2, 1992, from Intriago to then DNC Chair-man Ron Brown addressed "Dear Ron," and stating:

Just a brief note to tell you that I enjoyed meeting youduring the campaign in Little Rock and Middleburg. Ap-parently, I am now a "trustee" of the DNC and am lookingforward to assisting you in any way I can.

So that you will know a little more about me, I enclose acouple of recent issues of my publication, Money Launder-

23 Deposition of Charles A. Intriago, Feb. 20, 1998 ("Intriago De sition").24Castro Hearing at 36 (Statement by Robert Plotkin, Counsel tor Charles Intriago)2e See DNC Document 076440, a review of applicants for political appointments by the newlyelected Clinton Administration (Exhibit 2).2 Id.2 Id.2Memorandum from Martha Phipps to Dana Wyckoff, Feb. 23, 1994 (Exhibit 3).

2939ing Alert, together with some background information. Ithink this is an issue on which President Clinton canmake some headway in dealing with the drug and whitecollar crime problems. 29

II. CASTRO'S ILLEGAL CONTRIBUTIONSOn September 15, 1992, Charles Intriago called Jorge Castro

Barredo at his office in the Dominican Republic, and asked him tomake several contributions to the DNC.30 Castro Barredo recallsthat Intriago said either that "we are going to make some contribu-tions to Clinton's campaign," or that "your grandfather wants tomake contributions to Clinton's campaign." 3 ' Intriago told CastroBarredo that he and his uncle, Rafael Castro, should make the con-tributions, because they were U.S. citizens.32 At this point, CastroBarredo told Intriago that Rafael did not have a bank account, butthat Rafael's wife, Maria Sire Castro, had a bank account, and wasa U.S. citizen.33 Intriago then told Castro Barredo that he shouldwrite one check to the DNC for $20,000, and another check to theOhio State Democratic party for $5,000.34 Intriago also told CastroBarredo to have Maria Castro write a check for $20,000 to theDNC, and a check for $5,000 to the Maryland State Democraticparty.35 After Castro Barredo's telephone conversation withIntriago, he requested that his uncle have his aunt draft the twochecks that Intriago had requested.36

Castro Barredo was slightly confused, however, by Intriago's in-structions, and he asked Intriago to send a fax with written in-structions for how to draft the checks.37 Castro Barredo receivedthe fax the following day. On the fax, Intriago listed out each con-tribution that Castro Barredo and Maria Castro were supposed tomake. At the bottom of the fax, Intriago wrote in Spanish: "I wantyou to send me these today by Federal Express." 3 8

At the time that he made the contributions, Castro Barredo knewthat he and his aunt would be reimbursed.39 Castro Barredo hadno interest in politics, had never voted, and had no interest in giv-ing $25,000 to support any political party.40 Most importantly, dur-ing their telephone conversation about the contributions, Intriagoassured Castro Barredo that he and his aunt would be reimbursedby "one of his grandfather's companies." 4 1

Several days after Castro Barredo sent the requested checks toIntriago, Intriago called him and requested that he send a newcheck. Intriago told Castro Barredo that he was not going to use

"Letter from Charles Intriago to Ron Brown, Dec. 2, 1992 (Exhibit 4).3o Castro Hearing at 13.axCastro Interview I.32 Id.33 Id."Id.; see Checks of Jorge Castro Barredo to Ohio Victory Fund, DNC Victory Fund '92, and

Kentucky Democratic party (Exhibit 5).35 Id.; see Check of Maria Sire Castro to DNC Victory Fund (Exhibit 6); Check of Maria Sire

Castro to Maryland Victory Fund (Exhibit 7).36 Id."Id."See Committee Exhibit of fax cover sheet (Exhibit 8); see also Fax Message from Charles

Intriago to Jorge Castro, Sept. 16, 1992 (original) (Exhibit 9).3Castro Hearing at 12-13 (Testimony of Jorge Castro Barredo).40 Castro Hearing at 12.41Castro Hearing at 12-13.

2940

the $5,000 check Castro Barredo had written to the Ohio stateparty, and instead, asked Castro Barredo to write a new $5,000check to the Kentucky State Democratic party.4 2 On September 29,Castro Barredo did so, and sent the check to Intriago. However,days later, Intriago called again, and told Castro Barredo that hewould not use the Kentucky check, and instead, asked CastroBarredo to draft a $5,000 check to the Florida Democratic party.43Castro Barredo, exasperated, asked why he had to keep writingnew checks.4 Intriago responded "that's the way they want it."45Castro Barredo did not ask for any further explanation, and sentthe requested check to Intriago.

On September 24, 1992, Castro Barredo received a wire transferto his account for $24,990.46 Records indicate that the wire transfercame from Inversiones Latinfin, a company owned by Orlando Cas-tro Llanes.47 Castro Barredo testified that Inversiones Latinfindoes no business in the United States.

A. THE CASTROS' RED CARPET TREATMENT

After his family contributed $50,000 to the Democratic party,Castro Llanes received red carpet treatment from the Clinton Ad-ministration over the coming year. Immeditaely after Bill Clinton'selection in 1992, Castro Llanes told Castro Barredo that they werehopeful that Intriago would be appointed as ambassador to Ven-ezuela.48 While this goal did not come to fruition, Intriago did givethe Castro family increased access to Washington, DC, after Presi-dent Clinton's election.

Castro Llanes, Intriago and Castro Barredo all attended the Jan-uary 1993 inauguration of President Clinton.49 In October 1993,Castro Llanes, Intriago, Castro Barredo, and Castro Castro re-turned to the United States. The first day that the group was inWashington, Castro Llanes and Intriago went to the White Housefor a reception for DNC donors.50 At this event, Castro Llanes hada picture taken with President Clinton.5 1 Castro Barredo was notinvited to this event, even though it was he, not Castro Llanes,who had contributed $25,000 to the DNC.

The following day, the Castro group traveled to the State Depart-ment, where they met with State Department officials Perry Balland Monica Adler.52 It was Castro Barredo's understanding thatIntriago had set up the meeting at the State Department.53 Thepurpose of the meeting was to discuss the ongoing investigations

42 Castro Interview I; see Exhibit 6.4 Id.; see Check from Jorge Castro Barredo to Florida Democratic party (Exhibit 10).4 Castro Hearing at 26.45 Id." See Account Statement of Jorge F. Castro, International Bank of Miami, September 1992(Exhibit 11); Wire Transfer Information, NationsBank, Sept. 24, 1992 (Exhibit 12).47 Wire Transfer Statements (Exhibits 13-14). See also Trust Statement for Banco Industrialde Venezuela (listing Inversiones Latinfin as one of Orlando Castro Llanes' companies)." Castro Interview I at 4.4 Castro Hearing at 29.'oCastro Hearing at 29-31.5 1Photograph of Orlando Castro Uanes and President Clinton, Oct. 14, 1993 (Exhibit 15). Aset of photos of Charles Intriago and Orlando Castro Lanes were sent to Intriago by the DNC.See Letter fr-om Eric Sildon to Charles Intriago, June 21, 1995 (Exhibit 16).52 Castro Interview I.5 Id.

2941of the Castro family and the various allegations that had been lev-eled against the family about money laundering.54

B. INTRIAGO'S TIES TO THE DEMOCRATIC PARTY

Intriago himself made over $52,000 in contributions to the DNCduring the 1992 election cycle. These include contributions to theDemocratic State Central Committee of Maryland, the DemocraticCongressional Campaign Committee ("DCCC"), the DNC, the Colo-rado Democratic party, Senator Tom Harkin, the Illinois Demo-cratic party, the Nebraska Democratic Future Fund Committee,and the Ohio Democratic party.r5 After raising more than $10,000at a Miami dinner honoring Vice President Gore in 1993, Intriagobecame a member of the DNC's Business Leadership Forum. 5 6

In the course of attending various DNC fundraising events,Intriago had the opportunity to come into close contact with othermembers of the DNC's elite. One of the most important of thesewas Charles "Bud" Stack, a DNC Trustee, who, along with Intriagowas a major donor to an April 29, 1993, dinner honoring VicePresident Gore. Intriago received help from Stack in arranging ameeting between Castro Llanes and President Clinton.5 7 Intriagobecame a DNC Trustee in 1992, evidenced by a letter written byIntriago on December 2, 1992.58

III. THE NEW YORK DISTRICT ATTORNEY'S INVESTIGATIONIn December 1994, the Latin American banking community was

rocked by the collapse of three major financial institutions, theBanco Progreso in Venezuela, the Banco Progreso Internacional dePuerto Rico, and the Banco Latinamericano in the Dominican Re-public. These institutions were all part of Group ImpresasLatinoamericanos, Orlando Castro Llanes' financial empire.59 Fol-lowing the collapse of these financial institutions, the New YorkDistrict Attorney's Office initiated an investigation into possibleviolations of banking law by the Castro family.60 In the course ofthe investigation, an Assistant District Attorney and several inves-tigators were granted permission to examine the files of the BancoLatinamericano in Santo Domingo, one of the Castro family banks.Banco Latinamericano's president was Jorge Castro Barredo, Cas-tro Llanes' grandson.6 1

While conducting their search, the New York investigators dis-covered a number of documents in the office of Castro Barredo'ssecretary, including the fax dated September 16, 1992, fromIntriago instructing Castro Barredo to make conduit contributions.The New York investigators also discovered copies of checks show-ing Castro Barredo's contributions to the Democratic party.6 2

54 Id."See FEC website, www.tray.com/fecinfo." See Memorandum from Team Florida to Nancy Jacobson, Laura Hartigan, Jan Hearst, Sam

Newman, May 7, 1993 (Exhibit 17).5 7 Truell, Peter, 'Too Close For Comfort," the New York Times, Apr. 4, 1996.5Exhibit 5.- Kindler-Dawson Interview.S Kindler-Dawson Interview.6 1 Castro Hearing at 75 (Testimony of Joseph J. Dawson); see also Kindler-Dawson Interview.62 See Exhibits 5-7.

2942

Later, upon their return to New York, the District Attorney's Of-fice subpoenaed a number of bank records including those of JorgeCastro Barredo and Maria Sire Castro. The bank records showedthat both of the $20,000 checks to the DNC Victory Fund 1992 Fed-eral Account had been cashed, but that Castro Barredo's first twostate party checks had not been cashed. They did confirm, though,that Castro Barredo's $5,000 check made out to the Florida Demo-cratic party had been cashed.6s More importantly, the recordsshowed that on September 24, 1992-just 8 days after the fax-both Jorge Castro Barredo and Maria Sire Castro received wiretransfers to each of their accounts in the amount of $24,990.64Taken together, these documents support the assertion that an il-licit transaction consisting of a conduit contribution reimbursed bya non-U.S. entity took place.

IV. THE JUSTICE DEPARTMENT'S HANDLING OF THE CASTRO CASEThe New York District Attorney's Office had uncovered convinc-

ing evidence of a serious violation of Federal campaign law, andthey decided to refer the matter to Federal prosecutors. Since mostof the criminal acts involved in the case had occurred in Miami, theDistrict Attorney's Office referred the matter to the Federal pros-ecutors in the Southern District of Florida. In the referral letter,Assistant District Attorney John Moscow wrote to RichardGregorie, Senior Litigation Counsel in the U.S. Attorney's Office inMiami, to inform him of what had been discovered:

[T]he checks and wire transfer relate to a series of viola-tions of the laws relating to campaign financing. That is,two people sent $25,000 each to a political party and re-ceived reimbursement for those political contributions froman off-shore company.65

Mr. Moscow also forwarded copies of the documents which hadbeen obtained in the course of the bank fraud investigation. At thissame point in time, the District Attorney's Office also referred an-other aspect of the Castro investigation, involving customs law vio-lations, to Federal prosecutors in the Southern District of NewYork.

Mr. Moscow followed up on the letter by meeting with Gregoriein Miami on October 17, 1996.66 Further follow-up to this meetingtook the form of two letters sent to the Miami Assistant U.S. Attor-ney on October 28, 1996, and October 29, 1996.67 On February 24,1997, two additional packets of documents were forwarded toMiami by the New York District Attorney. These packets included:

* The fax from Alert International discovered in Santo Do-mingo.

* Copies of checks issued by Jorge Castro Barredo andMaria Sire Castro to DNC "Victory Funds.""See Exhibit 10."See Wire transfer documents (Exhibits 13-14)."Letter from John W. Moscow to Richard Georie, Oct. 9, 1996 (Exhibit 18)6 Castro Hearing at 77 (Testimony of Joseph Dawson).6 7 Letters from Jon W. Moscow to Richard Gregorie, Oct. 28, 1996 (Exhibit 19) and Oct. 29,1996 (Exhibit 20).

2943* A wire transfer document showing that on September 13,1994, Castro Barredo sent Intriago $100,000.* Two canceled checks issued by Castro Barredo, one for$20,000 to the DNC Victory Fund '92 Federal Account and onefor $5,000 to the Florida Democratic party Federal Account.* Account statements from the International Bank of MiamiN.A. for the account of Jorge Castro Barredo showing thechecks were cashed.* Two canceled checks issued by Maria Castro, one in theamount of $20,000 to the "DNC Victory Fund 1992 Federal Ac-count" and one for $5,000 to the Maryland Democratic partyFederal Account.* The NationsBank account statements for Maria Sire Cas-tro showing that the check was cashed.* Wire transfer documents showing that $25,000 was wiredto both Jorge Castro Barredo and Maria Sire Castro fromBanco Latino by order of Inversiones Latinfin on September24, 1996.* Shareholder documents showing that Inversiones Latinfin

was owned by Castro Llanes.68On March 11, 1997, Joseph Dawson of the New York District Attor-ney's Office spoke with a Miami Federal prosecutor and discussedthe issue of the statute of limitations for prosecuting the campaignlaw case against Castro. The prosecutors agreed that since the faxtransmission occurred and the checks were written in the fall of1992, the statute would expire in the fall of 1997.69

A. CASTRO COOPERATES

At the same time that the New York District Attorney's Officewas discussing the conduit contributions case with the Miami U.S.Attorney's Office, they were also holding discussions about obtain-ing Jorge Castro Barredo's cooperation. Castro Barredo had beenconvicted, along with his grandfather and uncle, on February 19,1997. An agreement was ultimately reached, and Jorge CastroBarredo agreed to be debriefed by the New York District Attorney'sOffice.70

The debriefings took place on March 20, 1997 and April 3, 1997.In the course of the debriefings, Castro Barredo stated that hemade contributions of $20,000 to the DNC, and $5,000 to a stateDemocratic party at Intriago's instructions, and that he was reim-bursed for the contribution by one of his grandfather's companies. 7 1According to Castro Barredo, Maria Sire Castro also made a$20,000 contribution to the DNC and a $5,000 contribution to astate Democratic party at Charles Intriago's direction, and wassimilarly reimbursed by Castro Llanes.72 Castro shared with theprosecutors the entire story of how he had come to contribute tothe Democratic party, how he had been reimbursed, and what thefamily had received for the contributions. The testimony given byCastro to the prosecutors was the same that he gave the Commit-

-Letter from John W. Moscow to Richard Gregory Esq. [sic], Feb. 24, 1997 (Exhibit 21).69 Id.7o Id.71 d.72 Id.

2944

tee in interviews, and in its hearing.73 In the Committee's hearing,the District Attorney working on the case confirmed that Castrowas truthful throughout interviews and debriefings with their of-fice:

COUNSEL. Has Mr. Castro ever told you anything aboutconduit contributions that has later proven to be false?

Mr. PRESS. No. 74Following the debriefing of Castro Barredo by the New York

prosecutors, they arranged for Castro Barredo to meet with Federalprosecutors on May 28, 1997.7r Just prior to the meeting, Preissspoke with Assistant U.S. Attorney Bruce Udolf from the U.S. At-torney's Office in the Southern District of Florida and again ex-pressed his concern over the potential statute of limitations prob-lem.7 6 They agreed that the likely statute of limitations for a pros-ecution relating to the Castro contribution expired on September16, 1997, or 5 years from the date of Intriago's fax to CastroBarredo.77 Roughly 1 week after Castro Barredo talked with theFederal prosecutors, a Federal prosecutor in Miami called Preiss,thanking him for the cooperation and courtesy provided by the NewYork District Attorney's Office.78 He also stated that his office in-tended to pursue the matter, and that its investigation could becompleted before the statute of limitations expired.79

B. THE CASTRO CASE IS TAKEN BY THE PUBLIC INTEGRITY SECTION

In late June or early July 1997, Preiss received a phone call fromCastro Barredo's attorney, Marc Nurik, stating that the Justice De-partment's Public Integrity Section had taken the Castro case awayfrom the prosecutors in the Southern District of Florida.80 Nuriksaid that he had spoken with the head of the Justice Department'sPublic Integrity Section, Lee Radek, and was concerned that Radekhad nothing substantive to say about the Justice Department'splans for the case.ex Nurik feared that the Justice Departmentwould allow the statute of limitations to expire, leaving his clientwith nothing to show for his cooperation. 82

After confirming that the case had been transferred, Preiss at-tempted to speak to Lee Radek. Preiss spoke with Radek's assist-ant, but the assistant refused to put Preiss through unless he hada "referral number" for the case.88 Preiss then asked that whoeverwas handling the case contact him.8 ' An exchange between theCommittee Counsel and Mr. Preiss concerning his attempts to con-tact Radek raises serious questions about the responsiveness of the

7 3Castro Hearing at 82.7 41d. at 82 (Testimony of Richard T. Preiss).7 5 Id. at 79 (Testimony of Richard T. Preiss).7 6 Id.; see also Kindler-Dawson Interview.at7.Interview of Richard Preiss and Joseph Dawson, Jan. 19, 1998 ("Preiss-Dawson Interview")7 Castro Hearing at pp. 79-80.

791d.so Preiss-Dawson Interview.1 ld.82 Id.83 Id." Castro Hearing at 88-89 (Testimony of Richard T. Preiss).

2945Justice Department to the apparent violation of law which was con-nected to a DNC trustee:

COUNSEL. Now, Mr. Preiss, did you try and have a con-versation with Mr. Radek?Mr. PREISs. Yes.COUNSEL. What was the result?Mr. PREISs. I was not put through to him.COUNSEL. Now, it's my understanding-correct me if I'm

wrong-that you were told that Mr. Radek would notspeak to anyone unless they had a referral number for thecase, correct?

Mr. PREIss. That's correct.COUNSEL. And do you know whether Mr. Castro's lawyerhad such a referral number?Mr. PREiss. If he did, he didn't give it to me.COUNSEL. Did anybody ever give you a referral numberfor this case?Mr. PREISS. No, I don't think we were ever given a refer-

ral number. I don't think anybody had a referral number.Maybe there was a referral number inside the Departmentof Justice, but, again I wouldn't be privy to that, so I don'tknow.

COUNSEL. Right, but Mr. Castro's attorney was not anemployee of the Department of Justice, so he had the samestatus as you.

Mr. PREISS. No he was not an employee of the Depart-ment of Justice.

COUNSEL. OK. And I don't know whether this is a ques-tion you can answer or not, but were you concerned at thetime that Mr. Castro's attorney was given more attentivetreatment at the highest levels of the Department of Jus-tice than you?

Mr. PREISS. Well, I thought at the time, I think I saidin the conversation that I couldn't understand why the de-fense attorney's phone call could be taken the day before,but mine couldn't be and I was the prosecutor and he wasthe defense lawyer. I think that's what I said to the personwho answered the phone.85

The willingness of Mr. Radek to accept a phone call from a defenseattorney and at the same time refuse to accept a phone call froma New York Assistant District Attorney who referred the case is cu-rious. At the same time, however, it is not the most troubling as-pect of the case. Of particular concern is the decision of Justice De-partment officials in Washington to ignore evidence which stronglysuggests that not only was an illegal conduit contribution made,but that it was made in close coordination with a prominent Demo-cratic contributor who is a lawyer and who was getting directionsfrom another unknown party.

85 Id. at 89 (Testimony of Richard T. Preiss).

2946

C. THE CASTRO CASE DIES

Roughly 1 week later, Preiss was called by Peter Ainsworth, atrial attorney from the Justice Department's Campaign FinanceTask Force. Ainsworth told Preiss that he was handling the Castrocase, and had in his possession the notes and documents from themeeting the other Federal prosecutors had had with CastroBarredo.86 Preiss offered to make Castro Barredo available for aninterview, and stated that he was willing to request a sentencingdelay if necessary. The attorney told Preiss that he did not wantto speak with Castro Barredo, but did want to speak with the NewYork prosecutors and to review some documents.8 7

On July 23, 1997, Ainsworth came to New York accompanied byan FBI agent, spoke with the New York prosecutors, reviewed thedocuments which corroborated Castro Barredo's testimony, andtook with him photocopies of some of the documents.88 At thismeeting, Preiss and Dawson told Ainsworth that they were -willingto delay Castro Barredo's sentencing pending the Justice Departament's review of Castro Barredo's contributions.89 The New YorkDistrict Attorneys recommended the delay in sentencing so thatCastro Barredo would continue to have an incentive to cooperate.Requesting such a delay in sentencing was the standard prosecu-torial practice that they had followed in the past.90 In addition,while Ainsworth was at their office, Preiss and Dawson both re-minded Ainsworth that the statute of limitations on the Castrocase likely expired on September 16, 1997.91

The following month, the New York prosecutors asked for and re-ceived a stay in Castro Barredo's sentencing.92 On August 19,1997, and then again on September 23, 1997, the New York Dis-trict Attorney's Office requested delays in Castro Barredo's sen-tencing.93 Preiss also provided additional information to Ainsworthafter Castro Barredo's sentencing was delayed.9 4 In his letter toAinsworth, Preiss again asked that the Justice Department let himknow what their plans were concerning this case.95

After returning from a vacation in late September 1997, Preisscalled the Task Force attorney several times to find out what thestatus of the case was.96 He was concerned that the perceived Sep-tember 16 deadline would pass without any action from the JusticeDepartment. 97 Eventually, he received a voice mail message thank-ing him for his patience. Despite the lack of response from the Jus-tice Department, the New York District Attorney again requestedthat sentencing be delayed once more, and it was, this time untilOctober 20, 1997.98

Preiss wrote to Ainsworth again on October 10, 1997, stating:8 Preiss-Dawson Interview.8 Castro Hearing at 80 (Testimony of Richard T. Preiss).8 Id.8 Id.I Castro Hearing at 103-104.e

1Preiss-Dawson Interview.9 Castro Hearing at 80.3 Id.9 Letter from Richard T. Preiss to Peter Ainsworth, Sept. 4, 1997 (Exhibit 22).95 1d.9 Preiss-Dawson Interview.9 Id." Castro Hearing at 81 (Testimony of Richard T. Preiss).

2947

Jorge Castro Barredo is currently scheduled to be sen-tenced on October 20, 1997. We referred a matter to theDepartment of Justice in late 1996 and Castro Barredo isa witness who has been interviewed by representatives ofthe Department of Justice in connection with an investiga-tion of Charles A. Intriago.99

* * * * * * *

Please advise us whether the Department of Justice in-tends to make any submissions regarding Castro Barredo'scooperation or lack of cooperation in your investigation andsend us a copy before October 20, 1997. If you wish us torequest a delay in the sentencing of Castro Barredo, pleaseadvise us immediately how long a delay you would like usto request and the basis for the delay in order that we mayconvey that information to the court. 00

A week later, Castro Barredo's attorney called Preiss, statingthat he had received a copy of a letter from Lee Radek, chief of theJustice Department's Public Integrity Section to Preiss advisinghim that the Department would neither be asking for a furtherpostponement of Castro Barredo's sentence, nor submitting a letteron his behalf. In the letter, Radek stated:

[W]e have concluded that there is at this time no furtherrole for him [Castro Barredo] to play in matters under in-vestigation by the Task Force.101

Castro Barredo was sentenced on December 15, 1997, to between3Y to 10% years in prison on bank fraud charges. No charges haveever been filed against Charles Intriago by the Justice Department.When he was called to testify by the Committee, Mr. Intriago in-voked his Fifth Amendment rights. 102

The frustration of the New York District Attorney's Office withthe Justice Department was clear from the testimony of Preiss andDawson before the Committee. In fact, at one point during theirdealings with the Justice Department, the District Attorney's Officeconsidered taking the Castro case back from the Justice Depart-ment. Mr. Dawson testified to this fact before the Committee:

COUNSEL. Just one last question, and I'll address this toyou, Mr. Dawson. Did you at any time have great enoughconcerns that you discussed or contemplated trying to takethe case back and have your own office do something withthe conduit contributions case?

Mr. DAWSON. Yes, we had conversations about it.* * * * * * *

Mr. BURTON. Let me followup on that. When you hadconversations about it, were those conversations involvingMr. Intriago?

Mr. DAWSON. Well, I'm reluctant to answer the questiononly because it involves questions between-I mean con-

99 Letter from Richard Preiss to Peter Ainsworth, Oct. 10, 1997 (Exhibit 23).oo Id.ioxMemorandum from Marc S. Nurik to Richard T. Preiss with attached letter from Lee J.

Radek, Oct. 17, 1997 (Exhibit 24).102 See Intriago Deposition.

2948

versations between Assistant District Attorneys in our of-fice, and the question whether to basically take back amatter that had already been referred is sort of a touchyarea. 103

CONCLUSION

The Castro case represents one small episode in a large patternof illegal campaign contributions in the 1992 and 1996 elections.However, the Castro case stands out from the others for the wayit was so obviously mishandled by the Justice Department. TheJustice Department was presented with clear evidence that a majorDNC fundraiser was involved in directing conduit contributions tothe DNC. Moreover, they had evidence that Mr. Intriago was re-ceiving guidance on how to direct those contributions from somehigher authority, presumably within the Democratic party.Inexplicably, the Justice Department failed to pursue this case, andlet the statute of limitations on the case expire, effectively prevent-ing anyone else from pursuing it.

A key point in the testimony of the New York District Attorneys,Dawson and Preiss, came during an exchange with Chairman Bur-ton:

Mr. BURTON. You thought Mr. Intriago should have beeninvestigated?

Mr. DAWSON. That the matter should have been inves-tigated.

Mr. PREIss. We thought the matter should have been in-vestigated.

Mr. BURTON. Including Mr. Intriago.Mr. DAWSON. Well, to be honest with you Mr. Chairman,

we had already looked into some of Mr. Intriago's trans-actions ourselves, and we had referred all of this stuff. So,I guess it's no secret that this was among, I suppose, thathe would be among the matters we had referred.

Mr. BURTON. You thought it was worth them looking at.Mr. PREIss. Absolutely, that's why we referred it.104

The investigation into the illegal conduit contributions of theCastro family leaves many unanswered questions. Among the mostpressing unresolved issues are:* The role Charles Intriago played in funneling illegal con-duit contributions to the DNC and its various state affiliates.* The possibility that the solicitation of such contributions

was coordinated with senior officials of the DNC.* The circumstances surrounding the transfer of the Castrofamily case from the Southern District of Florida to the JusticeDepartment's Public Integrity Section.* Why the Justice Department chose not to prosecute a case

where there was clear and compelling evidence to show thatseveral crimes had been committed.

* Why the FEC failed to act on the clear evidence of electionlaw violations presented in the Castro family case..0o Castro Hearing at 107.104 Id. at 88 (Testimony of Joseph J. Dawson and Richard T. Preise).

2949

* Why, for more than 2 months, the Attorney General hasdenied the request of the Committee to interview RichardGregorie, the Assistant U.S. Attorney involved in the investiga-tion of the Castro case before it was taken away by the PublicIntegrity Section. Gregorie likely has detailed informationabout the reasons that the Castro case was taken to Public In-tegrity, but the Attorney general has never responded to mul-tiple requests made by the chairman to interview Mr. Gregorie.

It is the opinion of the Committee that the Public Integrity Sec-tion of the Department of Justice was derelict in its duty to pursueclear evidence of crimes including wire fraud, mail fraud, conspir-acy and campaign finance violations related to the Castro case. TheJustice Department's failure to act on this case prevented theAmerican people from learning the truth about illegal campaignfundraising activities going back to the 1992 presidential election.The Committee was able to uncover only part of the truth, thestory of how Jorge Castro and his aunt made $50,000 in illegal con-tributions to the DNC. However, there are two more critical ques-tions that the Committee has been unable to answer: why did theCastro family make the contributions, and who was telling CharlesIntriago how to direct these contributions? These are facts thatcould have been discovered by a timely prosecution of CharlesIntriago. However, because of the Justice Department's malfea-sance in the Castro case, the truth may never be discovered.

[Supporting documentation follows:]

2950

U. S. Department of Justice

Wasame.l D.C 20510

GT1 7 1997

BY FAX AND U.S. MAIL

Mr. Richard T. PreissAssistant District AttorneySenior Investigative CounselOffice of the District AttorneyCounty of New YorkOne Hogan PlaceNew York, NY 10013

Dear Mr. Preiss:

Re: Jorce Castro Barredo

You have advised us that Jorge Castro Barredo is scheduled tobe sentenced on October 20, 1997, for bank fraud and relatedoffenses, and have asked whether we would like the proceedingcontinued and whether we intended to make any submission to thesentencing court regarding Mr. Barredo's cooperation in theinvestigation being conducted by the Public Integrity Section'sCampaign Financing Task Force. This letter is to advise you thatwe do not request such a continuance and will not make asubmission.

We very much appreciate your having brought Mr. Barredc to ourattention as a potential witness in matters being investigated bythe Justice Department. As you know, Mr. Barredo, following hisconviction in your case, agreed to be interviewed by federal agentsinvestigating possible violations of campaign financing laws.Mr. Barredo answered all questions put to him and otherwisecooperated with the agents throughout a lengthy interview. Basedupon that interview and other information developed by the TaskForce, however, we have concluded that there is at this time nofurther role for him to play in matters under investigation by theTask Force.

Please feel free to bring Mr. Barredo's assistance, asdescribed herein, to the attention of the court at sentencing.

EXH[Br

2951

2

Thank you, again, for having brought this matter to ourattention. We continue to value this type. of productivecoordination between your office and the Justice Department, andlook forward to working together again in the future.

Sincerely

Lee J. RadekChiefPublic Integrity SectionCriminal Division

cc: Mr. Mark NyrickAttorney for Jorge Castro Barredo

2952

APPLICANT:DAER DT!s athleen C. Noyt 12/18/92 12/18/

FRL Mr. Craig Smith

SQURCEL JENNIFER O'CONNOR WILL SPONSOR: T RECONMEN:CARMAGL CC JOB PREF. AREA OF INTEREST: ADMNJOB LEVEL: SC AGENCY/DEPARTMENT PREFERENCE: LABOR

COMMENTS: ASST SECRETARY OF EMPLOYMENT & TRAINING; ENDORSED STRONGLY BY GOVERNOR

APPLICANT: DATE DATAMr. Swanse Eunt 12/22/92 12/22/ZBQL. Mr. Eli SegalSOURCEL BOB NELSON WILL SPONSOR: T NCANEAGIeL FI JOB PREP. /AREA OF INTEREST: ADMNJOB LEVEL: SL : STAT

COMENTS: WANTS AMBASSADOR TO ITALY. ALSO INTERESTED IN POVERTY & CHILDRENS I

Hr. Andrew D. SDATE2299 1/9

FRLOM Ms. Susan Thomases

SQURCEL DAWN FRIEDKIN WILL SPOSOR: T RECOMMEND:CAMPAlGN: CG JOB PREP. /AREA OF INTEREST: LEGLJOB LEVEL SL AGENCYIDEPARTMENT PREFERENCE: JUST HLHSCOMMENTS: Also highly recommended by Eli Segal.

APPLICANT:Mr. Charles A. Intriago 2/69 12/16/

EROK Mr. Eli Segal

SOURCE PAUL TOBACK WILLQSONOR T RECOMMEND:.CAMPAIGN FI JOB PREF. AREA OF INTEREST: LEGLJOB LEVEL: SL AGENCY/DEPARTMT PREFERENCE: JUSTCOMMENTS:

Mr. Robert C. Jamissewaki RD DT12/16/92 12/16/

FBON. Mr. Craig Smith

SOURCE- JENNIFER 0* CONNOR T91=1u. VP 00 PRE. /AREA OF T ECOMNEND: HRJOB LEVEL: SC AGENCY/DEPATMEN PREFERENCE: BUD STAT

COMMENTS: Worked really hard in NJ; capable and very competent.

Page 33 EXHIBIT2

IlfilfllilfllflllmiifilfilDHC 0764400

2953

Dsmd Wdhebb.Ch.

MEMORANDUM

TO: DANA WYCKOFF

FROM: MARTHA PHIPPS

DATE: FEBRUARY 23, 194

RE: SALVADORAN ELECTION DELEGATION

Per you request, I lave comped our recommdaons for the delegtin to aud theSalvadora Elcm on March 20th.

All but one of the following names appear on the February 4th memo dat I snt to youregarding our secommnWdations for the Marc 11th ChIlean Imaguadon Delegation.

Please call me at 8634121 if nam from our original Ist hae been selected for the Qileandelegation. In that we will forward additional names to you for this Salvadora delegation.1. Mr. Charles Intriago

PresidAlert Publicadons Partners1401 Brickell AvenueSuite 570Miami, FL 33131305-5304500 w305-530-9434 f

2. Congressman ill Richa204 CROBWashington. DC 20515

3. Martin ChavezMayor of Albuquerque505-786-2040

ma

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2954

4. Marl Cam- Ap"~tAM.9u0u. Oeb& ApOM

8601 Georgia AVeouSsumvo Spring, MD 20910

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6. Jon. Phenrafts Of Olicmn StuieTeUnIfenity of Ariinei

130 Wedi ConessI11th FloorTuCauS, AZ602-7404126 w

7. Mr. Waliat Kaye475 Pakh AveneNew Yor. NY 10022212-338-2290 w

2124167-97 f

S. Mr. Prank MooreViePu~a GavausM a1i

WMX Teology and Service, Inc.U155 Coocdat Ave., NWSuiftsoWashigngd, DC 20036

9. AtIormay Gmm Da MwA-kP.O. Box W41Ausdi. TX 78401512-463-2191

IUUIEUEEIUURIU DNqC 0311809

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10. On=c Napltu.

12009 Eau FiremmeNorwalk. CA 90650916-445-096

The Jeffam Group13410 Stree, NWsuite 110WashingM. DC2M638-33S

Plem m~c me when you have solhcled the Individuals who will aftd doe SalvadoanElections. If yo have my queshins. I am be rbacbed at 86348121.

IEUIIMUEEIUUEE DNC 0311810INNEEN DHC 0311810

2956

-ALERTInternational, Inc.

December 2, 1992

Mr. Ronald BrownChairmanDeorcratic National Committee430 South Capital Stree, SEWashington D.C 20003

Dear Ron:

Just a brief note to tell you that I enjoyed meeting you during the campaignin Little Rock and Middleburg. Apparently, I am now a "trsee of the DNC. andI am looking forward to assisting in any way I can.

So that you will know a little more about me, I enclose a couple of recentissues of my publication, Money Laundering Alerr, together with some backgroundinformation. I think this is an issue on which President Clinton can make somehevdway in dealing with the drug and white collar cmime problems.

I look forward to seeing you noon. Best regards-

Sner rs,

ChdeA npo Eq..Publeshe

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2968

June 21, 1995

Mr Charles IntriagoPublisherAlert Pulbication Partners1401 Brickell StreetSuite 570Miami, FL 33131

Dear Charlie:

Recently, I discovered several photographs of Orlando Castro and you that were taken at pastDNC events Although these pictures were taken some time ago. I knew both you and Orlandowould sill enjoy having these copies. I would be very appreciative if you would forward toOrlando the photos that I have enclosed for him

As always, if I can ever be of assistance to you, please do not hesitate to let me know

Sincerely,

Enc SildonDirectorNational Membership Services

- lll

2969

urMANDUM

TO: Nancy Jacobson, National Finance DirectorLaura Hartigan, Director, Trustee ProgramJane Hearst, Director, BLFSam Newman, Director, NFC

FROM: Team Florida

DATE: May 7, 1993

RE: Florida donors

The following is a list of donors whose contributionto the April 29, 1993 dinner in Miami honoring VicePresident Al Gore has earned membership to either the NFCor BLF. Only contributions given, not contributionsraised, were counted towards such credit.

The individuals who raised more than $50,000 should beincluded as members of the Trustee program, as shouldindividuals who made significant contributions as "partialpayment" towards Trustee status, with the understandingthey will finish their $50,000 commitment by the end of theyear.

In addition, there are several individuals who raisedsubstantial money but did not make a contribution towardsthe event. Their names, a brief explanation of theirsituation and the amount each raised or gave is listed atthe end of this memo in the Honorable Mention section. Werecommend each receive special consideration for membershipin one of the programs. * 4

iE g 8 EXHIBIT17

2970

TRUSTEE (raised at least $50,000)

Marvin RosenJerry BerlinMitchell BergerHoward GlickenRuss Barakat -Austin FormanMonte FriedkinBud Stack -

BLF ($10,000 contribution)

Michael AdlerBell South (Danny Murray)Gladys CofrinArthur CourshonFlorida Medical Center - Eddie Dauer

U s a e Herman)

Richard MachadoSteve Scott (Nevco Partners)Jorge BolanosJim PughSel MaduroHugh Westbrrok (Vitas Health Care)Dr. Sandy ZiffEnvironmental Sal (David Block)Hamilton Forman

ggg il l ill DNC 4025934

2971

DISTRICT ATTORNEYor rws

COUNTY OF NEW YOmNONE MOGAN PLACE

Na Yome N.Y. 0ol212) 33190-0

gOeassm M MORGENTMAU

October 9, 1996

Richard D. Gregorie, Esq.Senior Litigation CounselUnited States Attorney's Office99 Northeast 4th StreetMiami, FL 33132

Dear Mr. Gregorie,

I enclose an Order which Judge Edward J. McLaughlin signedtoday releasing certain evidence to the United States Attorney'sOffice and to the United States Grand Jury for the SouthernDistrict of Florida.

I also enclose certain documents, described in the attachedSchedule A.

The Chronologies relate to an apparent conspiracy to obstructjustice; the checks and wire transfers relate to a series ofviolations of the laws relating to campaign financing. That is, twopeople sent S25,000 each to a political party, and received re-imbursement for those political contributions from an off-shorecompany.

I will be sending you a list of the people whom we believe areinvolved in the conspiracy, either as victims, witnesses orconspirators under separate cover--probably tomorrow. I am sendingthis letter off now so that you will get when I promised it.

In reviewing the chronologies the salient facts are thatOrlando Castro Llanes was involved in a nasty fight with one ThorRalversson and others over control of the Banco de Venezuela whichhas nothing to do with US criminal cases but provides a backdrop tothe chronologies. Separately the USDOJ brought civil proceedings inthe Eastern District of New York against funds allegedly theproceeds of narcotics dealings; that proceeding was in 1991 and1992. In 1993 a Grand Jury was started in the EDNY looking at moneylaundering involving Venezuela. The Customs agents working thatcase were relieved of their assignment in 1994 after CharlesIntriago and Harold Tyler visited EDNY.

II EXH4Ifl18

2972

DISTRICr ATTo Ner CoUNry of V iw Voam

Richard 0. Gregorie, Esq.October 9, 1996Page 2

It is true that Carlos Freeman called New York CountyAssistant District Attorney Hercules tzquierdo on the dates listedin the chronology. Neither Freeman nor Izquierdo spoke to anyoneoutside the District Attorney's Office about those calls. it isalso true that Freeman spoke with Jonathan Winer on the datesindicated; Winer confirms the accuracy of the chronology and sayshe does not know how Intriago found out who was calling whom.

In sum the December chronology shows (9/23-26/91) a meetingbetween agents and an AUSA in which defense counsel quotes the AUSAcorrectly; it has telephone information not within the purview ofan attorney; it reports to a potential criminal defendant the namesof government informants against him. There may be a conspiracyhere to obstruct justice.

In any event I must send this out now. I will send additionalinformation as soon as is possible.

rul urs

Jo . scowAssistaht District Attorney

Enclosures

2973

DISTRICT ATTORNEY

COUNTY Of NEW YORKO't A0N RACE

nossart~ smokGrNVsu Oct:ber 24 1996Richard 0. Gregorie. Esq.Senior Litigation CounselUnited States Attorney's Cffice99 Northeast 4th StreetMiami, FL 33132

Dear Mr. Gregorie,

I write to follow-up our meeting on October 17, 1995.Attached are documents extracted from files -

REDACTED

Thank you again far the tvee and attention that was extendedto Andrew Finan and myself an o.Ar visat to Miami.

e ru yours,

iofn . M~oscowAssistant District Accorney

Endsa.

2974

DISTRICT ATTORNEYOF T-E

COUNTY OF NEW YORKONE MMAN0 FLCk

Z2I23 335000

0o0ER P MOnA0NTu October 29, 1996

Richard D. Gregorie, Esq.Senior Litigation CounselUnited States Attorney's Office99 Northeast 4th StreetMiami, FL 33132

Dear Mr. Gregorie,

I write to follow-up our meeting on October 17, 1996.Attached are documents extracted from files of

REDACTED

Thank you again for the ti-e and attention that was extendedto Andrew Finan and myself cn cur visit to Miami.Very truly yours,

John W. MoscowAssistant District Attorney

Ends.

EXHIBIT20

2975

DISTRICT ATCRmE

cOUNTY 0' RiSV.)

New v"n.. N.V. 1Snas(212) 33S.9000

Ne5Ma #a monGsumAU

February 24, 1997

Richard Gregory, Esq.Assistant United States AttorneyUnited States Attorney's Office99 NE 4 StreetMiami, Florida 33132

Dear Mr. Gregory:

I enclose the following documents, divided into two packets.

The first packet contains documents obtained by ADA JosephDawson, Detective Investigator Ed Pozo and Investigative AnalystPeggy Abensur from Banco Latinoamericano, in the DominicanRepublic. It includes:

(1) A fax cover sheet which appears to be writtenby Charles Intriago on September 16, 1992, inwhich the author asks Jorge Castro and MariaSire Castro to issue four checks totaling$50,000.00 to various Democratic Party"Victory Funds";

(2) The front sides of four checks, issued byboth Jorge and Maria Castro and totaling$50,000.00, to various DNC "Victory Funds";

(3) A wire transfer document showing that, onSeptember 13, 1994, Jorge Castro sent CharlesIntriago $100,000.00;

(4) A Philip Manuel Resources Group document,illustrating what appears to be legal "WorkFlow".

The second packet contains documents produced to the GrandJury, including:

(1) The fronts and backs of two checks issued by JorgeCastro to two DNC election funds, totaling $25,000.00;the backs illustrate that the checks were cashed;

EHIBrr21

2976

(2) Account statements from the InternationalBank of Miami N.A. account of Jorge Castro,showing that the two above-mentioned checkswere cashed, and the account debited;

(3) The front and back of a check issued by MariaSire Castro to the DNC "Victory Fund- for$20,000.00; the check was cashed;

(4) NationsBank account statements for MariaCastro showing that her account was debitedwhen the above-mentioned check was cashed;

(5) Wire transfer documents showing that$25,000.00 was wired to both Jorge Castro andMaria Castro from Banco Latino by order of("B/O") Inversiones Latinfin on September24, 1992;

(6) Shareholder documents showing thatInversiones Latinfin is owned by OrlandoCastro Llanes, which illustrates thatJorge and Maria may have receivedreimbursement for their campaigncontributions by Orlando Castro Llanes,because they received money from a Castro-owned, non-American company whose amount isequivalent to the amounts requested byCharles Intriago on September 16, 1992.

These documents were received from the Attorney-General ofVenezuela. The "Bates" stamp numbers on all documents werestamped by members of the District Attorney's Office.

Very truly yours,

John W. MoscowAssistant District Attorney

2977

DISTRICT ATTORNEY09 '.g

COUNTY OF NEW VORKONE MOGAN PLACE

New Vom_ N.Y. 10023(23) 33549000

RODENT M. MORSENTMAU

September 4, 1997

BY EXPRESS MAILPeter Ainsworth, EsquireTrial AttorneyUnited States Department of JusticePublic Integrity SectionCampaign Financing Task Force1001 G Street, N.W.Washington, D.C. 20530

Re: Charles Intriago

Dear Mr. Ainsworth:

Enclosed please find the bank documents you requested.Specifically, we enclose copies of checks numbered 176, 129, 325(front and back), the accompanying bank statements showing thatthese checks were paid and the Chips statements. These documentsare our original copies. There is a fourth check for 5,000.00 thatwe cannot find (and probably never had) that was drawn on the NCNB(Nationsbank) account. The number of that check is probably 378.I suggest you contact the account holder for the original cancelledcheck. In any event, the account statement showing that check waspaid is enclosed.

I will be away from the Office on travel from September 10thuntil September 21st. Please call Assistant District AttorneyJoseph Dawson at (212) 335-4210 should you require anything furtherduring that time.

Finally, my superiors would be grateful if you would let usknow as soon as you can when a decision has been made in thismatter.

Very truly yours,

Richard T. PreissAssistant District AttorneySenior Investigative Counsel

Enclosures

EXHIBIT22

2978

OF THECOUNTY OF NEW YORK

ONE HOGAN PLACE... Y=m NY 1-13

(212) 3359000

ROBERT M MORGENTHAU

October 10, 1997

BY EXPRESS MAILPeter Ainsworth, EsquireTrial AttorneyUnited States Department of JusticePublic Integrity SectionCampaign Financing Task Force1001 G Street, N.W.Washington, D.C. 20530

Re: Jorge Castro Barredo

Dear Mr. Ainsworth:

Jorge Castro Barredo is currently scheduled to be sentenced onOctober 20, 1997. We referred a matter to the Department ofJustice in late in 1996 and Castro Barredo is a witness who hasbeen interviewed by representatives of the Department of Justice inconnection with an investigation of Charles A. Intriago.

Please advise us whether the Department of Justice intends toto make any submissions regarding Castro Barredo's cooperation orlack of cooperation in your investigation and send us a copy beforeOctober 20, 1997. If you wish us to request a delay in thesentencing of Castro Barredo, please advise us immediately how longa delay you would like us to request and the basis for the delay inorder that we may convey that information to the Court.

Very truly yours,

Richard T. PreissAssistant District AttorneySenior Investigative Counsel(212) 335-4210

se-,--. " EXHI1ff23

2979

MARC S. NUR PA.ATIORn AT LAwONE FDANCIAL R.A2

POWsLAUDEMDLL FLORI m3M33MARD: (9W 4.10t

DADL cam) s4sswTAX 3Mg 7U4g

MEMORANDUM

Richard T. Preisa, Esq.

Carolyn William

October 17, 1997

Jorge Castro Barredo

Mr. Pris:

Mr. Nwik asked me to inform you that he has no objection to yourpresenong the Judge with a copy of the foregoing c aespondencefrom Lee J. Radek.

Thank you.

Carolyn Williams

EHIBIT24

P.e0zOCT-17-197? 10:49

MARC E NLTERI!ILBENNETTZ

TO

FROMDATE:

RE

3es 760 4421

2980

U. S. Deparmme of Josee

D.C 2M

OCT 1 7

Mr. Richard T. PreissAssintsant District AttorneySenior Investigative CounselOffice of the District AttornayCounty of mew YorkOne Magan PlaceNew York, NY 10013

Dear Mr. Preiss,

Re, 7ore Castro Barredo

You have advised us that Jorge Castro Barredo is scheduled tobe sentenced on October 20, 1997, fr bank fraud and relatedoffenses, and have asked whether we i.ud lice the proceedingcontinued and whether we Intended to iake any submission to thesentencing court regarding Mr. Sarredo's cooperation in theinvestigation being conducted by the jhblia Integrity Section'sCampaign Financing Task Force. This ltter is to advise you thatwe do not request such a continuarce and will not make asubmission.

We very much appreciate your having brought Mr. Barred to ourattention as a potential witness in matters be"ns investigated bythe Justice Department. As you know, Mr. farredo, following hisconviction in your case, agreed to be interviewed by federal agentsinvestigating possible violations of campaign financing laws.Mr. Barredo answered all estions t to him and otherwisecooperated with the agents ghot S lengthy interview. Basedupon that interview and other informaion developed by the TaskForce, however, we have concluded tha there is at this time nofurther role for him to play in matters under investigation by theTask Force.

Please feel free to bring Mr. Barredo's assistance, asdescribed herein, to the attention of le court at sentencing.

10/17/97 09:29 TX/RI NO.9246 P.002

OCT-17-1997 10:50 305 760 4421

2981

2

Thank you. again, ror hawing bzuught this matter to ourattention. We continue te value a type of productivecoordination between you Office mad Justice Department. andlook award to working together again the future.

Ls . RadekPub Ic integrity Section

.LX-I* l Divialon

ce: Mr. Mark NyrickAttozay for Jorge Castro Barredo

OCT-17-1997 19:59

10/17/S7 49528

35 7 4421

TX/IK ND.9246 P.003

CHAPTER V, PART B

THE FAILURE OF GOVERNMENT AGENCIES TOVIGOROUSLY PURSUE CAMPAIGN VIOLATIONS:

FEC ENFORCEMENT PRACTICES AND THE CASEAGAINST FOREIGN NATIONAL THOMAS KRAMER: DIDPROMINENT DNC FUNDRAISERS RECEIVE SPECIALTREATMENT?

FEC ENFORCEMENT PRACTICES AND THE CASE AGAINST FOREIGNNATIONAL THOMAS KRAMER: DID PROMINENT DNC FUNDRAISERSRECEIVE SPECIAL TREATMENT?

I. INTRODUCTION

Another foreign contributor who came to the Committee's atten-tion was Thomas Kramer. Mr. Kramer, a German citizen with con-siderable real estate holdings in the South Beach area of Miami,illegally contributed over $322,600 to national, state, and local can-didates of both the Democratic and Republican parties.' TheTampa Tribune noted the donations and published an article inSeptember 1994 questioning whether or not Kramer was eligible tomake political contributions. 2 The following week, Kramer "volun-tarily" disclosed his illegal activity, claiming ignorance as to the il-legality of his campaign contributions.

Upon learning that Kramer's contributions might not be legal, al-most all of the contributed money was returned to Kramer by theparties involved.3 The FEC ultimately fined Kramer, his secretary(Terri Bradley), the law firm of Greenberg Traurig Hoffman LipoffRosen & Quentel, P.A. ("Greenberg Traurig"), and the RepublicanParty of Florida ("RPF") for giving or receiving Kramer's contribu-tions. The penalties associated with the Kramer contributions to-taled $503,000. Mr. Kramer was individually fined $323,000-thelargest penalty of its kind ever assessed by the FEC.4

The two individuals most closely identified with soliciting Kra-mer's contributions were Marvin Rosen, the former Finance Chair-man of the Democratic National Committee ("DNC"), and HowardGlicken, a former Vice Finance Chairman of the DNC and close po-litical associate of Vice President Gore. Mr. Glicken was charged onJuly 9, 1998, by the Department of Justice's Campaign FinancingTask Force and pled guilty to two misdemeanor violations stem-ming from his role in the Kramer solicitations.5 The FEC finedGreenberg Traurig-the law firm hired by Kramer to handle immi-gration matters and which counts Marvin Rosen as a partner-$77,000 for soliciting illegal contributions from Kramer with knowl-edge of his foreign national status. When asked who at the firm be-

1The Committee's investigation focused only on the state and national contributions.2Louis Lavelle, "Developer's donations questioned," Tampa Trib., Sept. 28, 1994, at Florida/

Metro 1.3 The Republican Party of Florida [RPF] did not return $95,000 of the $205,000 it received.The RPF successfully argued that the money had been placed in a redistricting account thatit was legally permitted both to receive and spend money contributed by foreign nationals. TheFEC agreed with the RPFs position. Conciliation Agreement, In the Matter of Republican Partyof Florida (federal/non-federal accounts) and James H. Stelling, as treasurer, MUR 4398, Feb.20, 1997, at 1.3 (Exhibit 1).4 Robert Jackson, "German Given Record Fine in Campaign Donation Case," L.A. Times, July19, 1997, at A16.

GJane Bussey, "Political money probe nabs Miamian," Miami Herald, July 10, 1998, at 9A.(2985)

2986

sides Rosen solicited contributions from Kramer, the FEC reportedthat:

The only Greenberg-Traurig individual specifically identi-fied as a solicitor of Mr. Kramer's contributions in the fileof this matter is Marvin Rosen.6

During the course of the Committee's investigation, the expla-nations given by FEC staff members only served to raise furtherskepticism as to the conviction with which the FEC pursued theRosen and Glicken investigations. Indeed, the FEC has never ade-quately explained why it failed to bring a case against Rosen indi-vidually, or why it initially failed to pursue a case against Glicken.Notwithstanding the fact that neither Rosen nor Glicken was finedby the FEC-despite evidence demonstrating that these two indi-viduals were the only solicitors who had reason to know that Kra-mer was ineligible to make contributions-FEC General CounselNoble stated on March 31, 1998, that no one at the FEC ever evencalled Rosen or Glicken about the contributions.7 It should be fur-ther noted that Kramer was not contacted by the FEC until a yearand a half after first disclosing his illegal contributions to the com-mission. Yet, in announcing that it would not conduct enforcementproceedings against Glicken, the FEC made the following state-ment in December 1997:

[Blecause of Mr. Glicken's high profile as a prominentDemocratic fundraiser, including his potential fundraisinginvolvement in support of Vice President Gore's expectedpresidential campaign, it is unclear that this individualwould agree to settle this matter short of litigation.8

FEC counsels and Commissioners, in both the FEC conciliationagreement and in subsequent testimony before the Committee, ar-gued that this statement referred to a statute of limitations thatwas about to expire at the time Glicken's name was discovered inconjunction with his solicitation of Kramer.9 They argued that dis-covering Glicken's name at such a late point made bringing a caseagainst Glicken difficult for the Commission and would complicatethe settlement process for the other involved parties.' 0 This posi-tion, however, cannot explain away the fact that Kramer submittedan affidavit in December 1994-approximately 4 years before thestatute of limitations would expire-which put the FEC on noticethat a key fundraiser for the Democratic party may have knowinglysolicited his illegal contributions." Furthermore, the FEC's state-ment linking Glicken to Vice President Gore as an apparent reason

6 Federal Election Commission Enforcement Actions: Foreign Campaign Contributions AndOther FECA Violations Before the House Committee on Government Reform And Oversight,105th Cong., 2d sess. 114 (1998).7 Id. at 80 (statement of FEC General Counsel) (emphasis added).5 General Counsel's Report, In the Matter of Greenberg, Traurg, Hoffman, Lipoff, Rosen &Quentel, PA, et al, MUR 4638, Dec. 19, 1997, at 2.3-2.4 (Exhibit 2).9 Federal Election Commission Enforcement Actions, supra note 6 at 80-81 (statement of FECGeneral Counsel). General Counsel Noble stated that the FEC "did not find Mr. Glicken's nameuntil July 1997, and that particular contribution, where there was a suggestion that it was acontribution in the name of another, or solicited as a contribution in the name of another, thestatute of limitations would have run at the end of April of this year." Id. at 81.1o Id. at 82.1

"Affidavit of Thomas Kramer, Dec. 27, 1994 (Exhibit 3); see also Letter from Roger M.Witten to Joan McEnery and Mary L. Taksar, Dec. 27, 1994 (Exhibit 21).

2987

for not pursuing the matter appears to be a particularly ill-consid-ered message that the FEC does not prosecute cases when metwith resolve and political connections. Notwithstanding the factthat many of the recipients of Kramer's donations had no knowl-edge of his foreign national status, the Thomas Kramer matter de-mands vigorous attention for two reasons:

(1) Kramer's first and third federal contributions were con-duit contributions made at the request of, and with the knowl-edge of, very prominent Democratic fundraisers; and(2) the FEC appears to have missed the mark entirely-prominent national fundraisers should be penalized heavily ifthey encourage others to break the law.

An analysis of FEC practices and procedures relevant to theThomas Kramer matter follows this chapter as Appendix 1.

II. THOMAS KRAMER: HIGH PROFILE GERMAN DEVELOPERA. BACKGROUND

Thomas Bernhard Kramer was born in Bad Soden, Germany onApril 27, 1957. He worked at Shearson Lehman Hutton Inc. inFrankfurt from 1983 until 1988, leaving Germany the followingyear after his plan to buy up East German pre-reunification realestate proved unsuccessful. He settled in Miami during the early1990s and remains in the United States as a resident on a touristvisa.1

Mr. Kramer's lack of U.S. citizenship would certainly not sur-prise anyone remotely familiar with the Miami South Beach scene.Leading a high profile life colored with self-promotion, Kramer wasoften described in newspapers and national magazines by suchmonikers as "the impulsive German whiz kid"' 3 or "the Germanmultimillionaire."14 During the early 1990s, he amassed more than$40 million in property on South Beach and Star Island-oftenpaying cash for his acquisitions. The Miami Herald once ran a fullcolor picture of Kramer on the cover of its Tropic insert describingKramer as "The German Tycoon Who Wants To Rebuild SouthBeach in His Own Image." '5

FEC General Counsel Lawrence Noble stated in testimony beforethis Committee that, to his understanding, Kramer was definitelyknown to be a German investor in the South Beach, Miami area.Mr. Noble further pointed out that Kramer's immigration status"was a question of whether or not it was obvious or not he was aforeign national and whether or not he was what's called a greencard holder in this country."1 6 Mr. Noble's statement shows thatKramers immigration status was thus something certainly in needof scrutiny. Notwithstanding public information that might haveled potential solicitors to question Kramer's nationality, the evi-dence obtained by the Committee demonstrates that Marvin Rosen

12 Christine Evans, "Kramer vs. Kramer," Miami Herald, May 9, 1993, at 9. Notwithstanding

requests to the Department of Justice for immigration information on Thomas Kramer, thisCommittee has not received as much cooperation as expected.

1aEvans, supra note 12.1 4Christine Evans, "The Mysterious Stranger," Tropic, Jan. 3, 1993, at 11.15 Tropic Magazine Cover, Jan. 3, 1993 (Exhibit 4).1eFeieral Election Commission Enforcement Actions, supra note 6 at 35 (statement of FEC

General Counsel).

2988

and Howard Glicken clearly had knowledge that Kramer was ineli-gible to make political contributions. The sections of this chapterdiscussing the roles played by Rosen and Glicken in the Kramer so-licitations will explore such evidence in detail.

The DNC and Kramer's Questionable Immigration StatusThe Committee uncovered additional evidence demonstrating

that the DNC was on, at a minimum, constructive notice of Kra-mer's questionable immigration status. Notwithstanding the afore-mentioned newspaper articles describing Kramer's foreign nationalstatus, documents show that the DNC conducted backgroundNEXIS research on the Miami-based developer which turned up aForbes magazine article describing Kramer as a "German inves-tor." 17 The DNC's own "Event Form" for Chairman David Wilhelmfor a June 10, 1993, Vice Presidential dinner described Kramer asbeing bornon in Germany." 8 The form did not mention Kramer'sexact immigration status, leaving the legality of his ability to makepolitical contributions a matter of uncertainty.

Despite his questionable status, Kramer earned a DNC BusinessLeadership Forum position due to the fundraising efforts he under-took for an April 29, 1993, dinner for Vice President Gore.19 ADNC memo dated May 7, 1993, to party finance directors dem-onstrated why Kramer was considered an attractive target for cam-paign funds:

Tom Kramer-Gave $25,000 to the event. Is the developerwho will build much of South Miami Beach and is worthtens of millions. Make him a Trustee and stroke him andhe'll do more than $50,000 for the program.20

Other employees at the DNC also targeted Kramer directly. EricSildon, Director of Membership Services for the DNC, includedKramer on a list of potential invitees to a Florida event for Presi-dent Clinton "because thin s like this might get him jazzed-up tostart writing those big check k." 2 Mr. Kramer's name appeared oncall sheets for both Laura Hartigan, Director of the DNC's TrusteeProgram, and for David Wilhelm, the then-DNC Chairman. 22 Mr.Wilhelm also drafted a letter to Kramer and his wife on May 27,1994, inviting them to a June 1994 DNC National PresidentialDinner.23 National Finance Chairman Terry McAulliffe also invitedKramer to the DNC's 1994 Business Leadership Forum's IssueConference and to the DNC's National Presidential Dinner.24 As aresult of such targeted solicitation, Kramer eventually attainedDNC Managing Trustee status.25 Along with his numerous con-

i7DN Mor Donor Screening Form for Olympus Holdings, Inc. and corresponding back-ground ioration (Exhibit 5)."sEvent Form for Chairman Wilhelm, June 10, 1993 (Exhibit 6).29 Charles Intriago another South Florida Democratic Fundraiser and DNC Trustee was alsoin attendance. See "6harles Intriago and Illegal Political Contributions from Venezuela" section

of this report).20 Florida Donors Memorandum, May 7, 1993, at 7.5 (Exhibit 7).2 1 Clinton in Florida Memorandum, Sept. 20, 1993 (Exhibit 8).2 2 Laua Htgan Calls (Exhibit 9); see also Call Sheet for Chairman David Wilhelm, Nov.16 1993 (Exhibit 10).1) Chairman David Wilhelm Letter to Mr. and Mrs. Tom Kramer, dated May 27, 1994 (Exhibit11).2 4 Invittion to Thomas Kramer to the 1994 Business Leadership Forum's Issue Conference(Exhibit 12).' Invoice Dates DNC Managing Trustees, at 13.7 (Exhibit 13).

2989tributions and invitations to various DNC causes and events, Kra-mer also began to gain access to both the Vice President and theFirst Lady: Mr. Kramer likely attended a private dinner with theVice President on June 10, 1993, at the Four Seasons Hotel inGeorgetown 26 and was also scheduled to be seated at the FirstLady's table at another DNC event.27

B. CONTRIBUTIONSMr. Kramer made numerous contributions to national and state

candidates of both the Democratic and Republican parties betweenApril 1993 and March 1994. He made the contributions in his ownname, in the name of his companies, in his wife Catherine BurdaKramer's name, and in his secretary Terri Bradley's name. In anaffidavit filed with the FEC, Kramer said:

[N]o one who solicited or accepted my candidate contribu-tions ever asked me about my immigration status, advisedme that I was illegal to contribute, or rejected my politicalcontributions because of my citizenship. 28

The Committee's investigation uncovered no evidence contradict-ing this claim for the majority of recipients. Two facts, however,stand out. First, Marvin Rosen's law firm--Greenberg Traurig-didimmigration work for Kramer, thereby putting Rosen and his col-leagues on clear notice that Kramer was not eligible to make politi-cal contributions. Second, there appeared to be clear and convinc-ing evidence that Kramer was counseled on how to break the lawby Howard Glicken. Because Glicken coached Kramer on makingconduit contributions through Kramer's secretary, it is appropriateto assume that he understood that Kramer himself would not makethe contributions.

On August 5, 1996, Kramer entered into a conciliation agreementwith the FEC stating that "[r]espondent Thomas Kramer made atotal of $322,600 in contributions either directly, through his sec-retary, through unknown intermediaries, or as an officer throughhis various corporations which were used in connection with elec-tions for local, State and Federal office, in violation o