-Caveat Lector-

[01/14] Reno finds no wrongdoing by former top Gore aide
WASHINGTON (Reuters) - Attorney General Janet Reno said Thursday that no
further investigation was required of criminal allegations involving Peter
Knight, a former top aide to Vice President Al Gore.

Refusing to move toward an independent counsel probe, Reno ended a 30-day
review into whether Knight, who managed the 1996 Clinton-Gore campaign,
helped another Gore friend get favorable terms on a government lease and
lied about it.

The allegations involving Knight, who is expected to play a key role in
Gore's 2000 presidential bid, were sent to the Justice Department by a
congressional committee last month.

Reno said in a statement that she concluded that she does not possess
``specific and credible information'' that Knight, who is covered by the
independent counsel law, ``may have violated federal criminal law.''

She said there was ``no basis'' to begin a preliminary investigation into
the allegations.

The House Commerce Committee alleged that Knight helped Tennessee
businessman and real estate developer Franklin Haney get the favorable terms
on the lease and that in return Haney contributed $280,000 to the Democrats.

The committee also alleged that Knight, a former chief of staff to Gore,
lied to it about a $1 million fee Haney paid him.

Reno twice late last year refused to seek an independent counsel to
investigate Gore on campaign-related questions.

In December, Reno decided against an independent counsel to investigate
President Clinton and Gore over political ads financed by the Democratic
Party during the 1996 election.

In late November, Reno decided not to seek an independent counsel to
investigate whether Gore lied to FBI agents about telephone fund-raising
calls from his office during the 1996 presidential election campaign.

Haney faces charges brought by a Justice Department task force investigating
campaign finance abuses that he made nearly $80,000 in illegal contributions
to Clinton's reelection effort and to two other candidates from Tennessee.

The House Commerce Committee investigated financial and political ties
between Haney and top Democratic officials, including Knight, over the lease
of the Portals building in Washington, D.C. It is scheduled to become the
Federal Communications Commission's new headquarters.

The panel questioned whether $1 million payments to Knight and former
Tennessee senator Jim Sasser were illegal contingency fees and whether they
used their political influence to gain a government lease.

Last Updated: 01/14/99 19:28 EST


Copyright 1998 Reuters Limited. All rights reserved. Republication and
redistribution of Reuters content is expressly prohibited without the prior
written consent of Reuters. Reuters shall not be liable for any errors or
delays in the content, or for any actions taken in reliance thereon.


http://legalnews.findlaw.com/news/19990114/

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