-Caveat Lector-

JULY 13, 11:19 EDT
Cisneros Aides' Charges Dropped
By MICHELLE MITTELSTADT
Associated Press Writer

WASHINGTON (AP) — The independent counsel prosecuting former Housing
Secretary Henry Cisneros has agreed to dismiss criminal charges against two
former aides who were to stand trial with the one-time Clinton Cabinet
member in September.

The action leaves Cisneros to stand trial alone on charges that he
conspired with ex-mistress Linda Jones and the two aides to conceal during
his Cabinet background check the scope of his financial payments to Ms.
Jones.

Sylvia Arce-Garcia and John Rosales, who followed Cisneros from San Antonio
to Washington when he became housing secretary, were indicted with Cisneros
in December 1997 on charges they conspired to conceal details of the
payments from FBI agents conducting Cisneros' Cabinet background check.

During a hearing Monday, prosecutors announced they will dismiss charges
against Ms. Arce-Garcia and Rosales within six months after the Cisneros
case is concluded provided that neither commits any crimes. Under the
arrangement, the two admitted no wrongdoing and made no commitment to
cooperate with the government's special prosecutors.

Ms. Jones, who is serving 3 1/2 years in prison after herself running afoul
of Independent Counsel David Barrett, is cooperating with the government
under a deal that could result in a sentence reduction.

Lawyers for Ms. Arce-Garcia and Rosales welcomed prosecutors' action.

``Sylvia pled not guilty due to her strong belief that she should never
have been charged,'' her lawyer, Abbe Lowell, said today.

``I am glad that the independent counsel has now seen fit to end this case
against her.''

``I have now been involved in perhaps my fifth or sixth case brought by
independent counsels that never would have been brought by experienced
career prosecutors,'' Lowell added. ``The end of the independent counsel
statute is a good thing for the American justice system.''

Jeffrey Gans, who represented Rosales, said he and his client were
``thrilled'' at prosecutors' decision to drop the charges.

``John can get back to his life without having the cloud of an indictment
hanging over his head,'' Gans said. ``It's been a tremendous weight lifted
from his shoulders, a weight not of his own creation.''

Rosales remained at the Department of Housing and Urban Development after
Cisneros left in 1996 and is an assistant to Housing Secretary Andrew
Cuomo. Ms. Arce-Garcia is a top aide to Cisneros, who is president of the
Spanish-language television network Univision.

The two were charged with one count each of conspiracy, and Rosales also
was charged with two counts of making false statements. Prosecutors had
hoped to convince the pair to become government witnesses, sources familiar
with the investigation said.

Barrett's office declined comment.

Cisneros acknowledged during his Cabinet background check that he gave Ms.
Jones financial support after their extramarital affair became public in
1988, costing her marriage and career as a political fund raiser. But
prosecutors contend he falsely told the FBI he never paid her more than
$10,000 annually.

The 18-count indictment against Cisneros alleges he paid her more than
$264,000 between 1990 and 1993. He has pleaded innocent.

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