http://www.insightmag.com/archive/200005096.shtml


 "All hell will break loose"

 New DNC Phones at White House

 By Paul M. Rodriguez
 [EMAIL PROTECTED]

    Insight uncovers FBI Director Freeh's alarm that
    private detectives hired by Clinton intimates
    tracked at least one big-time scandal donor.
    More backup tapes have been found.

 In the furor about campaign fund-raising tactics used by
 the Clinton-Gore reelection committee there have been
 denials, corrections, waffling and tortured legalisms to
 explain sometimes-bizarre efforts by Bill Clinton and
 Al Gore to raise money for themselves and the Democratic
 National Committee, or DNC.

 The Justice Department's Campaign Task Force has been
 investigating possible crimes and both FBI Director
 Louis Freeh and his former deputy, Campaign Task Force
 head Charles LaBella, repeatedly urged Attorney General
 Janet Reno to seek an independent counsel because of a
 pattern of suspected wrongdoing by Gore and other high
 White House officials.

 Now Insight has discovered previously unknown DNC
 telephones inside the White House complex, billing
 records for which may shed additional light on
 fund-raising issues still under investigation.
 Installation of these phone lines could be a violation
 of federal laws that prohibit the mixing of political
 and government services on government property, say
 legal experts.

 Insight also has learned of the existence of more
 unknown backup "tapes" of virtually every White House
 employee's computer.  In fact, there are nearly 900
 archived external-storage devices containing these
 materials.  And most never have been revealed to federal
 investigators and/or were not searched or inventoried by
 the White House as required under subpoena throughout
 the Clinton-Gore scandals.

 These backup "tapes" include, for example, information
 copied by external drives and technicians from computers
 once used by Billy Dale (the former White House Travel
 Office director), Leon Panetta (the former White House
 chief of staff), Craig Livingstone (the former White
 House security director) and Harold Ickes (the former
 White House deputy chief of staff).  Some of the
 "tapes" are secreted within the White House complex,
 while others are stored at an off-site facility in
 Greenbelt, Md.

 The House Government Reform Committee, chaired by Rep.
 Dan Burton of Indiana, has conducted numerous hearings
 and obtained thousands of records from federal
 law-enforcement investigators detailing potential crimes
 committed at the White House by a variety of government
 and political figures, including the president and vice
 president.  Burton is furious at what he regards as
 out-and-out obstruction of justice.

 As Insight reported April 12 on its Webwire
 (www.insightmag.com), a House Judiciary subcommittee
 chaired by Rep. Charles Canady, a Florida Republican,
 now also is looking to obtain previously unknown memos
 from Freeh and LaBella related to their ignored calls
 for an independent counsel.  After an April 13 meeting
 of his subcommittee, Canady struck a bargain with the
 Justice Department to delay issuing subpoenas pending
 further talks with Reno's senior aides, including Deputy
 Attorney General Eric Holder.  But the pot is boiling.

 As Congress continues to search for secreted documents,
 the Insight investigation of mysteriously "lost" White
 House e-mails and "missing" White House long-distance
 telephone records is turning up still more surprises.
 Investigators say the recovered documents will be
 extremely helpful in determining who has not told the
 truth about key conversations and transactions.  Issues
 include perjury, conspiracy and obstruction of justice.

 As Insight has been reporting since December 1998,
 White House principals were aware two years ago that
 the allegedly "missing" evidence had not been turned
 over as required under the subpoenas (see "Looking for
 Information in All the Wrong Places" and "Computer
 Glitch Leads to Trove of `Lost' E-Mails at White House,"
 Dec. 28, 1998.).  And in late 1998 Panetta's office
 confirmed to Insight not only the existence of the
 now-controversial e-mails but the long-distance
 telephone records as well.  Now Insight has confirmed
 from one of its many interviews with federal
 investigators that Panetta also knew about one or two
 telephone lines installed at the White House for direct
 communications with the DNC.

 During questioning, the former California congressman
 also revealed knowledge about telephone solicitations
 made by Clinton and Gore during 1996 fund-raising
 efforts.  He said he knew little about the actual calls
 but was aware of a special phone in the West Wing and
 another elsewhere.  He couldn't remember where.

 Clinton has said that he did make calls on behalf of the
 DNC and, presumably, for his own reelection committee,
 but he claimed he didn't do it often and couldn't
 remember when or where.  Gore has said that he, too,
 made such calls from the White House complex but that
 he used a telephone calling card provided by the DNC
 and therefore no laws were broken as there was "no
 controlling legal authority."

 Alas, no one could check these stories because the
 White House long maintained that there were no detailed
 telephone records.  Then, two years ago, White House
 officials discovered that some calls placed by either
 Clinton or Gore improperly were billed to "White House"
 lines and reimbursement was sought for $24.20 from the
 DNC to offset taxpayer expense.  Federal law-enforcement
 investigators began wondering how the White House could
 search telephone records it consistently has said it
 doesn't have, and about which it says there never were
 call-billing details.

 As Insight followed up on all of this, it was told of
 at least two telephones installed at the White House
 in 1996 for use by the DNC and White House personnel,
 possibly the ones referred to by Panetta.  Now Insight
 has found at least two previously unknown phone lines
 installed in 1997 at the Old Executive Office Building,
 or OEOB, for use by the DNC and White House staff.

 The DNC phones installed in 1997 were put in by an
 official at the White House Office of Political Affairs.
 Charges for these telephones, located in offices on the
 first and second floors of the OEOB, were to be billed
 to the DNC according to memos and other sources secured
 by Insight.  The phones not only were ordered by a White
 House official, they were installed by White House
 personnel on a rush basis.  This had been done before,
 according to Insight sources, and that was confirmed by
 review of White House records.

 When Insight called Cynthia Jasso-Rodman in the White
 House political office on April 12 and asked about those
 special DNC phone lines, she said "yes" she could help
 to clarify the matter, then paused for a long while,
 placed us on hold for two minutes and came back on the
 line to transfer the call to the press office.  A press
 aide said she didn't know anything about the matter we
 raised and promptly forwarded the call to a press-office
 voice mailbox where a recording suggested we call back
 later.

 When Insight asked federal law-enforcement and
 congressional offices about the newly discovered
 DNC-related phone lines, everyone expressed surprise.
 A Burton aide said the congressman wasn't aware of them
 and promised to look into it.  Ditto federal law
 enforcement.

 Now Insight has obtained still more new documents and
 interviews confirming that there is a substantial number
 of other internal memos not previously searched or
 turned over concerning general telephone records, the
 DNC-related telephone lines and data associated with a
 computer system called the White House Office Data Base,
 or WHODB (see Insight's Webwire for earlier
 investigative reports about this computer and dodgy fund
 raising).

 Insight just has discovered, for instance, that despite
 claims of the White House, and weeks of hearings
 concerning the WHODB by Indiana Rep. David McIntosh's
 House Government Reform subcommittee two years ago,
 there was a WHODB link set up for other outside offices
 not previously known, including the Treasury Department.
 Does that mean the IRS, or were these politicos watching
 ... who and what?

 This is interesting in a broader context because it was
 always McIntosh's opinion that WHODB was improperly used
 for political purposes, a charge the White House denied.
 Although a criminal referral was sent to the Justice
 Department, it still sits there without action more than
 a year after receipt from the subcommittee.

 But it wasn't just Congress that felt strongly about
 this, according to yet more breaking news obtained by
 Insight:  Freeh also believed the WHODB may have been
 used illegally to further alleged wrongdoing in the
 Clinton/Gore/DNC fund-raising mess.  In fact, in a
 still-secret memo to the Justice Department, Freeh cited
 the WHODB as one of the many reasons to argue for the
 appointment of an independent counsel, as did others at
 Justice whom Reno ultimately rebuffed.

 And, in a shocking revelation, Freeh also felt the need
 to seek an independent counsel because of information
 the Campaign Task Force obtained suggesting the
 clandestine use of private investigators by Clinton
 intimates to probe one or more persons who made illegal
 donations to several coffers, including the Presidential
 Legal Expense Trust.  Monies allegedly paid to hire
 these P.I.s were drawn from a special fund used to help
 Clinton on a variety of matters.

 The manner in which payments were made for these alleged
 investigations lay at the center of a line of reasoning
 Freeh used in his pleas to Reno, and which LaBella
 always had used, that the problem involved a pattern of
 abuses, not just a specific instance of wrongdoing, a
 federal law-enforcement source confirms.

 "All hell will break loose when these memos are made
 public," says a second federal source, who is aware of
 the allegations that private investigators were used to
 probe at least one, and possibly three, high-profile
 campaign contributors to several of Clinton's
 fund-raising organizations.

 And this source confirmed separate details that have
 been mentioned in the press that a former senior Justice
 Department official who reported directly to Reno
 strongly supported the call for her to appoint an
 independent counsel to probe Gore because of direct
 testimony that contradicted the vice president
 concerning what he said he did or knew about the
 allegedly illegal fund-raising schemes.



 Copyright � 2000 News World Communications, Inc.




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