CHINAGATE
Hazel O'Leary was FBI target
Freeh urged Reno to name independent counsel over bribe
By Paul Sperry � 2000 WorldNetDaily.com
WASHINGTON -- When Attorney General Janet Reno dropped her
investigation of former Energy Secretary Hazel O'Leary for
allegedly taking a bribe, she did so over the advice of her FBI
chief, a long-secret memo reveals.
Johnny Chung, a '96 Clinton-Gore campaign donor, charged in the
summer of 1997 that O'Leary agreed to meet with communist Chinese
oil officials after he donated $25,000 to her favorite charity,
Africare.
"It is clear that the donation was made under extraordinarily
suspicious circumstances that are worthy of additional
investigation," FBI Director Louis Freeh said in a Nov. 24,
1997, memo to Reno.
The memo, sought by Congress for years, was released yesterday by
a House panel probing a possible Justice Department cover-up of
the Chinagate scandal.
On Oct. 17, 1995, Chung met with Democratic National Committee
officials who put him in touch with Corlis Moody, an O'Leary
aide. Moody arranged the money-for-meeting deal, Chung says,
during a meeting in her Energy office in Washington.
The next day, Moody faxed him a letter signed by O'Leary inviting
the Chinese officials to meet with her the next day. About 90
minutes later, Moody sent an Energy employee to Chung's
Washington apartment to pick up the $25,000 check, made out to
Africare.
On Oct. 19, 1995, Chung and his Chinese delegation of 12 SINOPEC
officials got their meeting with O'Leary in a conference room in
her Energy office suite. It lasted about an hour.
That night, after a tour of the White House, they met President
Clinton at a dinner benefit for Africare.
"The meetings at the Department of Energy and Africare event show
substantial involvement by DNC officials, including Richard
Sullivan and Don Fowler," Freeh wrote in his 27-page memo.
"Consequently, these events should be further investigated by an
independent counsel."
His memo was written a week before Reno announced her decision
not to seek the appointment of an independent counsel in the
case.
"I have determined that there are no reasonable grounds to
believe that further investigation of Mrs. O'Leary is
warranted," she said on Dec. 2, 1997.
Reno argued that there was no proof that O'Leary knew of the
meeting between her aide and Chung. Also, she said the letter to
the Chinese officials was signed by "autopen," not hand, making
it hard to prove "O'Leary had any knowledge of these letters."
But in arguing that, Chung says Reno ignored information he gave
FBI agents who interviewed him.
He says that Moody told him on Oct. 18, 1995, that O'Leary
signed the letter.
"I got her to sign it and we are going to fax it over to you,"
Chung recalled Moody saying.
Also, he says Moody wanted to set up the meeting with O'Leary
after they met in her office on Oct. 17. But Chung says she
told him that O'Leary had gone home for the night and that they'd
have to set it up in the morning.
What's more, Chung says O'Leary came over to his table at the
Africare benefit and thanked him for his $25,000 check.
O'Leary, who resigned in early 1997, has denied Chung's charges
of a quid pro quo, saying the meeting with the Chinese party was
within the normal course of her official duties.
Chung, who pleaded guilty to violating campaign finance laws and
cooperated fully with the FBI, insists he bought political access
to O'Leary on behalf of his Chinese benefactors.
"I gave $25,000 and I got the meeting. That's why they need an
independent counsel" to investigate O'Leary, he said in a phone
interview from his Los Angeles office.
Paul Sperry is Washington bureau chief for WorldNetDaily.
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