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 Denise & Feds Meeting Talks may lead to deal for her

By GREG B. SMITH
Daily News Staff Writer

enise Rich is talking with federal prosecutors about cooperating in their
investigation of whether her ex-husband bought a pardon with political
donations, the Daily News has learned.


Denise Rich (foreground) sings with Natalie Cole during appearance yesterday
on WKTU-FM radio show in Jersey City, where they were plugging their new
song, 'Livin' for Love.'
The talks are the first step in what could be a deal to aid federal
authorities probing the pardons-for-dollars scandal that has tainted
ex-President Bill Clinton's final days in the White House.

The flamboyant songwriting socialite met with prosecutors in Manhattan U.S.
Attorney Mary Jo White's office at least twice during the past few weeks,
said a source.

"She has been talked to on more than one occasion," said the source, adding
Rich attended the meetings with her lawyers.

The source would not say whether Rich has worked out a deal to cooperate —
and emphasized there is no indication that she has agreed to testify against
her ex-husband, Marc Rich, or to admit to any wrongdoing.

The meetings have been what one source described as "proffer" sessions. That
means a witness tells prosecutors what he or she knows in the hopes of
working out a deal to avoid prosecution. Prosecutors can agree not to use the
information against the witness unless the witness is caught lying.

Proffer sessions often result in a witness either getting immunity from any
prosecution — or agreeing to plead guilty to a crime in exchange for leniency
at sentencing.

The source, who is familiar with the investigation, could not say whether
Denise Rich and her lawyers have reached any agreement with White's office on
the question of immunity.

A spokesman for White, Marvin Smilon, and Denise Rich's lawyer, Martin
Pollner, declined to comment last night. Rich's spokesman, Howard Rubenstein,
also had no comment.

But Denise Rich's lawyers informed House of Representatives investigators
that she would invoke her Fifth Amendment right not to incriminate herself
when they asked her to appear before a committee looking into the Marc Rich
pardon.

That was an indication that she was trying to work out an immunity deal with
White.

Within the last two weeks, White has convened a grand jury that meets inside
Manhattan Federal Court to examine the circumstances surrounding Marc Rich's
pardon.

The pardon came after Denise Rich donated $1.1 million to the Democrats,
including Clinton and his wife, Hillary; gave $450,000 toward the Clinton
library, and visited the White House at least 13 times during Clinton's two
terms.

Marc Rich was indicted in 1983 on charges of dodging $48 million in taxes and
violating the Trading with the Enemy Act by buying oil from Iran during the
hostage crisis of 1979.

White wants to determine from Denise Rich whether Marc Rich, who renounced
his U.S. citizenship while he was a fugitive, made secret political donations
through her in an effort to win the pardon.

Thus far, the grand jury in Manhattan has subpoenaed documents pertaining to
all contributions or pledges to the Clinton library of more than $5,000, the
library's lawyers said Tuesday.

Two sources familiar with the investigation have said White also plans to
comb through the bank records of Denise Rich and her companies.

The revelation that Denise Rich is talking to the feds comes as the
songwriter, who has maintained a low profile since the pardon became a
scandal, showed up at a radio station in New Jersey.

She appeared on a morning radio show on WKTU-FM in Jersey City with singer
Natalie Cole to promote their new song, "Livin' for Love." But she made no
mention of the pardon scandal.

During the 45-minute broadcast, the subject of pardons came up only
indirectly when a deejay mentioned it.

"You're so different and so much more beautiful than they're portraying you,"
the deejay said. "Denise is a really good person."

Tonight, Denise Rich is scheduled to appear with Cole at the West Side club
Exit.




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