-Caveat Lector-



Another New Bill of Sale

Fund-raiser pushed Prez to pardon perjurer

By GREG B. SMITH
Daily News Staff Writer


A major fund-raiser for the Clinton library helped get the White
House to pardon convicted perjurer William Fugazy after the
Justice Department shot down the request, the Daily News has
learned.

New York supermarket mogul John Catsimatidis is a member of an
elite advisory board to the Clinton library and has pledged to
raise $1 million for the sprawling complex in Little Rock, Ark.

He was one of several prominent people who lobbied for Fugazy's
pardon, but his appeal went straight to President Clinton's chief
of staff John Podesta.  Catsimatidis says his access helped
overcome Justice Department opposition.

"In the last 50 years, I don't know of anyone who's gotten a
pardon who hadn't paid a lot of money to a lawyer or hasn't known
somebody," Catsimatidis said in an interview yesterday.  "How do
you create a pardon other than talking to people?"

Clinton granted Fugazy's pardon in his last hours in office, one
of more than 40 that ran contrary to the Justice Department's
clemency rules.

Fugazy said yesterday that he deserved the pardon.

"I don't think I did anything wrong.  I think I was entitled to
[a pardon]," he said.  "I took a plea.  It's the silliest thing I
ever did, but that's life.  There was really no case.  I just
didn't want to embarrass my family."

Fugazy's pardon is the latest example of a possible connection
between contributions to Clinton's library and the access needed
to obtain presidential clemency.

At a House committee hearing this week, investigators pressed
senior Clinton staffers for any links between library donations
and pardons, but the former aides denied any quid pro quo.

Calls to Clinton's office and Podesta were not returned.

Catsimatidis emphasized that Fugazy had the support of many
powerful people, including Rep.  Charles Rangel (D-N.Y.), Mayor
Giuliani, Manhattan District Attorney Robert Morgenthau, former
White House counsel Bernard Nussbaum and the late John Cardinal
O'Connor.

Nussbaum said yesterday that he called the White House counsel's
office to press the Fugazy pardon with people who used to work
for him.  He declined to reveal their names.

"I made a call to the White House counsel's office to people that
I know," he said.  "They said, 'Thank you, good to hear from
you.'"

Fugazy has long been a prominent fixture in New York's political
and charity scene.  His nonprofit campaigns included fighting
anti-Italian bias and raising money to restore Ellis Island.

But by late 1986, his consulting company, Fugazy International,
faced several suits and owed $10 million to banks and tax
collectors, records show.  He filed for personal bankruptcy.

Prosecutors said he transferred assets to a company held in his
children's names but continued to play a central role in running
the company.

During a deposition in the bankruptcy case, he repeatedly lied
about who owned the firm, prosecutors said.  Under a deal, Fugazy
pleaded guilty to one felony count of perjury.

At his sentencing, he submitted letters of support from Giuliani,
O'Connor and Morgenthau.  He was sentenced in September 1997 to
two years' probation, including six months of home detention.

Fugazy's lawyer, former federal prosecutor Andrew Maloney, soon
began pushing the Justice Department to pardon Fugazy.  He
submitted the Giuliani letter and got new letters from O'Connor
and Morgenthau.

But Justice Department officials insisted they would not support
a pardon for anyone until at least five years after the date of
conviction or release from prison.

"They said, 'Come back in 2003 and we'll be happy to process
it,'" Maloney said.

He said department lawyers suggested he take his case to the
White House, and he submitted the package to Rangel, who took it
to the White House counsel's office.

Meanwhile, Catsimatidis wrote to Podesta, and Nussbaum called his
old colleagues in the White House counsel's office.

"I was aware of the five-year rule, but I was also aware that the
President has discretion," said Nussbaum, who handled the case
for free.  "I did not do this in my capacity as former White
House counsel.  I did this in my capacity as somebody who knew
Bill Fugazy."

Original Publication Date: 3/3/01

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