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- <text>
- <title>
- (1980) The FBI Stings Congress
- </title>
- <history>
- TIME--The Weekly Newsmagazine--1980 Highlights
- </history>
- <link 11343>
- <article>
- <source>Time Magazine</source>
- <hdr>
- February 18, 1980
- COVER STORY
- The FBI Stings Congress
- </hdr>
- <body>
- <p>A dismaying scandal--and difficult questions
- </p>
- <p> "Everybody was laughing at what was happening. It was like
- guys coming out of the bush, saying, `Hey, give me some of the
- money.' They'd pay one guy and the next day five guys would be
- calling them, guys they didn't know. The tapes are hilarious."
- </p>
- <p> So said a former federal prosecutor last week, but on Capitol
- Hill no one shared the amusement. Too many of "the guys" were
- members of Congress, and "the tapes" were both video and audio,
- catching the sight and sound of them accepting money to perform
- special favors. That, in any case, was the story being leaked
- by sources within the Department of Justice, which said the FBI
- had lured the lawmakers into the focus of hidden television
- cameras in the most sensational undercover operation it had ever
- conducted.
- </p>
- <p> Dubbed Abscam, for Arab Scam, the 23-month investigation had
- cost some $800,000 and involved about 100 agents in an elaborate
- series of hoaxes and disguises. One of these dressed up in a
- burnoose and posed as a sheik named Kambir Abdul Rahman, whose
- millions were said to be "burning holes" in a Chase Manhattan
- account. Other agents in pinstripe suits served as the sheik's
- American emissaries, translating his gutteral commands and
- seeking ways to invest his money in New Jersey gambling casinos,
- East Coast port facilities and an American titanium mine. Along
- the way, the phony sheik and his aides sought to protect his
- investments by buying political influence in Congress, in New
- Jersey's Casino Control Commission, the New Jersey legislature
- and the Philadelphia city council. When the FBI sting ended,
- its supervisors alleged that the honey pot of Arab money had
- attracted one U.S. Senator, seven members of the House and two
- dozen state and local officials or their corrupt cronies--all
- stung by facing possible charges of accepting bribes or being
- caught in an illegal conflict of interest.
- </p>
- <p> Stunned and saddened, leaders of Congress demanded all of the
- FBI evidence so they could conduct speedy investigations of
- their own to discipline or clear their accused colleagues. Just
- as adamantly, Justice Department officials insisted that grand
- juries must examine the evidence first, decide whom to indict
- for what, and send any criminal charges to trial. Simultaneous
- probes would only get in each other's way and make both branches
- of Government look inept, said Attorney General Benjamin
- Civiletti, and in the end might let all of the suspects escape
- punishment. The new scandal was hardly another Watergate, yet
- the interbranch conflict was hauntingly familiar. So, too, was
- the claim by civil libertarians that the investigators had
- leaked their findings to an overeager press, irreparably
- damaging the reputations of public officials before anyone had
- even been formally accused of a crime.
- </p>
- <p> Yet Abscam did introduce a new controversy. Had the much-
- criticized FBI illegally or unethically enticed the lawmakers
- into committing crimes they would normally not have considered?
- "This smacks of a setup," claimed one leading Democrat in
- Congress. "A lot of guys feel that the FBI has got it in for
- this place." But why? No legislator could quite explain this
- "gut feeling" that, as another Congressman contended, the FBI
- was out "to get us." On the other hand, the agency seemed to
- have fearlessly bitten the hand that feeds it. The Congress
- had appropriated about $3 million for FBI undercover operations
- in the past year, and it now appears that the FBI, in an ironic
- way, returned some of the money to a few greedy members of
- Congress. Nevertheless, the "entrapment" issue and the massive
- and apparently deliberate leaks to the press were all legitimate
- topics of ethical concern and growing controversy.
- </p>
- <p> One point was not in dispute: the badly battered reputation of
- Congress, tarnished by numerous recent cases of individual
- misconduct, had been dealt a major blow. "The institution has
- been hurt," conceded House Speaker Tip O'Neill. "I'm very
- disappointed, discouraged and shocked," said Senate Majority
- Leader Robert Byrd. "I'm sick," declared Congressman Robert F.
- Drinan, who served on the Judiciary committee that had voted in
- 1974 to impeach Richard Nixon. The actions of that committee
- were so impressive that 48% of Americans, according to a Gallup
- poll at the time, said that they approved of the way Congress
- was performing. Assaulted by more recent charges, including
- President Carter's repeated claim that Congress is a captive of
- special interest groups, the legislature's approval rating fell
- to a lowly 19% last summer. (Only big business generally ranks
- lower than Congress.) Until the Abscam evidence is finally
- evaluated in the courts--and no indictments are anticipated in
- less than three months--cynics can say that their suspicions
- have been justified: all too many legislators are heedless of
- the national interest and also personally corrupt.
- </p>
- <p> The FBI's dramatic undercover attack on white collar crime also
- left no doubt about a shift in priorities since the death of its
- first and legendary director, J. Edgar Hoover. Hoover liked to
- put emphasis on the showy crimes of his youth: bank robberies
- and kidnapping. In the political area, he concentrated on spies
- and groups that he considered leftist. He did not at all mind
- his agents picking up scandal, mostly sexual, about members of
- Congress; but he filed it away to use as a club over
- legislators' heads, sometimes even informing the Congressman of
- what he knew (promising as a favor to keep it quiet). In
- undercover work, he relied heavily on paid informants, he did
- not want his agents to be sullied by posing as other than what
- they were: clean-cut types in impeccable white shirts.
- </p>
- <p> In the post-Hoover era, Hoover's successors have sought to
- reform the agency. They banned such routine FBI tactics as
- illegal break-ins. First Clarence Kelley and then the current
- director, William Webster, steered the FBI away from such simple
- federal offenses as bank robbery into the more complex areas of
- white collar crime. This meant going undercover--and enduring
- the attacks that such operations can bring. Over the past two
- years, the FBI has been engaged in nearly 100 separate
- undercover operations--and with impressive results. Last year,
- these investigations produced 2,817 arrests, 1,372 convictions
- and the recovery of $381 million in stolen property.
- </p>
- <p> These operations began with the FBI joining local police in
- setting up phony fence operations--often in storefronts. There
- stolen goods were readily purchased, and at the proper time the
- unsuspecting sellers were stung. The scams ranged from
- Operation Tarpit in Los Angeles, where the expenditure of
- $450,000 bought some $42 million in hot goods, with 256 arrests,
- to Operation Lobster in Boston, where agents recovered 17 huge
- truckloads of stolen goods that were stuffed with $3 million in
- loot. As a result, Boston area hijackings dropped from about
- 50 a year to only two since this sting ended in March.
- </p>
- <p> It was through the recovery of stolen goods that Abscam
- started. It grew out of a rather routine undercover scheme in the
- New York area to recover stolen securities and paintings. In
- return for a favorable recommendation to reduce his sentence, FBI
- agents persuaded Mel Weinberg, a convicted swindler, to help
- them get thieves to resell their loot to the FBI's fake fences.
- The agents used the ruse of claiming to represent a Middle East
- sheik interested in purchasing the stolen goods.
- </p>
- <p> Informer Weinberg, however, held out a bigger prospect. He
- named two associates who, he claimed, had arranged shady deals
- with the mayor of Camden, N.J., Angelo Errichetti. The
- undercover agents now sought guidance from their superiors on
- whether to follow Weinberg's leads into the complex field of
- political corruption. Neil Welch, the FBI's top man in New York
- City, readily approved. He had long wanted to press harder
- against white-collar crime. But Welch also needed higher
- approval, first from Francis M. ("Bud") Mullen Jr., a Washington
- superior in charge of all FBI investigations into white-collar
- and organized crime. Finally, Director Webster's approval was
- needed. In March 1978 both officials gave their go-ahead.
- </p>
- <p> With top level approval and ample funds now available, the
- FBI scam grew ever more elaborate. A swarthy agent, still
- unidentified, was picked to play the fictitious sheik, Kambir
- Abdul Rahman. Variously portrayed as being from Oman, Lebanon
- or the United Arab Emirates, the impostor set up temporary
- residence in a 62-ft. yacht that docked in several posh Florida
- marinas. As the flag vessel of the FBI's secret fleet, the
- cruiser, seized by customs officials from marijuana smugglers,
- was first named the Left Hand and later the Corsair. "It
- gleamed with the predictable varnished parquet decks, teak
- paneling--and a wide variety of eavesdropping and recording
- devices. The landlubberly FBI crew who manned it, however,
- promptly blew out one of its engines--and thereafter pretended
- to be in great fear of punishment from the all-powerful sheik.
- </p>
- <p> At the same time, the FBI provided its' sheik with a phony
- business front called Abdul Enterprises, with offices in an
- undistinguished modern office building on Long Island. More
- imaginatively, the agents acquired an expensive two-story
- colonial brick house in a fashionable area of Washington, D.C.
- It was rented, for $1,200 a month, from a reporter for the
- Washington Post who had been assigned temporarily to New York
- City. The agents furnished the first floor with expensive
- antiques borrowed from the Smithsonian Institution and spent
- some $25,000 on renovations. These included an elaborate alarm
- system (to protect the antique furniture, the reporter-landlord
- was told), new chandeliers, other lighting fixtures, and a false
- ceiling in the basement--presumably to conceal TV cameras and
- microphones. On a visit, the reporter found a locked door off
- the basement recreation room. The key, explained one of the new
- tenants, had been left at his office. In fact, the room
- contained television cameras and recording equipment. Neighbors
- on the quiet street were puzzled by the new tenants. Said one:
- "We thought it was a bunch of gays--all these good-looking
- young men, who kept changing."
- </p>
- <p> Other operational sites were lined up: hotel suites at the
- Hilton Inn and the International Hotel, both at New York's
- Kennedy International Airport; an elegant suite at
- Philadelphia's Barclay Hotel; a condominium in the Regency
- Towers, along the seashore in Ventnor, N.J. For flexibility,
- another sheik was created, Yasser Habib. He claimed that he
- might one day have to flee his home country and seek asylum in
- the U.S. That asylum could be provided if a member of Congress
- would introduce a private bill, granting him special status to
- bypass normal immigration procedures. The sheik would, of
- course, generously reward any legislator willing to sponsor such
- legislation. (In past years as many as 7,300 private
- immigration bills had been introduced in the House, and such
- mere introduction could indefinitely postpone any deportation
- proceedings against an alien already in the U.S. After this
- rule was eliminated in 1971, the number of these bills dropped,
- to 662 last year. Full passage by both chambers of Congress is
- now required for admission of an alien to the U.S. outside of
- quotas.)
- </p>
- <p> With the actors and stage sets in place, Abscam went into
- action. According to Justice Department sources, events
- unfolded as follows:
- </p>
- <p> The agents sought out their first quarry, Camden Mayor
- Errichetti, 51, who is also a New Jersey state senator.
- Errichetti listened attentively as the undercover agents
- explained that their sheik was interested in investing money in
- the Camden seaport and might like to open a casino in Atlantic
- City as well. Television cameras put the scenes on tape as the
- mayor said he could help the sheik with his investments--for a
- fee of $400,000. Errichetti accepted $25,000 in cash as a down
- payment for his services, according to Government sources. To
- get a casino license, Errichetti said, Kenneth MacDonald, vice
- chairman of the Casino Control Commission, would need $100,000.
- When Errichetti and MacDonald later visited the Abdul
- Enterprises office on Long Island, the two officials picked up
- a payment of $100,000--an act duly recorded on video tape.
- </p>
- <p> Errichetti soon escalated the level of action. He showed up
- last March at the Corsair, now docked in Delray Beach, Fla., to
- meet the legendary sheik Kambir Abdul Rahman face to face. This
- time he had with him New Jersey's four-term Democratic Senator,
- Harrison ("Pete") Williams, 60. Meeting in the yacht's salon,
- the visitors spoke to the sheik through an interpreter, a
- dark-complexioned agent who conveyed their words to the sheik
- in something approximating Arabic. Nodding and smiling under
- his burnoose, the sheik, who claimed to speak little English,
- managed to express his uncomplicated desires: he wanted to
- invest in land and casinos in Atlantic City, as well as in a
- U.S. titanium (a high-strength, lightweight metal especially
- useful in aircraft construction. Demand for its use has been
- growing and it is now in particularly short supply in the U.S.
- and Great Britain.) mine in Virginia; but he was unfamiliar with
- the ways of politics and finance in the U.S. and needed the help
- of his experienced guests.
- </p>
- <p> The Senator raised his voice to convey his clear concurrence
- and told the interpreter: "You tell the sheik I'll do all I can.
- You tell him I'll deliver my end." The deal that began that
- day took at least three more meetings over several months to
- complete. In Manhattan's Pierre Hotel, the sheik's aides agreed
- to invest $100 million in the titanium mine and to give Williams
- an undisclosed share of the mine's stock without charge. At a
- rendezvous in Arlington, Va., the Senator said he would talk to
- high officials in Government to seek military contacts to help
- the mine prosper. As he was about to catch a plane to Europe
- from Kennedy Airport, Williams accepted the stock certificates.
- They had been made out to a longtime associate of the
- Senator's, Alexander Feinberg, a New Jersey lawyer who had
- endorsed the stock, making it transferable to Williams.
- According to the Justice Department sources, all of Williams'
- transactions with the sheik's agents were filmed.
- </p>
- <p> The ubiquitous Mayor Errichetti also introduced the sheik's
- pals to Howard Criden, a relatively obscure Philadelphia lawyer
- who had made big profits in real estate. When he learned of the
- sheik's desire to spread his vast wealth, the soft-spoken Criden
- was far from quiet. He passed the word to four members of
- Congress, all of whom succumbed to the FBI's sting.
- </p>
- <p> One by one, Congressmen turned up at the FBI's rented house
- on Washington's W Street, often with Criden at their side, to
- learn about the largesse of the second FBI sheik, Yasser Habib,
- the one who was hoping to find asylum in the U.S. Habib
- welcomed his visitors under lights so bright that the lawmakers
- squinted. These lights had been installed to facilitate the
- secret video-taping, but the sheik's aides explained that he
- kept them bright because he missed the blazing sun of his
- homeland. To each Congressman, the pitch was the same: the
- sheik feared trouble from radicals in his homeland and wanted
- assurance that he could find permanent sanctuary, if needed, in
- the U.S. He did not, of course, expect anyone to help him for
- nothing.
- </p>
- <p> To the dismay and, indeed, the later disbelief of his
- colleagues on Capitol Hill, one of the legislators Criden got
- interested in the sheik was New Jersey Democrat Frank Thompson,
- 61, a most admired and respected member of the House. Although
- Thompson was not photographed picking up any cash, Criden
- accepted a satchel containing $50,000--and, according to
- Government sources, he was taped saying he was doing so for the
- Congressman. Thompson's own words of willingness to help the
- sheik had been recorded earlier.
- </p>
- <p> As a middleman expecting to be generously rewarded for his
- efforts by the sheik, Criden also brought Pennsylvania Democrat
- Raymond Lederer, 41, Pennsylvania Democrat Michael Myers, 36,
- and New York Democrat John Murphy, 53, into Abscam. Myers and
- Lederer were filmed accepting $50,000 each. Murphy, who has
- been under investigation by the House Ethics Committee, was more
- wary. In an almost comic scene, he sparred with Criden over who
- would pick up the suitcase of bribe money in a Kennedy Airport
- hotel; Criden lost, and walked out with the cash. Pennsylvania
- Democrat John Murtha, 47, went to the Washington house at
- Criden's urging and was taped agreeing to split $50,000 with
- other Congressman, but never picked up any money.
- </p>
- <p> Two Southern Congressmen found their way into the Abscam web
- through other intermediaries. South Carolina Democrat John W.
- Jenrette, 43, apparently was tipped off by a businessman-friend,
- John Stowe of Richmond. According to Government sources, Stowe
- was filmed accepting $50,000, and Jenrette was recorded later
- acknowledging receipt of the money. The only Republican tagged
- so far is Florida Congressman Richard Kelly, 55, one of the
- House's most erratic legislators. Kelly apparently learned of
- the available cash from a chain starting with a convicted stock
- swindler and leading through an accountant and an East Coast
- mobster, all three of whom had expected to acquire $50,000 each
- from Sheik Habib. Only Kelly, however, received a delivery.
- The cameras in the W Street house caught him stuffing $25,000--200 $100 bills and 250 $20 bills--into his suit, coat and pants
- pockets and asking: "Does it show?"
- </p>
- <p> As greedy politicians at lower levels of government rushed to
- get their share of Abscam's bribe money, the FBI's operation was
- getting too complex and expensive. The agents had promised to
- hand over more money in bribes than they could deliver. At some
- point the spigot had to be turned off. "We found people
- climbing all over each other to get some of the action," claimed
- one FBI official. "We were mystified."
- </p>
- <p> The FBI decided to shut the operation down on Saturday, Feb.
- 2. The agents knew that a number of news organizations had heard
- rumors about the sting and were about to break the story. They
- asked reporters for these organizations to hold off until some
- 100 agents could complete a rush of windup interviews on that
- Saturday.
- </p>
- <p> NBC-TV had been dogging the story for two months--setting
- up two Winnebago vans near the FBI's W Street hideaway,
- photographing visitors through tinted windows. The crews could
- not turn heaters on in their vans because that would fog up the
- windows. "It was so cold the orange juice froze on a couple of
- nights," said one benumbed NBC reporter. Neighbors had called
- police about a suspicious vehicle, but a quick-witted reporter
- shooed officers away by protesting: "What's the matter with
- you guys? You're screwing up our investigation." An NBC van
- was parked near Williams' home in Washington even before the FBI
- agents came to inform the Senator that he was a subject of
- investigation, so the Senator's look of surprise and dismay
- appeared on prime-time television.
- </p>
- <p> The most detailed early reports were in Long Island's Newsday
- and the New York Times, the latter's report apparently based on
- an internal--and normally secret--Justice Department document
- called a prosecution memo or "pros-memo." That is a
- prosecutor's chronological summary of a mass of FBI evidence,
- and copies are sent to relevant FBI officials. The published
- details of the Justice Department's information brought howls
- of protest from Congress and also from the American Civil
- Liberties Union. Attorney General Civiletti was outraged too;
- he promised a thorough internal investigation to find the
- leakers. The flood of pretrial publicity could jeopardize any
- prosecution the Justice Department tries to bring. But one
- veteran of such internal Government probes called them "fools'
- errands."
- </p>
- <p> The leaked prosecution memo later turned out to be unfair in
- making no distinctions of any type among the potential bribery
- cases. Civiletti told the Senate Ethics Committee that some of
- the cases were sure to be prosecuted, while others might require
- more investigation and a few might prove too weak for
- indictments. Other Government sources later broke the cases
- involving the eight members of Congress into similar categories.
- The evidence was termed strongest against Williams, Jenrette,
- Kelly, Myers and Lederer; that against THompson and Murphy was
- called weaker but still strong. Murtha's case, it was said,
- might possibly be dropped.
- </p>
- <p> Regardless of the degrees of evidence, most of the accused
- members of Congress rushed to deny any wrongdoing. A few
- offered novel defense. Jenrette said that when he met the Arab
- impostors, his memory was hazy because he had been drinking.
- "I was in bad shape," he recalled. "It was a full moon, and I
- had three drinks. Or I had three drinks and it was a half
- moon." His wife was somewhat supportive, adding: "Maybe they
- gave him so much to drink he said `Oh yeah' to everything they
- asked, but he didn't come home with the $50,000." A New Jersey
- state senator, Joseph Maressa, on the other hand, readily
- admitted taking $10,000 in what he called "legal fees" and
- added: "It was like the Arabian Nights, the Ali Baba situation.
- The portrait that was painted was so convincing. It almost
- became patriotic to take their money. You know, let's take some
- of that OPEC oil money. It's our tax dollars."
- </p>
- <p> The most disingenuous denial was given by Congressman Kelly
- to NBC's David Brinkley in a televised interview. Kelly agreed
- that he had stuffed the money into his pockets, all right,
- explaining: "Ten thousand dollars in new hundred-dollar bills
- is little more than a half-inch thick." He said he put all of
- the cash, $25,000, into the glove compartment of his car. Then
- he placed it in a file cabinet in his office and spent $174 for
- small purchases like lunches. Finally, he gave all the rest
- back to the FBI. But why had he taken the money in the first
- place? The Congressman said he had done so as part of his own
- "investigation" of "the gangsters and gunmen" he had met in the
- W Street house who obviously were doing something "crooked."
- He said of the FBI investigators: "When they blew the cover on
- their case, they blew the cover on mine."
- </p>
- <p> News of the FBI's ploy inspired several other politicians to
- proclaim that they had been enticed into the lawmen's game but
- had refused to play. Most of these had been approached by
- Joseph Silvestri, a New Jersey real estate dealer whose pushy
- tactics aroused the suspicions of some of his intended clients,
- including three New Jersey Congressmen.
- </p>
- <p> Among his other maneuvers, Silvestri told a wealthy socialite
- in Washington that, as he apparently believed, the sheik in the
- Washington house would be willing to contribute to political
- campaigns. Quite innocently, it seems, she passed the word to
- South Dakota Senator Larry Pressler, whose forlorn try for the
- Republican presidential nomination was then still alive but in
- need of cash. Silvestri drove Pressler to the sheik's house,
- where the candidate assumed he was to meet some men who had
- formed a legal political action committee, but when Pressler
- asked about their PAC, he was astounded by a counter-question:
- "What's a PAC?" When they offered to donate money anyway,
- Pressler backed off, saying: "Wait a minute, what you are
- suggesting may be illegal." Pressler quickly rejected any idea
- of a donation and walked out of the house. Later, FBI Director
- Webster called the Senator to say he had performed "beautifully"
- on the FBI's video tape. Commented Pressler: "I find it
- somewhat repulsive that I'm on tape, but now I'm called a hero.
- It's a sad state of affairs when it's heroic to turn down a
- potential bribery situation." The fallout from Abscam was
- indeed a serious matter. Along with the further erosion of
- public confidence in Congress, opponents of legalized casino
- gambling felt vindicated in their long-held cynicism about the
- ability of public officials to keep such high-stakes operations
- honest. Not only had one member of the New Jersey casino
- control commission apparently been caught taking a $100,000
- bribe to help the FBI's sheik get a casino license, but the FBI
- promptly notified the four remaining members that it wanted to
- interview them too about just how free the commission is from
- criminal influence.
- </p>
- <p> The Abscam tapes allegedly also record Senator Williams
- boasting that he had used his influence with the commission to
- save one group of hotel developers $3 million, apparently by
- getting the commission's approval to renovate rather than rebuild
- a structure housing its casino. The company Williams had helped
- had employed his wife Jeanette, first as a director, then a
- consultant, paying her $18,000 a year. At the same time, Mrs.
- Williams served full-time at a $33,000 salary on the staff of
- the Senate Labor Committee, of which the Senator is chairman.
- </p>
- <p> The events in Abscam's aftermath will certainly stretch out
- for months, probably even years. First the relevant Justice
- Department prosecutors must decide just which of the roughly 30
- cases to pursue by seeking grand jury indictments. The
- department's plan seems to be to split up the cases, rather than
- consolidate them, and then present evidence to grand juries in
- New York, Philadelphia, New Jersey and Washington, D.C. Any
- trials of indicted officials would be months away--and there
- could be lengthy legal clashes over the admissibility, for
- example, of the FBI's video tapes.
- </p>
- <p> Meanwhile, committees in both the Senate and the House may
- well continue to demand that evidence against the members of
- Congress be yielded by the Justice Department. There is not much
- likelihood that they will succeed--and without such cooperation
- they have little or no case against their suspect members.
- </p>
- <p> Actually, some of the Abscam victims might prefer to be
- judged by their colleagues in Congress rather than by criminal
- trial juries. Declares Leon Jaworski, who has been on both sides
- of such interbranch conflicts, as special Watergate prosecutor
- and special counsel to a House committee probing the Korea
- bribery scandal: "Congress has never done a very good job of
- investigating itself. The House committee should defer to a
- speedy and thorough investigation by the Justice Department."
- </p>
- <p> Was Abscam an operation in which the FBI's actor-agents got
- carried away by openly offering bribes and urging their
- acceptance? Justice Department attorneys admit that a few
- leading questions by agents might turn up on the many tapes, but
- they insist that the entire procedure was too closely supervised
- to be seriously tainted. For one thing, the first tapes were
- quickly reviewed by officials at the department's highest levels
- to see if the tactics used by the actor-agents in the field
- were proper. Moreover, each actual cash payoff was witnessed
- by a Justice Department attorney, who sat in an adjoining room
- and watched a closed-circuit TV monitor. In some instances, the
- attorney would telephone one of the agents serving the sheik,
- if the bribe suggestions were getting too bold. The agent
- picking up the telephone would be advised to ease the pitch.
- </p>
- <p> Even as one House subcommittee announced plans to investigate
- the FBI's internal ground rules for its sting operations,
- Director Webster expressed his belief that the FBI and Congress
- as a whole have compatible interests. Said he: "It's been my
- experience that public officials--say in Congress, for
- instance--want to get the rotten apples out. They're proud of
- what they are doing, and they are angered by anybody that is
- bringing discredit upon them by association."
- </p>
- <p> He suggested that Abscam had not targeted individual public
- officials "just to see what they are up to, but grew instead out
- of investigative leads." That, he said, is "proper."
- </p>
- <p> Abscam is not the only FBI operation to lead into higher
- levels of political corruption. TIME learned last week that
- another FBI sting called Brilab, for "bribery labor," had fooled
- the New Orleans Mafia boss, Carlos Marcello, into believing that
- two FBI agents actually were insurance brokers seeking a cut of
- the lucrative fees that they would acquire by selling health and
- welfare insurance contracts for state employees in Texas and
- Louisiana, as well as municipal workers in Houston. Marcello,
- who claimed to have great influence in arranging such insurance,
- told the agents which politicians could be bribed--and readily
- accepted a $5,000 payment for his advice.
- </p>
- <p> Marcello dined, drank and traveled with the disguised FBI
- men, laying out a trail of corruption that led to the staff of
- Louisiana Governor Edwin W. Edwards. Various state officials
- in Texas and local officials in Houston are also under
- investigation. Marcello further revealed to the agents a plot
- to bribe a federal judge in Los Angeles with up to $250,000 to
- fix a racketeering-murder trial of five Mafia figures. The
- judge was tipped by the FBI before he was approached by the
- plotters. The Brilab scam was shut down last week.
- </p>
- <p> Apart from its covert schemes, the FBI's new interest in
- political corruption has concentrated on at least one other U.S.
- Senator: Nevada Democrat Howard W. Cannon. A court-authorized
- FBI wiretap on the telephone of Allen F. Dorfman, a former
- Teamster consultant who had long maintained influence over the
- huge pension funds of the various Teamster unions centered in
- Chicago, led agents to question whether Dorfman might have
- enticed Cannon into shaping a bill deregulating the trucking
- industry into a form more acceptable to the Teamsters. As
- chairman of the Senate Commerce Committee, Cannon was a key
- figure in any such legislation. Cannon's suspected payoff was
- to get Dorfman's help in purchasing valuable land owned by the
- Teamster pension fund in Las Vegas, where Cannon also has a
- home, but the deal was never consummated. Says Cannon: "I've
- never heard anything more absurd in my life."
- </p>
- <p> Just where the FBI's new activism in probing more
- sophisticated crime might lead--and whose white collar might be
- smudged--remains a great concern in Washington. Rumors persist
- that despite the leaks, not all of the Congressmen entangled in
- the Abscam net have yet been publicly identified. Thus, though
- all but one of the members of Congress pinpointed so far were
- Democrats, most Republicans cautiously refrained from making the
- new scandal a partisan political issue. An exception was
- Pennsylvania Republican Bud Shuster, chairman of the House
- Republican policy committee, who claimed, "History teaches that
- when one party is in power a long time, corruption increases.
- This is the result of one party's being in control of Congress
- for 25 years." Protested a Democratic House leader,
- Washington's Thomas Foley: "He wasn't saying that about
- Watergate." Insisted New York Republican Congressman Barber
- Conable: "There's no plus for Republicans in this. It's a bad
- show, and we're all going to lose from it."
- </p>
- <p>AMONG THE ACCUSED
- </p>
- <p> Of the eight legislators implicated by the Abscam
- investigation, several have had noteworthy careers:
- </p>
- <p>-- Richard Kelly, a third-term G.O.P. Congressman from Florida,
- was once a state circuit judge who was impeached by the state's
- house for harassing lawyers and fellow judges (the senate
- subsequently dismissed the charges). Later ordered by the
- Florida judicial qualifications commission to undergo
- psychiatric examination, Kelly visited a hospital on his own and
- earned a clean bill of health. That enabled him, on entering
- the House in 1975, to claim: "I'm the only member certified to
- be sane."
- </p>
- <p> In Congress, he has forcefully attacked labor unions and
- bureaucrats while opposing aid to New York City. So staunch a
- champion of fiscal responsibility is Kelly that he refused in
- 1976 to pocket a congressional pay raise and donated the more
- than $1,000 to churches and the U.S. Treasury. He and his
- fourth wife, Judy, 28, his former secretary, whom he married in
- 1978, live relatively frugally, but Kelly managed to spend about
- $12,000 more for his office account last year than the $290,000
- allowed him; he had to get a bank loan to pay back the amount.
- </p>
- <p>-- John Murphy, a New York Democrat who has represented a Staten
- Island district for 17 years, is an honors graduate from West
- Point and a veteran of World War II and Korea, where he won the
- Distinguished Service Cross, Bronze Star, Purple Heart and six
- battle stars. He is also no stranger to charges of corruption.
- He has been accused of using his powerful chairmanship of the
- House Merchant Marine and Fisheries Committee to solicit
- political contributions. The House Ethics Committee and the
- Justice Department have been separately investigating Murphy for
- failing to register as a lobbyist for foreign interests. House
- Ethics Committee staffers claim to have proof that Murphy
- accepted money from the Iranians for favors under the regime of
- the deposed Shah. Murphy keeps in his office desk a device that
- tells whether a visitor is wired to record him.
- </p>
- <p>-- Frank ("Thompy") Thompson, witty, irreverent, profane,
- debonair, has been sent to Congress by his New Jersey
- constituents since 1954. On Capitol Hill, he soon became an
- intimate of the Kennedys and a hero to organized labor. He
- co-founded the liberal Democratic Study Group and, as chairman
- of the House Subcommittee on Labor-Management Relations, has
- pushed for federal financing of jobs for urban youths. He also
- helped create the National Endowment for the Arts. Though he took
- campaign contributions from the South Korean lobbyist Tongsun
- Park, Thompson has been regarded by his fellow Congressmen as
- an honest politician. In fact, he enthusiastically advocated
- public financing of election campaigns. "The House," he said
- not long ago, "needs to be taken off the auction block."
- </p>
- <p>-- Harrison ("Pete") Williams, has been a Democratic Senator
- from New Jersey for 21 years and one of the state's biggest vote
- getters. In that time he has faithfully and consistently backed
- organized labor. Aid to mass transit has been another favorite
- Williams cause. But for all his seniority (he chairs the
- important Labor and Human Resources Committee), the New
- Jerseyite is widely regarded as a weak Senator. He is shy and
- occasionally self-effacing. His colleagues--and the voters--respect his having defeated a serious drinking problem and
- talking publicly about it.
- </p>
- <p> Questions about Williams' finances have been raised before
- Abscam. During his 1976 senatorial campaign, he was criticized
- for accepting some $28,000 from the banking and securities
- industries just before a Senate vote on securities legislation.
- Some observers feel that Williams, who has bought a Georgetown
- house valued at nearly $375,000, might be living beyond his
- means. Just last month he let it be known that he was thinking
- of running for Governor.
- </p>
- <p>ROGUES' GALLERY
- </p>
- <p> "A Congressman is a hog!" Henry Adams once wrote of the
- legislators of the Gilded Age. "You must take a stick and hit
- him on the snout!" Less dyspeptic observers argue that most
- legislators are honest and dedicated, but the record of the past
- few years has not been entirely reassuring:
- </p>
- <p>-- February 1976. Representative Andrew Hinshaw, 56, California
- Republican, was sentenced to one-to-14 years in jail for
- soliciting and accepting bribes during his 1972 election
- campaign.
- </p>
- <p>-- May-September 1976. Representative Wayne Hays, 68, Ohio
- Democrat and chairman of the House Administration Committee, was
- investigated by the House Ethics Committee and the Justice
- Department on charges of financial improprieties as well as
- keeping his mistress, Elizabeth Ray, on his official payroll.
- He resigned in September 1976.
- </p>
- <p>-- June 1976. Representative Henry Helstoski, 54, New Jersey
- Democrat, was indicated for taking bribes from Chilean and
- Argentine aliens to introduce bills blocking their deportation.
- </p>
- <p>-- July 1976. Representative Robert Sikes, 73, Florida Democrat,
- was reprimanded by his colleagues for "financial misconduct"
- involving conflict of interest.
- </p>
- <p>-- December 1976. Representative James Hastings, 53, New York
- Republican, was convicted and later sentenced to up to five
- years for taking kickbacks from congressional employees.
- </p>
- <p>-- August 1977. Tongsun Park, a Korean businessman, was indicted
- for bribery and later testified that he had made payoffs to 31
- legislators. Eighteen-month congressional investigations of
- "Koreagate" led to little action. The only man actually
- imprisoned was former Congressman Richard Hanna, 65, California
- Democrat, who was sentenced to a 2 1/2-year prison term. Otto
- Passman, 79, Louisiana Democrat, was brought to trial but
- acquitted. Charles H. Wilson, John McFall and Edward Roybal,
- all California Democrats, were reprimanded by the House, but
- Wilson and Roybal are still there.
- </p>
- <p>-- September-October 1978. Representative Daniel Flood, 76,
- Pennsylvania Democrat, was indicted for taking more than $50,000
- in bribes. His trial ended in a hung jury. Flood, who has
- suffered a variety of illnesses, resigned his seat. A federal
- judge last week ruled him mentally competent to face retrial
- later this month.
- </p>
- <p>-- October 1978. Representative Joshua Eilberg, 59, Pennsylvania
- Democrat, was indicted for receiving illegal compensation. He
- lost his re-election race that fall and changed his plea to
- guilty at his February 1979 trial. He got a $10,000 fine and
- five years' probation.
- </p>
- <p>-- November 1978. Representative Charles Diggs Jr., 57, Michigan
- Democrat and founder and former chairman of the Black Caucus,
- was sentenced to up to three years for taking more than $60,000
- in kickbacks from his employees. He was re-elected that same
- year.
- </p>
- <p>-- October 1979. Senator Herman Talmadge, 66, influential
- Georgia Democrat, was officially "denounced" by the Senate for
- misappropriating office funds and campaign donations for
- personal use. A federal grand jury is still investigating.</p>
-
- </body>
- </article>
- </text>
-