NYDailyNews

Pardon Probe Eyes Bribe Charges

By GREG B. SMITH, Daily News Staff Writer

Prosecutors probing the presidential pardon of billionaire Marc Rich are trying to determine whether political contributions were used to bribe a public official — possibly former President Bill Clinton, the Daily News has learned.

Manhattan U.S. Attorney Mary Jo White sent subpoenas to several witnesses this month, listing specific allegations on which her investigation is focused.

The possible crimes include bribery of a public official, making of false statements to a federal official, obstruction of proceedings before a federal agency and conspiracy, subpoenas obtained by The News show.

The subpoenas do not name any official who may have been the target of a bribe, but congressional investigators have made clear they suspected there was an attempt to use donations to Clinton's favorite causes to win approval for Rich's pardon.

His ex-wife Denise Rich gave more than $1 million to Democratic campaigns, including the senatorial campaign of Hillary Rodham Clinton, and $450,000 to the Clinton library, according to records.

The subpoenas also indicate that White is investigating three possible violations of campaign finance law, including illegal donations by a foreign national.

In 1983, Rich renounced his U.S. citizenship and fled to Switzerland just before he was charged with tax fraud and violations of the Trading with the Enemy Act by buying oil from the Iranians during the hostage crisis of the 1970s.

Clinton pardoned Rich on his last day in office under circumstances that are the subject of federal and congressional probes.

Denise Rich has been given limited immunity from prosecution by White's office and is cooperating in the probe, according to two sources familiar with the matter.

Early this month, Assistant U.S. Attorney Jonathan Halpern sent subpoenas to several witnesses to appear before the grand jury investigating the Rich pardon, sources said. The subpoenas make clear that Halpern is focusing on several possible crimes.

"It usually means they're looking very carefully at what charges they could bring," said one former prosecutor who agreed to talk on the condition of anonymity. "They're farther along in their thinking. They're willing and able to specify counts."

A spokesman for White, Marvin Smilon, declined to comment on the Rich investigation. Denise Rich's lawyer, Martin Pollner, also refused to comment.

A key charge is possible bribery of a public official, a charge could be applied to the giver or the recipient of a bribe.

That indicates that prosecutors have explored the possibility that Denise Rich's contributions to the Democrats could be considered bribes, said a source familiar with the probe.

The potential campaign finance violations indicate investigators are looking into whether Rich may have illegally reimbursed his ex-wife for her donations to the Democrats.

-- Anonymous, May 24, 2001