10 Linked With LaRouche Indicted in Credit Fraud

Two corporations, three campaign committees and 10 individuals associated with political extremist Lyndon H. LaRouche Jr. were indicted today on charges of credit card fraud. At the same time, authorities from five federal agencies raided LaRouche’s offices in Leesburg, Va.

A LaRouche spokesman denounced the investigation as “one of the biggest political dirty tricks in history.”

LaRouche loyalists Jeffrey and Michelle Steinberg, described as part of the LaRouche “inner circle,” were arrested at their Leesburg residence on the criminal complaint of credit card fraud and tax evasion that was issued in Boston.

Arrested for Obstruction

Roy Frankhauser, a member of the LaRouche security detail, was arrested in Pennsylvania for obstruction of justice.

LaRouche was not charged. His whereabouts were not immediately known but a spokeswoman said it was believed he was in Loudoun County, Va.

The indictments in Boston came after a two-year investigation into a scheme involving 200,000 unauthorized credit charges totaling more than $1 million.

The 117-count indictment named the Steinbergs, Frankhauser, Michael Gelber, Richard Sanders, Charles Park, Michael Billington, Paul Goldstein, Elliot Greenspan and Richard Black. Most live in Leesburg but some are from New Jersey, Pennsylvania and Massachusetts.

The indictment charged that during the six months before the 1984 presidential election, Gelber, Sanders, Billington and Park, along with the LaRouche campaign, told credit card companies that they had permission from cardholders to withdraw their funds. Local LaRouche chapters involved were in Boston, New York, Philadelphia, Baltimore, Chicago, Houston and Los Angeles.

The indictments allege that unauthorized charges of up to several thousand dollars were made on the credit cards of people who had been solicited to buy magazines or make contributions, often at airports.

At least 50 troopers arriving in a Virginia State Police bus also were involved in serving the search warrants about 6:45 a.m. at the Travellers building and the Wheat building, both in downtown Leesburg.

Authorities removed cardboard boxes filled with documents but the nature of the papers was not immediately known.

LaRouche, 64, a one-time Marxist who calls himself the world’s top economist, lives in a heavily fortified, $1.3-million, 175-acre estate outside Leesburg. Groups affiliated with him have purchased millions of dollars of property in Loudoun County.

LaRouche ran for President three times, including 1984 when he drew 78,773 votes, 0.09% of the total. His greatest victory came in March when two of his followers won the Democratic primaries for lieutenant governor and secretary of state in Illinois.

LaRouche brushes off his critics by saying they are agents of the Soviets or drug smugglers. He has accused Britain’s Queen Elizabeth of leading an international drug operation and said the International Monetary Fund is responsible for the spread of AIDS through its economic policies.