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Ex-Reagan Campaign Aide Pleads Guilty to Conspiracy

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Associated Press

John Gnau, the Michigan campaign chairman for President Reagan in 1976 and 1980, pleaded guilty today to conspiracy and making an illegal payoff to a high U.S. Postal Service official.

Gnau, a Detroit-area businessman, admitted in U.S. District Court that he conspired with Peter Voss, who until May was vice chairman of the U.S. Postal Board of Governors, to try to defraud the Postal Service in connection with procurement contracts.

In documents filed with the court, federal prosecutors said that Gnau, who operates a public relations firm, and Voss tried to steer a $250-million mail-sorting equipment contract to Recognition Equipment Inc. of Irving, Tex. Neither REI nor its officials have been charged in the case.

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But U.S. Atty. Joseph E. diGenova said after Gnau’s guilty plea that the investigation is continuing.

Gnau, 56, pleaded guilty to a two-count criminal information charging that he paid $2,500 to Voss as part a conspiracy to defraud the Postal Service on the mail-sorting equipment and other contracts.

U.S. District Judge George H. Revercomb set sentencing for Dec. 19. Gnau faces a maximum sentence of seven years in prison and a $500,000 fine.

Voss, who pleaded guilty May 30 to accepting illegal gratuities and embezzlement, resigned from the board. He has been cooperating with prosecutors.

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