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Counsel Granted Power to Expand Deaver Inquiry

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Times Staff Writer

An independent counsel, revealing a significant expansion in the probe of former White House Deputy Chief of Staff Michael K. Deaver, obtained permission Tuesday from a special court to investigate allegations of obstruction of justice and false testimony against “certain persons and entities.”

Sources close to the case said that they see the move by counsel Whitney North Seymour Jr. as a serious turn in the probe, which has been concentrating on conflict-of-interest and perjury allegations against Deaver. They said action in the case, which has been under investigation since May 29, is likely by early next year.

The court order came as Deaver is reported to be involved increasingly in trying to persuade President Reagan to replace White House Chief of Staff Donald T. Regan to help his Administration recover from the damage of the Iran- contras scandal.

Deaver’s lawyer, Randall J. Turk, said that he sees the order as “an after-the-fact request for confirmation by the court that he (Seymour) can do what he’s already done. This is not news to us.”

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Seymour, a former U.S. attorney in New York, has been extremely closemouthed about the inquiry, and a grand jury has been heavily involved, heightening the secrecy.

In his request to the court, Seymour said that his investigation has developed information “that certain persons and entities may have conspired with and aided and abetted Michael K. Deaver in violating” the federal conflict of interest law and that “certain officers and employees” of Deaver’s lobbying firm may have violated the same law.

Cites Committee’s Request

In addition, Seymour said, “various persons may have obstructed justice, given false testimony or made false statements during the course of the independent counsel’s investigation and the preliminary investigations leading up to his appointment.” Seymour also cited the request by the House Energy and Commerce Committee’s subcommittee on oversight and investigations that he examine Deaver’s May 16, 1986, appearance before the panel for any false testimony.

Seymour said that the court’s order initiating his investigation appears to cover such offenses. But he said he wanted the clarification “to minimize delays in any possible subsequent prosecutions caused by procedural challenges. . . .”

Rep. John D. Dingell (D-Mich.), chairman of the subcommittee on oversight and investigations, hailed Seymour’s action.

‘Made Considerable Progress’

“Mr. Seymour has clearly made considerable progress in his investigation, for which he deserves much credit,” Dingell said.

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Seymour has been investigating whether Deaver, who left the White House in the spring of 1985, has violated conflict-of-interest laws that bar former government officials from lobbying their former agencies for a period of one year. Former senior officials also are barred for their lifetimes from lobbying on issues in which they were directly involved.

Deaver has denied all charges of wrongdoing.

He has been accused of representing Canada after he left the White House in talks on acid rain--an issue he had discussed at the White House as deputy chief of staff. Canada paid the Deaver firm $105,000 for its services.

Contact With McFarlane?

Seymour also is trying to determine whether Deaver, who was hired to seek tax breaks for Puerto Rico, contacted then-National Security Adviser Robert C. McFarlane in connection with a proposed tax break two months after Deaver left office.

Deaver also worked for Rockwell International, maker of the B-1 bomber, which wanted the Air Force to increase its purchases of the aircraft. Deaver has acknowledged meeting with Budget Director James C. Miller III to discuss the bombers but has called the meeting “informational” rather than a lobbying effort.

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