Deaver Indictment Likely Soon in Lobbying Inquiry

Former presidential aide Michael K. Deaver is expected to be indicted this week on charges of perjury and conflict of interest as a result of his lobbying efforts, sources familiar with the case said Tuesday night.

Independent counsel Whitney North Seymour Jr., the court-appointed attorney who has been examining Deaver’s lobbying activities for nine months, is expected to ask a federal grand jury today to return the charges, a procedure in which grand jurors traditionally follow the wishes of the prosecutor.

If grand jurors promptly vote the indictment being sought by Seymour, Deaver would appear later this year before a federal court trial jury that would determine his guilt or innocence.

Throughout Seymour’s long inquiry, Deaver--who was Reagan’s deputy White House chief of staff for 4 1/2 years--has maintained his innocence of any criminal violations.

Other Aides Investigated

The charges against Deaver would represent the latest in a series of problems for current and former Reagan aides, whose activities are presently being investigated in connection with arms sales to Iran and the suspected diversion of funds to Nicaraguan rebel forces.

In addition, Lyn Nofziger, Reagan’s former director of political affairs, is being investigated by another special counsel for lobbying activities similar to Deaver’s.

Deaver, one of President Reagan’s closest confidants from his service to Reagan while he was California governor, resigned his White House post in May, 1985, and immediately established a Washington-based public relations and consulting firm.

Such activities are legal under the federal Ethics in Government Act as long as the former government official abstains from contacting his former colleagues on behalf of any client for a period of one year, and as long as he avoids representing a client on any issue in which he had substantive dealings while in government.

Represented Canada

Evidence was developed, however, that Deaver promptly began representing the government of Canada in talks with federal officials on acid rain--an issue he had previously discussed at the White House as a Reagan aide. Canada paid Deaver’s firm $105,000 for its services.

Other U.S. corporations and foreign countries signed up to be represented by Deaver, bringing a first-year income to his firm in excess of $3 million.

Congressional investigators also learned that Deaver also approached White House Budget Director James C. Miller III on behalf of Rockwell International, maker of the B-1 bomber, which wanted the Air Force to increase its purchases of the aircraft.

‘Informational’ Meeting

Deaver acknowledged meeting with Miller to discuss the bombers but called the meeting “informational” rather than a lobbying effort.

The perjury charges to be brought against Deaver involve his alleged attempts to mislead a congressional subcommittee that looked into his lobbying last summer.

According to the sources, Seymour has confirmed allegations by the oversight and investigations subcommittee of the House Energy and Commerce Committee that Deaver deliberately misstated contacts he made with government officials on behalf of several clients, an action which constitutes a charge of lying to Congress under oath.

Deaver’s attorney, Randall J. Turk, said Tuesday night he had no immediate comment on the case other than to say his client would eventually be proven innocent.