Walsh to Probe Miami Contra-Aid Case

Independent Counsel Lawrence E. Walsh has broadened the Iran- contra investigation to look into allegations that the Justice Department improperly delayed a Miami-based federal probe of private weapons shipments to the Nicaraguan rebels, government sources said Tuesday.

The Florida inquiry by a federal grand jury has been stepped up recently after at least two American supporters of the contras were told that they are targets of the investigation, sources involved in the case said.

Nevertheless, Walsh notified the Justice Department within the last 10 days that his office has assumed jurisdiction over alleged delays in “the Posey-Corvo investigation,” which has been under way for more than a year.

Possible Improper Actions

As part of his investigation of the Iran-contra affair, Walsh is probing any possible improper activities taken by government officials to prevent public disclosure of the diversion to the contras of profits from the Iranian arms sales.

The Miami case involves Thomas Posey, an ex-Marine and leader of the Alabama-based Civilian Material Assistance, a private contra aid group, and Rene Corvo, leader of a Miami-based Cuban exile organization, Comite Ayuda Nicaragua Anti-Communista.

The grand jury is investigating whether weapons were illegally funneled to the contras by private groups. Documents in the probe allege that both groups have recruited and trained mercenaries to help the contras. Federal statutes prohibit private citizens from providing unauthorized military assistance to foreign countries.

‘I’m a Target’

In a telephone interview, Posey said that he appeared voluntarily before a Miami federal grand jury in February.

“Yeah, they told me I’m a target,” Posey said. “I’m a little nervous, but I’m not worried about it. I just hope to God they’re going after the truth, because I didn’t ship no goddamn guns.”

He said he had known since 1985 that federal investigators were looking into his organization.

Joe Adams, a member of Posey’s pro-contra volunteer group, also confirmed in a telephone interview that he recently had appeared before the same Miami grand jury. He said that federal prosecutors told him that he faces possible indictment on alleged Neutrality Act violations.

“Going in, they called me a ‘second-level suspect,’ ” said Adams, a St. Louis bail bond investigator. “Then they told me I had a 50-50 chance of being prosecuted.”

‘Great Patriot’

He denied violating any laws and said that Posey “is a great patriot who never asked me to do anything illegal.”

Allegations of delays and attempts by the Justice Department to hold up the investigation, reportedly to keep from fanning anti-contra sentiment in Congress, have plagued the case almost from the start. U.S. Atty. Leon B. Kellner repeatedly has denied that he was pressured by Washington to go slow.

Atty. Gen. Edwin Meese III acknowledged at a press conference Monday that he had asked Kellner about the Posey-Corvo investigation last year when the attorney general was in Miami visiting FBI agents wounded in a shoot-out. At the time, a contra aid vote was pending in Congress.

But Meese strongly denied that the vote had any bearing on his inquiries about the matter. Also, he denied talking with anyone at the White House or National Security Council about the case and said that he raised the matter with Kellner only because he was “curious” after having seen newspaper reports of the investigation.

Walsh Reversed Decision

However, Walsh reversed an earlier decision to stay out of the gun-running inquiry after an unidentified suspect in the case supported the delay allegations, sources say. Also, an assistant U.S. attorney in Kellner’s office who was not directly involved in the inquiry has told investigators that he overheard Kellner last spring use the words “go slow” in discussing the case, sources have said.

Kellner has denied that he made such a statement.

The main investigation into the primary gun-running case remains under Kellner’s supervision. The independent counsel has assumed jurisdiction only over the allegations of delays. Walsh had rejected requests by the Department of Justice to take over prosecution of the primary case as well.

Earlier this year, the independent counsel began investigating Justice Department delays in another investigation involving aid to the contras.

Ordered FBI Delay

In that case, according to inquiries by the presidentially appointed commission headed by former Sen. John Tower (R-Tex.) and by congressional committees, Meese instructed FBI Director William H. Webster to delay a Justice Department investigation of alleged illegal arms shipments to Central America by Southern Air Transport, a Florida company that flew White House-sanctioned arms shipments to Iran.

The Justice Department has said that the temporary delay was requested by former National Security Adviser John M. Poindexter to protect security of the then-secret Iran arms-for-hostages operation.