3 Firms Linked to LaRouche Seized for Fines

Federal and state law enforcement agents Tuesday seized businesses controlled by political extremist Lyndon H. LaRouche Jr. in a court-approved effort to collect more than $21 million in fines that have been assessed against groups affiliated with LaRouche.

The early morning raids by U.S. marshals, FBI agents and Virginia state police on three LaRouche operations near his headquarters in Leesburg, Va., were conducted in response to unpaid penalties imposed by federal courts when LaRouche officials refused two years ago to turn over financial records sought in a federal criminal investigation.

As a result of that investigation, 13 LaRouche associates have been charged with credit card fraud and conspiracy for allegedly bilking hundreds of people out of more than $1 million during LaRouche’s unsuccessful 1984 presidential campaign. Authorities said many elderly people were persuaded to use their credit cards to make campaign loans that LaRouche aides never intended to repay.

Henry E. Hudson, U.S. attorney at Alexandria, Va., told reporters that the raids were conducted under a sealed federal involuntary bankruptcy order that he had obtained Monday. He said interim bankruptcy trustees were being appointed to operate LaRouche’s businesses and to prevent illegal disposal of assets pending payment of the fines.

Individual citizens or companies that have monetary claims against LaRouche’s operations may join in the government’s court action, Hudson said. LaRouche-controlled properties in several other states, including Texas, Massachusetts and New Jersey, also were seized Tuesday, he told reporters.

LaRouche, 64, who reportedly has been living in Europe since December, is a former Marxist who claims that the Soviet Union wants to assassinate him to prevent his election as President. Critics say he heads an anti-Semitic hate group that closely resembles a cult.

Previous Federal Raid

Tuesday’s raids were not the first to be staged by federal agents, who last October swooped down on LaRouche’s suburban Virginia headquarters to seize evidentiary materials sought by prosecutors. Neither time, however, have agents entered LaRouche’s personal 175-acre estate outside Leesburg.

Authorities are pursuing additional criminal allegations against LaRouche’s organization, but Hudson declined to provide details. He said the businesses raided Tuesday were all engaged in publishing but would not describe the materials being published.

Hudson identified the companies as Campaigner Publications Inc., Caucus Distributors Inc. and Fusion Energy Foundation Inc., which he said owe the government more than $16 million. A fourth LaRouche organization, the National Democratic Policy Committee, has been fined nearly $6 million but was not included in the government’s involuntary bankruptcy petition.

Committee Assets Doubted

Although Hudson refused to explain why, other officials said they doubted that the committee had any significant tangible assets.

Caucus Distributors provided the money to gather signatures and place Proposition 64 on the California ballot last November. The unsuccessful initiative would have required that all AIDS patients be quarantined. Campaigner Publications produced literature backing LaRouche’s presidential campaign.

Hudson said the targeted businesses would be given a full hearing later under bankruptcy law proceedings.

Warren Hamerman, chairman of the National Democratic Policy Committee, called the raids “a high-level publicity stunt” and said the government’s action “will be challenged from A to Z.”

Earlier this month, federal prosecutors charged in court that LaRouche’s organization may be trying to sell several of its Virginia properties for “readily concealable cash” to avoid paying its $21.4-million contempt-of-court judgment.