Walsh Ready to Fight Legal Challenges : Independent Counsel Signals Iran-Contra Criminal Charges

Independent counsel Lawrence E. Walsh signaled today that he is poised to bring criminal charges in the Iran-Contra affair by hiring a former federal judge to fight legal challenges to possible prosecutions.

Walsh, himself a former federal judge, announced in a statement that former U.S. District Judge Herbert J. Stern is being retained as a special outside counsel “to represent the Office of Independent Counsel in the course of any courtroom proceedings which may challenge a possible prosecution because of limited immunity grants by Congress.”

A number of witnesses, including several targets of Walsh’s investigation, gave testimony before Congress under limited grants of immunity from prosecution.

These targets include retired Rear Adm. John M. Poindexter, who is a former national security adviser, Lt. Col. Oliver L. North and arms dealer Albert Hakim.

Staff Insulated

The “use immunity” conferred by Congress prohibits Walsh from using the immunized testimony of a witness, or any leads derived from it, as evidence against that person in a criminal proceeding.

Walsh carefully insulated his staff from news coverage of the congressional hearings and filed under court seal evidence his investigation turned up to prove he was not relying on testimony given under limited immunity grants.

Court action challenging this procedure is expected from people who are expected to be indicted by Walsh’s grand jury in the coming weeks.

The appointment of Stern, now a private attorney in Newark, N.J., “will permit us to address the legal issues arising out of immunity grants without exposing members of the present staff of the independent counsel to immunized testimony,” Walsh said in the statement.

Served as Prosecutor

Stern had served as a federal prosecutor and U.S. attorney for New Jersey before he became a U.S. district judge in 1974. He resigned from the federal bench last year to join a private law firm.

“Judge Stern’s representation of the Office of Independent Counsel can be likened to that of a special counsel or barrister who has been retained by another lawyer,” Walsh’s statement said. Stern will not become a full-time member of Walsh’s staff.

During his long career as a federal prosecutor, Stern was responsible for prosecuting many public officials in New Jersey on corruption charges, including Hugh Addonizio, the former mayor of Newark.