3 Testify About LaRouche Failure to Repay Loans

Three people who lent large sums of money to political extremist Lyndon LaRouche testified at his mail fraud trial today that the LaRouche organization made little or no effort to repay them.

The first prosecution witness, Elizabeth Sexton, 75, of Suffield, Conn., told the jury that she lent at least $100,000 to LaRouche and was proud to help finance his organization’s anti-drug crusade but that she “panicked” when she failed to receive payment on her loans.

Sexton said she made a series of loans to LaRouche in 1985 because she was promised a high rate of interest and security. When she complained that she had not been repaid, a LaRouche organization worker told her “to keep your belt pulled in,” she testified.

By April, 1986, Sexton became so concerned that she contacted the FBI.

Detailed Explanation

Sexton concluded her second day of testimony by recalling that she finally wrote to LaRouche to complain. He wrote back describing in detail the organization’s precarious financial situation. Sexton has not been repaid.

The government’s second witness, Lita Witt, 87, of Dallas, said she lent LaRouche $10,500, money she saw as an investment in the war on drugs.

A third lender, Gerald Corbin of Irvine, said he lent the group $10,000 in 1985 to be repaid on demand. He asked for his money back in January, 1986, but his request was ignored, he testified.

LaRouche, 66, and six associates are standing trial on charges of mail fraud and tax evasion.

Defense attorneys have suggested that the indictments were politically motivated.