Pierce Faces Subpoena in HUD Probe : Ex-Official’s Lawyers Hit House Panel as ‘Vindictive, Punitive’

A House subcommittee today voted unanimously to subpoena former Housing Secretary Samuel R. Pierce Jr. to testify about alleged mismanagement at his department. Pierce’s lawyers criticized the panel as taking “vindictive and punitive actions.”

Republicans joined Democrats in voting to subpoena Pierce, who did not appear as requested last Friday to testify about reports of fraud, influence-peddling and mismanagement at the Department of Housing and Urban Development.

“I think the subcommittee had no option,” said Rep. Tom Lantos (D-San Mateo), chairman of the employment and housing subcommittee of the Government Operations Committee. “The subcommittee had an agreement with Mr. Pierce. . . . That agreement was broken unilaterally by Mr. Pierce.”

Pierce’s attorney, Paul L. Perito, said before the meeting that the former secretary, who appeared voluntarily before the panel in May, is willing to testify but needs another two weeks’ time for preparation.

“We believe the subcommittee’s vindictive and punitive actions in denying Mr. Pierce adequate time to obtain and review pertinent documents and in insisting on use of subpoenas are taken in retaliation against Mr. Pierce’s exercise of his constitutional right,” Pierce lawyers said in a letter to Lantos.

‘Deeply Saddened’

“We are deeply saddened that this subcommittee appears to embrace speed over truth,” the lawyers wrote.

But Lantos and other members of the subcommittee accused Pierce of trying to unduly delay his testimony.

“Rather than coming forth and clearing the record . . . he is toying with the subcommittee in order to evade or avoid his responsibility,” said Rep. Ted Weiss (D-N.Y.).

The committee voted to approve three separate subpoenas, the first calling for Pierce to appear next Tuesday. Other dates were set for Oct. 27 and Nov. 3. In each case, the panel said the date could be changed at the discretion of Lantos.

Lantos said the subpoena will be served with Pierce’s attorneys as soon as it is formally signed later this afternoon.

Lantos said because of Pierce’s actions, he no longer feels bound by their previous agreement to limit the scope of the subcommittee’s questioning to three matters: Pierce’s previous testimony, his actions involving a Durham, N.C., housing project, and the case involving DRG Corp., which conducted mortgage coinsurance business with HUD and left the government with huge defaults.

Since Pierce appeared before the panel in May, subcommittee members say inconsistencies and contradictions in his testimony have emerged. While stopping short of accusing Pierce of committing perjury, they have suggested Pierce faces a formidable task in explaining his involvement in a number of decisions awarding HUD contracts for low-income-housing projects.

Pierce has said he was not a “hands-on” manager.