Few Gains for LaRouche Candidates : Politics: The leader of the group has lowered his sights. He is waging a jailhouse campaign for Congress.

Imprisoned political extremist Lyndon LaRouche and his followers are running in scores of primary and general election races this year as they try to regroup politically after a string of legal defeats.

LaRouche followers stunned and embarrassed the Democratic Party in 1986 by winning primary nominations for two statewide offices in Illinois. But this time around, the organization’s candidates appear to be having little success.

After running for President four times, both as a Democrat and independent, LaRouche has lowered his sights to a jailhouse campaign for Congress.

One of his top lieutenants, Nancy Spannaus, is waging an independent campaign for the U.S. Senate in Virginia and is the only candidate running against GOP Sen. John W. Warner this fall. State Democratic leaders rebuffed her bid for the party’s nomination--deciding instead to nominate no one.

LaRouche is serving a 15-year federal prison sentence in Minnesota for fraud and tax evasion. He is running as an independent candidate in Virginia’s 10th District, in the Washington suburbs, against Republican Rep. Frank R. Wolf.

“You don’t need an analyst to tell you LaRouche doesn’t have much popular support. But they know the political process,” said University of Virginia political scientist Larry Sabato. “It doesn’t constitute an endorsement of LaRouche or his policies, but they will inherit votes simply by being on the ballot, and they will undoubtedly claim some great movement.”

Aside from a few minor victories in Texas, and a candidate who got 25% of the vote in losing a statewide primary there, LaRouche candidates haven’t gained much notice.

“We just consider him and his candidates more of a nuisance now, rather than a threat,” said Ginny Terzano at the Democratic National Committee.

The success of LaRouche candidates in the 1986 Illinois primary sparked a party effort to warn voters away from LaRouche and his nightmare conspiracy theories, which some say carry anti-Semitic themes. It also brought new public scrutiny to his financial network of corporate shells and high-pressure fund-raising.

LaRouche and six of his associates, including Spannaus’s husband, Edward, were convicted in December of 1988. The case stemmed from an investigation into more than $30 million in loans raised from individuals by LaRouche’s organization. Prosecutors said the group used heavy-handed tactics and had no intent to repay the money it borrowed.

Dennis King, who has investigated the LaRouche organization for more than a decade and is the author of a book, “Lyndon LaRouche and the New American Fascism,” says the group receded immediately after the convictions but has strongly rebounded.

“They have made a rather remarkable comeback,” King said. “I don’t get the impression the Democratic Party is paying much attention to this, and they may be in for an unpleasant surprise.”

Debra Freeman, LaRouche’s spokeswoman, estimated that thousands of LaRouche-connected candidates are running nationally. She characterized LaRouche’s House bid as the organization’s “flagship candidacy.”

LaRouche candidates often fare best in races that attract little attention.

Some LaRouche followers have won small, uncontested party posts in Texas, and another ran unopposed to win the Democratic nomination for Congress in the state’s safely Republican 22nd District.

In Texas’ Democratic Senate primary, LaRouche follower Harley Schlanger lost to state Sen. Hugh Parmer, who is seeking to oust Republican Phil Gramm. But Schlanger pulled in 247,205 votes--a number that the LaRouche organization claimed was a victory in itself.

Law enforcement officials and others say the LaRouche candidates don’t have to win to succeed. Even losing campaigns generate publicity and serve as a source of fund raising.

“This business of running for office is one of the techniques LaRouche people use,” said Newbold Smith of Paoli, Pa. Smith’s son, Lewis DuPont Smith, is a LaRouche follower and independent candidate for Congress in Pennsylvania’s 5th District.

“One, to feed the egos of the people. That’s important. This is a cult,” the elder Smith said. “Second, it does bring the publicity. They don’t care whether the publicity is favorable or unfavorable. And, it allows them to raise money.”

Newbold Smith and other family members won a court order declaring the son legally incompetent after the younger Smith--an heir to the DuPont fortune--turned over much of his money to LaRouche’s organization.

Reports filed with the Federal Election Commission show LaRouche had raised $222,348 for his congressional campaign as of April. His separate National Democratic Policy Committee reported debts of $486,934.

Federal prosecutors argued in court during LaRouche’s trial that his followers raised money by promising it would be used for specific purposes, such as political efforts, when they knew the money would be used for other purposes, including supporting him.

John B. Russell Jr., Virginia senior assistant attorney general, said a state investigation indicates that much of the LaRouche group’s money is being sent to its foreign operations. These include one based in West Germany, where LaRouche’s wife, Helga, is believed to live.

Five of LaRouche’s followers have been convicted of or pleaded guilty to state charges in Virginia.