Defense Doesn’t Rest : High-Profile Ex-Defendants Tell Off Prosecutors

The Los Angeles chapter of the Federal Bar Assn. called the panel discussion “The White-Collar Prosecution From the Defendant’s Perspective.”

It could have been called “Tales From the Acquitted.”

Four onetime, high-profile defendants accused of white-collar crimes but later cleared gathered at a downtown Los Angeles hotel Saturday and were given the opportunity to vent their anger and frustration at federal prosecutors before an audience of prosecutors and others.

Among the former defendants who addressed the gathering was Imelda Marcos, who three months ago was acquitted of charges that she joined her husband, former Philippine President Ferdinand E. Marcos, in looting their country’s treasury of more than $200 million.

Also present was former White House aide Lyn Nofziger, whose conviction for violating government ethics laws by lobbying former colleagues on behalf of private clients was overturned by an appeals court in 1989.

“The system stinks,” Nofziger, a longtime associate of former President Ronald Reagan, said.

“What I have decided is the most important thing you can do when the government comes after you is fight the bastards,” he added.

His remarks elicited a brief but sharp rebuttal from U.S. Atty. Lourdes G. Baird. She said federal prosecutors are honorable and principled. “I can assure all of you when indictments are brought in . . . those indictments are thought out and are not brought without substance.

“With all due respect, Mr. Nofziger, the system does not stink,” she said.

“You haven’t been where I’ve been,” he replied.

The panel discussion was part of a two-day conference on white-collar criminal prosecutions sponsored by the Bar chapter. Although the conference was similar to one five years ago, it was the first time such an array of former high-profile defendants were called on to share their experiences, organizers said.

A fifth panel member, California lawyer E. Robert Wallach, is still entangled in a legal battle, fighting his conviction on fraud and racketeering charges stemming from the Wedtech defense-contracting scandal. Sentenced to six years in prison, his appeal was recently argued before an appeals court. A decision is pending.

Wallach, a civil trial lawyer for 30 years, became visibly angry at one point during the discussion, railing against what he contended were the overzealous prosecutors who handled his case. His legal fight has left him $500,000 in debt, and the last time he bought any new clothes was three years ago, he said.

“It is too easy to be fearful in a time of demagoguery,” said Wallach, who urged the lawyers to challenge the system to make it more fair.

William G. Moore, who was acquitted of charges of conspiracy to defraud the Postal Service while serving in 1986 as chief executive officer of Recognition Equipment Inc., told the attorneys that there was “no man or woman who can’t be indicted” if a prosecutor wants to do so.

Less critical of government prosecutors was Marcos, who said she emerged from her recent legal battle without any bitterness. She also thanked her attorneys for a job well done.

“I was blessed by good lawyers,” she said.

And James P. Linn, a criminal defense attorney who successfully represented himself in 1970 against 55 counts of securities fraud stemming from the collapse of Four Seasons Nursing Homes Inc., said his experience as a defendant left him “mean and smarter.”

“Until you’ve gone over 50 counts, you’ve never really been indicted,” Linn joked.