ELECTIONS / 25TH CONGRESSIONAL DISTRICT : Rousselot Funded Keating 5, Foes Say

Republican congressional candidate John H. Rousselot of Lancaster was accused Friday of helping to funnel savings and loan money to Democrats--including California Sen. Alan Cranston and other members of the now-infamous Keating Five--when he was a Washington lobbyist.

The accusations were made at a news conference held by representatives of four groups made up mostly of young Republicans from the Antelope Valley, and the charges immediately came under fire by Rousselot supporters as “pure poppycock” engineered by Assemblyman Phillip Wyman (R-Tehachapi), who is also seeking the congressional seat.

Rousselot and his campaign aides said they immediately suspected that Wyman put the groups up to holding the news conference and said it was because the assemblyman was afraid that Rousselot was gaining on him.

“It’s hard for me to believe that this was done on a contemplated basis by these four organizations,” Rousselot said. “I think Phil is beginning to worry about this campaign and wants to diminish my image as a conservative Republican.”

Tom Scott, Rousselot’s deputy campaign manager, was more blunt in his assessment: “I’m just sorry Wyman can’t confront John personally and ask him about this. I think this is really reaching. It’s too bad he has had to revert to hiding behind organizations.”

At first, Wyman’s campaign on Friday tried to distance itself from the news conference and the allegations against Rousselot. Later, campaign officials admitted they had provided help--and the information regarding the campaign contributions--to the College Republicans, California Republican Assembly, Young Republicans of Los Angeles County and Young Americans for Freedom.

“It’s not us,” said Steve Johnson, on-site manager for Wyman’s campaign. “It’s the volunteer groups who are doing this.”

Later, after being asked why a reporter was steered by a news conference organizer to Wyman’s campaign for information, Johnson conceded: “We’ve helped them.”

“We are not hiding our involvement in this,” Johnson said. “We’re pointing this fact out because we’re in a Republican primary, and we think it’s news. We think it should be made public.”

Johnson and those who held the news conference said that, as a conservative Republican, Rousselot should not have given money to Democrats--especially not Cranston and other senators who would ultimately be accused of helping Charles Keating keep regulators at bay while he mismanaged Lincoln Savings & Loan’s assets for his own benefit. The thrift ultimately was seized by the federal government in the costliest savings and loan takeover in U.S. history.

At the news conference, Careena Singer, local representative of College Republicans, said Rousselot helped steer $4,000 in contributions to Cranston when Rousselot was president of the National Council of Savings Institutions, a lobbying group, from 1985 to 1988. She said Rousselot also steered $300 to Sen. Dennis DeConcini (D-Ariz.), $500 to Sen. John Glenn (D-Ohio) and $2,000 to Sen. Donald W. Riegle Jr. (D-Mich.)--the other Democratic members of the so-called Keating Five.

“Even after Sen. Cranston and the rest of the Keating Five were embroiled in their battle to put off federal regulators, Mr. Rousselot continued his support and was quoted . . . as having said: ‘I told Alan (Cranston) he had been good to the S&L; industry and we wanted to show our appreciation.’ ”

Singer said Rousselot’s group also gave money to several congressmen who later kited checks in the recent House Bank scandal, and to Rep. Barney Frank (D-Mass.), who was chastised by fellow congressmen for his relationship with a male prostitute.

The groups represented at the news conference “have no major gripe with him donating to Democrats, just that he gave money to people whose moral character obviously was not up to Republican moral standards,” Singer said.

Rousselot termed the charges “pure poppycock.”

As president of the council, Rousselot said, he advised dues-paying members on who to contribute to, and he stressed that they gave evenly to Democrats and Republicans based on whether they had influence over matters affecting savings and loans.

GOP political consultant Allan Hoffenblum called the charges “kind of a cheap shot. They should judge Rousselot on the issues,” not what he did when he was a director of the council.

Paul Clarke, another Republican strategist, said he too thought it was obvious that the news conference was politically motivated and said the charges were inconsequential.

“It sounds like good campaign fun. You find some groups to attack your opponent,” Clarke said. “I expect you will see more of this in the weeks ahead.”

The four groups who promoted and held the news conference all have endorsed Wyman in the race for the 25th Congressional District, which covers the northern half of Los Angeles County. Most polls show Wyman with a slim lead over former Los Angeles County Assessor John Lynch, Santa Clarita City Councilman Howard (Buck) McKeon and Rousselot.

A former California congressman, Rousselot also has worked for the ultraconservative John Birch Society and as a special assistant to President Ronald Reagan. He also worked as a consultant to Keating and Lincoln’s parent company, American Continental, and said he was expected to help with industry relations and to provide Keating with access to and influence over government officials. In 1989, he headed an investors group that unsuccessfully attempted to buy Lincoln Savings.

Rousselot has been out of electoral politics since his 1982 defeat and is considered a long shot in his comeback bid. Nevertheless, “he’s a candidate, and we don’t underestimate any candidate,” Johnson said.

The Wyman campaign thought it was important to show that, ideologically, Rousselot “said he’s the same as Phil, but that is not the case,” Johnson said. “Phil is the true conservative in this race.”