Clinton Campaign Paid to Settle Harassment Case

Former White House aide David Watkins was the subject of a sexual-harassment complaint that the Clinton presidential campaign paid $37,500 to settle, officials said.

The settlement was noted in a Federal Election Commission audit of Clinton’s 1992 presidential campaign; auditors scrutinized a $37,500 payment to an unidentified worker to settle an employment dispute.

Watkins, former assistant to the President for management and administration, was forced to resign earlier this year after using a presidential helicopter for a golf outing.

Lyn Utrecht, a lawyer for Clinton’s campaign, said the payment went into an escrow account to settle an “employment-related matter.” She declined further comment, saying both parties were bound by a confidentiality agreement.

Ty Cobb, an attorney for Watkins, did not return two telephone calls seeking comment. But the Wall Street Journal reported that Cobb said Watkins is “precluded from commenting on it because of the manner in which it was resolved.”

Federal officials, who spoke on condition that they not be identified, confirmed that Watkins, who was chief of administration for the campaign, was accused of sexual harassment by a female accountant who worked for the campaign, and that the case was resolved with a financial settlement.

“There was no finding of wrongdoing or violation,” Utrecht said. “But there was a confidentiality agreement among both parties.”

Watkins, who now works for Callaway Golf Co. in Carlsbad, Calif., did not return a phone call placed to his office there Thursday.

Watkins was forced out of the White House after an incident in which he was photographed using a presidential helicopter to fly to a Maryland golf outing last summer.

The harassment incident became an issue in the audit because FEC officials concluded that the expenditure was largely undocumented--and thus, subject to possible refund. It was noted in campaign records as a payment to “Kathlyn Graves, Escrow Agent.” Auditors were informed that the payment was made to a former employee for consulting services, and that the matter was confidential.

In completing the audit Thursday, the FEC deadlocked--and thus rejected--a recommendation that the Clinton campaign repay $3.44 million in federal campaign funds to which FEC auditors concluded it was not entitled. The repayment figure was expected to be between $1 million and $2 million.