LOS ANGELES : Jury Finds Phoenix Paper Libeled Federal Officials

A federal jury on Monday found that a Phoenix newspaper libeled two ex-chiefs of a Los Angeles-based U.S. Justice Department unit that targeted organized crime, and awarded them $500,000 each in damages.

Richard Crane and James Henderson sued the Arizona Republic over a 1984 article in which they contradicted one another about a congressional investigation into their involvement in alleged corruption while serving as the directors of the federal Strike Force.

The five-woman, three-man jury found that journalist Jerry Seper, who now covers the Justice Department for the Washington Times, wrote his story to make it appear that Henderson lied about his knowledge of the probe.

Crane, who headed the unit from 1973-75, and Henderson, who was chief from 1976-85, were cleared of any wrongdoing or misconduct in 1985.

Daniel Barr, who represented the newspaper and Seper, said he was “going to consider whether we’ll move for a new trial.” He declined further comment.