Fund-Raisers Still Targeted by U.S. Probe

Even as Atty. Gen. Janet Reno opted Tuesday not to seek an independent counsel to investigate telephone solicitations by President Clinton and Vice President Al Gore, the Justice Department is building cases against major fund-raisers who had contacts with the nation’s top two officials.

An investigative task force is assembling evidence that foreign-linked Democratic fund-raisers and donors and at least one prominent Republican may have violated U.S. laws, including prohibitions on mail and wire fraud, tax evasion and concealing the identity of a contributor. Many of the leads involve alleged schemes to illegally reimburse campaign donors.

The scope of the investigation is broad enough that a grand jury has been convened in Los Angeles--where the probe has recently become more active--as well as in Washington. Sources familiar with the inquiry say indictments could come as soon as next month.

“The good news is that the cases are getting better, stronger,” said an individual close to the investigation. “The bad news is that it is taking longer.”

Sources say they have thus far found no evidence of a conspiracy to channel foreign contributions--which are prohibited--into the Democratic National Committee. Rather, they say each of the criminal cases is being developed individually.

Clinton, Gore Backers Drawing Scrutiny

Among those drawing the most intensive scrutiny are several Democratic fund-raisers who had close contacts with Clinton and another who is a longtime Gore supporter. They include former Little Rock, Ark., restaurateur Yah Lin “Charlie” Trie, Torrance-based businessman Johnny Chien Chuen Chung, Thai-American businesswoman Pauline Kanchanalak, wealthy Indonesian entrepreneur Ted Sioeng and Arcadia immigration consultant Maria Hsia.

Each has either left the country or told congressional or Justice Department investigators they would not testify without a grant of immunity from prosecution. Chung has spoken to House investigators on a confidential basis.

Less certain is the fate of the man at the center of many of the campaign allegations, John Huang, who raised $1.6 million for the DNC that was later returned as illegal or suspect. Sources said investigators are continuing to focus on Huang but have not made as much progress in assembling a case against him as they have against others who operated outside the DNC.

Huang’s attorney, Ty Cobb, maintains Huang did nothing illegal in raising campaign funds.

Investigators are also seeking to determine whether former Republican National Committee Chairman Haley Barbour raised funds from an Asian source.

A federal grand jury is investigating a $2.1-million loan Barbour arranged to the National Policy Forum, a GOP think tank he founded. The loan was guaranteed by Hong Kong businessman Ambrous Young and some of it went to repay a $1.6-million loan from the RNC to the think tank. Investigators are exploring whether this was, in effect, a foreign contribution to the RNC.

Barbour told a Senate committee he did not know the money had originated overseas. Terrence O’Donnell, an attorney for Barbour, said “the bank loan transaction was legal and proper.”

Meanwhile, the task force is continuing to probe the administration’s rejection of a 1995 proposal by three Native American tribes in Wisconsin to establish a casino at a foundering dog-racing site. They were opposed by rival tribes in Minnesota and Wisconsin.

The task force is examining whether about $260,000 donated to the Democratic Party from the tribes that opposed the casino influenced Interior Secretary Bruce Babbitt’s decision. Babbitt maintained at a Senate hearing last month that it did not.

The task force has until mid-February to conclude a preliminary review; Reno will decide whether the evidence merits appointment of an independent counsel.

The Justice Department inquiry has been criticized as slow-moving and mistake-prone. But defense attorneys complain that political pressure on Reno is leading investigators to turn misdemeanor offenses into more-serious felony indictments. One attorney said efforts to build a wire and mail fraud case against his client for allegedly laundering campaign funds was “like turning a jaywalking infraction into a capital offense.”

Criminal Referrals Expected From Senate

In addition, the Senate Governmental Affairs Committee is expected to make “a handful” of criminal referrals--primarily perjury by panel witnesses--to the Justice Department this month, a committee source said.

The individuals who remain under scrutiny had extensive dealings with the president and vice president.

While there is no evidence Clinton or Gore had knowledge of any alleged wrongdoing, the probe could lead to more questions--and political damage--for them.

Clinton regards Trie as a friend of 20 years and named him to an advisory commission on Pacific trade last year. He has known Huang for a decade, appointed him to a Commerce Department job in 1994 and was instrumental in sending him to the DNC as a fund-raiser in December 1995. Clinton was on a first-name basis with both Chung and Kanchanalak and sat next to Sioeng at a July 1996 fund-raiser arranged by Huang.

Questionable Sources of Donations

In 1989, Gore accompanied Hsia and other Asian American fund-raisers, including Huang, on a trip to Taiwan. Hsia and Huang organized the April 1996 fund-raiser at the Hsi Lai Temple in Hacienda Heights, Calif., that featured Gore and later became a major embarrassment because such events are generally not held at places of worship.

Trie, who established an international trading business, raised $645,000 for the DNC and brought another $639,000 from disciples of a Taiwan-based Buddhist sect to Clinton’s legal defense fund; the money was refunded. He has acknowledged at least one instance in which he contributed $15,000 in funds that originated in Macau. He is in Asia.

Kanchanalak gave $253,000 to the DNC; party officials later said she withheld the true source of the funds. She contributed $85,000 one day after bringing a group of wealthy Thai businessmen to a Huang-arranged coffee with Clinton. She is in Thailand.

Reid Weingarten, who represents both Trie and Kanchanalak, could not be reached Tuesday.

During the time Chung gave the DNC a total of $366,000, he made about 50 visits to the White House, occasionally escorting Chinese business associates. Chung has maintained the funds were his own. Investigators also are looking into allegations that Chung reimbursed employees who attended a 1995 Clinton-Gore fund-raiser in Los Angeles.

Chung attorney Brian Sun said: “Johnny Chung is no agent of the Beijing government. Period. . . . [He] did not knowingly violate any campaign laws.”

The DNC has returned all funds raised or contributed by Trie, Kanchanalak and Chung.

Sioeng, whose family owns the International Daily News in Monterey Park and other Los Angeles-area businesses, has emerged as a central figure in the inquiry into whether China sought to influence U.S. elections. His family and its firms gave $250,000 to the DNC and another $50,000 to the National Policy Forum.

Sioeng attorney Mark J. MacDougall said: “Neither Ted Sioeng nor any other member of his family has ever been a political agent of the Chinese government in any form or purpose.” The contributions were made by Jessica Elnitiarta, Sioeng’s daughter, and her companies, he said.

Sources said a grand jury is investigating Hsia’s alleged role in the Hsi Lai Temple’s reimbursement of nearly half the $140,000 raised at the 1996 event attended by Gore. As a tax-exempt institution, it is prohibited from making campaign contributions.

‘Indictment Would Not Be Appropriate’

Hsia’s attorney, Nancy Luque, said: “We are attempting to persuade the department that an indictment would not be appropriate because Maria has not knowingly violated any law.”

Many months ago, Assistant U.S. Atty. Stephen Mansfield in Los Angeles began to initiate an investigation there and was told by Justice officials to back off.

But after Reno brought veteran federal prosecutor Charles G. LaBella to Washington to head the task force, Mansfield’s office was brought into the inquiry and a federal grand jury was convened. It is looking into several matters, including Sioeng’s accounts at the Grand National Bank, sources confirmed.

Times staff writers Glenn F. Bunting and David Willman in Washington and William C. Rempel in Los Angeles contributed to this story.

(BEGIN TEXT OF INFOBOX / INFOGRAPHIC)

Under Investigation

Other aspects of fund-raising before the 1996 election remain under scrutiny. Here are key campaign finance figures under investigation by the Justice Department:

Maria Hsia: Democratic fund-raiser and longtime supporter of Vice President Al Gore.

QUESTION: Did she arrange reimbursement of contributions from the Hsi Lai Buddhist temple in Hacienda Heights?

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Johnny Chien Chuen: Democratic donor and frequent White House visitor.

QUESTION: Was he a conduit for secret foreign contributions and did he reimburse donors?

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Ted Sioeng: Indonesian entrepreneur with ties to China whose family gave large sums to Democratic and Republican organizations.

QUESTION: Was he an agent for the Chinese government?

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John Huang: Democratic National Committee fund-raiser who solicited $1.6 million in donations that were returned as illegal or suspect.

QUESTION: Did he violate any election statutes or other laws?

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Haley Barbour: Former Republican National Chairman who arranged a $2.1-million loan from a Hong Kong businessman for a GOP think tank.

QUESTION: Did he, in effect, bring in foreign money to the RNC?

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NOT PICTURED:

Yah Lin “Charlie” Trie: Democratic fund-raiser and friend of President Clinton.

QUESTION: Did he bring in foreign money and conceal the true source?

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Pauline Kanchanalak: Thai-American Democratic donor who attended White House coffee with Clinton and Thai business associates.

QUESTION: Did she disguise the source of her donations?