Reno, Democrats Criticized by Judge

A Los Angeles federal judge criticized Atty. Gen. Janet Reno and Democratic Party officials Monday as he sentenced Torrance businessman Johnny Chung to five years’ probation for funneling illegal contributions into the 1996 election campaign.

Citing Chung’s secret testimony before a federal grand jury in Washington, U.S. District Judge Manuel L. Real said he was surprised that Reno continues to “eschew” the appointment of a special prosecutor to investigate the campaign funding scandal.

Real, a veteran jurist with a reputation for talking tough, had harsher words for former Democratic National Committee Chairman Donald Fowler and former finance director Richard Sullivan. Both had frequent contacts with Chung.

“If Mr. Fowler and Mr. Sullivan didn’t know what was going on, they’re two of the dumbest politicians I’ve ever seen,” said Real.

“It’s very strange that the giver pleads guilty and the givee gets off free.”

Democratic National Committee spokesman Rick Hess declined to comment on the judge’s remarks.

Chung, an obscure Torrance businessman who almost went broke in 1992, contributed nearly $400,000 to Democratic causes from 1994 to 1996. He visited the White House nearly 50 times, often in the company of foreign businessmen who wanted their photos taken with President Clinton.

After the campaign finance scandal broke, the Democrats returned the money and tried to distance themselves from Chung, a Taiwanese-born U.S. citizen.

Faced with possible prosecution, Chung negotiated a deal with the Justice Department. He agreed to help in their investigation and was allowed to plead guilty to two misdemeanor counts involving the use of “straw donors” to contribute nearly $30,000 to the Clinton-Gore reelection campaign and to U.S. Sen. John Kerry (D-Mass.)

Chung, 43, also pleaded guilty to two felony counts of tax evasion and fraudulently obtaining a $157,500 loan on his home.

He could have been sentenced to 37 years in prison and fined $1.45 million.

Real delayed Chung’s sentencing twice in the past two months after receiving an unsolicited letter from the Democratic National Committee, accusing Chung of funneling foreign money into the party’s coffers.

Federal election law bars contributions from nonresident foreigners, from corporations and individual donations in excess of $2,000.

The judge demanded to know if the Justice Department had any evidence that Chung had operated as a conduit for foreign sources or if Democratic Party officials knew his contributions came from illegal sources.

As a result, arrangements were made for Real to examine transcripts of Chung’s secret grand jury testimony.

In remarks from the bench Monday, the judge revealed nothing from the transcripts. But citing the document, he said he was “surprised that the attorney general has eschewed appointment of a special prosecutor.”

He also questioned Reno’s failure to follow the recommendations of FBI Director Louis Freeh and former task force chief Charles LaBella, both of whom recommended appointment of an independent counsel.

In a courtroom packed with family members and supporters from his church, Chung briefly addressed the judge before receiving his sentence, which includes 3,000 hours of community service.

“I’m truly sorry for what I’ve done,” said Chung, flanked by his lawyer, Brian Sun.

Chung said the ordeal has “cost me a very high price not only financially but also emotionally,” but he said he had “gone the extra mile” to redeem himself by cooperating with the Justice Department in its investigation.

“Your honor, I ask you to give me a second chance. I promise to be a good citizen and you will never see me in this court again.”

Sun told the judge that “the man before you is a good man, a man who made mistakes, but has tried to make amends. He was caught up in a maelstrom not of his own making.”

Justice Department lawyer Michael McCaul, endorsing a downward departure from federal sentencing guidelines, said Chung had given the campaign task force many useful leads.

Chung is one of four people indicted so far and is the first to cooperate and plead guilty.