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*** INDEPENDENT COUNSEL DONALD SMALTZ RELEASES FINAL REPORT ***
www.oic.gov ^ | October 25, 2001 | Donald Smaltz

Posted on 10/25/2001 1:57:05 PM PDT by HAL9000

O.I.C. logo

UNITED STATES COURT OF APPEALS
FOR THE DISTRICT OF COLUMBIA CIRCUIT

Division for the Purpose of
Appointing Independent Counsels
Ethics in Government Act of 1978, As Amended

Division No. 94-2


FINAL REPORT OF THE INDEPENDENT COUNSEL

In Re:

ALPHONSO MICHAEL (MIKE) ESPY


DONALD C. SMALTZ
Independent Counsel

www.oic.gov

Filed January 30, 2001
Published October 25, 2001
Washington, DC


Click here to download the full report. - about 950K, HTML format.



TOPICS: Breaking News; Crime/Corruption; News/Current Events
KEYWORDS: clinton; espy; independentcounsel
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When Don Tyson resigned as Senior Chairman of Tyson Foods the other day, I speculated that it probably meant the release of the Smaltz Report was imminent.

Now to find out what the report says about Tyson, Clinton and Reno...

1 posted on 10/25/2001 1:57:05 PM PDT by HAL9000
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To: thinden; Registered
fyi
2 posted on 10/25/2001 1:57:36 PM PDT by HAL9000
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To: HAL9000
THANK YOU BUDDY!!!
3 posted on 10/25/2001 1:58:53 PM PDT by Registered
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To: HAL9000
Excerpt -
In late 1994, looking for possible information about Tyson Foods gifts to Espy, OIC interviewed Joseph Henrickson. Henrickson had been a pilot for Tyson Foods from 1978 to 1993 and was suing the company for wrongful termination. Henrickson gave OIC investigators credible information about Tyson Foods providing favors to political figures on a number of occasions.

According to Henrickson, Tyson Foods had placed substantial pressure on his attorney to halt his lawsuit, threatening that they would accuse him (falsely, according to Henrickson) with using Tyson aircraft to transport illegal drugs. When the investigators asked him why he thought Tyson Foods would react so strongly to his lawsuit, Henrickson, after reflection, responded that the only thing he could think of was the "envelopes of money."

According to Henrickson, in the 1980s and through 1991, he and other pilots had repeatedly on behalf of Tyson Foods transported white envelopes to Little Rock for ultimate delivery to Governor William Clinton. The envelopes were left at a desk at the airport or with a person driving an Arkansas State Police vehicle. By holding the envelopes to the light, Henrickson had seen the denomination of $100 through the envelope.

Recognizing that this accusation bore on the question of Tyson Foods' policies regarding gifts to public officials, OIC began to make further inquiries about the matter. Henrickson's wife confirmed that he had told her of these events at the time they were alleged to have transpired. However, OIC did not locate any other witnesses who corroborated the story.

Following this preliminary investigation, in January 1995, OIC requested that the Attorney General refer as a related matter these allegations of Tyson Foods' misconduct to the OIC for further investigation. Alternatively, OIC requested that its jurisdiction be expanded to include these allegations. The letter request, set forth in Appendix A, identified the evidence gathered to date and explained its relation to the ongoing Espy investigation. In addition to the alleged payments to former Governor Clinton, the allegations included the following:

* possible conduit campaign contributions by Don Tyson to elected federal officials other than Secretary Espy;

* entertainment by Tyson of elected members of Congress and other federal officials at his vacation residence in Cabo San Lucas, Mexico; and

* possible bribes paid to Mexican immigration and customs officials.

By letter dated February 17, 1995 (Appendix A), Attorney General Reno declined OIC's request. Shortly thereafter, someone outside OIC, in an apparent effort to discredit OIC's investigation, leaked Attorney General Reno's decision denying OIC's requests. (32)

Subsequently, OIC referred to DOJ the evidence it had concerning these allegations of Tyson gifts to then-Governor Clinton and other government officials other than Secretary Espy. Insofar as OIC is aware, DOJ conducted no further investigation of these allegations and brought no prosecutions relating to them.

Documentation of OIC's contacts with the Department of Justice concerning referral of this matter and leaks to the press are included in Appendix A to this Report.


4 posted on 10/25/2001 2:01:33 PM PDT by HAL9000
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To: HAL9000
I cannot connect. I guess the site is way busy. Any goodies in anyone's reading yet?
5 posted on 10/25/2001 2:01:56 PM PDT by freedomcrusader
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To: HAL9000
It might as well be blank. It will be a whitewash like all the others.
6 posted on 10/25/2001 2:03:07 PM PDT by Garrisson Lee
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To: HAL9000
A.   Summary of Investigation

The Office of Independent Counsel's (OIC) investigation into the receipt of gifts and gratuities by former Agriculture Secretary Alphonso Michael Espy revealed a pervasive pattern of improper behavior by Secretary Espy and his top aide, and by persons and companies regulated by or with business before the United States Department of Agriculture (USDA). The investigation disclosed that, among other offenses, companies with financially important matters pending before USDA gave Secretary Espy - either directly or via members of his family or his girlfriend - numerous gifts in an effort to garner his favor. (A complete list of gifts OIC found Espy to have received from agricultural interests appears at Section II.A.)

OIC's investigation culminated in the return of a 39-count indictment against Espy, charging multiple violations arising out of his acceptance of things of value from persons and entities regulated by USDA, his concealment of these gifts from the public, and other abuses of his office. The indictment charged that he had received more than $30,000 in gifts and benefits from agricultural interests. At trial, Espy did not dispute receipt of the gifts, but he argued that these gifts did not affect the decisions he made and that he did not have the criminal intent required for a conviction. After a two-month trial, the jury found former Secretary Espy not guilty on all counts.

All told, OIC charged thirteen individuals (including Espy) and six business entities (2) with criminal violations regarding the provision of gifts and gratuities to the former Secretary of Agriculture, the concealment of gratuities from federal investigators, and/or related offenses. Of these, 14 were convicted of or pleaded guilty to one or more offenses (3), and four were acquitted of all charges (4); one person was placed into a pre-trial diversion program (5). OIC also instituted civil prosecutions against two corporations (6) and referred several matters to other federal enforcement agencies. (7)

In addition to the gratuities given directly to Espy and his girlfriend, the investigation focused on election campaign contributions given to the account of Espy's brother, Henry Espy. The donors were persons and companies regulated by the Department of Agriculture who saw Henry Espy's campaign debt, and Secretary Espy's personal concern over that debt, as an avenue to gain the Secretary's favor. Beyond the impropriety of seeking to gain an advantage before a governmental agency in this manner, many of these contributions and related activities were substantively illegal under the election laws and other federal statutes. The illegal contributions exceeded $50,000. Consequently, this area of the investigation resulted in several prosecutions and convictions.

The investigation further disclosed that Secretary Espy's chief of staff, Ronald Blackley, accepted money from persons with business before USDA and concealed this fact from the public, and that Mississippi farmers with ties to Secretary Espy defrauded USDA of federal subsidies. This part of the investigation resulted in criminal convictions of Blackley and several persons and one corporation he had represented.

OIC's investigation led to a number of significant prosecutions. The investigation of Crop Growers Corporation, then the second-largest private seller of federal multi-peril crop insurance, led to the first indictment and conviction in an Independent Counsel proceeding of a publicly-held company and resulted in the largest fine, $2 million, secured by any Independent Counsel up to the time. OIC's prosecution of John J. Hemmingson, Crop Growers' chief executive officer, and Alvarez T. Ferrouillet, a Louisiana lawyer who chaired an effort to retire the congressional-campaign debt of Secretary Espy's brother Henry, was the first to charge and convict individuals for money laundering in connection with illegal federal-election campaign contributions. OIC's investigation later led to the first conviction in approximately 100 years for giving a gratuity to a sitting Cabinet member, with the guilty plea of Tyson Foods, Inc., the nation's leading poultry producer. The plea resulted in a $4 million criminal fine and a $2 million payment toward OIC's investigative costs. The prosecution of Sun-Diamond Growers of California, a large, multi-crop agricultural cooperative, resulted in a Supreme Court decision clarifying the scope of the federal gratuities statute. The civil actions OIC brought against Smith Barney, Inc. and Robert Mondavi Corporation, Inc. were apparently the first instances in which an Independent Counsel resolved charges through civil litigation.

In total, OIC collected more than $10 million in criminal fines, civil recoveries, and restitutionary orders for the United States Treasury. OIC also referred three matters to the Department of Justice for prosecution and one matter to the Federal Election Commission for civil disposition, resulting in the recovery of an additional $560,000 for the United States.

7 posted on 10/25/2001 2:03:36 PM PDT by Jean S
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To: HAL9000
Thanks! Looks like another case of "Stonewall" Janet covering Billy-boy's behind.
8 posted on 10/25/2001 2:04:59 PM PDT by freedomcrusader
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To: HAL9000
Subsequently, OIC referred to DOJ the evidence it had concerning these allegations of Tyson gifts to then-Governor Clinton and other government officials other than Secretary Espy. Insofar as OIC is aware, DOJ conducted no further investigation of these allegations and brought no prosecutions relating to them.

um... never mind...

9 posted on 10/25/2001 2:05:36 PM PDT by glock rocks
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To: Alamo-Girl
FYI
10 posted on 10/25/2001 2:05:49 PM PDT by Jean S
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To: HAL9000
Of all the entities investigated by OIC, Tyson Foods, Inc. was the largest and best connected to President Clinton. It had direct entree to the White House through its chairman, Don Tyson, a longtime supporter of President Clinton, and its chief counsel, James Blair, was described in a White House memo as the President's "close personal friend." Blair had an office at the corporate headquarters of Tyson Foods in Springdale, Arkansas.

In December 1992, while still a congressman, Espy sought Don Tyson's help in being appointed to the new Clinton administration cabinet. After Espy's appointment, Don Tyson and other Tyson Foods officials subsequently sought to maintain direct access to and influence with Espy through a pattern of gift-giving, which began immediately before Espy was sworn in as the Secretary of Agriculture and continued until shortly before publication of the March 17, 1994 Wall Street Journal article that reported on these activities. During Espy's first year in office, Tyson Foods gave Espy, Espy's girlfriend, and Espy's relatives things of value worth a total of more than $12,000 for or because of official acts performed or to be performed by the Secretary.


11 posted on 10/25/2001 2:06:55 PM PDT by HAL9000
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To: HAL9000
In 1993 and 1994, Tyson Foods was the world's largest fully integrated producer, processor and marketer of poultry-based food products. Its market share of chicken products sold in the United States was approximately 23%. It also had a smaller beef and pork division. The company's integrated operations included breeding and rearing chickens and hogs, harvesting seafood, and processing and marketing poultry, beef, pork and seafood. The company processed approximately 3.9 billion pounds of consumer poultry and 518 million pounds of consumer beef and pork during fiscal 1994. Tyson Foods' annual sales in 1993 and 1994 were approximately $5 billion, with beef and pork operations accounting for approximately 10% of its business.

Tyson Foods in 1993 and 1994 owned and operated approximately 60 poultry processing plants, 18 of which also processed beef and pork products, in 17 states and three foreign countries. USDA inspected all of Tyson Foods' slaughtering and processing facilities and pervasively regulated their operations. The company noted in its annual 10-K report for 1994:

The Company's poultry, beef, pork and Mexican food-based processing facilities are . . . subject to extensive inspection and regulation by the United States Department of Agriculture.

As Tyson Foods' main lines of business were food processing and distribution, it had an obvious reason to maintain Espy's receptive ear. The company was subject to extensive USDA regulation in its everyday operations. Tyson Foods routinely had numerous matters pending before USDA  - matters that could and did substantially affect the company's operations. During Espy's tenure as Secretary of Agriculture, pending USDA policy issues had the potential to affect more than $100 million of Tyson Foods' business.

Don Tyson, chairman of the Board of Directors, owned or controlled approximately 90% of the voting shares of the company. Don Tyson was a friend of and political contributor to Bill Clinton when he was Governor of Arkansas and when he ran for the presidency of the United States. Don Tyson's son, John H. Tyson, was president of the Beef and Pork Division and a director of Tyson Foods in 1993.

Archibald R. Schaffer III was Tyson Foods' director of Media, Public and Governmental Affairs. In this capacity, Schaffer acted as the company's principal spokesperson and was responsible for overseeing all of Tyson Foods' dealings with and lobbying of government officials, supervising all contacts with the press and administering all public-relations efforts. His duties included reviewing official comments that Tyson Foods' technical department submitted to government agencies regarding proposed legislation and regulations. He was also the primary contact between Tyson Foods and two trade associations to which it belonged, the National Broiler Council and the Arkansas Poultry Federation. Schaffer reported directly to John Tyson and supervised Tyson Foods' Washington, D.C. lobbyist, Jack Williams. Don Tyson testified that he expected Schaffer and his predecessor to advise him on the legalities of his dealings with government officials, and in this respect Schaffer had let him down.

Jack L. Williams, a registered lobbyist, represented Tyson Foods' interests before various governmental agencies, including USDA. Williams reported to Don Tyson, John Tyson and Schaffer. He submitted monthly invoices for "Legislative Liaison Services" to Tyson Foods, including a flat fee for services rendered and a non-itemized amount for "additional Washington expenses" that varied from month to month and that Schaffer reviewed and approved. Williams also represented other clients before USDA.

The National Broiler Council (NBC), a trade association for the poultry industry, described itself as "representing the producers/processors of 95% of the broiler chickens consumed in the United States." Its purpose was to promote poultry products and maintain a legislative liaison presence with regulatory authorities and Congress. The $165,000 in annual dues paid by Tyson Foods, nearly twice those of the next-largest member, comprised 8% of the NBC's annual budget, making Tyson Foods the trade association's largest and dominant member.

The Arkansas Poultry Federation (APF) was a trade association that represented the interests of the poultry industry in Arkansas before federal, state and local government entities. Its membership consisted of poultry processors, feed manufacturers, commercial egg producers and others. Each member company paid up to a maximum $15,000 in annual dues; in each of 1993 and 1994, Tyson Foods, the largest dues-paying member, paid $45,000 reflecting the three companies it controlled.

The Tyson Foundation, Inc., an entity separate from Tyson Foods, was formed in 1969 as a not-for-profit Arkansas charitable corporation funded with Tyson Foods stock. It was organized, in part, to provide college scholarships to needy students who resided in the vicinity of Tyson Foods' operating facilities. As the Tyson Foundation stock increased in value, the foundation developed into a significant charitable education enterprise, with assets in 1995 valued in excess of $15 million.

After the 1992 presidential election, Mississippi Congressman Espy approached John Rogers, president of C.B. Rogers, Inc., a large Mississippi poultry company, seeking an introduction to Don Tyson. Espy was interested in being nominated as Secretary of Agriculture or Commerce in the Clinton administration. Because of his position as chairman of one of the world's largest poultry companies and his reputed relationship with the President-elect, Don Tyson appeared to be in an advantageous position to influence the new administration's selection of the Agriculture Secretary. Rogers agreed to arrange the meeting. Shortly thereafter, Espy, Ronald Blackley (Espy's Congressional district agricultural representative and future Chief of Staff), Rogers, and Rogers's wife flew in Rogers's private plane from Mississippi to Little Rock, Arkansas to meet with Don Tyson.

John Tyson met the group at the airport in Arkansas. Espy, Blackley, Rogers and John Tyson then traveled to Little Rock for lunch, where Don Tyson joined them. During lunch, Rogers told Don Tyson that Espy wanted to be a Cabinet member and urged him to use his influence with the President-elect to assure that Espy be considered. Espy then informed Don Tyson of his qualifications for the post and solicited his assistance.

After he became Secretary of Agriculture, Espy occasionally met Don and John Tyson, primarily at social gatherings and events, and the Tysons made use of such occasions to lobby Espy on matters of interest. Espy's most frequent contact with Tyson Foods, however, came through lobbyist Williams, with whom he frequently met to discuss policy matters affecting Tyson Foods. Espy's calendar reflects that he met with Williams on at least the five following scheduled dates: February 3, 1993; March 11, 1993; January 25, 1994; February 16, 1994; and March 9, 1994. Williams also was known to show up unannounced on other occasions to meet with the Secretary. Espy's notepads reveal either a meeting or a telephone conversation with Williams on September 14, 1993, at which time the topic of attending a Dallas football game came up. Espy also met with Tyson Foods' governmental affairs director Schaffer from time to time.


12 posted on 10/25/2001 2:11:32 PM PDT by HAL9000
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To: HAL9000
"According to Henrickson, in the 1980s and through 1991, he and other pilots had repeatedly on behalf of Tyson Foods transported white envelopes to Little Rock for ultimate delivery to Governor William Clinton. The envelopes were left at a desk at the airport or with a person driving an Arkansas State Police vehicle. By holding the envelopes to the light, Henrickson had seen the denomination of $100 through the envelope."

Too bad the IRS couldn't see fit to look into Tax Evasion charges before the Statute of Limitations was up. Any of us Peons would be Street People if it had been us.

13 posted on 10/25/2001 2:12:29 PM PDT by rdavis84
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To: HAL9000
Interesting stuff here about Mark Middleton, Mack McLarty, Dale Bumpers, Jim Blair, etc.
14 posted on 10/25/2001 2:14:57 PM PDT by HAL9000
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To: JeanS
Thanks for the heads up!
15 posted on 10/25/2001 2:17:09 PM PDT by Alamo-Girl
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To: HAL9000
Interesting stuff here about Mark Middleton, Mack McLarty, Dale Bumpers, Jim Blair, etc.

Looks like the Clintons' Christmas card list.

Thanks for this!

16 posted on 10/25/2001 2:18:14 PM PDT by Howlin
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To: HAL9000; JeanS
Here is a good site with some background information on this cast of characters.

frontline: Secrets of an Independent Counsel

And, yes, it's FRONTLINE and it's PBS, but it has tons of valuable information.

17 posted on 10/25/2001 2:20:50 PM PDT by Howlin
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To: JeanS
...investigation into the receipt of gifts and gratuities by former Agriculture Secretary Alphonso Michael Espy revealed a pervasive pattern of improper behavior by Secretary Espy and his top aide, and by persons and companies regulated by or with business before the United States Department of Agriculture (USDA).

But I thought Espy's case was thrown out of court on appeal? Do you mean to tell me that our Justice System doesn't work?

18 posted on 10/25/2001 2:23:29 PM PDT by afraidfortherepublic
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To: HAL9000
Well, well, well, does that mean Clintooon and all his little lackies belong in the HooseGow? I think maybe this report is like 4 years too late...Despicable bunch of characters the lot of them! I'm so disgusted I'm not even going to post a nasty picture!
19 posted on 10/25/2001 2:23:40 PM PDT by KLT
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To: HAL9000
Sometimes these Independent Counsels like to put some bombshells in these reports that are not immediately apparent.

For instance - in the Starr Report - there was a paragraph that said:

"On Friday, January 2, 1998, Jane Doe #5 signed an affidavit in which she denied that the President made "unwelcome sexual advances toward me in the late seventies."(202) (On April 8, 1998, however, Jane Doe #5 stated to OIC investigators that this affidavit was false.)(203)"

A couple of weeks after the Starr Report was released, that short paragraph was "decoded" and the real meaning became apparent - it was posted on Free Republic on September 23, 1998 under the title - "DID JUANITA BROADDRICK RETRACT HER DENIAL OF CLINTON SEX ASSAULT?".

This information from that FR article about the Starr Report caused a public uproar and massive media coverage that eventually swayed enough votes in the House of Representatives to pass the Articles of Impeachment against Bill Clinton, and Juanita Broaddrick's interviews on NBC and The Wall Street Journal. (Unfortunately, the old Whitewater archives on FR are not currently available to access that historic post.)

The point is - there could be some bombshells in the Smaltz report too, just waiting for some FReeper to discover them.

20 posted on 10/25/2001 2:31:15 PM PDT by HAL9000
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