Replies

One last, just a quote from a 1987 National Law Journal article entitled "U.S. Officials Stole Software, Says Judge; Firm Driven Out of Business"

'Collective Amnesia'?

Judge Bason said he found the testimony of department witnesses generally unbelievable. Laurence S. McWhorter, now acting director of the Executive Office for U.S. Attorneys, "didn't remember anything" and had lent money to Mr. Brewer. Mr. Brewer's assistant, Jack S. Rugh, "had ambitions to carry on the project in-house and thereby build his own little empire," and suffered from the "collective amnesia" that afflicted government witnesses.

Judge Bason dismissed the testimony of William P. Tyson, the former director of EOUSA, as "ludicrous," after he said Mr. Brewer's attitude toward Inslaw was positive. It was "extraordinary" that an ethics officer such as Janis Sposato treated allegations of outrageous conduct so casually, he said.

On the other hand, Inslaw president William A. Hamilton's testimony was accurate, he said, as was that of Elliot L. Richardson of the Washington office of New York's Milbank, Tweed, Hadley & McCloy. Mr. Richardson, who has a long involvement with the company, tried to negotiate a settlement with senior department officials. (NLJ, 5-20-85.)

Despite more than two years of adversary proceedings under the bankruptcy, the litigation between the government and Inslaw has not ended. Another trial is set to determine whether a department lawyer tried to improperly influence the creditors committee. The amount of the damages remains to be determined, as does the potential for a punitive judgment.

In the meantime, Judge Bason has enjoined from any dealings with Inslaw Mr. Brewer, his deputy Mr. Rugh, and the contracting officer on the project.

"We are going to appeal," said Mr. Brewer. "I can't say much but that Inslaw has succeeded through personal attacks and slander to avoid scrutiny of their performance. The ultimate losers are taxpayers of the United States."