Democrats Are Fined $243,000 for Fund-Raising Violations (People's Republic of China and Clinton)

WASHINGTON, Sept. 20 — The Democratic National Committee has agreed to pay civil fines and turn over to the Treasury a total of $243,000 to settle accusations that it took more than $1 million in illegal foreign contributions in 1995 and 1996, according to Federal Election Commission records released today.

The documents also state that the election commission's general counsel found in 1999 that there was "reason to believe" that the People's Republic of China "knowingly and willfully" violated federal election law. But the heavily redacted documents also state that the commission voted unanimously to "take no action at this time" on the general counsel's recommendation.

The documents detail efforts by the Democratic Party and the Clinton-Gore campaign to build their war chest with help from wealthy Asian donors before the 1996 election. In all, the election commission disclosed $719,500 in fines today.

The largest fine, $120,000, was paid by the International Buddhist Progress Society, which operates the Hsi Lai Temple in California, the site of an April 1996 luncheon attended by Vice President Al Gore. The national committee paid a $115,000 fine and agreed to turn over to the Treasury $128,000 it had received in illegal contributions. The Clinton/Gore '96 Primary Committee paid a $2,000 fine, the records also show.

John Huang and Yah Lin Trie, two Democratic fund-raisers who pleaded guilty to violating federal laws, agreed to pay fines respectively of $95,000 and $7,000.

The commission also found "probable cause" to believe that Hogan & Hartson, a Washington law firm, violated election laws in the handling of $50,000 in donations that a client of the firm made to the national committee in summer 1996. Two officials at the firm who were involved in the handling of the donations have agreed to pay a total of $67,500.

Representatives of the national committee and for former President Bill Clinton declined to comment. Officials at Hogan & Hartson did not reply to a phone message.

After the fund-raising scandal broke in late 1996, the Democratic Party returned $3 million in questionable or improper contributions, much of it from money donated or solicited by Mr. Huang or Mr. Trie.

Kent Cooper, a former election commission official who is now at PoliticalMoneyLine.com, which tracks money in politics, said some fines disclosed today appear surprisingly low. The election commission, he said, limited the fines assessed to some people based on their claims that they could not afford to pay more. "Some people will look at this and say the F.E.C. should have fined them more," Mr. Cooper said.

He noted, for example, that the election commission waived fines against a company called Global Resource Management based on the assertions by the company's president about its "present financial circumstances," the documents show.

The election commission found that the company, which was formed in Ohio in 1996 to resolve a "construction-related contractual matter" in Saudi Arabia, decided to make a $100,000 contribution to a national committee fund-raiser in New York on Aug. 18, 1996. The event was also billed as a 50th birthday celebration for Mr. Clinton. The company's officers made the contribution in order to meet with Ray Mabus, the former Mississippi governor and ambassador to Saudi Arabia, who helped plan the event, the election commission found.

But the money used to make the contribution was provided by Sheik Mohammed Oboud Al-Amoudi, a Saudi citizen, who wired $150,000 to the company. The company used this money for the donation "even though its officers had been informed that foreign national contributions are illegal," the election commission found.

Mr. Cooper said the documents provided further evidence of the tactics Democratic operatives used to raise money before the 1996 elections.

"Here, we're dealing with wire transfers and shuffling money to accounts," he said. "What is going on here is warning bells are going off all over the place."

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Hogan & Hartson L.L.P. (Hogan & Hartson) is the largest law firm based in Washington, D.C. Today, the firm has more than 900 attorneys serving clients in a practice that cuts across virtually all legal disciplines. In addition to its headquarters in Washington, D.C., which provides a natural base for the firm's national and international practice, the firm has European offices in Berlin, Brussels, London, Paris, Budapest, Prague, Warsaw, and Moscow, Asian offices in Beijing and Tokyo, and U.S. offices in New York, Baltimore, Northern Virginia, Miami, Los Angeles, Denver, Boulder and Colorado Springs.

Hogan & Hartson's status as a leading international law firm is well established. Describing the firm as among the "International Elite," The Legal Times observed that "with size, Hogan is able to offer . . . one-stop shopping for regulatory, litigation and corporate needs." Recently, the firm served as counsel in a number of significant international and domestic deals, including the largest private-public venture in South American history, the largest merger and acquisition to date in Central and Eastern Europe, the first true project financing without governmental credit support or performance guarantees in Central and Eastern Europe, the $10 billion conversion to a real estate investment trust (REIT) of one of the largest owners of full-service and luxury hotels in the U.S., and one of the largest Internet-related IPOs to date. In addition, the firm served as antitrust counsel in the largest industrial merger ever. Hogan & Hartson was the only Washington, D.C.-based law firm ranked in The American Lawyer's 1999 Corporate Scorecard and was among the top firms in nine of the annual rating categories, including the top ten for representation of companies in public stock offerings and venture-backed companies in initial public offerings.

In the litigation area, the firm argued eight cases before the Supreme Court in the past two terms; has been involved in a number of recent high profile Congressional and governmental investigations; mounted a successful constitutional challenge to Section 505 of the Telecommunications Act of 1996; and served as principal Washington, D.C. counsel to Netscape Communications Corporation — the Department of Justice's lead witness in the government's landmark antitrust case against Microsoft Corporation.

Hogan & Hartson's clients range from start-up ventures to large multinational corporations in industries such as information technology; health care; biotechnology; pharmaceuticals; medical devices; education; food and agriculture; communications (satellite, common carrier, broadcast, and cable); energy; environmental; government procurement; real estate; and transportation and infrastructure. In addition, the firm represents private equity, venture capital and investment banking firms, financial institutions, nonprofit associations, quasi-governmental organizations, and foreign governments.

Forty percent of Hogan & Hartson's attorneys currently handle corporate, securities, financial, tax, and other transactions for clients throughout the world. Nearly thirty percent litigate commercial and other disputes before state, federal and international tribunals, and engage in domestic and international arbitration. The remaining thirty percent of the firm's practice is in the area of national and international government regulation and policy

Hogan & Hartson's attorneys combine their legal experience with a solid grounding in the business world and in government. Many of the firm's attorneys have served in senior levels of government, including the United States Congress and the Executive Branch, the European Commission, and with European national governments. The firm counts among its number two former Chairmen of the Republican National Committee; a former outside General Counsel to the Democratic National Committee; a former Secretary of Agriculture and U.S. Trade Representative; a former Head of the European Commission's Washington Delegation; a former Principal Deputy Solicitor General of the United States; a former FTC Commissioner; and four former members of Congress, including the former House Republican Leader. Others have served as in-house corporate counsel, corporate officers or members of corporate boards of directors.

Recently, Corporate partner Warren Gorrell was recognized as one of the top dealmakers of 1998 in The American Lawyer's 1999 Corporate Scorecard. The National Law Journal featured partner John Roberts as one of Washington, D.C.'s "power lawyers" for 1998 in recognition of his frequent appearances (which now number 30) before the Supreme Court. Communications partner Michele Farquhar was named one of Wireless Magazine's "Top 50 Newsmakers" in 1998; European Counsel's "Telecoms Industry Report 1998" described Gerry Oberst, another partner in the Communications Group, as "the key satellite lawyer in Brussels;" and Christine Varney, head of the firm's Internet practice, was featured in The Washington Post as one of five D.C. lawyers who distinguished themselves in 1998. In previous years, The National Law Journal has recognized antitrust partner Janet McDavid, who was just elected Chair of the ABA Section on Antitrust Law, as one of the "50 Most Influential Women Attorneys," partner Cliff Stromberg as one of "40 Health Care Lawyers Who Have Made Their Mark," and partner Bill Reyner as one of the "leading communications lawyers."

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