White House Economics - Page A1
February 4, 1997 WHITE HOUSE FAX REVEALS
by William Heartstone, The Daily Republican Newspaper
ILLEGAL FUNDS ATTEMPT
WASHINGTON DESK - Clinton White House deputy chief of staff, Harold Ickes, is embroiled in an investigation that will likely lead to criminal charges. This most recent Clinton White House debacle centers on the circumstances in which Ickes personally handled an offer of political contributions while on the White House staff.
The direct involvement of high ranking White House officials came to light when news reporters obtained a copy of a memorandum on White House stationary, from Ickes to R. Warren Medoff, a representative of a major Democratic donor. The White House memo directs the political donor to make large contributions to obtain 'favorable tax treatment'[by the IRS] the donor wanted in exchange for political contributions to the Clinton-Gore Campaign.
The White House memo, was faxed from the White House chief of staff's office. Ickes writes 'If possible, it would be greatly appreciated if the following amounts can be wired to the designated banks.'
White House chief of staff, directed a contribution be made of more than $1 million, with $500,000 to be paid to specific Get-Out-The-Vote [501(c)3] foundations [funds to be channeled to Clinton-Gore Campaign]. Another $500,000 was requested for the DNC-Clinton-Gore Campaign.
The Clinton White House, attempted to distance itself from Ickes conduct. Clinton's press secretary, Mike McCrury said on Monday, 'Based upon our understanding of the facts, Mr. Ickes' identification of entities does not constitute a solicitation in violation of the Hatch Act.'
Medoff was present at a Miami fund-raiser attended by President Bill Clinton in October. He was representing a Texas financial speculator, William Morgan, who wanted to donate $5 million to help the Democrats.
CNN reported on Monday that Morgan holds hundreds of millions in defaulted, unpaid historical bonds, including some from pre-World War II Germany. Morgan said the White House offer was the outgrowth of a proposition from unnamed Democrats that Medoff told him about a couple of years earlier as he sought help in getting money for the bonds.
Morgan bluntly said, 'It is my understanding that it boiled down to a simple, If we help you with the Germans, what will you do for us? and a White House commitment was made by one of my associates for $5 million!'
Ickes appears to have aware of the illegal content of the White House memo because he asked that his memo beshredded according to a report in Newsweek on Monday. Ickes told Newsweek that he doesn't have any recollection of the incident.