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Take the fight to the 'ruling nobility'

Editor’s note: Larry Klayman and Judicial Watch are now on the
air. Carried by Radio America, “The
Judicial Watch Report” airs live on Saturday, noon to 2 p.m., and will
keep you informed on the goings-on inside and outside the beltway, with
special coverage of Judicial Watch cases left unreported by the
mainstream media.

Since their days as governor and first lady of Arkansas, the
Clintons have always lived off “the public trough.” The formula was
simple: Get elected to a government position and then sell access and
other favors to that office in exchange for campaign cash or personal
perks, such as Mrs. Clinton’s now infamous $100,000 return on a $1,000
investment with Tyson’s Chicken pal, Jim Blair. The Clintons’ misuse of
the peoples’ trust was not even lost on liberal Democrats. During the
presidential primary debates of 1992, former California Governor Jerry
Brown tagged Mrs. Clinton as her husband’s “bag man” at the Rose Law
Firm, causing Mr. Clinton to invoke a chivalrous response that earned
him high marks among the establishment media at the height of the
Gennifer Flowers scandal. Little did they know that Monica Lewinsky, and
a cast of scores of other women, would later haunt Mr. Clinton’s
eventual two-term presidency.

With this presidency came more of the same greed and corruption.
Shortly after Paula Jones sued the president for sexual harassment in
1994, he and Mrs. Clinton set up a legal defense fund, the first in
American history. While the law was clear that federal government
employees could not take gifts from private citizens, the so-called
Office of Government Ethics — an agency whose director serves at the
pleasure of the president — wrote a dishonest opinion which gave cover
to this illegal money laundering operation. Indeed, years later, the
American people would learn that Charlie Trie, believed to be a
Communist agent, used the fund to dump at least $600,000 of Chinese cash
into the Clintons’ coffers, while at the same time relaying “helpful”
written assurances from then-Deputy National Security Advisor Sandy
Berger, on White House stationery, that the administration would not
provoke a war with the mainland concerning a brewing dispute with Taiwan
over the straits which divide the two nations.

Judicial Watch’s very first lawsuit against the Clintons was over
this legal defense fund, and — while the law which we creatively
invoked to try to shut it down was found not to cover this type of
“private” activity — the Court did rule that the Clinton Defense Fund
raised serious ethical and legal questions. Indeed, our case generated
such negative publicity and fear among the donors that they could
themselves be prosecuted — since it is criminal to give money to the
president — that the fund was later shut down. (A second illegal
defense fund later sprung up, which we are challenging as well.)

Like the sequel to “Ghostbusters,” the Clintons then devised new
tricks to haunt the American people with ways to peddle influence. As a
supplement to the legal defense fund, their pliant lawyers were
instructed to approach two companies, State Farm and Chubb, who used
“newly discovered” insurance policies to pay the freight of attorneys’
fees on the myriad of lawsuits that were beginning to engulf them. On
behalf of a policyholder, Tom Flocco of Philadelphia, who Judicial Watch
represents in his suit against State Farm, the company ultimately backed
off and no longer launders insurance monies through non-existent
coverage to the Clintons. However, Chubb anted up much of the funds
which paid the ultimate Paula Jones case settlement.

Was it a coincidence that these two companies bent over backwards to
pay the Clintons monies on policies, which insurance industry experts
say do not cover sexual harassment and related acts, when the insurance
industry is so dependent on federal regulation for its livelihood? Is it
thus a coincidence that the campaign finance scandal — sparked by
Judicial Watch’s case which exposed John Huang — would later reveal
that the insurance industry was a participant at illegal White House
fundraising coffees and that it made large campaign contributions and
then coincidentally went on the now-infamous Clinton administration
trade missions?

But what specifically did the insurance industry want from the
Clintons? Among many favors, it turns out that the banking industry was
pursuing federal regulations which would allow it to compete with the
insurance industry, using products like tax-deferred annuities (which
are a more attractive alternative to life insurance). Undoubtedly, the
administration could be useful to block this expansion of banking

Not to be undone by the insurance companies, the banking industry
also found ways to get money to the Clintons, and participated in White
House coffees, overseas trade missions, and other schemes. Indeed, bank
regulation has been a hot topic in Washington of late, with a major bill
just having passed Congress.

It should thus have come as no surprise to anyone who follows the
culture of money in the nation’s capital, that when Mrs. Clinton set her
sights on a $1.7 million mansion in Westchester, N.Y., to establish
residency and further her Senate aspirations (not to mention her desire
to continue to lead the lifestyle of the rich and famous) that she and
her corrupt husband would turn to the banking sector to further their
materialistic desires. A modest house, which the Clintons could afford,
was not sufficient. A monument, as opulent as The White House itself,
was needed.

Bankers Trust, now owned by the Deutsche Bank (the institution which,
ironically, also reportedly financed Auschwitz), was approached. Not
coincidentally, Bankers Trust was a prominent participant at the
Clintons’ White House coffees, which were attended, improperly, by the
administration’s chief bank regulator. Bankers Trust complied with the
Clintons’ desires, and ponied up a mortgage, on grossly preferential
terms, which ordinary law-abiding Americans could not get. Coupled with
an improper loan guarantee by influence peddler extraordinaire and
Chinagate suspect Terry McAuliffe, the loan provided interest at below
market rates. As was true of the “illegal legal defense funds,” the
Clintons’ receipt of benefits from the private sector violated not only
the gift ban to federal officials, but also campaign finance laws, since
Mrs. Clinton herself is seeking political office.

When Judicial Watch filed suit to stop this illegal transaction,
predictably Bankers Trust and Deutsche Bank threw in the towel and had
the Clintons withdraw the loan. However, since the banks and the
Clintons refuse to confirm that the deal will not be resurrected if a
substitute mortgage by PNC Bank Corp. and PNC Mortgage Corporation of
America is ruled illegal in Judicial Watch’s recently filed suit against
them, the case remains alive.

Judicial Watch’s companion lawsuit against Pittsburgh-based PNC is
even more compelling and hard-hitting than the case against Bankers
Trust and Deutsche Bank. Brought by a patriotic shareholder who does
not want to see the company harmed by the potential for criminal
liability in providing allegedly illegal benefits to the Clintons, this
derivative action seeks to rescind the mortgage which was approved by
the banks’ boards of directors on the morning of Nov. 1, 1999, and
entered into later in the day. That the PNC loan is even more
preferential than the Bankers Trust/Deutsche Bank loan is obvious from
not only common sense — without the McAuliffe guarantee, how could a
couple which claims to be $5 million dollars in debt get financing on a
$1.7 million dollar mansion — but also from two real estate expert
witnesses, cited by Judicial Watch in its lawsuit, who put the final
nail in the coffin of this scheme by PNC’s directors. For the
affidavits of these experts, sworn under oath, see Exhibit
Exhibit 3 in Judicial
Watch’s application for a temporary restraining order.

Judicial Watch and the American people, who we represent as a
“private Attorney General,” are not out to get the Clintons personally.
They have the right to retire in New York, and indeed, at one time, they
even had the right to inhabit The White House. However, after six and
one half years of influence peddling, graft and bribery — not to
mention wholesale violations of privacy rights in Filegate and treason
in Chinagate — the Clintons continue to rub the faces of honest
Americans in their corruption.

Unlike Republicans, Judicial Watch cannot stand by and watch; nor
will it turn a blind eye to these high crimes and misdemeanors as Janet
Reno’s Justice Department has. It is time to draw a line in the sand
and, on behalf of the American people, put our foot down. For the
greatest threat to our country comes from within. The decaying moral
principles and respect for law is a virus which, if not addressed by
bringing the Clintons to justice, will kill our beloved nation. To the
decent and hardworking average Americans, who cannot expect, and
certainly will not get, such preferential mortgage deals, I say let us
carry the fight to the “ruling nobility; liberty, equality and