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 For Immediate Release
Nov 24, 1998 Contact: Press Office
202-646-5172


Judicial Watch and its clients pursue 'Chinagate'

File RICO lawsuit today


Judicial Watch Chairman and General Counsel Larry Klayman today announced the filing of an omnibus civil lawsuit aimed at getting to the bottom of the "Chinagate" scandal and bringing to justice those responsible for the improper and illegal activities at the heart of the scandal. The Judicial Watch suit was filed today in U.S. District Court for the District of Columbia.

"The scandal which has come to be known as ‘Chinagate' is perhaps the most serious of all those involving the Clinton Administration," Klayman said. "The lawsuit we've filed today will mark a significant step toward getting to the bottom of ‘Chinagate.' There is an egregious pattern of abuse in this case that runs the gamut from influence peddling and illegal campaign contributions to selling out and endangering the national security of the United States."

Judicial Watch filed the civil lawsuit on behalf of Loral Space and Communications, LTD, whose rights and holdings have allegedly been jeopardized by its management's illegal dealings with the Clinton Administration and the Chinese government. The suit -- a shareholder derivative, civil conspiracy and RICO action -- names as defendants Loral Chairman and CEO Bernard Schwartz, President Clinton, Hillary Rodham Clinton, Vice President Al Gore, Clinton-Gore fundraiser John Huang, the Democratic National Committee (DNC), the Democratic Senatorial Campaign Committee (DSCC), the Democratic Congressional Campaign Committee (DCCC) and a number of other individuals.

The lawsuit charges Schwartz with allegations of breach of fiduciary duty and negligence. It charges the DNC, DSCC and DCCC with unjust enrichment and further charges all the named parties with civil conspiracy and violation of the Racketeering Influenced and Corrupt Organizations (RICO) Act.

"Our cases on this matter, which uncovered John Huang and sparked the ‘Chinagate' scandal, have already succeeded far beyond anything done by anyone else," Klayman said. "Neither Congress nor the Clinton Justice Department is willing to look into this matter, but Judicial Watch is. We will get to the bottom of ‘Chinagate' and bring those responsible to justice."


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