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| For Immediate Release | |
| Oct 13, 1998 | Contact: Press Office 202-646-5172 |
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Watchdog group which previously challenged use of insurance proceeds puts White House on notice Judicial Watch Chairman and General Counsel Larry Klayman today put the White House on notice that the public interest watchdog group will go to court to block any attempt to use funds from the "Presidential Legal Expense Trust" to settle Paula Jones' suit against President Clinton. In its "Interim Report" to Congress on the Clinton scandals, Judicial Watch made a strong case that the establishment and maintenance of the Presidential Legal Expense Trust constitute impeachable offenses by the President. "The Trust is clearly an illegal scheme," Klayman said. "There is an unmistakable prohibition in the U.S. Code at 5 U.S.C. 7353, providing 'no Member of Congress or officer or employee of the executive, legislative or judicial branch shall solicit or accept anything of value.' According to Congressman Chris Cox and Congresswoman Deborah Pryce, in reference to the Trust, '[it] would be difficult to draft a clearer prohibition.'" The Presidential Legal Expense Trust has received huge amounts of cash from wealthy Hollywood donors and -- more alarmingly -- influence peddlers such as Charlie Trie -- a political fundraiser with shadowy ties to the Communist Chinese government. Judicial Watch brought suit challenging the Trust and has petitioned Attorney General Janet Reno to investigate the matter and appoint an independent counsel. She refused to do so. Despite the closing of the original Trust in January of this year, a new and even more illegal derivation of the Trust is now in operation. On September 27, 1998, The Washington Post reported that top Clinton- Gore fundraiser Terrence McAuliffe has been enlisted to raise additional illegal funds to pay a possible settlement in the Paula Jones lawsuit. "The President should be taking out bank loans at market rates to meet his legal expenses," Klayman said. "He has no right to solicit funds for this purpose or to put the heavy hand on insurance companies to improperly foot the bill. (Judicial Watch previously raised a successful challenge to this practice as well). The Presidential Legal Expense Trust is, quite simply, an on-going criminal enterprise. If the White House attempts to use funds from the Trust to settle with Paula Jones, Judicial Watch will offer a vigorous court challenge." |
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