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 For Immediate Release
Mar 20, 2001 Contact: Press Office
202-646-5172


BUSH ADMINISTRATION SUPPORTS CLINTON JUSTICE DEPARTMENT PLEA AGREEMENT IN COURT

Chinagate’s Riady/LippoBank ‘Above the Law’

‘Slap On the Wrist’ Plea Agreement Protects Clintons and Serves Republican Interests

(Washington, D.C.) Late last night, Democrat federal judge and Carter appointee Consuelo Marshall (who is also a former law partner of Johnnie Cochran), agreed to the Bush Justice Department’s request to enter a plea agreement negotiated during the closing hours of the Clinton Administration by the Reno Justice Department in the case of Chinagate figure and Clinton/Republican fundraiser James Riady. Judicial Watch, the public interest law firm that investigates and prosecutes government abuse and corruption, had attempted, through court filings and oral argument, to block entry of the plea agreement. Judicial Watch “got the ball rolling” on Chinagate when it deposed John Huang in October, 1996.

The plea agreement allows Mr. Riady and the LippoGroup – who are, according to government agencies, agents of Communist China and are partners with Chinese intelligence operations that tried to undermine our democracy through the bribery of President Clinton and others – to escape any significant punishment for their criminal activities. The plea allows for only 400 hours of community service and modest $8 million fine, given the billion dollar plus size of the Riady empire. Judicial Watch argued that the plea agreement was much too lenient (Johnny Chung received 3,000 hours of community service) and that Mr. Riady, who is a “ringleader” in the Chinagate scandal, would not “cooperate” with ongoing investigations. Further, Judicial Watch argued that Mr. Riady and the Lippo Group should be prosecuted for the breaches of U.S. national security. Mr. Riady had more access to the Clinton White House than Clinton’s own CIA director, and almost certainly used his employee John Huang to obtain access to U.S. national security briefings at the Commerce Department.

During yesterday’s 6 ½ hour sentencing hearing, Bush Justice Department lawyer Dan O’Brien stated that Riady would not be prosecuted for anything further, including breaches of U.S. national security. When asked whether the plea for Riady and his LippoBank (which has since merged into a new bank) was more lenient than other Chinagate plea agreements, Mr. O’Brien hid the fact that Johnny Chung, now a Judicial Watch client, had received almost 10 times the number of community service hours. Further, Mr. Riady will only have to perform his community service in Indonesia, not on a California chain gang like Mr. Chung. It was left to Judicial Watch to inform the Court of these facts.

It also was revealed yesterday that California Governor Gray Davis had deposited funds in Riady’s LippoBank. Other politicians, such a former Los Angeles mayoral candidate Michael Wu, also did business with the bank. As important, it was made clear that Riady had reimbursed John Huang from foreign funds for illegal campaign contributions made by John Huang to Republican Senator Mitch McConnell, who is the husband of Bush Labor Secretary Elaine Chao. Chao is a friend of Huang’s. During Judicial Watch testimony, Huang revealed that Chao had arranged for campaign contributions from Huang to former Senator Al D’Amato, who was head of the Senate Banking Committee (an important position for banks such as Lippo).

“The Republican involvement in the Chinagate scandal helps explain why the Bush Justice Department supported the Clinton Administration’s Riady/Lippo plea agreement, which effectively tries to sweep everything ‘under the rug,’” stated Judicial Watch Chairman and General Counsel Larry Klayman.

“Judicial Watch will appeal this Democrat judge’s decision to accept this sham plea agreement, because no one should be above the law, let alone a Communist Chinese agent who bribed then President Bill Clinton and gave illegal contributions to other politicians,” added Klayman.

“What we witnessed yesterday was a sell-out of the American people by both the Clinton and Bush Administrations,” stated Judicial Watch President Tom Fitton.

Court Transcript of Riady/Lippo Plea Agreement Sentencing Hearing on March 19, 2001 - Court document

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