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Judicial Watch • OIS Cases FileGate-Exhibits-10-19

OIS Cases FileGate-Exhibits-10-19

OIS Cases FileGate-Exhibits-10-19

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Ms. Jane Dannenhauer, Assistant the Counsel the President charge the Security Office during the Nixon, Ford, Reagan and Bush administrations, reported that new administration normally completed its pass issuance within approximately months, most months.596 comparison, the GAO reported that only two Clinton staffers had permanent passes months into the administration.597 Messrs. Kennedy and Livingstone, who were responsible for White House pass issuance, did not obtain their own passes until November 23, 1993.598 	Unsuitable personnel charge overseeing the Office Personnel Security 
While the committee and the public have yet learn who hired Craig Livingstone, the committee discovered information the hiring his supervisor, William Kennedy. Mr. Kennedy testified that Mrs. Clinton participated his selection Associate White House Counsel. 599 the time his background investigation, Kennedy informed the FBI's SPIN Unit Chief Bourke that was "close personal friend the President and Mrs. Clinton for twenty years and was managing partner the same Arkansas law firm which Mrs. Clinton was employed." soo 
Mr. Kennedy, his position Associate Counsel, reviewed the sensitive background investigations Presidential appointees and White House staff, including Director Personnel Security Craig Livingstone. Although Kennedy supervised Livingstone's office and was aware problems Livingstone's background, favorably adjudicated his file. 601 
Mr. Kennedy had background problems his own. Mr. Kennedy did not properly disclose his failure pay Social Security taxes for servant his home. paid the taxes belatedly under his wife's former married name.602 Just Kennedy had ignored the problems Livingstone's background, Livingstone adjudicated Kennedy's background favorably, ignoring the derogatory information.603 Although each had completed the adjudication the other's file, Kennedy did not forward either his Livingstone's file the Secret Service for months. 604 
Four Counsels the President and two Chiefs Staff kept Mr. Livingstone his position despite serious concerns about his background. Livingstone was retained despite his penchant for short working hours and routine demands for large salary increases. Keeping Craig Livingstone employed seemed more important 
596 Staff interview Jane Dannenhauer. 
97 GAO report, 21. 
59B GAO documents ,Prepared for GAO report, January 1995. (In committee files). 
5B9Kennedy 
June 18, 1996, Jl 
Question: Did First Lady have any involvement your hiring?
KENNEDY. She did. 
soFebruary 26, 1993 memo Mr. Brekke from Mr. Bourke regarding "Meeting with William 
Kennedy, Associate Counsel, the White House, February 18, 1993. (FBI document production, 
July 10, 1996, unnumbered.)
eo1Kennedy deposition, June 18, 1996, 
so2"Patsy Takes the Fiske," Wall Street Journal, March 24, 1994. 
603 CGE 054658, undated document titled "Deconcini" with questions and answers, CGE 
54654-662. 60"Ann Devroy, 100 White House Staff Lack Clearance, the Washington Post, March 14,
1994. 

Clinton administration officials than maintaining the security some the Nation's most sensitive files.605 
Former White House Counsels have testified that the process reviewing FBI files "is solemn, legal and ethical obligation." 606 After the committee discovered that the Office Personnel Security ordered the files hundreds former Reagan and Bush administration officials, the Director the FBI, Louis Freeh, called the actions "egregious violations privacy." 607 Director Freeh continued state that the files were ordered "without justification." 608 Director Freeh pointed out, the system utilized relied the "good faith and honor'' those involved the process.609 the Washington Post opined June 17, 1996: damage was done from Day when Craig Livingstone was put this job. The last people government have access to, let alone custodians of, sensitive background investigation reports and material should political operatives. That, unfortunately, what the Clinton administration seems have done. And that's for starters.610 
FBI Special Agent Tom Renaghan, who supervised the FBI agents who conducted background investigations the White House, remembered issues Livingstone's background: 
that were not totally favorable they [FBI agents Aldrich and Sculimbrene who conducted background investigations the White House] both felt that wasn't the right guy the Security Director. They didn't think had the background demeanor, didn't appear the kind guy that would the type person that would be-you would expect that position was unprofessional many ways, unprofessional they would perceive guy who had that type job. They voiced their opinion about that periodically asking take some kind action get something done with respect him.611 
Mr. Kennedy allowed Livingstone retain his sensitive position after reviewing Livingstone's background file. Although both FBI and Secret Service agents raised suitability and security concerns about Livingstone, Kennedy ignored them.612 Senator Dennis DeConcini, the then-Democratic chairman the Treasury Postal Service and General Government Subcommittee the Appropriations Committee, which approved appropriations for the White 
ao5 Three attorneys the White House Counsel's Office wrote letters requesting raise for Craig Livingstone, even though there was salary freeze. CGE 048622, 048627; Mr. Livingstone wrote several letters Abner Mikva requestinjl' raise, stating, "[T]his last try remain part the team." CGE 048058; See, supra section ill. 
ofFBI Files 
June 1996, 32. (Testimony A.B. Culvahouse.) 807 Shapiro, counsel, FBI; Report the General Counsel the Dissemina tum FBI File Information the White House; June 14, 1996. (Statement FBI Director 
Louis Freeh). 
BOB[d.
8os Howard Shapiro, general counsel, FBI; Report the General Counsel the Dissemina tion o[,FBI File Information the White House; June 14, 1996s10 'The FBI Files Flap: Take 2," the Washington Post, June 17, 1996. deposition, July 19, 1996, pp. 62-65. July 10, 1996, pp. 21-22.

House, well chairman the Senate Intelligence Committee, recommended that Livingstone replaced 1994 with professional careerist. Senator DeConcini's recommendations were
nored then-White House Counsel, Lloyd Cutler.613 THE PROCESS WHICH BACKGROUND INVESTIGATIONS ARE 
CONDUCTED 
The process for obtaining permanent access pass the White House generally requires the following steps: Pre-employment steps Security interview 
Prior each person's appointment, applicants must undergo security interview conducted the relevant security office.614 the case the political staff, generally the ''White House staff," the interview would conducted the Office Personnel Security, supervised Livingstone. For the career staff, the Office Administration Security Officer would conduct the interviews. 615 During the first year-and-a-half the Clinton administration, hundreds employees did not submit this interview prior employment, for many months after being hired.616 Submit drug test 
All applicants must submit drug test. the test positive, the person supposed disqualified from appointment.617 Many the new employees the Clinton administration did not take drug tests prior employri::l.ent the White House, and they were often conducted months later. initial name check 
Applicants must undergo initial name check which their name, date birth, place birth, and Social Security number are checked through the Secret Service's Workers, Appointment, and Visitors Entrance System (WAVES). This consists checks through four computer databases: the FBI's National Crime Information Center database; criminal history database; Secret Service database; and Washington-area law enforcement database.618 This the type name check that conducted for visitors the White House. For many Clinton White House staff the first year-and-a-half, this was the only background check conducted them. extensive FBI name check this process, the White House forwards request form the FBI check the name through the FBI Central Records, computer databases and the Criminal Justice Information Services database 
613 Augus 
11, 1994 letter the President froni Senator Concini. 
6l4GAO 15. 
615 Easley July 26, 1996. 
sie GAO report.
6l7GAO report, 15. identify any derogatory information and prior arrest records.619 .Any previous report also provided the individual already has FBI background investigation file. Obtaining temporary pass 
Each new employee who expected work days more has days from the date employment which complete the SF86, FBI investigation consent form, and tax check waiver.620 This day standard was the regular practice past administrations; however, there was such legal requirement. 
Mr. Charles Easley, who headed the Security Office for career employees the White House, stated that someone did not turn their SF-86s and other background information within days,"they had lot time sit home and their forms" because would not allow someone work the White House.621 Mr. Easley said that this was .not the case for the staff handled Livingstone. Easley acknowledged that was aware that Livingstone allowed staff work the White House and obtain temporary pass without turning paperwork, change normal procedure.622 
Previously, the practice had been that individual had stay "access list" prior completing the SF-86 and related paperwork, which meant the person would have P.resent positive identification each time she entered the White House complex.623 Once the FBI name check returned, the individual would issued temporary pass for period not exceed days. After one extension, the Secret Service supposed contact the office provide rationale for additional extension. Each new employee also required attend security briefing which his her attendance should documented. 625 Obtaining permanent pass 
Before permanent pass obtained, the FBI some other agency must conduct full-field background investigation. the investigation reveals information that warrants attention, the FBI notifies the White House Counsel's Office, the White House Office Personnel Security, the Security Office the EOP (administered Charles Easley) and might provide interim report
.626 
Once the reviewing office receives the FBI background tion summary, determines suitability and decides whether ward the file the Secret Service. written request sent the Secret Service for permanent access pass for the employee and, the Secret Service agrees there danger the President other protectees, permanent :r;iass issued. 627 
During the first year-and-ahalf the Clinton administration, 
this process was neglected and hundreds new White House staff 
worked positions, including the most senior positions, with only 
619 GAO report, 15.
520 GAO 16. 
s21Easley 48. 
022Easley deposition, pp. 48-50.
623 GAO report, 16. 
62' GAO report, 16. 
625 GAO report, 16. 

627 GAO report, 18. 

very limited checks their backgrounds and permanent passes. The importance following procedures and determining 
the suitability staff members protect both the President, and the vast amount sensitive information the place more important that individuals the highest caliber serve positions responsibility than the White House. The White House handles matters life and death daily basis and the American people must able rely upon stable and suit
able people 
involved this 
the White House had this process, Assistant Patsy Thomasson made this alarming admission her March 22, 1994 testimony before the House Treasury Postal Appropriations subcommittee: 'We don't think have any Aldrich Ameses the White House ... But certainly could."628 
This admission prompted then-Congressman Dan Glickman, chairman the House Intelligence Committee write the Director the CIA asking what steps had taken ensure that White House staffers without clearances did not have access classified material.629 Representative Glickman noted the time, "The urgency this matter has been highlighted the arrest Aldrich Ames." 630 Early the administration, there was cause for concern about White House personnel. BACKGROUND INVESTIGATIONS CLINTON WHITE HOUSE STAFF White House staff provided minimal cooperation the FBI 
The FBI agents who worked day-to-day basis conducting 
FBI background the new Clinton White House staffers were 
the delays obtaining White House passes. From the start, the process was slower than with previous administrations and staff cooperation was liminted. 
FBI Agent Dennis Sculimbrene testified that the incoming administration usually starts sending cases Cabinet-level person
Agent Sculimbrene's supervisor, Tom Renaghan, also reportedthat backgrounds were received late and were backdated.634 FBI Agent Cecelia Woods, another agent assigned the White House, reported that she saw the dates SF-86s visibly changed and received SF-86s sometimes months after they had been completed the appointee.635 
FBI Agent Greg Schwarz testified that had trouble setting 
interviews getting people appear for interviews and was 
B2BPatsy Takes the Fiske, the Wall Sti:eet Journal, March 24, 1994. 
629Jd. 
630Jd. 

eaisculimbrene deposition, July 15, 1996, 28. 
S32Jd., 29. 
633Jd. 
634 Renaghan de.I?osition pp. 13-15. 
easwoods deposition, Jcly 10, 1996, pp. 20-22. 

aware this happening other agents the White House.636 Agent Woods testified that Renaghan, her supervisor, advised Unit Chief Bourke these irregularities and that Bourke should have discussed the problems with Associate White House Counsel Bill Kennedy.637 Woods, however, never saw any corrective actions taken issues she her colleagues raised with her supervisors.638 
FBI Agent Gary Aldrich explained that had problems conducting background interviews, including: problems locating individuals, inability contact them directly and appointments being made and broken. 639 result these problems, Deputy White House Counsel Vincent Foster sent out memo all staff February 17, 1993 instructing them cooperate with FBI Agents Aldrich and Sculimbrene. Mr. Foster wrote: 
There are large number staff members yet interviewed and only few weeks left complete them before your temporary clearance expires. Please responsive the Agent's request for interview and accommodate his schedule.640 
There was such laxity submitting the names new White House staff for background investigations that Bourke resorted clipping newspaper articles which identified new staffers and sending them Bill Kennedy with notes that the FBI had not received the backgrounds the individuals named.641 
Agent Bourke's letters Kennedy highlight the fact that the FBI had not been provided information many top White House officials late October 1993. April 1993 letter Bill Kennedy, Bourke wrote: ''I read article the April 1993, edition USA Today Jocelyn Elders. reminded that still not have the paperwork her background investigation (BI)."642 the same time that the White House was negligent obtaining background investigations new White House staff members, Livingstone and Marceca were ordering the background investigations former Reagan and Bush officials. Problems the background investigations Clinton administration staff 
Almost immediately FBI agents reviewing the background files the new Clinton White House officials noticed significant problems. According Sculimbrene, the problems the backgrounds included, "using illegal drugs repetitively, lying law enforcement officers, lying about school records, being fired." 643 
sasschwarz deposition, July 11, 1996, pp. 27-30. 
ea7Woods deposition, July 10, 1996, pp. 22-23. 
113sId., 61. 
July 18, 1996, 20. all White House Office Staff from Vincent Foster and William Kennedy, 
CGE 048210. 
641FBI document production, July 10, 1996 (unnumbered). March 1993 letter Bill Ken
nedy from Jim Bourke; April 1993 letter Bill Kennedy from Jim Bourke; October 20, 1993 
letter Bill Kennedy from Jim Bourke. 
e