Jack Anderson's Washington Merry-go-round fz. 4/17 Anatomy of a political payoff

WASHINGTON — The anatomy of a sideration. One who turned up in Costa Herring reported that Lee delivered the political payoff, Robert Vesco-style, has Rica was Spencer Lee IV, a close friend portfolio to Carter's trusted friend and undergone considerable sophistication of Hamilton Jordan who had master- unofficial adviser, Charles Kirbo. Lee since the Watergate era. minded Jimmy Carter's successful confirmed that he and Herring had met In 1972, the corporate freebooter presidential campaign. with Kirbo but said Kirbo had refused to delivered $200,000 to the Lee was brought to by R. become involved. Kirbo said he had no campaign chest in an attempt to fix his L. Herring, a wheeler-dealer, who had recollection of the meeting. case before the Securities and Exchange made the original contact with Vesco. Lee attended the inaugural festivities Commission (SEC). According to Herring's sworn account, in Washington on Jan. 20, 1977. Ac- By today's standards, it was a gross he discussed with Lee how much they cording to a telephone log authenticated transaction. The cash — $100 bills bound should soak Vesco for pulling the right by the secretary who kept it, he left a in brown paper wrappers — was stuffed strings in Washington. "Spencer said, message that day for Herring. Lee into an old leather briefcase. Two 'Would $10 million be unreasonable?' I reported that he had "talked to Hamil- couriers picked up the briefcase in said 'I don't know.' I mentioned this to ton and everything is fine." Vesco's New Jersey office, flew to Robert (Vesco)," recounted Herring. A week after the inauguration, Lee Washington in a chartered plane and Vesco refused to make a cash offer- was in Nassau setting up a corporation. plunked the leather bag on the desk of ing, citing his unhappy Watergate ex- He was accompanied by Herring's at- Nixon's chief fund-raiser, Maurice perience. But he laid out a complex torney, Fred Bartlett. They named the Stans. financial shell game that he promised corporation Southern Ventures Limited, "Mr. Stans, here is your currency," would net the Georgians the $10 million the same code name they had used in in- one courier said tersely. He opened the they wanted. He spelled out the ela- ternal memos to identify the Vesco briefcase, tilted it toward Stans to borate details at a meeting with Herring caper. reveal the stacks of $100 bills and asked and Lee at his luxurious Costa Rican Herring identified Southern Ventures if he wished to verify the $200,000. retreat on the eve of Carter's inaug- in his sworn account as "the company "No," said Stans, "that won't be uration. that would launder the money." Another necessary." No receipt was asked; no The fugitive financier produced a member of the Georgia group, Norman receipt was given. .The cash was later thick portfolio of his holdings — "the Gay, stated in an affidavit that Lee had used to help finance the Watergate whole complex of companies, 70 to 80 told him about "going to the Bahamas to burglary. • companies that had been set up," recall- set up a corporation or corporations for Vesco later sent Nixon another $50,000 ed Herring." The flagship of this cor- the purpose of bringing some of Vesco's check which, unlike the cash, was pro- porate fleet is Property Resources money back into this country." perly recorded. Vesco told us he also Limited, a cash-rich Bahamas-based Not long afterward, a move by the laundered another $250,000 through a company known in financial circles U.S. embassy in Costa Rica to extradite Nassau gambling casino and handed the simply as PRL. Vesco was aborted. The Justice Depart- cash to a White House courier. There is Vesco showed the Georgians how, ment suddenly abandoned its efforts to no mention in all the Watergate annals through a series of paper transactions, bring Vesco back to the United States to of this mysterious payment. they would wind up owning a huge block stand trial. On the same afternoon that the of PRL stock for a mere fraction of its Thereafter, Vesco began the machi- $200,000 down payment was deposited on value. The Georgians' share had a paper nations that transferred the PRL stock Stans' desk, a Vesco aide called upon value of $12 million and an anticipated to the Georgians. They have not been former Attorney General John Mitchell cash value of $10 million. able, however, to cash in the stock. Our who picked up a telephone and arranged "It was briefly discussed," attested sources say Vesco holds the key to this an immediate appointment for the aide Herring, "me handling it for 10 percent final transaction and won't turn it until to sit down with then-SEC Chairman Bill and the Carter people getting the rest of his legal problems have been settled. Casey. This was followed by other meet- it...I was going to get $1 Footnote: Lee emphatically denied ings, which failed to resolve Vesco's million . . and Spencer was told he that he had asked Hamilton Jordan or SEC troubles. The disappointed Vesco would have $9 million to distribute." Charles Kirbo to fix Vesco's legal pro- felt obliged to skip the country. The two elated Georgians returned blems. Attorney General Griffin Bell Four years later, he was approached borne with Vesco's financial portfolio in told us that an internal decision had in Costa Rica by a group of Georgians a fat brown folder and with a detailed been made to drop the extradition at- who offered to fix his problems in Wash- memo from Vesco spelling out what he tempts against Vesco, free of outside ington for an appropriate financial con- wanted in return for the $10 million deal. pressure. THE WASHINGTON POST Thursday, September 14, 1978 N1d.13

Jack Anderson The Approach to Vesco in Costa Rica home with Vesco's financial portfolio in The anatomy of a political payoff, had masterminded Jimmy Carter's suc- cessful 1976 presidential campaign. a fat brown folder and with a detailed Robert Vesco style, has undergone con- memo from Vesco spelling gut what he siderable sophistication since the Lee was taken to Costa Rica by R.L. Herring, a wheeler-dealer, who had wanted in return for the $10 million Watergate era. deal. Herring reported that Lee deliv- : In 1972, the corporate freebooter de- made the original contact with Vesco. According to Herring's sworn account, ered the portfolio to Carter's trusted livered $200,000 to the Richard M. Nixon friend and unofficial adviser, Charles campaign chest in an apparent attempt he discussed with Lee how much they should soak Vesco for pulling the right Kirbo. Lee confirmed that he and Her-,: to influence his case before the Securi- ring had met with Kirbo but said Kirbd ties and Exchange Commission. strings in Washington. "Spencer said, 'Would $10 million be unreasonable?' I had refused to _become involved. Kirbo By today's standards, it was a gross said he had no recollection of the meet- transaction. The cash—$100 bills bound said, 'I don't know.' I mentioned this to Robert Piescol," recounted Herring. ing, but will accept Lee's version of it. in brown paper wrappers—was stuffed Lee attended the inaugural festivities into an old leather briefcase. Two cour- Vesco refused to make a cash offer- ing, citing his unhappy Watergate ex- in Washington on Jan. 20, 1977. Accord- iers picked up the briefcase in Vesco's ing to,a telephone log authenticated by New Jersey office, flew to Washington perience.. But he laid out a complex fi- nancial shell game that he promised the secretary who kept it, he left a mes- in a chartered plane and plunked the sage that day for Herring. Lee reported bag on the desk of Nixon's chief fund- would net the Georgians the $10 million they wanted. He spelled out the elaborate that he had "talked to Hamilton and raiser, . everything is fine." "Mr. Stans, here is your currency," details at a meeting with Herring and Lee at his luxurious Costa Rican retreat on A week after the inauguration, Lee one courier said tersely. He opened the up a corporation. briefcase, tilted it toward • Stans to the eve of Carter's inauguration. was in Nassau setting The fugitive financier produced a He was accompanied by Herring's attor- reveal the stacks of $100 bills and asked if he wished to verify the $200,000. thick portfolio of his holdings— "the ney, Fred Bartlett. They named the cor- "No," said Stans, "that won't be neces- whole complex of companies, 70 to 80 poration Southern Ventures Ltd.. the sary." No receipt was asked; no receipt companies that had been set up," re- same code name they had used in inter- . was given. called Herring. The flagship of this cor- nal memos to identify the Vesco matter. On the same afternoon that the $200,- porate fleet is Property Resources Ltd., Herring identified Southern Ventures 000 down payment was deposited on a cash-rich Bahamas-based company in his sworn account as "the company Stans' desk, a Vesco aide called upon known in financial circles simply as that would launder the money." An- .• former attorney general John Mitchell PRL. other Georgian. Norman Gay, stated in who picked up a telephone and arran- Vesco showed the Georgians how, an affidavit that Lee had told him about ged an immediate appointment for the through a series of paper transactions, "going to the Bahamas to set up a corpo- they would wind up owning a huge aide to sit down with then-SEC Chair- a mere fraction ration or corporations for the purpose man Bill Casey. This was followed by block of PRL stock for of bringing some of Vesco's money back * other meetings, which failed to resolve of Its value. The Georgians' share had a into the country." Vesco's SEC troubles. The disappointed paper value of $12 million and an antici- pated cash value of $10 million. Footnote: Lee emphatically denied Vesco felt obliged to skip the country. that he had asked Hamilton Jordan or Four years later, he was approached "It 'was briefly discussed," attested Herring, "me handling it for 10 percent Charles Kirbo to fix Vesco's legal pro- in Costa Rica by several Georgians who blems. Attorney General Griffin B. Bell offered to help him with his problems and the Carter people getting the rest of it . . . I was going to get $1 million . . . told us that an internal decision had ' in Washington for an appropriate finan- been made to drop the extradition 'at- cial consideration. One who turned up and Spencer was told he would have $9 million to distribute." tempts against Vesco, free of outside in Costa Rica was Spencer Lee N, a pressure. close friend of Hamilton Jordan who The two elated Georgians returned