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Union Calendar No. 595 106Th Congress, 2D Session –––––––––– House Report 106–1027

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Union Calendar No. 595 106Th Congress, 2D Session –––––––––– House Report 106–1027 Union Calendar No. 595 106th Congress, 2d Session ±±±±±±±±±± House Report 106±1027 JANET RENO'S STEWARDSHIP OF THE JUSTICE DEPARTMENT: A FAILURE TO SERVE THE ENDS OF JUSTICE TENTH REPORT BY THE COMMITTEE ON GOVERNMENT REFORM together with MINORITY VIEWS Volume 1 of 2 Available via the World Wide Web: http://www.gpo.gov/congress/house http://www.house.gov/reform DECEMBER 13, 2000.ÐCommitted to the Committee of the Whole House on the State of the Union and ordered to be printed VerDate 11-MAY-2000 16:18 Dec 15, 2000 Jkt 067356 PO 00000 Frm 00001 Fmt 6012 Sfmt 6012 E:\PICKUP\HR1027V1.XXX pfrm11 PsN: HR1027V1 JANET RENO'S STEWARDSHIP OF THE JUSTICE DEPARTMENT: A FAILURE TO SERVE THE ENDS OF JUSTICE VerDate 11-MAY-2000 16:25 Dec 15, 2000 Jkt 067356 PO 00000 Frm 00002 Fmt 6019 Sfmt 6019 E:\PICKUP\HR1027V1.XXX pfrm11 PsN: HR1027V1 Union Calendar No. 595 106th Congress, 2d Session ±±±±±±±±±± House Report 106±1027 JANET RENO'S STEWARDSHIP OF THE JUSTICE DEPARTMENT: A FAILURE TO SERVE THE ENDS OF JUSTICE TENTH REPORT BY THE COMMITTEE ON GOVERNMENT REFORM together with MINORITY VIEWS Volume 1 of 2 Available via the World Wide Web: http://www.gpo.gov/congress/house http://www.house.gov/reform DECEMBER 13, 2000.ÐCommitted to the Committee of the Whole House on the State of the Union and ordered to be printed U.S. GOVERNMENT PRINTING OFFICE 67±356 WASHINGTON : 2000 VerDate 11-MAY-2000 16:18 Dec 15, 2000 Jkt 067356 PO 00000 Frm 00003 Fmt 5012 Sfmt 5012 E:\PICKUP\HR1027V1.XXX pfrm11 PsN: HR1027V1 COMMITTEE ON GOVERNMENT REFORM DAN BURTON, Indiana, Chairman BENJAMIN A. GILMAN, New York HENRY A. WAXMAN, California CONSTANCE A. MORELLA, Maryland TOM LANTOS, California CHRISTOPHER SHAYS, Connecticut ROBERT E. WISE, JR., West Virginia ILEANA ROS-LEHTINEN, Florida MAJOR R. OWENS, New York JOHN M. MCHUGH, New York EDOLPHUS TOWNS, New York STEPHEN HORN, California PAUL E. KANJORSKI, Pennsylvania JOHN L. MICA, Florida PATSY T. MINK, Hawaii THOMAS M. DAVIS III, Virginia CAROLYN B. MALONEY, New York DAVID M. MCINTOSH, Indiana ELEANOR HOLMES NORTON, District of MARK E. SOUDER, Indiana Columbia JOE SCARBOROUGH, Florida CHAKA FATTAH, Pennsylvania STEVEN C. LATOURETTE, Ohio ELIJAH E. CUMMINGS, Maryland MARSHALL ``MARK'' SANFORD, South DENNIS J. KUCINICH, Ohio Carolina ROD R. BLAGOJEVICH, Illinois BOB BARR, Georgia DANNY K. DAVIS, Illinois DAN MILLER, Florida JOHN F. TIERNEY, Massachusetts ASA HUTCHINSON, Arkansas JIM TURNER, Texas LEE TERRY, Nebraska THOMAS H. ALLEN, Maine JUDY BIGGERT, Illinois HAROLD E. FORD, JR., Tennessee GREG WALDEN, Oregon JANICE D. SCHAKOWSKY, Illinois DOUG OSE, California ÐÐÐ PAUL RYAN, Wisconsin BERNARD SANDERS, Vermont HELEN CHENOWETH-HAGE, Idaho (Independent) DAVID VITTER, Louisiana KEVIN BINGER, Staff Director DANIEL R. MOLL, Deputy Staff Director JAMES C. WILSON, Chief Counsel DAVID A. KASS, Deputy Counsel and Parliamentarian KRISTI L. REMINGTON, Senior Counsel JIM SCHUMANN, Counsel KIMBERLY A. REED, Counsel MARIA P. TAMBURRI, Assistant to the Chief Counsel ROBERT A. BRIGGS, Chief Clerk PHILIP SCHILIRO, Minority Staff Director PHILIP S. BARNETT, Miniority Chief Counsel KRISTIN AMERLING, Minority Deputy Chief Counsel PAUL WEINBERGER, Minority Counsel (II) VerDate 11-MAY-2000 03:09 Dec 15, 2000 Jkt 067356 PO 00000 Frm 00004 Fmt 5904 Sfmt 5904 E:\HR\OC\HR1027V1.XXX pfrm11 PsN: HR1027V1 LETTER OF TRANSMITTAL HOUSE OF REPRESENTATIVES, Washington, DC, December 13, 2000. Hon. J. DENNIS HASTERT, Speaker of the House of Representatives, Washington, DC. DEAR MR. SPEAKER: By direction of the Committee on Govern- ment Reform, I submit herewith the committee's tenth report to the 106th Congress. DAN BURTON, Chairman. (III) VerDate 11-MAY-2000 03:09 Dec 15, 2000 Jkt 067356 PO 00000 Frm 00005 Fmt 6601 Sfmt 6601 E:\HR\OC\HR1027V1.XXX pfrm11 PsN: HR1027V1 VerDate 11-MAY-2000 03:09 Dec 15, 2000 Jkt 067356 PO 00000 Frm 00006 Fmt 6601 Sfmt 6601 E:\HR\OC\HR1027V1.XXX pfrm11 PsN: HR1027V1 C O N T E N T S Page Findings of the Committee on Government Reform ............................................. VII I. The Attorney General's conflicted investigation ......................................... 1 A. Background on the Independent Counsel Act ................................... 3 B. A rocky start: early conflicts in the Justice Department's cam- paign finance investigation ............................................................... 9 C. Attorney General Reno changed her interpretation of the Inde- pendent Counsel Act .......................................................................... 14 D. Memoranda from FBI Louis J. Freeh and Task Force Supervising Attorney Charles La Bella recommending that an independent counsel be appointed .......................................................................... 19 E. Department of Justice rebuttal memoranda ..................................... 44 F. Department of Justice's bad faith in its application of the Inde- pendent Counsel Act .......................................................................... 54 G. The failure to appoint a special counsel for Vice President Gore .... 59 II. The failures of the Justice Department investigation ................................ 63 A. The Justice Department failed to pursue the December 15, 1995, coffee tape ........................................................................................... 63 B. The Justice Department has failed to question the President and Vice President effectively .................................................................. 71 C. The Justice Department failed to pursue relevant documents ........ 74 D. The Justice Department failed to pursue key individuals and entities ................................................................................................ 84 E. The Justice Department failed to pursue the Kansas conduit con- tribution scheme ................................................................................. 107 F. The Justice Department failed to investigate leaks harmful to the campaign fundraising investigation ........................................... 116 III. The Justice Department's political interference with congressional over- sight ............................................................................................................. 123 A. Failure to comply with subpoenas for the Freeh and La Bella memoranda ......................................................................................... 123 B. Failure to produce the Conrad memorandum ................................... 143 C. The Justice Department's political gamesmanship ........................... 146 IV. The favorable treatment of the Attorney General's friends ....................... 154 A. The Justice Department's handling of the Soka Gakkai matter ..... 154 B. Robert Bratt ......................................................................................... 181 Exhibits .................................................................................................................... 188 APPENDIXES Appendix 1.ÐCorrespondence between the committee and the Justice Depart- ment ...................................................................................................................... 638 Appendix 2.ÐKansas Democratic party disclosure forms (receipts and dis- bursements) .......................................................................................................... 1862 VIEWS Minority views of Hon. Henry A. Waxman, Hon. Tom Lantos, Hon. Major R. Owens, Hon. Edolphus Towns, Hon. Paul E. Kanjorski, Hon. Carolyn B. Maloney, Hon. Eleanor Holmes Norton, Hon. Chaka Fattah, Hon. Elijah E. Cummings, Hon. Dennis J. Kucinich, Hon. Rod R. Blagojevich, Hon. Danny K. Davis, Hon. John F. Tierney, Hon. Jim Turner, Hon. Harold E. Ford, Jr., and Hon. Janice D. Schakowsky ................................................... 2008 Exhibits .................................................................................................................... 2034 (V) VerDate 11-MAY-2000 03:09 Dec 15, 2000 Jkt 067356 PO 00000 Frm 00007 Fmt 5904 Sfmt 5904 E:\HR\OC\HR1027V1.XXX pfrm11 PsN: HR1027V1 VerDate 11-MAY-2000 03:09 Dec 15, 2000 Jkt 067356 PO 00000 Frm 00008 Fmt 5904 Sfmt 5904 E:\HR\OC\HR1027V1.XXX pfrm11 PsN: HR1027V1 FINDINGS OF THE COMMITTEE ON GOVERNMENT REFORM The Attorney General of the United States has exhibited a crit- ical lack of judgment in her stewardship of the campaign fund- raising investigation. Furthermore, the reputation of the Justice Department has suffered greatly during her tenure. Given the evi- dence compiled by the committee, it is hard to escape the conclu- sion that the Attorney General has acted politically to benefit the President, the Vice President, and her own political party. Specifi- cally: • The Attorney General had a conflict of interest in the Justice Department investigation of possible criminal wrongdoing involving the President and Vice President. Any investigation of the campaign fundraising scandal required a detailed examination of the actions of the President and Vice President. The Justice Department is wholly unsuited to con- duct such an investigation, and the repeated failures of the De- partment during the last 4 years proves that the Attorney Gen- eral cannot investigate her superiors. • When investigative matters arose that touched upon the President, the Vice President, or the Democratic party, the Attorney General abandoned her expressed belief that an appearance of conflict was to be avoided by the Nation's chief law enforcement official. On May
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