Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!americast.com!americast.com!americast-post Newsgroups: americast.twt.metro From: americast-post@AmeriCast.Com Organization: American Cybercasting Approved: americast-post@AmeriCast.com Subject: Clifford defense to seek dismissal Date: Mon, 16 Nov 92 17:03:26 EST Message-ID: \SE B;METROPOLITAN;MONEY \SS (WS) \HD Clifford defense to seek dismissal \BY ASSOCIATED PRESS \DT NEW YORK NEW YORK (AP) - Clark Clifford's attorneys today step before a state judge, hoping to persuade him to dismiss an indictment against the former defense secretary in the BCCI scandal. It's uncertain when State Supreme Court Judge John A.K. Bradley will rule on the motions scheduled for this morning. A New York County grand jury indicted Mr. Clifford on July 29 on charges of receiving a bribe, conspiracy and scheme to defraud. In addition, Mr. Clifford's law partner, Robert Altman, was charged with nine similar counts. The charges stem from their roles in the 1981 takeover of what's now known as First American Bankshares Inc., the largest bank in the nation's capital, and their actions as executives of the bank. Prosecutors allege the two men deliberately misled regulators about who truly owned First American: Middle Eastern investors tied to the Bank of Credit and Commerce International, the massive international bank seized in 1991 amid charges of fraud and drug money laundering. In court papers filed last week, New York lawyer Charles A. Stillman, leader of Mr. Clifford's defense team, seeks to undermine that key allegation. He says Mr. Clifford and Mr. Altman, based on investigations and information available to them in the early 1980s, could not have known the Middle Eastern investors were secretly backed by BCCI. A review by lawyers and news accounts of BCCI in 1981 shows there was "certainly nothing to suggest to Mr. Clifford or anyone else that these extraordinarily wealthy individuals were pawns for BCCI," the papers said. Mr. Clifford and Mr. Altman have pleaded not guilty to all charges. Their trial was scheduled to begin Feb. 15. Mr. Stillman attacks another allegation that Mr. Clifford peddled his influence to speed regulators' approval of the First American takeover. The defense says independent reviews by regulators showed they found the First American investors had good reputations. Mr. Stillman concedes that BCCI played an advisory role for First American's Middle Eastern owners, but he argues the Federal Reserve Board and other bank regulators were informed by First American of this in the early 1980s. The defense is expected to argue once more that the 85-year-old Mr. Clifford, who briefly served as defense secretary under Lyndon Johnson, could die of a heart attack or other medical problems if he's forced to stand trial. "Neither medical science nor a miracle at Lourdes will make Clark Clifford physically fit to stand trial, now or at any time," Mr. Stillman said. Six physicians have examined Mr. Clifford - four at the request of the government - and they generally conclude he is unfit for trial. One who reviewed Mr. Clifford on behalf of the Justice Department, Dr. Albert Del Negro, said the defendant has "severe three-vessel coronary artery disease." That, combined with his advanced age and the stress of a trial, means Mr. Clifford probably will suffer a heart attack during the trial and he "stands a greater than 50 percent chance of dying," Dr. Del Negro said in court papers. Manhattan District Attorney Robert Morgenthau's office, which is leading the prosecution, has suggested to Judge Bradley that if Mr. Clifford's health was such a key concern, then his lawyers should ask the court to delay the trial and let him undergo heart bypass surgery. This article is copyright 1992 The Washington Times. Redistribution to other sites is not permitted except by arrangement with American Cybercasting Corporation. For more information, send-email to usa@AmeriCast.COM