'Dollars For Dismissals'

NRO: Earle Had Indicted Companies Pledge Money To His Pet Cause

(National Review Online)  The agreement contained a number of other conditions. First, Sears agreed to "modify [its] website to provide for public access to and disclosure of corporate contributions made by the company." Second, Sears agreed to "not make any illegal corporate political contributions," either in Texas or any other state where such contributions are illegal. Third, Sears agreed to "cooperate with the State of Texas in its prosecution and investigation of any other person for any offense related to the corporate contribution made by defendant." And fourth, Sears agreed to a statement defining its political activity as a danger to the country. "The defendant further acknowledges that the historical basis for the Texas prohibition against corporate political contributions is that they constitute a genuine threat to democracy," the agreement said.

In return, Earle stipulated that the alleged offense charged in the indictment "appears to be restricted to a single incident within the State of Texas and does not constitute a continuing course of conduct." Earle also conceded that Sears had no intent to break the law and "has a history of good citizenship and high ethical standards." Earle noted that Sears had hired a compliance officer, and "has already begun a thorough review of the company's contributions policies and practices." Finally, the agreement said
Earle believed that dropping the charges "will serve to cause corporations to more closely monitor and evaluate their political contributions in Texas and throughout the United States."

Earle made similar deals with Cracker Barrel, Questerra, and Diversified Collections Systems. (Cracker Barrel agreed to pay $50,000, and the amount paid by the other two could not be determined by press time.) Cracker Barrel included the text of its agreement with Earle in a filing with the Security and Exchange Commission, where it can be viewed on the SEC's "Edgar" database.

FLIPPED?
Earle's deals with the corporations received relatively little press coverage in light of reporters' continuing interest in the DeLay angle of the story. What coverage there was, was not entirely accurate, according to the Sears sources.

On January 12 of this year, the Los Angeles Times reported that the corporations had "flipped," that is, agreed to cooperate with prosecutors. Citing unnamed sources, the paper reported that "information gleaned from the companies could be used as leverage to pressure remaining defendants and, potentially, to target more powerful members of the Republican Party in Texas and Washington."

The "flipped" reference rankled insiders. "That was absolutely not true," says one Sears source. "There was no shred of truth to it." Sears officials, the sources say, had already cooperated fully, telling Earle everything they knew about Sears' lone contribution to TRMPAC. In addition, the sources say, Sears had no knowledge of any illegal activity on the part of anyone else. The implication that Sears had turned state's evidence and might finger other companies involved in similarly illegal acts — which, of course, Sears denied it had committed — was, the sources contend, simply wrong.

In any event, the agreements between Earle and the corporations struck some outside observers as not only unusual but also indicative of the highly political nature of the case. "What does funding think tanks and polling organizations have to do with a violation of the criminal law?" asks former United States Attorney Joseph DiGenova, who has publicly supported DeLay. "This is an extortionate use of the indictment power." One close ally of DeLay calls it a "dollars for dismissals" scheme.

Making the situation worse, say DeLay allies, is what they believe is Earle's political motivation in pursuing DeLay. As an example, they point to Earle's attendance at a Democratic fundraiser in Dallas on May 12, in which Earle publicly discussed DeLay. For his part, Earle, an elected Democrat, has denied have any partisan purpose in the investigation. Whatever the case, Earle's dismissal of the charges against Sears, Cracker Barrel, and the other corporations has at least raised the question of whether his allegations were very strong in the first place.


Byron York, NR's White House correspondent, is the author of the new book The Vast Left Wing Conspiracy: The Untold Story of How Democratic Operatives, Eccentric Billionaires, Liberal Activists, and Assorted Celebrities Tried to Bring Down a President — and Why They'll Try Even Harder Next Time.