U.S. To Settle Scientist Anthrax Suit

(CBS/AP)  When anthrax-laced letters to Capitol Hill and media offices began killing people just weeks after 9/11, the FBI was under intense pressure to make an arrest. Clues in the case were tantalizing - hand-written letters referencing 9/11, filled with a deadly powdery anthrax, that seemed to be the creation of a well-trained scientist, CBS News justice correspondent Bob Orr reports.

Less than a year after the mailings that killed five people and sickened 17 others, Attorney General John Ashcroft pointed an accusing finger at former Army scientist Steven Hatfill.

But, he was never arrested, never charged. Now the government is forced to pay, Orr reports.

Friday, the Justice Department agreed to pay $5.8 million to settle a lawsuit with Hatfill, who was named as a person of interest in the 2001 anthrax attacks.

Hatfill claimed the Justice Department violated his privacy rights by speaking with reporters about the case.

Settlement documents were filed in federal court Friday. Both sides have agreed to the deal, according to the documents, and as soon as they are signed, the case will be dismissed.

The deal requires the Justice Department to pay $2.825 million dollars up front and buy Hatfill a $3 million annuity that will pay him $150,000 each year for 20 years.

"The United States does not admit to any violation of the Privacy Act and continues to deny all liability in connection with Dr. Hatfill's claims," Justice Department spokesman Brian Roehrkasse said in response to the settlement.

Court documents filed Friday say the two sides have reach an agreement that will lead to the case being dismissed. Hatfill's lawyer did not immediately return a call seeking comment.

Five people were killed and 17 sickened by anthrax that was mailed to lawmakers on Capitol Hill and members of the news media in New York and Florida just weeks after the Sept. 11, 2001, terrorist attacks.

After the attacks, Attorney General John Ashcroft called Hatfill "a person of interest" in the investigation and stories by various reporters followed. Hatfill had worked at the Army's infectious diseases laboratory from 1997 to 1999. The anthrax attacks remain unsolved.

The settlement likely also means that former USA Today reporter Toni Locy will no longer face up to $5,000-a-day in fines in the case. A federal judge ordered her to identify the officials who discussed Hatfill. When she said she couldn't remember, the judge ordered her to identify all her sources on the anthrax case.

She challenged that order, but a federal appeals court has yet to rule in the case. Because Hatfill's lawsuit is being settled, Locy's case will probably be dismissed as moot.

Locy, a former reporter with The Associated Press and other news organizations, now teaches journalism at West Virginia University.

[longduck69]

Bush, Cheney, Rice, Rumsfeld and Ashcroft aren''t very smart at covering their tracks. They should all be in prison in my opinion for obvious reasons. Look at what Hitler did to the people of Germany. You can see they read his playbook.

[samsel3]

The answer to the Anthrax mystery lies with Bush, Cheney and the CIA strategists who wanted to drum up support for the invasion and regime change of five countries. Putting the American people in fear of terrorism for their dirty game on the world stage was a disgusting choice. Using a genetically fingerprinted US Army military grade Anthrax was not very smart. They never thought anyone would research the materials genetic fingerprint. Money, power, greed for gain, they all need to be indicted for crimes against humanity in the World Court where justice will be served for all.

[downtowner97]

Everyone here seems to miss the point that the anthrax letters and copies of the Patriot Act went out at the same time. You''re a member of congress, and there''s a pile of mail in your office that may kill you, and in the middle of the pile of mail is a thick envelope containing the Patriot Act. Hmm. Might as well just vote for it instead of risking a quick, horrible death.

[ioweign]

Posted by IOWEIGN at 12:24 PM

Yet, we know of innocent people (a Canadian citizen) who was abducted and tortured, yet even when they realized he was innocent, held incomunicado for months. Has he been paid millions of dollars in compensation? No. This man, virtually no one, is getting a very nice package at taxpayer expense, from a government that can do no wrong. How nice. Maybe he was just a diversionary for the time being, regardless they are taking care of him very nicely.

Posted by rudy654 at 08:54 PM : Jun 28, 2008

He is one of over 200 cases that have gone to court as a result of the Boosh Administration. I read somewhere the settlements from these Boosh et al "errors" is approaching $100 million...

[rudy654-2009]

Posted by IOWEIGN at 12:24 PM

Yet, we know of innocent people (a Canadian citizen) who was abducted and tortured, yet even when they realized he was innocent, held incomunicado for months. Has he been paid millions of dollars in compensation? No. This man, virtually no one, is getting a very nice package at taxpayer expense, from a government that can do no wrong. How nice. Maybe he was just a diversionary for the time being, regardless they are taking care of him very nicely.

[rudy654-2009]

Posted by DemsUnity at 12:20 PM

Evangelical freak conservatives and Islamic terrorists: God help us if they ever unite. God help us if they ever realize they are exactly the same.

[aht772e]

just curious, and slightly off the point. Sinc ewhen does the government PURCHASE a $3million dollar annuity that pays $150,000 a year for 20 years. Doesn''t that mean that the government is purchasing a financial instrument providing 0%interest over 20 years? And even if the report is incorrect, why are we, the taxpayers, purchasing instruments to pay off 20 year "loans" (a sort of reverse mortgage) when the yearly budget is in the trillions of dollars? Couldn''t the justice department simply BUDGET $150,000 a year for the next 20 years, thus saving the taxpayers the profit some investment firm will make off this deal?

[samsel3]

The answer to the Anthrax mystery lies with Bush, Cheney and the CIA strategists who wanted to drum up support for the invasion and regime change of five countries. Putting the American people in fear of terrorism for their dirty game on the world stage was a disgusting choice. Using a genetically fingerprinted US Army military grade Anthrax was not very smart. They never thought anyone would research the materials genetic fingerprint. Money, power, greed for gain, they all need to be indicted for crimes against humanity in the World Court where justice will be served for all.

[samsel3]

In an interview published by the French, dedefensa.org journalist Amy Goodman''s interview with General Wesley Clark. Clark stated he viewed a defense department memo that described how the U.S. was going to take out seven countries in five years...."starting with Iraq,then Syria and Lebanon, then Libya,then Somalia and Sudan, and back to Iran."

On September 14,2002 Rep. James McDermott at a Capitol Hill Briefing said that politics and oil, not fear that Iraq will use WMD are driving factors behind the presidents call for regime change. McDermott said there was an organized effort to squelch such discussions. "The political operatives in the white house have been very careful to spin it away from oil. Anytime anybody sees a connection they spin it the other way".

[ioweign]

Steven Hatfill is guilty as sin, and he knows it.

Posted by Extremophil at 10:15 AM : Jun 28, 2008

He had the knowledge, skills and ability but no motive, no equipment and DOJ had no proof.

The Boosh Administration''s incompetence continues...