Politics

New Democratic Fund-raising Flap?

By CBSNews.com staff CBSNews.com staff

September 14, 2000 / 7:55 AM EDT / CBS

A trial lawyer at the center of a dispute with Texas over tobacco litigation has given hundreds of thousands of dollars from his law firm to the Democratic Party since Vice President Al Gore was asked to call him four years ago to seek a campaign contribution, according to an article in The New York Times.

Memos being reviewed by Justice Department investigators suggest Democratic officials were concerned that the donor, Walter Umphrey, wouldn't begin writing six-figure checks until after President Clinton vetoed limits on liability lawsuits

But an aide to Gore dismissed the matter Wednesday night, saying the vice president never made the suggested phone call to Umphrey.

The Times reports that several law-enforcement officials say the appearance of "heavy-handed fund-raising" had led Robert Conrad Jr., head of the Justice Department's campaign finance task force, to open a preliminary investigation into the matter.

Conrad previously recommended a special counsel to investigate Gore in connection with his statements about fund raising. Attorney General Janet Reno declined to appoint one.

At her weekly news conference on Thursday, Reno refused to say whether the task force had begun a preliminary inquiry into the call sheets and the donations. But she advised caution about any such allegation during an election campaign.

"As we approach the election, I think there will be more issues like this raised, and we should be very careful,'' Reno said. "We're going to review everything that comes up. ... I'm going to approach it with respect to anybody concerned, based on the evidence and the law."

The Times reported a briefing memorandum prepared for Donald Fowler, then Democratic national chairman, instructed him to tell Umphrey in late 1995 that Fowler knew Umphrey would "give $100K when the president vetoes tort reform, but we really need it now," so "please send ASAP."

Prior to the preparation of the Dec. 13, 1995 call sheet, another document shows Gore was asked to call Umphrey and solicit a donation.

A Gore aide, speaking on condition of anonymity, said the vice president did not make the call. The aide dismissed the notion of any improper connection between the vice president and Umphrey's donations.

Umphrey is one of five trial lawyers at the center of a legal dispute between the Republican Texas attorney general and attorneys who represented the state in litigation to recover money from tobacco companies for health care costs.

The trial lawyers are receiving $3.3 billion for the tobacco case. Texas Attorney General John Cornyn is challenging them and seeking to question five lawyers, including Umphrey, who negotiated the state's tobacco settlement.

Democratic Party officials told Reuters they believed Republican sources had leaked the story to The Times.

"I think it's curious that (the article is apearing) so close to the election,'' Gore spokesman Jim Kennedy said. "The Republicans and others have had this for three years. Why would it be so important now if it wasn't then?''

Campaigning in California on Thursday, Republican presidential candidate George W. Bush seized on the issue, saying Gore "may have crossed a serious line: solicitation of campaign contributions linked to a presidential veto."

Bush added, "The appearance is really disturbing. Americans are tired of investigations and scandals. The best way to get rid of them is to elect a new president who will restore honor and dignity to The White House."