June 1, 1984 memo to Lance Wilson from John Knapp, General Counsel re Post-employment Restrictions...... September 19, 1986 letter to Eileen Doherty, White House Office of Private Sector Initiatives from Joseph Monticciolo recommending individuals including Lance Wilson for Presidential Awards. Biog- raphy of Lance Wilson follows.. October 30, 1986 Financial Statement of Lance Wilson.. Check deposited January 22, 1988 for $40,000 to Lance Wilson from David M. Barrett, Barrett, Montgomery & Murphy.. MODERATE REHABILITATION PROGRAM: Undated memo to Marjorie Arsht from Robert S. Kenison, Associate General Counsel, Office of Assisted Housing and Community Develop- ment re Section 8 Moderate Rehabilitation: Procedure for Central December 30, 1986 memo to Samuel R. Pierce from Thomas T. Demery re Section 8 Moderate Rehabilitation Program.... September 25, 1987 memo to field from Thomas T. Demery re Fiscal Year 1988 Section 8 Moderate Rehabilitation funds. December 8, 1984 Departmental Clearance and Approval Record for HUD's Coinsurance Program with comments by Hunter Bourne with January 28, 1986 memo to Secretary Pierce from Deborah Gore Dean re Staff Meeting, Tuesday, January 28, 1986 followed by draft of memo August 25, 1986 memo to Secretary Pierce from Deborah Gore Dean re Staff Meeting, Tuesday, August 2, and Last Week's Highlights..... July 12, 1988 memo to Samuel R. Pierce from Thomas D. Casey re July June 5, 1987 note to Mr. Rhinesmith from Sherrill Nettles-Hawkins, Secretary to Deborah Dean re referenced June 5, 1987 transmittal slip to Deborah Dean from James E. Baugh with Darst-Webbe Moderniza- During the past 14 months, the Employment and Housing Subcommittee has uncovered widespread abuses, influence peddling, blatant favoritism, monumental waste and gross mismanagement at the Department of Housing and Urban Development during the tenure of Secretary Samuel R. Pierce, Jr. We have held 27 hearings which have lasted more than 120 hours. Some 50 witnesses have appeared before the subcommittee. Dozens of other individuals, both inside and outside HUD, have been interviewed by subcommittee staff as part of our investigation. Based on this extensive record, we believe that the jurisdictional mandate of the Independent Counsel should be expanded. The Court, in its Order of March 1, 1990, appointing the Independent Counsel, limited the jurisdiction to an investigation into whether Samuel Pierce and other officials of HUD conspired to defraud the United States or committed any other Federal crimes relating to the administration of the selection process of HUD's Moderate Rehabilitation Program from 1984 to 1988. By letter of referral dated May 25, 1990, the Attorney General advised the Independent Counsel that it was proper for the investigation to be expanded to include the administration of the selection process of HUD'S Urban Development Action Grant (UDAG) program and the programs within the Secretary's Discretionary Fund (Technical Assistance and Special Projects). The Attorney General took this action based on the testimony of former HUD Deputy Assistant Secretary DuBois Gilliam before our subcommittee on April 30, May 2, and May 4, 1990. Earlier this week the Court authorized the Independent Counsel to investigate the UDAG program, the Technical Assistance program, and Special Projects. After a careful review of the voluminous hearing record and based on our lengthy investigation, we urge and request that the Independent Counsel's investigation into possible criminal wrongdoing by former HUD Secretary Samuel Pierce be further expanded into the following three specific areas: (1) whether 2 Secretary Pierce committed perjury, in violation of section 1621 of title 18, of the United States Code, during his sworn testimony before the subcommittee on May 25, 1989; (2) the relationship between Secretary Pierce, his former law firm, Battle, Fowler, Jaffin and Kheel, and Lance Wilson, and whether through their actions and dealings the Federal conspiracy statute (18 U.S.C. section 371), bribery statute (18 U.S.C. section 201(b)(2)), conflict of interest law (18 U.S.C. section 208) or any other criminal law was violated; and (3) whether Secretary Pierce and other HUD officials conspired to defraud the United States or committed any other crimes in connection with the administration of the Coinsurance Program from 1983 to 1989. I. Perjury On May 25, 1989, former HUD Secretary Samuel Pierce testified under oath before our subcommittee. During this testimony, Secretary Pierce tried to distance and disassociate himself from the abuses and political favoritism at HUD during his tenure. For example, when Secretary Pierce was asked about being in charge of the Moderate Rehabilitation Program, he responded, "No. Actually, in this particular program, it's run by the Office of the Assistant Secretary of Housing." (I Tr. 226) When it was pointed out to him that the Office of Housing is in HUD and he was the Secretary of HUD, Mr. Pierce likened it to the Defense Department and the Secretary of Defense not knowing all the things that go on there. (Id.) 1 Secretary Pierce denied any knowledge of his Executive Assistant Deborah Dean directing Assistant Secretary for Housing Thomas Demery to sign a nine-project Section 8 Moderate Rehabilitation grant. (I Tr. 255) He denied discussing any projects with Lance Wilson. (I Tr. 230) He denied that former Interior Secretary James Watt had used political influence: Mr. PIERCE. James Watt called me, came in to see me and talked about housing. I don't even remember the details, but I told him the same thing. We will look at his project very carefully and I turned him over to the staff in housing who handled the particular thing. That's all . No promises were made to him. (I Tr. 212) 1 A Roman numeral preceding a transcript (Tr.) reference refers to the volume number of the printed record of the subcommittee hearings on "Abuses, Favoritism, and Mismanagement in HUD Programs." A hearing date preceding a Tr. reference refers to the stenographic transcript of a hearing that has not yet been printed. 3 Mr. FRANK. Do you think that the fact that Mr. Watt- Mr. PIERCE. I don't think Mr. Watt got any special choice, because of any special attention, no. * * Mr. FRANK. .but you really believe that Mr. Watt did not help that project- Mr. PIERCE. I don't think so. (I Tr. 219-220) While most of Secretary Pierce's testimony on May 25 dealt specifically with the Moderate Rehabilitation Program, some of his statements applied to other programs as well. For example, when people would ask him to help them get something, his response would be that it would be given very careful consideration: Mr. PIERCE. Now, I'd like to make very clear, over time, people ask me to help them get all kinds of benefits and things like that and my answer to them has always been the same thing. It's been basically that we'll give your request very careful consideration, and if your request suits all of our requirements you'll have a chance of getting what you're seeking, and that's what I did and over and over and geez, in eight years, I'll bet you hundreds of people, perhaps thousands, Republicans and Democrats, Governors, Mayors, Congressmen, Senators-- gee-developers, contractors and so on and so on have asked me to help them get something. I've always done this because I say, we'll look at it very carefully and I mean that. We'll look at their project very carefully but they must satisfy whatever the requirements are for them to get the request. If their project does not satisfy those requirements, they can't get their request. (I Tr. 211) It is obvious that Secretary Pierce did not give us the full story during his May 25th testimony. However, some of his statements stand out in that they are inconsistent and at odds with the sworn testimony of other witnesses. 1. I never told these people to fund anything. |