HUD PROJECTS-Continued Westminster Park Apartments, Taylor, Michigan-Continued Hungary, Joint Venture, Battle Fowler: March 21, 1986 letter to John C. Whitehead from Samuel R. Pierce re The Related Companies and U.S. Postal Service: August 1, 1984 letter to Samuel R. Pierce from Martin L. Edelman, Page 349 351 August 13, 1984 letter to Martin Edelman from Starr Eckert, Confi- 353 INDIVIDUALS: Philip Abrams, Award for Excellence: February 21, 1985 letter to Philip Abrams from Deborah Dean re 354 Fred Brown: July 6, 1984 letter to Fred Brown, President, New York State Council 356 Gerald Carmen: Thomas D. Casey: September 7, (1988) phone message for Samuel R. Pierce from Gerald 357 March 16, 1985 letter to Deborah (Dean) from Thomas D. Casey re 358 April 22, 1986 note to Tom Casey from Deborah Dean re "Pachyderm 359 August 15, 1989 interview with Thomas D. Casey, Acting General Deputy Assistant Secretary for Fair Housing and Equal Opportunity conducted by HUD Inspector General with attachments ................. Thomas T. Demery: Hector Irastorza: 360 March 7, 1987 "Background Sketch of Invitees" from Tom Demery 380 May 9, 1986 "Extension of Detail" request for HUD employee Hector 381 June 9, 1986 letter to Samuel R. Pierce from Vice President George 382 July 31, 1989 anonymous letter to Hon. Lantos re Joseph Monticciolo. Lynda Murphy: Joseph Strauss: August 11, 1986 memo to Deborah Dean from Jim Walker re Hector Irastorza with referenced July 16, 1986 letter to Mary N. Rose, White House Office of Personnel from Deborah Dean attached......... Joseph Monticciolo: 384 386 March 28, 1986 note to Lynda Murphy from Deborah Dean with February 7, 1984 letter to David White from Deborah Dean re shar- 390 February 14, 1984 memo to Deborah Gore Dean, Special Assistant to 391 January 17, 1985 letter to Joseph Strauss from Deborah Dean re 392 August 18, 1986 letter to Joseph Strauss from Deborah Gore Dean 393 James Watt: June 6, 1986 letter to Samuel R. Pierce from James G. Watt re mod 394 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 December 8, 1984 Departmental Clearance and Approval_Record for HUD's Coinsurance Program with comments by Hunter Bourne with DRG Georgetown Apartments, Dallas, Texas; Woodscape Apartments, Lubbock, Texas; and Foxfire Apartments, Amarillo, Texas........ 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 12 Principal Staff Meeting re Mod Rehab investigations......... 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 (1) 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 committed any other crimes in connection with the administration of the Coinsurance Program from 1983 to 1989. or 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 rụn 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.) 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. No promises were made to him. That's all (I Tr. 212) the A Roman numeral preceding a transcript (Tr.) reference refers to the volume number of the printed record of 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. |