Reprinted from The Washington Times , 5am -- April 30, 1998

Judge rules out Lewinsky immunity


By Jerry Seper
THE WASHINGTON TIMES


A federal judge ruled yesterday that Monica Lewinsky does not have an immunity deal with independent counsel Kenneth W. Starr, paving the way for her testimony in the sex-and-lies grand jury investigation.
      The ruling by U.S. District Judge Norma Holloway Johnson was issued under seal earlier this month, according to lawyers and others close to the grand jury probe.
      Miss Lewinsky and Mr. Starr have been caught in a logjam over her pending testimony. Her attorney, William H. Ginsburg, asked Judge Johnson last month to enforce an unlimited immunity deal he said Whitewater prosecutors had approved for his client.
      Mr. Starr denied ever agreeing to such a deal and, according to the sources, was looking to break the impasse with an indictment to bring Miss Lewinsky before the grand jury. Prosecutors considered charging the former White House intern with lying in a sworn affidavit when she denied having a sexual relationship with President Clinton.
      The independent counsel can now move to enforce a subpoena demanding Miss Lewinsky's grand jury appearance. The ruling was first reported by ABC and CBS during their evening news programs.
      The grand jury is investigating accusations by Miss Lewinsky on 20 hours of secretly recorded audiotapes that she had an 18-month affair with Mr. Clinton and that the president and White House insider Vernon E. Jordan Jr. told her to deny it in the Paula Jones sexual misconduct lawsuit.
      Miss Lewinsky, who went to work at the White House in June 1995 as a 21-year-old unpaid intern and was transferred in April 1996 to the Pentagon, denied in a January affidavit in the Jones suit that she had been involved sexually with the president. A "proffer," or statement, she offered to Mr. Starr during immunity negotiations contradicted the affidavit, the sources said.
      Mr. Clinton and Mr. Jordan have denied the accusations. The president testified under oath in the Jones suit that he never had sex with Miss Lewinsky and that he did not believe he ever was alone with her in the Oval Office, although he said he could not remember.
      Mr. Starr's office had no comment, as is its custom, and Mr. Ginsburg said he knew of "no order" having been issued in the case. Without the full immunity Mr. Ginsburg sought, any refusal to testify would expose Miss Lewinsky to jail for contempt or indictment for perjury.
      The White House had no comment, but Mr. Clinton was expected to face questions on the scandal at a news conference today.
      Meanwhile, Hillary Rodham Clinton's attorney yesterday defended the first lady's decision not to answer questions put to her by Whitewater prosecutors in a taped deposition Saturday.
      "She appropriately declined to answer two questions which inquired into conversations she may have had with her husband, conversations that plainly fell under the long-established common law privilege for marital communications," David E. Kendall said.
      It is not known what specific questions Mrs. Clinton declined to answer, although the White House said Mr. Starr's office focused on "matters concerning the Rose Law Firm's legal representation" of Madison Guaranty Savings and Loan Association in Arkansas and Mrs. Clinton's "relationship with related individuals."
      The two questions were the only ones asked that covered conversations between the Clintons, sources said.
      They said that, as far as they knew, Mrs. Clinton did not decline to answer any other questions and did not try to invoke executive privilege.
      Questions about Mrs. Clinton's deposition surfaced as the Whitewater grand jury in Little Rock, Ark., was shown the five-hour tape. Grand jurors continue to investigate the first lady's role in the failed Castle Grande real estate project to determine whether indictments are warranted. Prosecutors are divided over whether an indictment should be sought against Mrs. Clinton on charges of lying about legal work she did for Castle Grande, which was financed by Madison.
      The videotape gives the grand jury its first opportunity to see Mrs. Clinton directly answer questions about subjects until now addressed only by other witnesses or in documents submitted by prosecutors.
      Mrs. Clinton told the Federal Deposit Insurance Corp. and the Resolution Trust Corp. under oath that she did limited legal work for Madison and did little or no work for Castle Grande. She told the same story to Whitewater prosecutors at a July 1995 White House deposition.
      In recent weeks, the grand jury has examined the roles of Mrs. Clinton and her Rose firm partner Webster L. Hubbell in the writing of an option agreement for Castle Grande. Federal regulators said it "facilitated" the payment of a $300,000 commission to Mr. Hubbell's father-in-law, Seth Ward, a Madison official. The option negated Mr. Ward's liability in the project, and while it was never exercised, it disguised the reason for the payment.
      Castle Grande was called a "sham" by federal regulators.
      Mrs. Clinton's videotaped testimony followed by less than a week the appearance of former Arkansas Gov. Jim Guy Tucker before the same grand jury. Tucker, a cooperating witness, is believed to have testified about the Castle Grande project, which he controlled, and Madison, where he was the thrift's attorney.
      The grand jury has reviewed Rose firm billing records found in the White House living quarters in January 1996. They show that Mrs. Clinton billed Madison for 60 hours of legal work, including work on Castle Grande. The records were found in the White House living quarters' book room. It has never been determined how they got to the residence.

  • Frank J. Murray and Warren P. Strobel contributed to this report.

Copyright 1998 News World Communications, Inc.

Reprinted with permission of
The Washington Times.

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