ROANOKE TIMES

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: SATURDAY, May 26, 1990                   TAG: 9005260117
SECTION: VIRGINIA                    PAGE: A8   EDITION: METRO 
SOURCE: VICTORIA RATCLIFF STAFF WRITER
DATELINE:                                 LENGTH: Medium


LAROUCHE AIDE GUILTY OF FRAUD

Lyndon LaRouche associate Richard E. Welsh was found guilty Friday of one felony and three misdemeanor counts of securities fraud.

Welsh, 41, of Leesburg, the chief accountant for the LaRouche organization's finance department, pleaded guilty last week in a plea bargain arrangement with Senior Assistant Attorney General John Russell, who is prosecuting the case.

According to the terms of the agreement, Welsh will receive a suspended sentence on the felony charge and the sentences on the three misdemeanors will run concurrently. The maximum sentence he could receive on the misdemeanor charges is 12 months in jail.

Welsh entered the plea on the condition that he be allowed to present evidence that his case should be dismissed for a variety of reasons including vindictive, selective and bad faith prosecutions.

According to Welsh's plea agreement, he would be allowed to withdraw his guilty plea if an appeal court agrees with his arguments to dismiss the case.

Welsh's attorneys have spent more than a week calling witnesses from the Anti-Defamation League and various government agencies that investigated the LaRouche organization in an effort to prove they conspired to "get LaRouche."

LaRouche testified that the case against Welsh was simply another example of an organized effort by the Anti-Defamation League of B'nai B'rith and various governmental agencies to destroy LaRouche and his political organization.

Welsh will remain free on bond until his sentencing hearing Aug. 3.

The cases of more than a dozen LaRouche followers were moved to Roanoke County from Loudoun County because of pretrial publicity.

LaRouche, a losing candidate for president who is serving 15 years in federal prison for mail fraud and tax evasion, testified at the trial Wednesday.

LaRouche's associates are charged with violating the Virginia Securities Act by soliciting loans from people in an attempt to raise funds for the organization while knowing the group never would be able to repay the loans.

Four LaRouche associates already have been convicted on those charges and six of his associates were convicted of related federal charges.



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