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

DATE: TUESDAY, July 24, 1990                   TAG: 9007240498
SECTION: NATIONAL/INTERNATIONAL                    PAGE: A/1   EDITION: EVENING 
SOURCE: Associated Press
DATELINE: WASHINGTON                                LENGTH: Medium

EXPANDED HUD PROBE REQUESTED

A congressional panel asked a special prosecutor today to broaden his probe of former Housing Secretary Samuel Pierce, saying it has evidence that Pierce steered money to clients of his former law firm and may have committed perjury.

The House Government Operations housing subcommittee, which has been conducting a 14-month-long investigation, specifically asked independent counsel Arlin Adams to widen his investigation into three areas of possible wrongdoing at the Department of Housing and Urban Development:

Whether Pierce committed perjury during the only appearance before the subcommittee, on May 25, 1989, in which he gave detailed testimony. The congressional panel said many of Pierce's statements were contradicted by subsequent testimony. Pierce essentially maintained that he did not play a direct role in the awarding of housing projects.

Whether Pierce conspired with others to steer HUD business to clients of Battle, Fowler, Jaffin and Kheel, the Wall Street law firm where Pierce had been a partner. It also questions whether Pierce conspired with his former top aide, Lance Wilson, in connection with contract awards.

Whether Pierce and other HUD officials "conspired to defraud" the government in the handling of the Department of Housing and Urban Development's coinsurance program, which provided backing for housing development projects during the Reagan administration from 1981-89.

Thomas Glynn, a partner in Battle, Fowler said, "We are confident that no member or employee of the firm has engaged in any inappropriate conduct."

Pierce's attorney, Paul Perito, was not immediately available for comment.

by CNB