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

DATE: WEDNESDAY, July 25, 1990                   TAG: 9007250276
SECTION: NATIONAL/INTERNATIONAL                    PAGE: A/2   EDITION: METRO 
SOURCE: Associated Press
DATELINE: WASHINGTON                                LENGTH: Medium

NEW EVIDENCE OFFERED BY PANEL ON HUD'S PIERCE

A House panel urged a special prosecutor Tuesday to widen the investigation of former HUD Secretary Samuel Pierce, saying it had evidence Pierce steered lucrative federal grants to his former law firm.

In its most detailed finding, congressional investigators questioned whether Pierce's former law firm, a former top aide and Pierce himself may have violated federal bribery, conspiracy and conflict-of-interest laws during his tenure as secretary of Housing and Urban Development.

The panel said evidence also suggested Pierce, who served throughout the eight-year Reagan administration, may have committed perjury at a panel hearing when he denied involvement in the awarding of key grants.

Urging independent counsel Arlin Adams to substantially expand his investigation, the House Government Operations subcommittee said its 14-month investigation uncovered "widespread abuses, influence peddling, blatant favoritism, monumental waste and gross mismanagement" at HUD during Pierce's tenure.

Its findings were offered in a letter signed by all eight subcommittee members - three Republicans and five Democrats, including Chairman Tom Lantos, D-Calif.

The letter asked Adams to expand his probe to perjury, Pierce's dealings with the law firm and aide Lance Wilson, and his role in HUD's co-insurance program in which the federal government shared responsibility for backing large housing development projects.

Congressional investigators said there was previously undisclosed evidence gathered by the panel's staff involving Pierce's dealings with the New York law firm Battle, Fowler, Jaffin and Kheel.

Documents found in HUD files, the panel said, show that the firm frequently sought Pierce's assistance in HUD-related matters. It said they included having Pierce meet with their client to discuss a development grant application and helping secure housing subsidies.

It also recounted Pierce assistant Deborah Gore Dean's help in two projects under the Section 8 Moderate Rehabilitation program.

The panel also said it had evidence that Wilson, who later became a housing specialist with the investment company Paine Webber, and Pierce engaged in activities aimed at benefiting each other.

by CNB