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

DATE: THURSDAY, May 18, 1995                   TAG: 9505180059
SECTION: NATIONAL/INTERNATIONAL                    PAGE: A-1   EDITION: METRO 
SOURCE: Associated Press
DATELINE: WASHINGTON                                LENGTH: Medium

BROWN INQUIRY SOUGHT

An independent counsel should investigate Commerce Secretary Ron Brown's finances, including his failure to disclose details of payments from a former business partner, Attorney General Janet Reno said in court papers unsealed Wednesday.

Reno asked a court panel to appoint the counsel to determine whether Brown improperly accepted nearly $500,000 from the partner and whether he deliberately filed misleading financial statements.

Reno said evidence indicates Brown ``lacked criminal intent in his failure to disclose this information,'' but called for the investigation because ``I am unable to conclude at this juncture that such evidence is clear and convincing.''

Brown called Reno's request ``disappointing'' and said he was confident he would be exonerated.

President Clinton also predicted the independent counsel would find no wrongdoing, and said he valued Brown's ``continued service on behalf of this country.''

Reno said Brown cooperated with the Justice Department, but others involved in the case did not.

``Because of the limits on our investigative powers, we are unable to resolve the issues raised by the facts known to us at this point without the appointment of an independent counsel,'' she wrote.

Reno said there was no need to further investigate conflict-of-interest allegations because there was no credible evidence supporting claims that Brown misused his official position to help enrich himself or business partners. The conflict issue was raised by Brown's chief congressional critic, Rep. William Clinger, R-Pa.

At the center of the case are Brown's dealings with Nolanda Hill, who was his partner in First International Communications Inc. Reno said Brown became a partner without investing any money, but received nearly $500,000 when he sold his interest in 1993, after he became commerce secretary.

Reno said Brown reported selling his interest. On other parts of the form, however, he did not record receiving $135,000 from the company or that it would pay about $300,000 of his personal debts.

Brown's attorney, Reid Weingarten, said there is nothing wrong in benefiting from a company without investing money in it.

by CNB