THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Saturday, July 20, 1996 TAG: 9607200258
SECTION: FRONT PAGE: A2 EDITION: FINAL
SOURCE: STAFF AND WIRE REPORT
DATELINE: WASHINGTON LENGTH: 51 lines
The head of an Alexandria, Va., direct-mail company said Friday that auditors hired by the Christian Coalition have been examining the firm's books, and his lawyer said there is an ``outside inquiry'' with which the company is cooperating.
The direct mail consultant, Ben Hart of Hart Conover, the Christian Coalition's primary direct-mailing firm, said auditors from the accounting firm of Coopers & Lybrand had reviewed company records.
``They've reviewed all of our financial records and to our knowledge have found everything in perfect order,'' he said.
The Christian Coalition's chief financial officer, Judy Liebert, was placed on leave with pay after she contacted federal prosecutors about alleged financial irregularities, her lawyer said Thursday.
Coalition spokesman Mike Russell would not discuss Liebert's status but said the coalition was conducting an inquiry into what he called ``serious questions'' about the billing practices of one of the organization's outside fund-raising consultants.
Told of Hart's comments that the firm's records were in perfect order, Russell said: ``Let me just say this. It's always been our policy to pay the lowest price possible for any good or service, and if we find in any instance action.''
Hart said the Christian Coalition wants ``to make sure they've been fairly charged.'' He said all the firm's billings during its four years of work for the group have been proper.
Liebert's attorney, Moody Stallings, a political opponent of the conservative group, said his client approached prosecutors only after taking her concerns to Christian Coalition executive director Ralph Reed.
Stallings would not discuss Reed's response. Stallings did say, however, that he was meeting with Christian Coalition lawyers to negotiate a settlement for his client. Liebert could not be reached Friday.
Hart said Friday that Reed is a close friend.
Coalition spokesman Russell said that ``when Ralph Reed became aware of the seriousness of the questions, he ordered top-flight people to get involved in this process and get us the answers they need. The board is going to make a decision after it reviews a full report.''
Board member Billy McCormack of Shreveport, La., said: ``It came to our attention that we were being overcharged, and we've moved quickly to look into that.''
Sources told The Washington Post that Hart Conover sent out some 20 million pieces of direct mail for the organization last year. MEMO: This story was compiled from reports by The Washington Post and
staff writer Warren Fiske. by CNB