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NEW JERSEY RESIDENT PLEADS GUILTY TO CAMPAIGN FINANCE

WASHINGTON, D.C. -- David Chang, a member of the 1996 Robert G. Torricelli Campaign Finance Committee, pled guilty today to violating federal election law by making illegal contributions to the 1996 campaign of Senator Robert Torricelli, the Justice Department's Campaign Financing Task Force announced. Chang also pled guilty to witness tampering in connection with the campaign financing task force investigation.

Yesterday, Cha-Kuek Koo, also a New Jersey businessman, pled guilty to a similar violation. Chang is one of 25 people charged by the Campaign Financing Task Force, which was established four years ago by Attorney General Janet Reno to investigate allegations of campaign financing abuses in the 1996 election cycle.

In a 5 count Superceding information filed today in U.S. District Court in Newark, the Task Force alleges that Chang, a principal of Nikko Enterprises, Bright & Bright Corporation, Panacom Inc., and Hudson Terrace Realty Management Corporation, conspired with Charles Koo, Berek Don, and others to funnel illegal campaign contributions to Senator Robert Torricelli's 1996 Campaign.

It alleged that the conspiracy involved making contributions in excess of individual limits, making illegal corporate contributions, and making illegal "conduit" contributions in the names of others. Chang also pled guilty to four substantive violations of the Federal Elections Campaign Act ("FECA") for his role in funneling illegal campaign contributions in others names.

In addition, Chang pled guilty to attempting to persuade a potential grand jury witness to give false statements related to a financial transaction which was material to the grand jury investigation. That charge, was part of a Superceding indictment filed on March 31, 2000. The government agreed to dismiss all other charges mentioned in that indictment as part of the plea entered today.

Chang's codefendant, Audrey Yu, was charged with perjury and obstruction of justice under the same March 31 Superceding indictment. She will be tried as scheduled on June 6, 2000. She is presumed innocent.

Chang faces a maximum penalty of up to fifteen years imprisonment and a fine of $250,000.

In addition to Chang and Yu, the Campaign Financing Task Force has prosecuted 23 other individuals and one corporation for offenses relating to violations of the campaign financing laws.

On June 1, 2000, Cha-Kuek Koo, a New Jersey businessman, pled guilty to violating federal election law by making illegal contributions to the Senator Robert G. Torricelli Campaign. Koo admitted to assisting David Chang in making conduit contributions using Koo's employees at LG Group, Executive Office of the Americas. Koo's sentencing has been set for September 7, 2000.

In June 1999, Berek Don, former GOP party leader in Bergen County, NJ, pleaded guilty to another conduit contribution scheme to the Senator Torricelli Campaign. Don awaits sentencing. On December 1, 1999, Carmine Alampi, a Bergen County New Jersey attorney, pleaded guilty to the same scheme. He also awaits sentencing.

On September 15, 1999, Lawrence Penna, the former President of a now-defunct New Jersey securities firm, was charged with violating election laws by funneling illegal campaign contributions to the 1996 federal election campaigns of President Clinton and Senator Torricelli. Penna's case was transferred by agreement to the Southern District of New York where charges relating to his violation of United States' securities laws were pending.

In addition to the New Jersey cases, the task force has prosecuted an additional 20 individuals. On April 5, 2000, a federal grand jury indicted two Buddhist nuns, Venerables Yi Chu and Man Ho, with contempt of court for failing to appear as witnesses in the government's criminal trial against Maria Hsia. Yi Chu and Man Ho remain fugitives.

On March 2, 2000, Maria Hsia was convicted in D.C. on charges of causing false statements to be submitted to the FEC. The trial had been postponed pending an appeal of a ruling by the U.S. District Court in Washington, D.C., which had dismissed some of the false statement counts. In May 1999, the U.S. Court of Appeals in Washington, D.C. overturned the ruling and reinstated those counts. The task force dismissed a second indictment on tax charges after a jury in Los Angeles failed to reach a verdict. Hsia awaits sentencing in September.

On December 17, 1999, Yogesh Gandhi was sentenced to one year in prison for mail fraud, tax evasion, and violating federal election laws by aiding and abetting the making of a political campaign contribution by a foreign national.

On November 1, 1999, Yah Lin "Charlie" Trie, a Little Rock, Arkansas businessman, was sentenced, after pleading guilty, to a two-count information filed in Little Rock, Arkansas, to three years probation, four months home detention, 200 hours of community service, and a $5,000 fine for violating federal campaign finance laws by making political contributions in someone else's name and by causing a false statement to be made the FEC. Antonio Pan was also indicted with Trie in the District of Columbia, but has not yet been prosecuted because he has remained outside the United States.

On August 16, 1999, a federal judge sentenced Robert S. Lee to three years of probation and 250 hours of community service for aiding and abetting the making of an illegal foreign campaign contribution to the Democratic National Committee.

On August 12, 1999, former Lippo Executive John Huang pleaded guilty to a felony charge, filed in U.S. District Court in Los Angeles, that he conspired with other employees of the Indonesia-based Lippo Group to make campaign contributions and reimburse employees with corporate funds or with funds from Indonesia. He was sentenced to one year of probation, 500 hours of community service, a $10,000 fine and directed by the judge to continue cooperating with the investigation as a condition of his probation.

On March 23, 1999, Juan C. Ortiz, the Chief Financial Officer of Future Tech International, Inc., was sentenced to two years probation, $20,000 in fines, and 200 hours in community service for acting as a conduit for an illegal campaign contribution and participating in the reimbursement of eight other conduit contributions.

On December 14, 1998, Johnny Chung was sentenced to probation and 3,000 hours of community service for bank fraud, tax evasion and two misdemeanor counts of conspiring to violate election law.

On November 24, 1998, Howard Glicken, a fund-raiser for the Democratic party, was sentenced to 18 months probation, an $80,000 fine, and ordered to perform 500 hours of community service for violating campaign finance laws.

On November 4, 1998, Franklin Haney was indicted on more than 40 counts, including among others, conspiring with another to defraud the United States by impairing and impeding the FEC and conspiring to violate specific provisions of federal election law. He was acquitted of all charges on June 30, 1999.

On September 30, 1998, Democratic fund-raiser Mark B. Jimenez was indicted in Washington, D.C. on 17 counts of organizing, making and concealing illegal conduit contributions to a number of Democratic campaigns, including the Torricelli Campaign. In December 1998, Future Tech International, Jimenez's Miami based computer sales company, pleaded guilty to tax offenses resulting from its illegal deduction of a $100,000 contribution to the DNC and employee campaign contributions reimbursed through the company's payroll. On April, 15, 1999, Jimenez, who is now in the Philippines, was indicted in Miami on additional charges of tax evasion and fraud. The task force is pursuing Jimenez's extradition from the Philippines.

On July 13, 1998, DNC fund-raiser Pauline Kanchanalak and her business associate Duangnet "Georgie" Kronenerg were charged with conspiring to impair and impede the FEC, and causing the submission of false statements to the FEC. Trial is scheduled for November 13, 2000.

In 1997, the Task Force obtained guilty pleas from Democratic fund-raisers Nora and Gene Lum, and their daughter Trisha, and Michael Brown for illegal fund-raising activities after their cases were referred from Independent Counsel Daniel Pearson. In August 1998, Gene Lum pleaded guilty to filing a false 1994 tax return and falsely preparing Nora's 1994 tax return. After cooperating with the government, he was sentenced in June 1999, to two years in prison. Nora was sentenced to 5 months in a halfway house, 5 months in home detention, and ordered to pay a $30,000 fine. Trisha Lum and Michael Brown each received probation, a $5,000 fine, costs of more than $7,000, and were ordered to perform 150 hours of community service.

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