DEPARTMENT OF JUSTICE VULNERABILITIES SECTION B-1 have been around the courthouse since 1959,? says Charles Stillman, a prominent white?collar lawyer, ?and I have never seen a string like this one. The rule used to be that you could expect one reversal on a major case every decade.? The appeals judges, Stillman continues, ?must really have been upset about something.? James Traub, The New Republic, 9/9/91 DEPUTY TO THE ASSOCIATE ATTORNEY GENERAL BZ B-2 "Giuliani?s prosecutorial zeal goes a long way back. He had a key but little?little known role, for instance, in the Alexander affair in 1975, when he was deputy to the associate attorney general in the Justice Department. The Justice Department was working with the Internal Revenue Service?s strike force on a series of dirty tricks." Vanity Fair, August 1989 DEPUTY TO THE ASSOCIATE ATTORNEY GENERAL CHARGE: AS DEPUTY TO THE ASSOCIATE ATTORNEY GENERAL, GIULIANI OVERSAW SEVERAL STYLE OPERATIONS. IN ONE -- OPERATION HAVEN -- FEDERAL AGENTS UNDER HIS CONTROL WERE FOUND GUILTY OF BREAKING THE LAW BY ILLEGALLY ENTERING AN APARTMENT. CONTEXT: Rudy Giuliani participated in some nefarious operations while a young staffer at President Ford?s Justice Department. Taken together, these episodes are politically damaging. They reinforce Giuliani?s perception as an overly ambitious and overzealous investigator. This vulnerability has never been raised during a political campaign. Its "newness" makes it especially dangerous. Reporters are much more likely to print a relatively fresh story, rather than a re-hash of an old story. The campaign should prepare a response to the Operation Haven" hit. REBUTTAL STRATEGY: This attack covers a very tiny part of Giuliani?s entire career at the Department of Justice. In answering this charge, changing the subiect should be the order of the day. This is a tough charge to rebut. Giuliani could be in big trouble if a wily reporter goes out and finds Mr. Alexander. Instead of answering the charge directly, the campaign should tick off the list of Giuliani victories fighting crime and making the streets safe for tax?paying, law?abiding citizens. In addition to documenting Giuliani?s successes, the campaign should take a shot at David Dinkins? lack of any real accomplishment. When Giuliani was fighting crime, Dinkins was filling a patronage post at the board of elections and in the city cler ?5 office. Later he became Manhattan borough president. In none of these posts did Dinkins leave any footprints of accomplishments. B-3 This is a tough one. It is recommended that the senior echelon of the campaign take some time to sit down and think this problem out more thoroughly. The following are some possible rebuttals: The operations began before Giuliani arrived at the Department of Justice; 0 The operations produced, at the time, the longest jail sentences for white-collar crime in history; and, A federal grand jury cleared federal agents of any wrongdoing in the cases. GIULIANI REFINES HIS SKILLS "Giuliani?s prosecutorial zeal goes a long way back. He had a key but little?known role, for instance, in the Alexander affair in 1975, when he was deputy to the associate attorney general in the Justice Department. The Justice Department was working with the Internal Revenue Service?s strike force on a series of dirty tricks. Under a variety of code names - Leprechaun, Tradewinds, Haven - they delved into the sex lives of a Florida judge and the Dade County prosecutor, and allegedly, on one occasion, broke into a motel room in the Bahamas. Donald Alexander, a Yale honors student and Harvard Law Review editor, who had been appointed by Nixon to head the I.R.S. just before Watergate, was horrified. He put a stop to it, having Giuliani move against him. Giuliani reportedly attempted to convene a grand jury to investigate the impeccable I.R.S. commissioner, former officials of the I.R.S. told me. ?It almost ruined Alexander. Vanity Fair, August 1989 Giuliani permitted Federal agents to break the law in Operation Haven. "Estimates of the cost of Project Haven have ranged from $10 million to $20 million, and so far the results have been unimpressive. There have been few indictments, no convictions. Washington Post, 4/3/77 "Wolstencroft also was the target of the controversial ?brief caper,? in January 1973. In that incident he was taken to a Key Biscayne restaurant by a female IRS informant while another entered the woman?s apartment and broke into Wolstencroft?s briefcase. The banker was en route to Chicago from Nassau with bank records. "The second informant took the contents of the briefcase to waiting IRS intelligence agents, who found what they had been looking for the names of 308 Americans with accounts at Castle. "After they were photographed, the contents were returned to the briefcase without Wolstencroft ever learning they has[sic] been taken. In a separate incident, the same informant visited Wolstencroft at his Nassau office and quietly removed a rolodex containing the names of the same, and more, account holders. "Ane[sic] then-Internal Revenue Commissioner Donald Alexander, a Nixon appointee, was involved in a bitter struggle with the elite intelligence division over the B-5 investigation which he claimed along ?had major problems. "Alexander claimed, and a federal iudgc later agreed, that the ?briefcase caper? was an illegal entry. "Again, the Justice Department failed in its attempts to get Wolstencroft back to the US. But this time the other six men indicted, including Deaton after he was extradited from Germany, were convicted, and received the longest jail sentences for any white collar crimes in history. The sentences ranged from 15 to 50 years for Deaton. "Meanwhile, Project Haven was all but collapsing because the briefcase evidence, which provided the leads for most of the cases that later developed into indictments [sic], was considered ?tainted? and further court action seemed doomed. emphasis added, Washington Post, 11/5/77 "Project Haven, which focused on the role of Castle Bank in tax evasion cases, resulted in scores of IRS investigations against various American firms and individuals. Most of the investigations were dropped, however, after former IRS Commissioner Donald C. Alexander leaned that much of the project?s evidence had been stolen by an IRS informant." Associated Press, 8/23/77 Although begun in 1972, Operation Leprechaun continued on Giuliani?s watch and authorized Nixon-style dirty tricks to spy on the sex and drinking habits of citizens. "Says that prior to his retirement, he found in several instances that Alexander appeared to be unfair in his handling of allegations that IRS intelligence div[sic] agents had been too close to Justice Department?s strike force against organized crime and had improperly set up Operation Leprechaun to snoop into sex and drinking habits of prominent Floridians. New York Times, 3/9/76 sultry Miami woman named Elsa Suarez Gutierrez dropped the bombshell when she announced that she had been hired by the IRS back in 1972 to spy on the drinking habits and sex lives of 30 prominent South Floridians, including a state prosecutor who was investigating the Watergate scandal. IRS agent Tom Harrison, who ran the operation, denied ordering any illegal activities and insisted that the personal B-6 information that concerned IRS was tax-related evidence that a person was spending large sums on a lover?s apartment, for example. Federal grand jury recently cleared Harrison of any criminal charges. But by that time, Alexander had made it all but impossible for IRS agents to use any paid informants, thus almost closing down Tradewinds-Haven and other high-level IRS intelligence operations. Newsweek, 10/13/75 B-7 ASSOCIATE ATTORNEY GENERAL B8 "Here?s a guy who was the third man in the Justice Department when HUD was being stolen blind. No investigations! Where were you, Rudy? Koch asked rhetorically outside a Harlem campaign." Daily News, 7/17/89 B-8 RECORD AS ASSOCIATE ATTORNEY GENERAL CHARGE: GIULIANI PARTICIPATED IN A NUMBER OF TROUBLING ACTIVITIES AS THE ASSOCIATE ATTORNEY GENERAL. THEY INCLUDE: HIS DIRECTION OF THE RACIST HAITIAN DETENTION POLICY IN SOUTH FLORIDA, HIS MEETING SECRETLY WITH DEFENSE COUNSEL BEFORE DROPPING BRIBERY CHARGES AGAINST MCDONNELL-DOUGLAS, HIS TERMINATION OF JUSTICE DEPARTMENT OFFICIALS FOR POLITICAL REASONS, AND HIS FAILURE TO PREVENT REAGAN ADMINISTRATION OFFICIALS FROM ROBBING HUD BLIND. CONTEXT: David Dinkins criticized Rudy Giuliani?s administration of the Justice Department during the last mayoral campaign. Primarily, Dinkins? charges centered around the Haitian detention policy. Dinkins correctly understood the wedge?driving ability this issue provided for his general election campaign -- and he took full advantage of it. Dinkins made reference to Giuliani?s other Justice Department vulnerabilities during the campaign, but since they provided no political hook, he returned to the Haitian issue. If the 1993 campaign is fought on the "competence" playing field, Dinkins may try to exploit these vulnerabilities more. After all, they go to the heart of Giuliani?s ability to run an office. REBUTTAL STRATEGY: Giuliani should not shrink from any of these specific attacks. The campaign should, in fact, go on the offense regarding the Haitian issue. In 1993, it may be David Dinkins who is vulnerable on the Haitians. In each other case, the facts of the issue clearly back up Giuliani?s actions. If Dinkins or the media raise any of these issues, a simple factual rebuttal should be issued by the campaign. There?s no reason to sweat these vulnerabilities. B-9 HAITIANS, AND OTHER JUSTICE DEPARTMENT MISSTEPS HAITIAN For a complete work-up on the Haitian issue, see the "Racist" portion of the "Political" section. MCDONNELL-DOUGLAS The McDonnell-Douglas Case: "The Carter Justice Department had indicted four executives on charges that they made $1.6 million in secret commission payments on the sale of jetliners to Pakistan and other countries in the early ?70s. On the day before he was sworn in May 1981, Giuliani met with the general counsel of the firm at the behest of Republican Sen. John Danforth of Missouri, where the corporation is headquartered. It wasn?t until three weeks later that the two criminal-division attorneys who spent several years working on the case first heard of the meeting. They were outraged and sharply criticized Giuliani in a letter to the press. Daily News, 8/ 14/83 Sen. Danforth and Giuliani remembered the incident differently. "Sen. John C. Danflo said yesterday that he told Associate Attorney General Rudolph W. Giuliani that a McDonnell Douglas Corp. attorney wanted to meet with him to discuss complaints about the Justice Department?s handling of a pending criminal case against the St. Louis firm and four top executives. "Danforth?s recollection appears to contradict Giuliani?s statement that he didn?t know the purpose of the May 14 meeting until McDonnell Douglas general counsel John Sant began talking about the case, in which the firm was charged with paying bribes in Pakistan to sell DC 10 jetliners. Giuliani said last night that he recalled no mention by the senator of the complaint being about a criminal case. Washington Post, 6/25/81 Giuliani eventually dropped the criminal charges. "The Washington Post, quoting unnamed sources. said the company?s board of directors agreed Tuesday to the settlement calling for the firm to plead guilty and paying $55,000 in fines on 10 counts of mail fraud, wire fraud and filing false statements with government agencies. United Press International, 9/3/81 "That September, he dropped all criminal charges against the four corporate officials, contending that the prosecution was an ?unfair? one carried out by ?overzealous? prosecutors. He went forward with the charges against the company, and a federal judge slapped McDonnell Douglas with a $55,000 criminal fine and $1.2 million in damages resulting from a civil suit. "Though immy Carter?s criminal-division chief called the prosecution a wrist-slap,? Giuliani insists ?the decision was made on the merits of the case? and ?was not a political judgment. Daily News, 8/14/83 Giuliani kicked out Democratic U. S. attorneys in favor of Reagan Republicans. "Assistant US Attorney Robert Smith, a former aide in the Carter Administration, was abruptly fired over the Thanksgiving holiday in a move his attorney called ?politically motivated.? Smith, a press aide to former Attorney General Benjamin Civiletti, was given a terse five-line dismissal notice ov. 25 signed by Associate Attorney General Rudolph W. Giuliani. It was effective Monday. "James Brosnahan, a private attorney retained by Smith, said ?it is pretty clear it was political. United Press International, 12/1/81 On his watch, HUD was robbed blind. "Here?s a guy who was the third man in the Justice Department when HUD was being stolen blind. No investigations! Where were you, Rudy? Koch asked rhetorically outside a Harlem campaign. Daily News, 7/ 17/89 B-ll ASSOCIATE ATTORNEY GENERAL MISSTEPS DEFENSE: AS ASSOCIATE ATTORNEY GENERAL, GIULIANI HAD NUMEROUS ACCOMPLISHMENTS AND WAS ORMALLY ABSOLVED OF RESPONSIBILITY IN THE MCDONNELL-DOUGLAS CASE. In the McDonnell-Douglas case, Giuliani was cleared of wrongdoing. "The department?s Office of Professional Responsibility ?determined that no law, regulation, order or standard of conduct was violated? by Associate Attorney General Rudolph Giuliani when he met May 14 with John T. Sant, general counsel for the aircraft corporation." Associated Press, 7/21/81 Giuliani is defended in the McDonnell-Douglas by an unlikely source. "The first chapter, dealing with the Justice Department?s decision to drop charges against individual officers and employees of McDonnell Douglas, is a classic example of good cop/bad cop. The good cops were the zealous young prosecutors who conducted the investigation of overseas bribes by agents of the aircraft manufacturer. The bad cop was Rudolph Giuliani, now the US. Attorney for the Southern District of New York, then the No. 3 person in the Justice Department. "Giuliani is portrayed as a political fixer who undid all the hard, principled work of the young zealots and then, in a petty display of pique, set out to destroy their careers. His actions at a meeting are described as those of a ranting and raving ?madman.? I have been on the opposite side of several cases with Giuliani and I disagree with him on many issues, but Stewart?s characterizations of him are, from my experience, totally biased and inaccurate. Alan Dershowitz, American Bar Association Journal, 10/1/87 "Despite these criticisms, perhaps because of them, The Prosecutors is certainly an informative book. Its claim to being ?an unprecedented and candid portrayal of prosecutors at work? is borne out at least in part by its chapters on McDonnell Douglas and other prosecutions. But the book tells only half the story. One is left B-12 wondering whether half the stories (or half truths) are better than no stories at all. Alan Dershowitz, American Bar Associati,o_n Journal, 10/1/87 Giuliani worked to build more prisons "Associate Attorney General Rudolph Giuliani told a press conference the Reagan Administration?s first priority would be to help state and local governments build more prisons and to run them more efficiently. "He said there was no room, especially in state and local prisons, to house the increasing prison population, especially those jailed for major crimes. Reuters, 5/ 14/81 and increased the role drugs Justice Department task force has proposed that the FBI be given expanded powers and a leading role in efforts to combat illegal drug traffic in the United States, a senior department official disclosed today. "Associate Attorney General Rudolph Giuliani, who headed the task force, told Reuters in an interview the task force had also recommended that a senior FBI official be appointed to head the Drug Enforcement Administration (DEA). "The proposed new role for the FBI is the most controversial recommendation to emerge from a study conducted by Justice Department officials and directed by Mr. Giuliani, the department?s third-ranking official. "Among its new powers, Mr. Giuliani said, the FBI would have concurrent jurisdiction with the DEA in investigating drug offenses anywhere in the United States. "In addition, the FBI has historically been averse to narcotics work. Its late director, J. Edgar Hoover, shunned narcotics investigations because he feared FBI agents might be corrupted by the huge amounts of cash handled by traffickers. Reuters, 12/31/81 B-13 don?t want to leave here with drug enforcement in the same condition that it?s in now,? Rudolph Giuliani said in 1981 in Washington, after becoming associate attorney general of the United States. "He didn?t. "When Giuliani gave up the number-three job in the Justice Department in 1983, he had obtained $130 million from Congress to set up 12 drug task forces around the country. Two hundred new assistant U.S. attorneys and 1,000 investigators had been hired. And hundreds of drug dealers were being arrested in a nationwide crackdown. Philadelphia Inquirer, 2/28/85 You were the No. 3 man in the Justice Department from 1980 to 1983. What do you think was your most valuable contribution? Helping to bring the FBI into drug enforcement. They?d never been involved in any major way before. I chaired the committee that was responsible for making a report recommending FBI involvement. By early 1982, we were able to get Attorney General [William French] Smith to sign an order making it official. New York, 5/25/87 and increased federal, state and local coordination to fight crime. "Associate Attorney General Rudolph W. Giuliani said the basic burden in the fight against crime must be borne at the state and local levels, but is up to federal officials to provide better assistance and support. "?Criminals do not commit federal crimes, state crimes or local crimes. They commit crimes,? he told the Cleveland chapter of the Federal Bar Association. ?We as lawyers characterize them later as federal, state or local offenses.? "?The government?s effort against crime must therefore be a genuinely cooperative venture with agencies at each level working to each other, sharing information and complementing -- not undercutting each other?s efforts. United Press International, 9/23/81 B-14 UNITED STATESATTORNEY BI5 "?He violated more civil liberties than anyone in public of?ce since A. Mitchell Palmer,? says one prominent New York businessman, referring to Woodrow Wilson?s fanatic, anti-Communist Attorney General." New York, 3/6/89 [Giuliani] has helped to af?rm the rule of law and the public?s faith in the law."' Gov. Mario Cuomo, New York Times, 1/11/89 UNITED STATES ATTORNEY CHARGE: GIULIANI HAD ONE OF THE WORST RECORDS FOR A US. ATTORNEY. HE WAS AN OVERZEALOUS, RUTHLESS AND INEFFECTIVE PROSECUTOR WHO SHAMELESS SOUGHT PUBLICITY IN AN OFFICE HE POORLY MANAGED. CONTEXT: Out-of?context is the context for most general attacks on Rudy Giuliani?s record as United States attorney. Making broad generalizations about Giuliani?s record is a cottage industry in New York. Just last week, the New York Times, in a story about the new US. attorney for the Southern District of New York, Mary Jo White, off-handedly reported that most of Giuliani?s Wall Street convictions have been overturned by appeals courts. Well, that?s just not true. But it happens all the time. A couple of weeks ago, Andrew Stein, on New York 1?s "Road to City Hall," said Giuliani was the worst prosecutor ever. Again, totally inaccurate. It seems political opponents of Rudy Giuliani are falling over themselves to tell bigger and better falsehoods about his prosecutorial record. The most common broad-based attack fall into the following categories: 0 Overturns. The false impression exists that most of Giuliani?s big cases have been overturned. That just simply is not the case. Roughly 4% of the cases won by Giuliani that were appealed have been overturned by higher courts. That means 96% of appealed cases were af?rmed. Losses. Critics focus on the two big losses -- Bess Myerson and the Marcos case -- to make the incorrect charge that Giuliani lost many cases. Again, that is wrong. In fact Giuliani won almost 90% (actually 88%) of the criminal cases brought to trial. Overzealousness. Opponents of Giuliani push the line that Giuliani was overzealous in his pursuit of crime especially white-collar crime. This is another wrongheaded assertion. Giuliani busted the mob. He attacked street- level drug dealers. He put political crooks behind bars, irregardless of political affiliation. He put the Wall Street swindlers out of business and brought a new emphasis of ethics to "the Street. B-16 Shameless Publicity Seeker. Many allege Giuliani sought press clips at the expense of prosecutions. Wrong again. Year after year, the Southern District set new records for asset forfeiture, fee and penalty collections, and winning convictions in major cases, like the Teamsters case, Drexel case, the Wedtech case. the Atkins case. the Pizza Connection case, the Levine case, the Boesky case, the Commission case, the Friedman case, the Sentinel case and the Rich case and on and on Bottom line: you make these cases and you?re gonna get some media attention. REBUTTAL STRATEGY: As with all of the vulnerabilities detailed in the United States Attorney section, an immersion in the facts and a connection to Giuliani?s record is the best inoculation plan. Frankly, attacks on Giuliani?s record are usually glib cheap-shots that are factually inaccurate. Every time someone in the media or a political opponent takes a shot at the Giuliani record, the campaign should be ready to respond to the attack. No attack should go unanswered. All inaccuracies should be corrected. Vigorous defense of Giuliani?s record will pay great dividends. Getting out front on these vulnerabilities will inoculate the campaign against charges the Dinkins campaign is sure to make during the general election campaign. This program also should increase Giuliani?s favorability ratings in public opinions samples. The time to go on the offensive is here. B-17 PRIORITIES AS U.S., ATTORNEY WHEN GIULIANI STARTED OUT AS U.S. ATTORNEY IN 1983, HE LAID OUT HIS PRIORITIES FOR THE OFFICE, TO ATTACK DRUGS, CORRUPTION, AND WHITE-COLLAR CRIME. IN HIS REMARKABLE 5 TENURE THERE, HE MADE A TREMENDOUS RECORD OF ACCOMPLISHMENT IN THESE AREAS. "In the Reagan Justice Department, Giuliani played a key role in remaking the crime- fighting priorities for the President. Under President Carter, the Justice Department had allocated extra resources to white?collar and business-fraud cases. Giuliani helped lead a Reagan initiative to shift many of those resources to narcotics enforcement, an area he felt Carter had badly neglect. New York Times Magazine, 6/9/85 "Giuliani: I think there are three areas we have to focus on: drugs, corruption and white collar criminal fraud, with tax evasion and security fraud being the key areas. TODAY: What about drug trafficking? Giuliani: The dollars are so tremendous. It?s not only the devastation it causes for the addict - and violent crime resulting from the addict committing crime in order to get drugs - but also the possibilities for corruption that are caused by drug traf?c. That?s why if you say I?m going to put all my eggs in one basket and go after one thing, you are going to lose, because there are interconnections. TODAY: Is there a particular area that needs to be looked at more carefully? "Giuliani: There are two prime areas that we are looking at: insider trading, which plagues the market - people illegitimately obtaining information, trading on it, making huge profits - and secondly, manipulation of stock, which is a much more complex case to make. Because of the complexity of the cases, our enforcement effort doesn?t happen for two or three years and I?d like to see us take a look at ways in which we can shorten that time. USA Today, 7/1/83 "Discussing his priorities at a meeting last week with courthouse reporters, he recalled his Washington role in expanding the Government?s program against B-18 narcotics. He also noted that he had previously served as a prosecutor in charge of the narcotics unit of the United States Attorney?s office in New York. "Mr. Giuliani said his office would also concentrate on prosecuting some white collar crimes that were particularly significant in New York because of the city?s position as a financial center. He cited securities fraud, insider trading and tax evasion as important targets. "He expressed optimism about fighting traditional organized crime, which he identified as the Mafia, and said it controlled the largest part of heroin trafficking in the country." New York Times, 7/3/83 "When he started out as U.S. attorney, one of Giuliani?s top priorities was to file more indictments, particularly against drug dealers, and to try to take some for the load of narcotics prosecution off the local district attorneys. Court statistics show that between fiscal 1983, when first took over, and 1985, the number of defendants charged in Giuliani?s jurisdiction jumped sharply, from 1,159 to 1,942. The most dramatic rise was a 250 percent increase in the number of drug defendants. Newsday, 1/ 29/ 89 B-l9 MAJOR GIULIANI CASES DREXEL (Dec. 1988) Drexel Burnham Lambert agrees to plead guilty to six felonies and pay $650 million in penalties and civil restitution rather than face expected racketeering charges related to insider trading and securities fraud. MYERSON (Dec. 1988) Bess Myerson, the former New York City cultural affairs commissioner, her companion, Carl A. Capasso, and former State Supreme Court Justice Hortense Gabel are acquitted of mail fraud, obstruction of justice, and bribery. Ms. Myerson was accused of hiring the judge?s daughter in exchange for favorable treatment for Mr. Capasso in his divorce. BIAGGI (Aug. 1988) Mario Biaggi, a former Bronx representative, is convicted of racketeering along with his son, former borough president Stanley Simon, and two others. The five were accused of helping Wedtech, a Bronx military contractor, obtain federal contracts and local benefits. ATKINS (Dec. 1987) Charles Atkins is convicted of creating a tax shelter for investors that generated over $1.3 billion in fictitious losses through bogus trading in government securities. PIZZA CONNECTION (March 1987) The case marks one of the ?rst time Sicilian and American organized crime members are convicted of large-scale drug traf?cking in the United States. After a 17- month trial, 17 people are convicted of racketeering for distributing drugs through a group of pizzerias. LEVINE (June 1986) Dennis Levine pleads guilty to four felony charges and agrees to cooperate with the government in its investigation. He agrees to pay $11.6 million to settle civil insider-trading charges. In February 1987 Mr. Levine is sentenced to two years in prison and is fined $362,000 on the felony counts. COLOMBO (June 1986) Nine members of the Colombo organized crime family are convicted of labor racketeering. BOESKY (Nov. 1986) Ivan F. Boesky agrees to pay a $100 million penalty for trading on inside information supplied by Mr. Levine between February 1985 and February 1986. In December 1987, he is sentenced to three years in prison. COMMISSION (Nov. 1986) Eight leaders of organized crime families are convicted of participating in a ruling commission that planned and organized criminal activities. The men received sentences of 40 to 100 years. FRIEDMAN (Nov. 1986) Stanley M. Friedman, a former Bronx Democratic leader, is convicted of racketeering for bribing government of?cials in New York City?s Parking Violations Bureau in order to obtain contracts for his company. Mr. Friedman is sentenced to 12 years in prison. SENTINEL (June 1984) Michael Senft, the founder of Sentinel Government Securities, a tax shelter, is convicted of conspiring to defraud the IRS by ?ling false tax returns. RICH (Oct. 1984) In one of Mr. Giuliani?s ?rst big cases after his appointment, two companies owned by Marc Rich, a commodities trader, plead guilty to concealing taxable income and agree to pay $150 million in penalties. Mr. Rich and his partner are still fugitives in Switzerland. B-20 EFFECTIVENES B2 1 B-21 "Given his relatively long tenure and controversial approach, Mr. Giuliani comes in for relatively little criticism for botching cases. His of?ce?s conviction rate of better than 90% - and its record of winning many big ones - speaks for itself. Wall Street Journal, 1/11/89 "Nobody works harder than he does,? said David Margolis, Chief of the Justice Department?s organized-crime section. ?He?s very diligent. Smart. Savvy. Tough. Hard-nosed. The perfect guy for the job he?s doing -- and that?s proved by the results. 3" Philadelphia Inguirer, 2/28/85 (NOTE: The statistics used in this section are inclusive for the fiscal years 1984 through 1988, but because Rudolph Giuliani was U.S. Attorney for only parts of 1983 and 1989, those years are excluded.) B-22 TALKING POINTS Giuliani is an experienced, proven manager. 0 For 5 years, Giuliani managed the largest U.S. Attorney office in the country. He directed the efforts of more than 125 assistant U.S. attorneys. He effectively managed a budget of $20 million? His budget grew more than XX percent since he became U.S. Attorney. Giuliani had one of the best records as a U.S. attorney of all time. 0 In one of the busiest U.S. attorney offices in the U.S., Giuliani brought criminal charges in 4,692 cases from 1984 to 1988. The office ranked as one of the top 10 busiest U.S. attorney offices every year. Giuliani obtained guilty verdicts in 88 percent (or 4.152) of the criminal cases he brought to trial. His prosecution record ranked in the tOp 5 in the U.S. every year. Giuliani?s convictions rarely were overturned. In five years, the SDNY had 4,152 criminal convictions. Only 25 of these -- .01 percent were overturned. From October 1, 1983 through September 30, 1991, 583 criminal cases were appealed and only 4 percent, or 25 cases. were overturned. In addition, only 12 percent of civil cases were overturned during the same period. Giuliani collected more revenue for the U.S. government than any other U.S. Attorney. The SDNY generated $344 million in total fines during 1984 through 1988, ranking in the top 10 every year. This total represents nearly $100 million more in fines than any other U.S. Attorney?s office imposed during this time. In 1984, Giuliani?s first full-year in office, he imposed $23 million in criminal fines, nearly one-quarter of the criminal fines collected nationwide and more than two times the amount collected by any other U.S. Attorney?s office. B-23 Fiscal Year 1984 (October 1, 1983 - September 30, 1984) Ranking of Total Criminal Cases - 6 Busiest Offices: Total Percent Total Defen- Defendants District Cases Guiltv Guilty Guiltv Dismissed a_nt_s Convicted 1 .TX South 1,428 75 1,074 28 169 2,107 73 2 . CA Centrl 1,070 65 698 9 61 1,381 68 3 .CA South 1,058 85 895 8 92 1,545 82% 4 . TX West 1,025 86% 885 9 71 1,394 86% 5 . FL South 953 76 722 22 116 1,829 72 6.NY i South 948 88% 833 7 50 1,427 85% i Appeals filed and closed bv New York Southern District: Type Filed In favor Criminal Closed/ Total of U.S. Against U.S. Other Criminal 9 40 0 6 46 Civil 62 69 4 28 101 Average Number of U.S. Attornevs: 1. NY South 2. CA Central 3. Wash. DC 4. FL South 5. IL North 6. 7 8 9 1 NY East . NJ . PA East MI East O.CA North 1221: 104.7 97.5 89.6 67.3 66.3 57.4 52.0 51.7 B-24 Fiscal Year 1984 (October 1, 1983 September 30, 1984) Ranking of Criminal and Civil Fines Imposed - 10 Busiest Offices: Criminal Fines Imposed: South 55 23,182,336 West 3 6,029,234 3.1L North 8 5,707,361 4.FL North 3 4,462,565 5.D.C. 3,309,050 6.CA Central 2,969,830 7.0H South 8 2,785,515 8.NJ 2,621,716 9.NY East 2,514,649 10.CA North 2,295,733 TOTAL Fines, All Districts 98,449,806 Penalties Forfeitures: 1.FL South 8 13,832,131 2.LA East 8 5,071,089 3.0R 3,829,341 4.VA East 35 3,773,250 5.TX West 3,073,917 6.MI East 2,497,330 7.AK 2,274,811 South 2,260,142 I 9.GA North 10.CA South 8 1,700,306 TOTAL, Penalties orfeitures $58,182,736 Total Fines Imposed: 1.NY South 59,028,112 3.NY East 35 27,088,335 4.0H South 27,140,022 5.MA 25,561,359 6.CA Centrl 25,643,835 7.FL South 25,389,505 8.LA East 35 24,061,443 9.1L North 17,769,862 10.PA West 17,130,431 TOTAL, All Districts $732,306,341 (Source: Statistical Report, United States Attomey?s Of?ce, Fiscal Year 1984) B-25 Fiscal Year 1985 (October 1, 1984 - September 30, 1985) Ranking of Total Criminal Cases - 5 Busiest Offices: Total N91 Total mm 935$ My 93M My Mm mm ?ts Convicted 1.TX West 1,141 81% 919 21 112 1,517 82% 2.NY South 979 88% 859 19 58 1,506 86% 3.CA South 973 82 795 6 98 1,424 81% 4.CA Centrl 961 82% 786 2 44 1,435 81% 5.FL South 912 76% 691 17 61 1,787 69% Apmals filed ?and closed by New York Southern District: Type Filed In favor Criminal Closed/ Total of U.S. Against U.S. Other Criminal 26 39 4 0 43 Civil 66 26 4 30 Average Number of U.S. Attornevs: r1 NY South 1261' CA Central . 3. FL South 88.4 4. IL North 82.5 5. Wash., DC. 80.3 6. NY East 68.4 7. NJ 67.5 8. PA East 58.5 9. CA North 53.6 10.MI East 53.1 B-26 Fiscal Year 1985 (October 1, 1984 - September 30, 1985) Ranking of Criminal and Civil Fines Imposed - 10 Busiest Offices: Criminal Fines Imposed: (Source: Statistical Report, United States Attomey?s Office, Fiscal Year 1985) B-27 1.FL Middle 55 13,306,025 2.NY South 55 7,218,507 3.Ml East 4.FL South 8 6,099,053 5.TX South 4,996,783 6.CA Central 4,466,632 7.NY East 3,950,472 8.VA East 3,570,412 9.PA East 55 3,234,955 10.CA South 2,944,016 TOTAL $112,365,035 Civil Fines Imposed: 1.NY South $177,012,534 3.PA East 36,931,888 4.PA West 35,119,378 5.MD 31,495,056 6.FL Middle 28,959,875 7.PR 15 27,931,327 8.MA 26,524,581 9.CA Centrl 23,459,455 10.FL South 20,119,336 TOTAL $948,069,509 Total Fines Imposed: 1.NY South 184,231,041 ?mast 3.FL Middle 42,265,900 4.PA East 40,166,843 5.PA West 36,088,214 6.MD 32,485,867 29,176,226 8.CA Central 27,926,087 9.MA 27,805,956 10.FL South 26,218,395 TOTAL $1,060,434,544 Fiscal Year 1986 (October 1, 1985 September 30, 1986) Ranking of Total Criminal Cases - 5 Busiest Offices: Total Percent Total 3/9 Defen- Defendants District Cases Guilty Guilty Guilty Dismissed ants Convicted 1.TX South 1,213 91% 1,109 8 64 1,797 88% 2.TX West 1,071 84% 902 14 113 1,432 86% 77 3.NY South 1,062 90 957 20 76 1,545 87 4.CA South 1,045 89 927 13 69 1,576 86 5.CA Centrl 1,010 91 923 11 50 1,458 88% Appeals filed and closed by New York Southern District: Type Filed In favor Criminal Closed/ Total of U.S. Against U.S. Other Criminal 21 41 2 6 49 Civil 49 22 1 38 61 Average Number of U.S. Attorneys 1. NY South 132.3 7. CA Central 105.1 3. FL South 89.4 4. IL North 85.1 5. Wash., DC. 78.4 6. NY East 66.6 7. NJ 64.2 8. PA East 59.2 9. CA North 54.3 10.MI East 52.6 B-28 Fiscal Year 1986 (October 1, 1985 - September 30, 1986) Ranking of Criminal and Civil Fines Imposed - 10 Busiest Offices: Criminal Fines Imposed: 1.FL South 3 61,740,170 2.TX East 8 41,709,633 3.FL Middle 8 19,917,889 4.FL North 17,178,288 5.CA South 33 16,272,534 6.VA East 14,923,638 7.TX South 35 12,474,150 8.NY South 9,034,053 9.WA. West 55 6,80 10.NY East 8 5,817,800 TOTAL $334,537,162 Civil Fines Imposed: 1.TX North 96,491,986 2.FL Mid. 44,783,538 3.MO West 39,339,193 4.CA Centrl 38,569,025 5.TX South 28,552,946 6.NY East 35 27,975,199 7.PA East 27,123,584 8.SC 27,015,320 9.PR 26,668,608 10.GA Middle 15 23,987,400 11.TX West 23,657,955 I 12.NY South 22,399,895 QAL mm, Total Fines Imposed: 1.TX North 102,259,443 2.FL South 55 79,098,718 3.FL Mid. 64,701,427 4.TX East 55,716,515 5.CA Central 43,425,194 6.MO W. 35 43,050,014 7.TX South 35 41,027,096 8.NY East 33,792,999 9.SC 31,557,021 10.NY South 31 443 948 WAL $1,41r7zm'32r, (Source: Statistical Report, United States Attomey?s Of?ce, Fiscal Year 1986) B-29 Fiscal Year 1987 (October 1, 1986 - September 30, 1987) Ranking of Total Criminal Cases - 6 Busiest Offices: Total Percent Total Defen- Defendants District Cases Guiltv Guiltv Guiltv Dismissed ants Convicted 1.TX South 1,613 89% 1,438 16 120 2,461 85% 2.FL South 1,301 87% 1,136 35 105 2,372 86% 3.CA South 1,176 90 1,055 7 67 1,599 88 4.CA Centrl 1,056 91% 959 4 62 1,578 88 5.CA North 1,104 72% 796 14 143 1,318 78% 6.NY South 981 90% 884 15 70 1,526 89% @peals filed and closed bv New York Southern District: Type Filed In favor Criminal Closed/ Total of US. Against US. Other Criminal 39 60 3 13 76 Civil 84 16 8 22 46 Average Number of US. Attornevs: 1 NY South 127.9 I 2. CA Central 3. FL South 962 4. IL North 83.2 5. NY East 73.0 6. Wash. DC. 70.6 7. NJ 64.7 8. PA East 58.9 9. MI East 56.6 10.CA South 55.6 B-30 Fiscal Year 1987 (October 1, 1986 September 30, 1987) Ranking of Criminal and Civil Fines Imnosed - 10 Busiest Offices: Criminal Fines Imposed: (Source: Statistical Report, United States Attorney?s Of?ce, Fiscal Year 1987) B-3l 1.NY East 8 24,090,814 South 20,827,198 3.FL South 3; 1317117380?, 4.VA East 8 11,164,213 5.CA Central 55 9,507,342 6.MA 8,364,727 7.FL Middle 8,233,608 8.PA East 7,753,971 9.NC East 6,648,167 10.NJ 6,368,317 TOTAL $295,522,818 Civil Fines Imposed: 1.CA Centrl 61,261,569 2.MN 44,384,633 3.SD 37,639,843 4.0H South 35,221,071 5.KS 32,108,917 6.TX South 31,858,044 7.80. Car. 55 31,857,986 8.FL Middle 31,815,761 9.AL North 29,477,543 10.NJ 26,073,481 11.PR 24,997,914 I 12.NY South 8 22,984,005 EEAL WW, Total Fines Imposed: 1.CA Centrl 70,768,911 2.MN 50,520,626 I 3.NY South 3 43,811,203 . ?8 40,049,3 5.TX South 15 38,093,596 6.SD 37,870,500 7.0H South 35 36,109,978 8.SC 33,114,802 9.KS 32,470,291 10.NJ 32,441,798 TOTAL $1,316,302,843 Fiscal Year 1988 (October 1, 1987 - September 30, 1988) Ranking of Total Criminal Cases - 10 Busiest Offices: Total Percent Total Defen- Defendants Ca? Quilt! MEX mm ants gm; 1 .TX South 1,498 86% 1,288 24 142 2,312 81% 2 . FL South 1,380 79% 1,096 34 222 2,385 79% 3 . CA South 962 84 809 5 113 1,391 83 4 .VA East 926 88 817 28 67 1,205 86% 5 .CA North 846 78% 664 11 141 1,086 77% 6.CA Centrl 796 88 700 15 45 1,283 88 7.TX West 791 91% 718 10 32 1,004 89% 8.AZ 779 65 506 17 237 1,077 969 88% 10.NY South 722 86% 619 ll 73 1,125 84% Appeals filed and closed by New Type Filed In favor Criminal Closed/ Total of US. Against US. Other Criminal 82 37 0 6 43 Civil 86 28 6 28 62 Average Number of US. Attornevs: ?TNY?South W. Wentral 100. 3. FL South 96.2 4. IL North 83.2 5. NY East 73.0 6. DC 70.6 7. NJ 64.7 8. PA East 58.9 9. MI East 56.6 10.CA South 55,6 B-32 Fiscal Year 1988 (October 1, 1987 - September 30, 1988) Ranking of Criminal and Civil Fines Imposed - 10 Busiest Offices: Criminal Fines Imposed: 1.NY South 35 43,385,963 . North 8 30,214,0 3.FL South . 24,705,963 4.NY East 18,532,874 5.CA South 16,564,394 6.NJ 13,044,800 7.CA North 11,600,860 8.PA East 35 10,653,619 9.CA Centrl 9,808,711 10.SC 9,789,645 TOTAL $356,251,502 Civil Fines Imposed: 1.TX North 113,092,290 2.CA Centrl 77,506,537 3.0R 59,334,196 4.KS 46,848,605 5.0H South 3 40,193,351 6.NY East 35 39,181,713 7.PR 34,930,787 8.FL South 33,016,336 9.MA 31,889,938 ll 22.NY South 16,213,863 AL $1,225,951,505 Total Fines Imposed: l. TX South 55 143,306,291 2. CA Centrl 87,315,248 3. OR 60,750,879 4. NY South 59,599,826 I 5. FL South ?urry-j 6. NY East 57,714,590 7. KS 8 48,107,881 8. OH South 55 46,992,499 9. CA South 40,524,477 10.PR 36,806,778 TOTAL $1 ,5 82,203 ,004 (Source: Statistical Report, United States Attomey?s Of?ce, Fiscal Year 1988) B-33 APPEALS AFTER GIULIANI LEFT TIDE SOUTHERN DISTRICT OF NEW YORK Rudolph Giuliani resigned from the U.S. Attomey?s of?ce on Febru appeals court after he departed. Because these numbers cited below many are directly attributable to Giuliani?s record. While it is impos Fiscal Years 1989 - 1991 appeals. this data provides good numbers on his success. (October 1, 1988 - September 30. 1991')? ary l, 1989. As a result some of his convictions were still in the are based on the ?scal year, it is impossible to determine how sible to determine with complete accuracy Giuliani?s record on FY 1989 Appeals filed and closed by New Yor?outhern District: Type Filed In favor Criminal Closed/ Total 0f U.S. Against U.S. Other Criminal 160 73 1 17 91 Civil 90 22 2 30 54 FY 1990 Appeals filed and closed by New Yt? Southern District: Type Filed In favor Criminal Closed/ Total of U.S. Against U.S. Other Criminal 140 88 7 17 112 Civil 92 37 34 59 130 FY 1991 Appeals filed and closed by New Wouthem District: Type Filed In favor Criminal Closed/ Total of U.S. Against U.S. Other Criminal 148 106 ivil INEFFECTIVE PROSECUTOR CHARGE: GIULIANI HAS BEEN ONE OF THE MOST INEFFECTIVE PROSECUTORS THAT THE SOUTHERN DISTRICT OF NEW YORK HAS EVER SEEN. THE DEGREE OF HIS FUTILITY IS EXEMPLIFIED IN A NUMBER OF FAILED CASES, MOST NOTABLY WITH BESS MYERSON, FERDINAND MARCOS AND NICKY BARNES. CONTEXT: Critics attack Rudy Giuliani?s effectiveness as a prosecutor by mentioning only the few tough, high-profile cases he lost. What these critics do is leave out conveniently the scores of big cases that Giuliani prosecuted successfully. It?s almost as if they believe that by forgetting about all Giuliani?s success, therefore it didn?t happen. For too long these politically-motivated critics have peddled their falsehoods. The campaign must rebut these dangerous lies. REBUTTAL STRATEGY: For every case Giuliani lost, his office chalked up nearly nine convictions. Not a bad success rate. Especially since some of Giuliani?s victories came in cases that were considered extremely complicated and difficult to present to a jury. The Giuliani record speaks for itself and is always the best rebuttal to factually inaccurate charges. B-35 INEFFECTIVE PROSECUTOR GENERAL DEFENSE: GIULIANI HAS A LONG HISTORY OF SUCCESSES WHICH ONE OF THE MOST EFFECTIVE PROSECUTORS THIS CITY HAS EVER SEEN. The Giuliani record as U.S. Attorney is truly unparalleled. He took on and destroyed the five crime families of New York. He went after corrupt public officials, most notably in the Wedtech affair, in a way this country has never before seen. In the city?s most dangerous neighborhoods, many held hostage by deadly street gangs, Giuliani went in and cleaned them up. There has been much written of Giuliani?s successes. "Given his relatively long tenure and controversial approach, Mr. Giuliani comes in for relatively little criticism for botching cases. His office?s conviction rate of better than 90% - and its record of winning many big ones - speaks for itself. Wall Street Journal, 1/11/89 "Giuliani, the 44-year-old U.S. Attorney for the Southern District of New York, is the nation?s foremost prosecutor. For five years he has turned over the biggest rocks scooping up some of the worst enemies of the people. He has convicted seven Mafia dons of racketeering and sent them off (at an average age of 63) to 100 years each. He has personally removed New York?s own Papa Doc -- Bronx boss Stanley Friedman on corruption charges. He locked up Ivan Boesky, the bite?size arbitrageur with the mechanical smile, pink Rolls?Royce and a suitcase full of cash. Who else? Name a villain. Last year, Giuliani even went after his own then-boss, Attorney General Edwin Meese. 9 Spy, November 1988 In nearly every area, against 31?er type 0f crime, Giuliani has a superb record. He was effective against arson "An insurance adjuster and two landlords were charged in Manhattan yesterday with being members of an arson ring that set fire to 19 buildings to collect $1.2 million in insurance. . .The fires injured 40 firefighters, displaced many families and contributed to the destruction of neighborhoods, according to Rudolph W. Giuliani, the United B-36 States Attorney. New York Times, 11/30/83 against fraud "He also won convictions in a sweeping crackdown on political corruption and in three of the largest tax-fraud cases in history." Wall Street Journal, 12/22/88 father and son pleaded guilty yesterday to a multimillion?dollar fraud scheme directed against a dress manufacturer and the Internal Revenue Service. It was the largest tax fraud ever uncovered in the Garment District. ewsday, 11/29/83 federal grand jury here charged that Juan Zavala, a former Romanian citizen who allegedly represented himself as a wealthy international financier, defrauded a New York unit of Barclays Bank PLC of $600,000 and bilked a Metropolitan Opera singer of about $500,000. "Rudolph W. presented the case to the grand jury, said the indictment additionally accuses Mr. having tried to defraud the US. Small Business Administration of $1 million. Wall Street Journal, 9/9/83 "The executive director [Gustavo DeVelasco] of a Manhattan day care center ?who knew how to live? yesterday admitted stealing $745,000 in federal funds and spending it on Cadillacs, a mink coat, a Florida condominium and other luxury items for himself and his family. Leo Storozum pleaded guilty to charges that he embezzled the money from the Family Problem Center which obtained it through the Department of Agriculture?s Child Care After School Feeding Program." Daily News, 8/26/83 TODAY: What are you doing to counter criticism that the office has let down in the prosecution of securities fraud and official corruption cases? B-37 "Giuliani: In the securities fraud area this office has absolutely nothing to apologize about in the last 10 years. This office has done more on securities fraud than any other law enforcement office anywhere. USA Today, 7/1/83 former city accountant, a former social service case?worker and a Brooklyn businessman were named yesterday in court papers charging they embezzled $313,000 from the city by issuing Medicaid checks that they cashed and split three ways, officials said. Ne_wsd_av, 10/24/85 against the IRA Federal authorities charged eight men yesterday with participating in conspiracies that included plans to sell $2 billion of sophisticated weapons to Iran and $15 million of machine guns to the Irish Republican Army. New York Times, 7/28/83 and using RICO. "As US. attorney, Mr. Giuliani has made highly effective use of informants, wire- taps and the federal racketeering law in his battles against crime. Wall Street Journal, 12/22/88 Statistical speaking, Giuliani has been outstanding: [See the "Giuliani By the Numbers earlier in this section for a statistical analysis of Giuliani?s tenure at . "As a federal prosecutor, he never lost a case going something like 40?0. Miami Herald, 4/ 19/85 "When he started out as US. attorney, one of Giuliani?s t0p priorities was to file more indictments, particularly against drug dealers, and to try to take some for the B-38 load of narcotics prosecution off the local district attorneys. Court statistics show that between fiscal 1983, when first took over, and 1985, the number of defendants charged in Giuliani?s jurisdiction jumped sharply, from 1,159 to 1,942. The most dramatic rise was a 250 percent increase in the number of drug defendants. Newsday, 1/ 29/ 89 "Giuliani denies that prosecution takes a back seat to publicity in his office. He points to the bottom line: prosecutors in the Southern District of New York have won 90 percent of their cases during his watch. Gannett Westchester Newspapers, 1/ 3/ 89 B-39