CORPORATE CRIME REPORTER

Justice Department Official Michael Elston Threatened U.S. Attorneys
21 Corporate Crime Reporter 11, March 6, 2007

Michael Elston, the chief of staff to Deputy Attorney General Paul McNulty, threatened U.S. Attorneys with the release of damaging information if they testified before Congress.

Bud Cummins, the former U.S. Attorney in Little Rock, Arkansas told the Senate Judiciary Committee that Elston called him on February 20 with the threat.

In an e-mail to his fellow dismissed U.S. Attorneys after he spoke with Elston, Cummins wrote:

“Mike Elston from the DAG’s office called me today. . .The essence of his message was that they feel like they are taking unnecessary flak to avoid trashing each of us specifically or further. But if they feel like any of us intend to continue to offer quotes to the press or organize behind the scenes Congressional pressure, then they would feel forced to somehow pull their gloves off and offer public criticisms to defend their actions more fully. . .I was tempted to challenge him and say something movie like – such as ‘are you threatening me?' But instead, I kind of shrugged it off. . .”

In the e-mail, read during the hearing by Senator Charles Schumer (D-New York), Cummins said he felt it was necessary to relay the message to his fellow dismissed U.S. Attorneys.

“I don’t want to overstate the threatening undercurrent in the call,” Elston wrote. “But the message was clearly there. And you should be aware, before you speak to the press again, if you chose to do that.”

Under questioning from Senator Sheldon Whitehouse (D-Rhode Island), all four of the U.S. Attorneys on the panel said that had evidence of such Main Justice intimidation had been presented to them while in office, they would open an investigation for obstruction of justice or intimidation of witnesses.

David Iglesias, the dismissed U.S. Attorney from New Mexico, opened his testimony to the committee by taking a shot at Schumer for mispronouncing his name.

“Thank you for pronouncing my name right the first time,” Iglesias said. (After saying it right the first time, Schumer proceeded to pronounce the name “Inglesias.”

It appears Schumer didn’t get Iglesias’ hint since he continued to pronounce the name “Inglesias.”

Iglesias said that Senator Pete Domenici (R-New Mexico) called him at home in late October 2006.

“He wanted to ask me about the corruption matters or cases widely reported in the local media,” Iglesias said. “‘Are these going to be filed before November?’ – he asked. I said I didn’t think so. ‘I’m very sorry to hear that’ – he said. The line went dead. He didn’t say goodbye.”

“I felt sick afterward,” Iglesias said. “I felt he was upset at hearing the answer he received. I felt leaned on, pressured to get these matters moving. It was unprecedented to get a call at home. It had never happened before.”

Iglesias said that the political race in New Mexico was very close – and the prosecution of Democrats for public corruption would have made a difference in the election.

Iglesias said that Congresswoman Heather Wilson (R-New Mexico) called him and said she had been hearing about “sealed indictments.”

“When she asked – ‘What can you tell me about sealed indictments?’ – red flags went up in my head,” Iglesias said. “We cannot talk about a sealed indictment. It’s like talking about launch codes at Sandia National Lab.”

“I said something about sealed indictments for national security cases,” Iglesias said. “She was not happy with that answer.”

Carol Lam, dismissed U.S. Attorney in San Diego, had the most potential to make waves at the hearing – but her testimony delivered hardly a ripple.

While U.S. Attorney, Lam – currently a senior vice president at Qualcomm – prosecuted several high-profile white-collar prosecutions – including the case of Republican Congressman Duke Cunningham – and there was some speculation that she was removed because of those prosecutions.

But Lam gave no hint that she believed that was the case.

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