The Palm Beach Post from West Palm Beach, Florida on September 14, 1999 · Page 4
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September 14, 1999

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The Palm Beach Post from West Palm Beach, Florida · Page 4

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West Palm Beach, Florida
Issue Date:
Tuesday, September 14, 1999
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Page 4
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THE PALM BEACH POST TUESDAY, SEPTEMBER 14, 1999 5A Appeals court overturns criminal prosecution of Starr's office' proceedings she ordered against Starr's office as well as its former with Starr in immediately asking Johnson to withdraw her referral for prosecuting Starr's office, the appeals court disclosed. 1 A Laying out previously -setoret details, the appeals court stated that shortly after the Times' stdry ran, Bakaly submitted a declaration saying that he refused 'to confirm for a Times reporter what Starr "was thinking or doihg-re-garding whether CUnton could be indicted while in office. . ' I i " i spokesman, Charles Baka-ly, for leaking a story to The New York Times. The Times' story, published on Jan. 31 during the Senate impeachment trial, stated that The Associated Press WASHINGTON A federal appeals court on Monday overturned a previously secret ruling that Kenneth Starr's office be prosecuted by the Justice Department for alleged grand jury leaks to the news media. The decision, which President Clinton's lawyer said he will seek to appeal, undercut one of the most frequent complaints by the president's defenders against Starr that he leaks grand jury information to the press. In a 3-0 vote, the appeals court reversed U.S. District Judge Norma Holloway Johnson, who directed that the Justice Department act as prosecutor for civil and possibly criminal contempt article do not constitute a prima facie violation" of the grand jury secrecy rule, said the court. "Information actually presented to the grand jury is core" grand jury secrecy "material that is afforded the broadest protection from disclosure," said the three judges. But "prosecutors' statements about their investigation, however, implicate the" secrecy "rule only when they directly reveal grand jury matters," they said. The ruling may help Starr with other allegations of grand jury leaks leveled by Clinton lawyer David Kendall in the Monica Lewinsky investigation. Johnson ruled last year that there were 24 instances of possible grand jury leaks by Starr's office. Some of those dealt with negotiations with Lewinsky's lawyers. The appeals court also suggested that Starr's office, as a government entity, is entitled to sovereign immunity, making it immune from being prosecuted for criminal contempt Kendall said he will ask the entire Court of Appeals to review the case. "We believe that the decision of the panel is inconsistent with the precedents of the Court of Appeals," said Kendall. Starr's office said the "decision rejects defense tactics of seeking to distract an investigation through accusations of illegal leaks." Starr praised the ap peals court for "noting the important role of prosecutors providing public information regarding criminal investigations." Bakaly left the office when Starr asked the Justice Department to investigate him about the leak to the Times. Unknown until Monday was that Starr had waged a behind-the-scenes court battle since last summer to block Johnson from launching contempt proceedings against Starr's own office. Johnson, who oversaw the grand jury that investigated the Lewinsky scandal, directed the Justice Department on July 14 to serve as prosecutor of contempt charges against Starr's office. The Justice Department sided Stan- Starr had decided he had the authority to seek an indictment against the president while Clinton was still in office. "We conclude that the disclosures made in The New York Times mum FREE REPORT reveals what the insurance com panles donl want you to know. Donl settle ouf 5 case until you read this free report , .i b Call toll tree 1-8O0-W-7m-24hiswcon!eiSmsg. WED. SEPT. 1 5 'PREVIEW DAY IS TUES. SEPT. 14 G0HD mm mjMSllM0 i i r, sale 79.99 50 off e!I A!:nsr Cress sfelrts In tits best colors and patterns. Reg. 32.50-$37 Sale 16.25-18.50 sole 39.S9 sny size dum comforter European Classics. 855 fill. Reg. 79.99-99.99 sale 24.89 Teastester tater even 4-silce capacity. 317 Reg. 39.99 Investment founder charged with fraud Federal officials say Martin Armstrong lost up to $1 billion and tried to cover it up. The Associated Press NEW YORK The founder and chairman of a Princeton, N.J.-based investment firm was arrested Monday on charges that he fraudulently sold billions of dollars of promissory notes to Japanese investors, losing up to $1 billion. Martin A. Armstrong, 50, of Maple Shade, N J., was charged with securities fraud by federal prosecutors and the Securities and Exchange Commission for allegedly swindling investors through corporations he controlled. Documents filed in U.S. District Court in Manhattan outlined the scheme through which Armstrong, founder and chairman of Princeton Economics International limited, allegedly tried to cover up hundreds of millions of dollars in losses he piled up through risky trading. Since at least 1996, strong managed to sell about $3 billion of so-called "Princeton Notes" to foreign investors through Princeton Global Management Limited, a Princeton investment fund he controlled that is popular with some large institutional investors in Japan, authorities said. He promised to conservatively invest the proceeds from the note sales in segregated accounts at Republic New York Securities Corp., a registered broker-dealer headquartered in New York, authorities said. Ertstzo wool tlcnd peacoat( In clack or grey for her. ;.r.M Reg. $145 TMii.t S0l3 79.99 Frca teipy snstosrd Jast'' In black or powder blue lor her. i sole 1 9.89 sole 9.99-39.89 sole 69.89 n ns:m mil sportsliirt Gtea Z-pc. te323 set 26" upright, casual upright carryon. Reg. $140 200-thread cotton. Iwin-king. Orig 19.99-79.99 (! Reg. $145 15 Off i or; in ics cotton, s-xxl Reg. $34 sole 59.89 TLT.icpl2nd Gxfcrtis Flsin-toe lace-up In brown leather. Reg. 89.99 From the social dress department. '1 Reg. 59.99-$128 Sale 50.99-108.80 ' r if ii on sale $1399 i m i id 5 Gl Ivi.' Sfatss dress pants Microtech dress pants in pleated styles. Reg. $65 Set in 14k gold. Reg. $4000 After 3 hours $1999 I,.- l!l 'f'.n -!, 48 off SQiO $299 hire cr.j diamond ring,,. aei in iik pia. Reg. $800 After 3 hours $399 sate $399 ct. tw. tmmA percent CLi Pot & Charter Cl Boys and girls underwear & sleepwear. Reg. $3-$34 Sale 1.80-20.40 sole 19.89 GSsrla ItenSaitiSt twill psnts Ecited styles In 160 cotton. Reg. $34 Ms 2AM ':zz?z fcnla & twill bottoms Cottonlycra" basics In the latest colors. Reg. $36-$38 Set In 14k gold. Reg $950 After 3 hours $505 5 sets 29.99 Gins West "Espy" casual flat when you teko m extra 30-5Q off fashion ctoaocc coctlons for tlra entire Orig. $6-$298 Final cost 2.10-162.99 In brown or black leather. 8-1 CX Orig $59 IP CBK318 I mm hot ! lip mw Instead of protecting the money, Armstrong commingled the money in a Princeton Global account at Republic, prosecutors said. After losing hundreds of millions of dollars, Armstrong then tried to cover up the financial disaster by misrepresenting investment results and concealing trading losses, according to court papers. The trouble began in earnest for Armstrong when he racked up about a half-billion dollars worth of trading losses from November 1997 through August 1999, prosecutors said. He then allegedly had an officer at Republic Securities issue false confirmation letters, some of which were given to Japanese investors, overstating the net asset values of the funds created by their investment Federal authorities said the amount of the money from investors that has not been paid back stood between $700 million and $1 billion while the remaining cash and trading positions at Republic Securities was only about 46 million. U.S. Attorney Mary Jo White noted that Armstrong used offshore entities to sell $3 billion in securities to Japanese investors. "This case should send a clear and concise message that those who commit securities fraud in the United States, even if they use offshore entities and victimize foreign investors, cannot escape responsibility for their actions," she said. Republic recently suspended James E. Sweeney, its chief executive, and replaced the management of its futures trading division. Republic New York is in the process of being acquired by HSBC Holdings PLC of London for $10.3 billion, although the deal's closing could be slowed by the continuing investigation, executives have said. Tif niiiiiD mmmi mm o&m mmommmm wmmmmm maevs EARN TAXANEX!HAi 10 OFF ALL DAY IN ADDITION TO YOUR EXTRA 7 COUPON SAVlSS) GREATER 12 345 47 890 tKf CUCTOMMt maevs t REWARDS More savings, services, even free merchandise, the more you shop with your Club Macy's card. when you open a Macy's charge account. See your Sales Associate for details. Shop for more at your 24 hour store! www.macys.com REG.ORIG PRICES APPEARING IN THIS ADVERTISEMENT REFLECT OFFERING PRICES WHICH MAY NOT HAVE RESULTED IN ACTUAL SALES. ADVERTISED ITEMS MAY BE OFFERED IN FUTURE SALE EVENTS. Merchandise is from sbecfelly selected groups unless otherwise specified. "Intermediate price reductions may have been taken. JCt. t.w. represents approximate weight; total weight may vary up to .05 carat. tStore stock only; no phone, mail or rainchecks; CT qty 25 -i Final cost prices reflect extra savings. 3-Hour specials in effect 914 and 915 from 9am-noon only while supplies last. Macy's is not responsible for pictorial or typographical errors. Sale ends 915. a

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