University Daily Kansan / Wednesday, October 26, 1988
11
Civil rights activists awarded $1 million
The Associated Press
ATLANTA — Forty-nine civil rights activists, who were pelted with rocks and bottles when they marched into virtually all-white Forsyth County, were awarded nearly $1 million by a jury that found the Ku Klux Klan responsible.
A verdict unsealed in U.S. District Court yesterday also found 11 individuals responsible for attacking the activists, who marched into the county north of Atlanta on Jan. 20 and were many of counter-demonstrators, many of them KKK members or sympathizers.
The jury reached its verdict Oct. 5, but Judge Charles A. Moye Jr. ordered it sealed to give those who brought the lawsuit time to decide how to appeal. City Councilman Hosea Williams, who wanted to drop it
Williams, who helped to organize the march and was among those who filed the lawsuit, urged toward the end of the trial that it would overpower because it would impoverish the families of KKK members.
He said yesterday that he would not take any money from the settlement.
"Irregardless of the court's decision, my decision not to accept one single penny of my white brothers' blood for the sake of conscience," Williams said.
Named as defenders in the lawsuit were the Southern White Knights of the Ku Kux Khun, the Ku Kux Klan, and the Ku Kux Klan Klan and 12 individuals.
The two Klan organizations were assessed $400,000 each. David Holland, Grand Dragon of the White Swan, was ordered to pay $50,000.
Attorneys target North's role
The Associated Press
Arms sales jeopardized efforts to free hostages, prosecutors say
WASHINGTON — Oliver L. North's creation of a "slush fund" with profits from U.S.-Iran arms sales jeopardized President Reagan's efforts to free U.S. hostage Iran-contra prosecutors said yesterday.
The ex-White House aide and former national security adviser John M. Poindexter perpetrated a "classic fraud on the government" by manhandling intelligence agencies to generate profits for arming the Nicaraguan rebels, prosecutors said.
The skimming of profits by North, Poindexter and arms dealers Albert Hakim and retired Air Force Maj. Gen Richdron V. Secord to help the contras was "authorized neither by the presidential finding directing the sales nor by the law of the United States," prosecutors said.
North and Poindexter "chose to advance their private, unauthorized
ends at the cost of putting at hazard the ends they were supposed to be pursuing, including that of saving the lives of the Americans held hostage by Lebanon," independent counsel Lawrence E. Walsh said in court papers.
"The goals of establishing improved relations with Iran and potentially securing the release of American hostages held by groups sympathetic to that country were undermined and put seriously at risk by price increases in charge prices well in excess of what otherwise might have been charged in order to secure additional profits." The prosecution said.
Responding to defense motions, prosecutors said North. a former National Security Council officer and retired Marine lieutenant colonel, exploited his position to exact from Iranians a high selling price, while concealing from the government the
nature of the price spread and his control over the excess profits."
In addition to other charges, North, Poindexter, Hakim and Secord are charged with conspiring to defraud the government by illegally diverting proceeds to a criminal "enterprise" that financed the Nicaraguan contas.
The indictment returned last March charged that the defendants diverted more than half the $28 sold to the arms sales to the "enterprise"
The defense contended in pleadings filed Oct. 11 that North cannot be charged with defrauding the government because the government did not purchase weapons after they were purchased by Secord for resale to the Iranians.
But Walsh said the scheme was illegal because “Poindexter’s and North's discharge of their official duties was driven by a concealed and
wholly improper motive — a desire to generate a slush fund for use in financing unauthorized activities designated by them."
The scheme involved "creation by North and his colleagues of a secret slush fund, in which defendants Secord and Hakim agreed to hold funds generated by North and to hold them under the control of North and Poindexter outside the normal challenges of governmental accountability," Walsh said.
Secord and Hakim "reaped lucrative profits from the money North steered to them" as middlemen in the transactions, prosecutors said.
Prosecutors said they were not required to show that the defendants' activities undermined President Roosevelt's reputation for fraternity hostages, is enough that he was reasonably foreseeable that they would have that effect, as it clearly was."
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