NATION AND WORLD
FBI joins investigation of documents at prison
By United Press International
WASHINGTON — The FBI has joined the investigation into the delivery of highly classified State Department documents to a prison, where inmates may have copied the secret data, a spokesman said yesterday.
Officials also revealed that a guard at the prison, which is about 25 miles from Washington, D.C., spent several weeks trying to convince officials that convicts had the sensitive material. However, he was ignored.
— was delivered in August for refurbishing
Cellblock searches continued at the Lorton, Va., Reformatory, where the file case holding hundreds of documents — some stamped "Ton Secret"
The documents included intelligence reports on Soviet missiles, information from foreign embassies and copies of the morning summary prepared daily by the secretary of State George Shultz, a former U.S. agent, drawn from super-secret sources.
THE FBI is trying to learn who eventually had access to the documents. Romberg said no disciplinary action has been taken against government employees for the accidental delivery.
University Daily Kansan, November 11, 1983
No one missed the documents — most dated between January and March 1983 until the cabinet was opened Oct. 25 that week. The stacks of documents were revealed.
Most of the papers were recovered then, but two weeks later another stack of 31 documents was turned over to WTTG, a Washington TV station, by an officer who told the stunt personnel that he was acting "for patricid reasons."
Several prisoners who had access to the classified documents also had access to a copying machine, State Department officials said, meaning that all the documents might not have been recovered.
Department security agents who talked to the guard took no action, officials said, because they thought the document was not attached to the kitten and the documents were returned.
According to department officials, a "volunteer source" — identified as a Lorton prison guard — had tried for three weeks to convince federal agencies that classified documents were in the hands of prisoners.
When the case was first made public, officials treated it as an embarrassing and amusing example of a bureaucratic slip-up.
Nation pauses to recognize veterans of American wars
By United Press International
CLEVELAND, Ohio — With the Marine massacre in Beirut and the U.S. invasion of Grenada still in American minds, the nation today is grappling with the war with Veterans Day parades and other less formal observances.
Veterans will march down main streets, taps will be played in cemeteries and beers will be raised at American Legion halls.
At the Arlington National Cemetery, across the Potomac River from the nation's capital, a president and his family were to the Tomb of the Unknown Soldier.
Veterans Day is a federal holiday with the bureaucracy closed and no regular mail service. It is an official holiday, and most banks will be closed.
With President Reagan in Japan, Harry Walters, head of the Veterans Administration, will perform the honors and give the keynote address. He has claimed as the theme, "America is No 1, thanks to
where new graves have been dug in recent days for 14 of the 239 Marines killed in the suicide-bombing in Beirut.
About 5,000 people are expected to attend observances at Arlington.
ON THE EVE of Veterans Day, a few hundred members of the Vietnam Veterans of America arranged to hold closing ceremonies on national convention at the new Vietnam Veterans Memorial in Washington.
This week, the names of 68 vets left off the original list of dead, including the first killed, were chiseled into the walls. The oversight was detected by relatives and confirmed by the Pentagon.
The memorial, a pair of black granite walls inscribed with the names of the $8.90 million Americans killed in Southeast Asia, was dedicated Nov. 13 during the five-day National Salute to Vietnam Veterans.
About 39 million Americans have participated in military combat, from the American Revolution through last month's invasion of Grenada. About 1.1 million were killed, including 18 in Grenada
According to the Veterans Administration, there are 24.2 million living war vets.
Amway companies are fined $25 million for fraud scheme
By United Press International
TORONTO — Amway Corp. and Amway Canada Ltd. were fined a total of $25 million yesterday for defrauding the Canadian government of more than $28 million in unpaid duties on imputed goods over a 15-year period.
The $20 million fine levied against the U.S. parent corporation and the $$ million fine against the Canadian subsidiary must be the highest ever imposed in Canada.
Ontario Supreme Court Chief Justice Gregory Evans said that the severe penalties were warranted because the scheme used by the two companies between 1965 and 1980 constituted a "deliberate fraud to provide enormous profits and business advantages over a considerable period of years."
He said that the public must be made aware of his desire to deal severely with Frauds of this kind.
Prosecutor Paul Lindsay said that the guilty pleas would probably result in the companies losing a $147 million suit filed by the federal government.
The two firms pleaded guilty to the charges yesterday in a plea-bargaining deal that dropped charges against four senior company officials.
Amway Corp. of Ada, Mich. and Amway of Canada Ltd., with headquarters in London, Ont., along with four executives, were originally charged in November 1982, following an RCMP probe into fictitious invoices filed by the companies with Canadian customs officials.
IN A NEW, two-page indictment filed with the court yesterday, the government accused the cleaning products' firms with cheating the Department of National Revenue of more than $28 million in billions of goods imported from the United States.
Lindsay said the court that, although the fraud / which featured phony invoices and at least one dummy company / began in 1965, the tax department had routinely destroyed all records prior to 1974.
He said that since 1974 losses to the government in undecided duties and sales taxes resulting from the scheme totalled $28,708,444.16.
Judge Evans said although there was no evidence of fraud before 1974, "one would have to be rather naive to believe in such a case, and remain in an illegal manner prior to 1974."
Corporate defense lawyer David Humphrey said the two companies would pay their fines immediately with a $25 million check.
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