Opinion ID: 2399906
Heading Depth: 2
Heading Rank: 1

Heading: Attempt to Influence S.E.C. Investigation

Text: Although the first count of the original complaint of the Morris County Ethics Committee charged respondent solely with delivering an illegal campaign contribution, the scope of this inquiry was expanded. Thus, we are now asked to undertake a broader review of respondent's overall conduct and his use of campaign contribution funds to influence the S.E.C. investigation of I.C.C. We find the Disciplinary Rules under which respondent has been charged to be sufficiently broad to encompass the expansion of this count. [2] Based upon the facts presented in Part I, supra, the Ethics Committee found that during the relevant one-year period, respondent met with various politically powerful figures for the explicit purpose of inducing them to use their prestige on behalf of Vesco and I.C.C. For the most part, these meetings were conducted with people whose relationship with the S.E.C. was tangential and who, it may be inferred, were contacted solely because of their power, or former power, in government circles. [3] Furthermore, as testimony concerning Sears' meeting with John Mitchell reveals, the discussions which occurred did not concern the substantive merits of the S.E.C. investigation, but rather its scope and methods and the possibility of restricting them. The frequency of these meetings undermines respondent's suggestion that they were intended merely to convey Vesco's grievances about agency harassment. Respondent's denial of any attempt to influence the S.E.C. investigation is further contradicted by the circumstances of his delivery of the secret campaign contribution to Stans. In this regard, the scenario at the latter's office plainly supports the theory that respondent expected that the delivery would have the hoped-for effect, despite respondent's protestations to the contrary. Upon giving the money to Stans, the I.C.C. president, Richardson, explicitly requested assistance for the corporation with regard to the S.E.C. investigation. That respondent understood the import and intent of this remark is indicated by his own reaction to it and his immediate denial of any quid pro quo. In any event, respondent conceded at the ethics hearing that he and Vesco expected assistance in the S.E.C. investigation as a result of the campaign contribution: MR. CRAMP: Just one question. There is no question when you left Richardson for that day, that you, Richardson, Vesco, Stans all considered that it was given for a purpose to get some help? Richardson told you that Vesco said he wanted it in stronger language so that you knew that Vesco's purpose was to get some help? MR. SEARS: I knew that  I had to know that Vesco was giving that contribution because if he could get some help  MR. CRAMP: All right. MR. SEARS:  and attention, he would get it, absolutely. I am not trying  I am not trying to paint myself here as somebody who didn't, who was so naive and so stupid as not to know, and in Vesco's mind he hopes he gets some attention. [emphasis supplied] Finally, respondent's meeting with S.E.C. Chairman Casey on April 10, 1972 is suggestive of an effort by Sears to influence and limit the agency's investigation. Respondent testified that the discussions at this meeting were concerned solely with Vesco's allegations of S.E.C. harassment, the issuance of over-broad subpoenas, and I.C.C.'s request for an opportunity to respond to S.E.C. staff recommendations prior to agency action. The possibility of a legal settlement was also discussed. Contrary to this explanation, however, the record clearly reflects that these matters had already been discussed by representatives of I.C.C. and S.E.C., or could have been discussed by such parties as a matter of course. Certainly, the occasion did not necessitate a special visit by a personal envoy of Vesco to the chairman of the Commission. In this regard, the scheduling of the meeting by Mitchell makes it even more suspect. Accordingly, we find that the record supports the Ethics Committee's charge on this matter.