Former Carter aide pleads 'no contest’
KZPA-Reuter Washington Ihe former United States budget Director, Bert Lance, has settled a Government lav. suit against him, alleging he tried secretly to help Arab investors take over a Washington bank. Lance and 10 other defendants consented to a Federal court order, neither admitting nor denying the charges, but agreeing not to violate securities laws in future. (A similar “no-contest” plea was taken by the former Vice-President. Spiro Agnew, when he faced corruption charges after being forced from office several years ■go.)
The 11 defendants were accused by the Government’s Securities and Exchange Commission of failing to report the purchase Of 20 per cent of the stock of Financial General Bankshares, a Virginia firm running 13 tanks. Lance bought 13,000 shares in his wife’s name, the commission alleged. It said that he met the
group once while still Budget Director and carried on the take-over moves after resigning last September; 0 ,- er criticism of his banking; practices before taking; office. The charge was the first] (formal action against Lance,; who since resigning has; Worked as a broker fori foreign investments, a tele-:
vision news analyst, and a lecturer. Among the defendants who consented to the order, was a former secretary to the United States Navy, William Middendorf. Other defendants included the Bank of Credit and Commerce International of London, the Crown Prince of Abu Dhabi (Sheikh Sultan Bin Zaid Nahyan), and a Saudi Arabian businessman, Faisal Saud Fulai. The injunction requires the 11 to make an offer for all remaining stock of Fi- ; nancial General at $l5 a share as soon as possible. Their stock had been purchased at $lO to $l3 a 1 I share. If the offer is not made within a year, the 11 must try to sell their stock in i blocks of at least 100,000: (shares at $l5 a share. Financial General has filed, i its own suit against the defendants, alleging they tried illegally to take over the; company through stock pur-j chases at high nrices fromi selected stockbrokers. >
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Press, 20 March 1978, Page 8
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341Former Carter aide pleads 'no contest’ Press, 20 March 1978, Page 8
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