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Kokomo Tribune (Newspaper) - February 5, 1994, Kokomo, Indiana Pacers roll to fiirtl Vol 143 No 153 Kokomo Ind Saturday Feb 5 1994 Dan Lasater named in allegation Relationship with Clintons noted A former Kokomo resident is named by the Chicago Tribune in a conflictofinterest allegation against First Lady Hillary Clinton According to the Chicago Tri bune Dan Lasater formerly of Kokomo got to know the Clintons after meeting Bill Clintons moth er at an Arkansas racetrack in 1979 The Chicago Tribune reported an investigation is under way to determine if Hillary Clinton when representing the federal Cvernment in a case against sater failed to disclose her rela tionship with him when dismiss ing a million lawsuit for Lasater grew up in the Kokomo area and graduated from Sharpsville High School in 1960 With various partners in Kokomo he founded the restaurant chains of Scottys and Ponderosa Steak House Later he moved to Arkansas and started a bond trad ing company According to the Chicago news paper Lasaters friendship with the Clintons expanded in the early 1980s when Bill Clinton was re elected as Arkansas governor and his halfbrother Roger went to work fpf Dasater At Lasatets bond firm according to the newspaper was generating millions of dollars in business with the state of Arkansas The relationship between Lasater and the Clintons included contributions from Lasater to Gov Clintons campaign an loan to Roger Clinton to pay off a drug debt and allowing his pri vate plane to be used for cam paijgning according to the Chica go Tribune The Chicago Tribune article said Lasater sold million in bonds for Arkansas new state police radio system That contract resulted in Lasaters company being paid according to the Los Angeles Times Clinton was criticized in his 1986 reelection campaign by Republicans who accused him of giving state contracts to Lasater while Lasater was being investi gated for cocaine trafficking Lasater was arrested and con victed of cocaine possession and trafficking in 1986 and was sen tenced to 30 months in prison which he began serving in 1987 At the time this occurred Bill Clinton acknowledged he was friends with Lasater but denied knowing anything about the drug allegations The conflictofinterest allega tions surfaced after federal bank regulators seized First American Savings and Loan an Oak Brook thrift and went ahead with a 1985 lawsuit against Lasater for improper trading practices This occurred in 1986 and 1987 accord ing to the newspaper Hillary Clintons law firm was hired to represent the government in the case and she and Vincent Foster were assigned The two negotiated a settlement between the government and Lasater that dismissed the million lawsuit for according to the Chicago Tribune Attorneys for the Federal Deposit Insurance Corp are now trying to determine if Hillary Clinton divulged her relationship with Lasater when her law firm was hired for the governments case House counsel for Bill Clinton but committed suicide in July Thomas Scorza a former assis tant attorney who teaches at the University of Chicago Law School said the decision by Hillary Clinton to stay on the case despite her personal relationship with Lasater raises questions about her professional conduct A lawyer is required to repre sent the interest of their client he told the Chicago Tribune There is substantial question about whether an attor ney was representing a client zeal ously if the opponent of the client is someone with whom the attor ney had a political financial and personal The first ladys office would not respond to specific questions about the allegations but issued this statement Our view is that Hillary Clinton when a lawyer at the Rose Law Firm acted with the utmost integrity and professional BIONIC Fives Brooke Guy 10 left congratulates Sarah Brunnemer 11 after Sarah bowled a strike in her first game ever Fortysix Bon Air fifth grade pupils were rewarded with a night of bowling Friday at Cedar Crest Lanes for making good grades The students made all the reward The groups name is BIONIC Believe It Or Not I Care Fives Manager Greg Garretson of the Cedar Crest Lanes invited the group to bowl as his treat The students also had an Ice Cream Social spon sored by the three Kokomo Kroger Stores Trie youngsters got a chance to make and eatlheirfavbrite sundaes Tribune photo by Brian Reynolds No indictment in Garner case Grand jury concludes investigation of TriCentral teacher TIPTON Ind A Tipton County grand jury concluded an investigation Friday into TriCen tral Elementary teacher Donald W Garner and agreed not to return an indictment According to the final report from the grand jury filed in Tipton Circuit Court Garner did testify before the panel A no bill of indictment was returned and entered into the court record Fri day The grand jury was then dis charged Tipton County Prosecutor Vance Curtis called for the grand jury after four female seventh grade pupils alleged Garner had inappropriate contact with them When contacted by the Kokomo Tribune about the case Garner said he was innocent In December Indiana State Police Sgt Gary Boyles said he was investigating allegations made against the teacher At that time Boyles said the alleged inap propriate contacts were allegedly made during the 19921993 school year Garner has been on paid leave since Dec 10 Hes been a teacher for the Northern School Corp for 14 years and coached various including basketball for 25 years According to Boyles the ISP began its investigation after the juveniles reported their allega tions to the Tipton County Office of Family and Children The juve niles were sixthgraders when the alleged inappropriate contacts allegedly occurred he said Boyles would not tell the Tri bune why the girls waited to report the alleged incidents or what the alleged inappropriate contact was The alleged incidents were on different days during the school year from December 1992 to May 1993 Boyles said Federal Reserve raises interest rates Dow tumbles t the news WASHINGTON AP The Federal Reserve increased interest rates for the first time in five years Friday in a surprise announce ment that triggered a huge selloff on Wall Street Economists predicted the Feder al Reserves action limited to overnight loans among banks would translate quickly into small gains in consumer and business interest rates The Fed said its move was designed to head off any reemer gence of high inflation and to sustain and enhance the econo mys prospects for growth but the initial reaction from investors was violently negative The Dow Jones industrial average fell by points the biggest oneday drop since Nov The Clinton administration played down any adverse effect the action might have on the econ omy sticking by its forecast of moderate growth the rest of this year The Fed which has been under congressional attack for being too secretive took the unprecedented step of publicly announcing its decision immediately In a statement Federal Reserve Chairman Alan Greenspan said the move represented only a small increase in interest rates and was taken to sustain and enhance the economic The Fed moved its target for the federal funds rate the interest that banks charge each other on overnight loans to percent a modest quarterpoint higher than it had been since September 1992 It caught financial markets and many economists by surprise especially coming on a day when the government had released unemployment figures for Janu ary that many viewed as weak The jobless rate under a new sur vey method was percent in January with payroll employment rising by just less than half what had been expected The administration which has made low interest rates a center piece of its economic policies insisted that the credit tightening would not derail the economic expansion Treasury Secretary Lloyd Bentsen called the increase a small amount that would not change the administrations expectations that the economy will grow at a solid annual rate of 3 percent this year We think inflation is con he said I would inter pret this as a preemptive strike on the part of the Fed However several Democrats in Congress denounced the Fed move as premature and danger ous for a recovery they described as still fragile The Fed has a hairtrigger response when it comes to fight ing said Sen Paul Sar banes DMd Sen Jim Sasser D complained that the Fed does not seem to recognize that there still are close to 9 million people unemployed in this coun In addition to the big drop in stock prices bond prices fell as well with the Treasurys bench mark 30year bond dropping per in face value dri ving up its yield which moves in the opposite direction to per cent compared to percent on Thursday Analysts said Wall Street was overreacting They noted that Greenspan had put the country on notice in congressional testimony on Monday that the Fed was preparing to raise rates Economists generally supported the Feds decision to act now Motorist pleads guilty to charges By MIKE PALUCK Tribune staff writer A Kokomo man who was charged with operating a vehicle while intoxicated resulting in death and other offenses follow ing a Nov 29 fatal traffic accident pleaded guilty to two of the charges Friday court officials said Rufus Dow 44 2105 E Joyce Drive Apartment A pleaded guilty to the Class C felony charge of OWI resulting in death and a Class A misdemeanor count of possession of a handgun without a permit under the terms of a plea bargain that was filed in Howard Superior Court 3 Jan 27 Friday was the day the case had been set for trial according to court records Dow was charged with five offenses following the Nov 29 accident that claimed the life of Stephen L Gonzales 43 2802 N Webster St Kokomo police have reported that Gonzales was traveling south on Washington Street in his 1993 CMC pickup truck when he turned onto Taylor Street with the green light and his vehicle was struck by a 1986 Ford Taurus dri ven by Dow Dow was westbound on Taylor Street which is a one way street going east police said After the initial impact the vehi cles collided a second time on an abandoned service station lot according to an accident report filed in the case Police reported that Gonzales was partially ejected through the drivers side window of his truck and suffered serious head injuries in the collision The accident occurred about Nov 29 and Gonzales was pronounced dead at Nov 30 at Methodist Hospital in Indianapolis officials said Dow was treated at Saint Joseph Hospital Health Center for a cut on the forehead A blood sample taken at the hospital and released to police by subpoena revealed that Dow had a bloodalcohol level of 22 percent court records said In addition to the two charges to which he pleaded guilty Dow was charged with OWI a Class A misdemeanor driving while sus pended a Class A infraction and driving the wrong way on a one way street a Class C infraction The terms of the plea bargain call for the dismissal of those three counts During a March 3 hearing pros ecution and defense attorneys will argue for the sentence they believe should be imposed on Dow A Class C felony conviction carries a maximum penalty of eight years in prison and a fine of A Class A misdemeanor conviction carries a maximum penalty of ene year in prison and a fine or Dow is in the Howard County Criminal Justice Center with a bond of Chrysler Corp calls back new Neon cars NEW YORK AP Chrysler Corp has recalled every new Neon car sold to date and is clos ing the plant that builds them for at least a week while it corrects a problem that could cause the engine to stall It also told Dodge and Plymouth dealers to stop delivering the new cars until the problem is fixed The recall was announced Fri day only a day after Chrysler marketers outlined their plans to capture up to 15 percent of the subcompact car market in the cars first year It involves all Neons sold since the car went on the market Jan 2 Its the second recall in recent weeks affecting Chryslers promising new lines of cars and trucks Last Chrysler recalled Jeep Grand Cherokees and Grand Wagoneers to fix a defect that could make it impossible to steer Chrysler said it discovered water can leak into the Neons engine controller the brains of the computerized system that con trols the engine and potentially cause the engine to die out or fail to start Spokesman Mike Aberlich said the problem was traced to a seal ing compound that connects the controller and an electrical circuit board under the hood He said the assembly plant where the cars are made in Belvidere III will be closed until hew parts can be obtained The plant produces about 900 cars a day The recall was the second for Neons About 60 of the cars equipped with antilock brakes were recalled Jan 21 for a prob lem involving a brake cylinder seal Aberlich said Chrysler has built Neons to date and has shipped about to dealers The unsold Neons on dealer lots and those at the assembly plant will be fixed before they are sold Aberlich said Chrysler marketers hope to sell to of the subcom pacts this year and have devel oped a campaign that includes several unusual twists they hope will appeal to young adults under age 35 who are expected to be the biggest group of customers for the cars About 2 million subcompact cars were sold in the United States last year Inside today Local Ever thought about chip ping your pet Page 2 Classified Dr Local News of PMNUOWITH SQV INK ;