Henry Cisneros payments controversy
Encyclopedia
The Henry Cisneros payments controversy was a lengthy investigation begun in 1995 into allegations that Henry Cisneros
Henry Cisneros
Henry Gabriel Cisneros is a politician and businessman. A Democrat, Cisneros served as the 10th Secretary of Housing and Urban Development in the administration of President Bill Clinton from 1993 to 1997...

, United States Secretary of Housing and Urban Development
United States Secretary of Housing and Urban Development
The United States Secretary of Housing and Urban Development is the head of the United States Department of Housing and Urban Development, a member of the President's Cabinet, and thirteenth in the Presidential line of succession. The post was created with the formation of the Department of Housing...

 during the Presidency of Bill Clinton
Presidency of Bill Clinton
The United States Presidency of Bill Clinton, also known as the Clinton Administration, was the executive branch of the federal government of the United States from January 20, 1993 to January 20, 2001. Clinton was the first Democratic president since Franklin D. Roosevelt to win a second full term...

, had lied to the FBI
Federal Bureau of Investigation
The Federal Bureau of Investigation is an agency of the United States Department of Justice that serves as both a federal criminal investigative body and an internal intelligence agency . The FBI has investigative jurisdiction over violations of more than 200 categories of federal crime...

 background check investigators about payments he had made to his former mistress. Independent Counsel David Barrett was appointed to investigate the matter. In 1995 Cisneros was indicted; in 1997 he pled guilty to a misdemeanor; in 2001 he was pardoned by President Bill Clinton
Bill Clinton
William Jefferson "Bill" Clinton is an American politician who served as the 42nd President of the United States from 1993 to 2001. Inaugurated at age 46, he was the third-youngest president. He took office at the end of the Cold War, and was the first president of the baby boomer generation...

. The Independent Counsel investigation continued, however, focusing on allegations of obstruction of justice by the Clinton administration. It issued a final report, known as the Barrett Report
Barrett Report
The Barrett Report is a 400 page report created by special prosecutor David Barrett. Initially tasked with investigating allegations of lying to the FBI against Henry Cisneros, Secretary of the U.S Department of Housing and Urban Development under U.S. President Bill Clinton, the investigation...

, in 2006 that did little to resolve matters.

Independent Counsel's investigation

In March 1995, Attorney General of the United States Janet Reno
Janet Reno
Janet Wood Reno is a former Attorney General of the United States . She was nominated by President Bill Clinton on February 11, 1993, and confirmed on March 11...

 secured the appointment of an Independent Counsel
United States Office of the Independent Counsel
United States Office of the Independent Counsel was an independent prosecutor — distinct from the Attorney General of the United States Department of Justice — that provided reports to the Congress under . The office was terminated in 1999 and replaced by the U.S...

, David Barrett to investigate allegations that Cisneros had lied to FBI investigators during background checks prior to being named Secretary of HUD. He had been asked about payments that he had made to former mistress Linda Medlar
Linda Medlar
Linda Medlar-Jones was a principal figure in a high profile political sex scandal that triggered an exhaustive 2 ½ year, multi-million dollar investigation by the U.S. Office of the Independent Counsel during the first term of U.S. President Bill Clinton...

, also known as Linda Jones. The affair had been 'public knowledge' for a number of years—during the 1992 presidential campaign, U.S. Treasurer Catalina Vasquez Villalpando
Catalina Vasquez Villalpando
Catalina "Cathi" Vásquez Villalpando was the 39th Treasurer of the United States from December 11, 1989 to January 20, 1993 under President George H. W. Bush. She had previously held minor positions under President Ronald Reagan and was also a chairman of the Republican National Hispanic Assembly...

 publicly referred to Cisneros and candidate Clinton as "two skirt-chasers"—but Cisneros lied about the amount of money he had paid to Medlar. The investigation continued for three and a half years.

In December 1997, Cisneros was indicted on 18 counts of conspiracy, giving false statements and obstruction of Justice. Medlar used some of the Cisneros hush money to purchase a house and entered into a bank fraud scheme with her sister and brother-in-law to conceal the source of the money. In January 1998, Medlar pleaded guilty to 28 charges of bank fraud, conspiracy to commit bank fraud and obstruction of justice.

In September 1999, Cisneros negotiated a plea agreement, under which he pleaded guilty to a misdemeanor count of lying to the FBI, and was fined $10,000. He did not receive jail-time or probation. He was pardoned by President Clinton in January 2001 (see: List of people pardoned by Bill Clinton). The independent counsel investigation continued after the pardon focusing on alleged obstruction of justice. In May 2005, Senator Dorgan (D-ND) proposed ending funding for the investigation; negotiators refused to include the provision in a bill funding military operations in Afghanistan
Afghanistan
Afghanistan , officially the Islamic Republic of Afghanistan, is a landlocked country located in the centre of Asia, forming South Asia, Central Asia and the Middle East. With a population of about 29 million, it has an area of , making it the 42nd most populous and 41st largest nation in the world...

. The funding at that point for the investigation totaled $21 million.

According to a New York Daily News report on October 3, 2005, "lawyers are fighting to suppress a potentially embarrassing final report from the probe that found Housing Secretary Henry Cisneros lied to the FBI about paying $250,000 in hush money to his ex-mistress... Lawyers at the Washington firm Williams & Connolly
Williams & Connolly
Williams & Connolly LLP is a prominent litigation firm based in Washington, D.C. The firm was founded by trial lawyer Edward Bennett Williams, who left the partnership of D.C. firm Hogan & Hartson to launch his own litigation boutique....

 who work for Cisneros and both Clintons have argued to judges overseeing the case that allegations of illegal activity, for which no charges were filed, should be snipped before the report is made public."

On January 19, 2006, the New York Times reported that the independent counsel is finally closing his investigation with a report accusing the Clinton administration of thwarting the inquiry into Cisneros.

The office of the independent counsel issued a press release along with the final report stating:
An accurate title for the Report could be, What We Were Prevented from Investigating. After a thorough reading of the Report it would not be unreasonable to conclude as I have that there was a coverup at high levels of our government and, it appears to have been substantial and coordinated. The question is why? And that question regrettably will go unanswered. Unlike some other coverups, this one succeeded.


The Independent Counsel's report has been a source of partisan bickering because it was heavily redacted with an estimated 120 pages removed by court order.

Analysis by opponents of the investigation

Barrett's investigation of this relatively minor matter lasted for many years and resulted in the end in Cisneros' guilty plea to a misdemeanor with a promise from Barrett that he would not serve any jail time.

Nonetheless, Barrett continued his investigation for several years more, believing that there was a conspiracy among the IRS and the Department of Justice to obstruct his investigation. Eventually he had to be ordered by the Special Division of the Court of Appeals, which supervises independent counsels (and which is headed by conservative Republican Judge David Sentelle), to wrap up his investigation.

Despite fervent speculation that the report contained damning evidence about corruption in the Clinton Administration, the report when released demonstrated only the dangers of independent counsels operating without ordinary prosecutorial supervision; indeed Barrett's abuses were routinely cited as one of the reasons the Independent Counsel Act was not renewed. He brought no charges and the report contained no evidence of any conspiracy. Since the release of Barrett's report, no one has paid any attention to it, and the Republican journalists and politicians who made accusatory statements prior to its release were strangely silent afterwards.

Analysis by supporters of the investigation

Barrett wrote what was rumored to be a damning report. Release of the report was blocked for a time by parliamentary maneuvers by Clinton's personal attorney David Kendall
David Kendall
David Evan Kendall is an American attorney who advised President Bill Clinton during the Lewinsky scandal and represented Clinton during the impeachment trial.-Background and Education:Kendall was born in 1944 and grew up in Sheridan, Indiana...

.

Columnist Emmett Tyrrell
Emmett Tyrrell
Robert Emmett Tyrrell, Jr. is an American conservative magazine editor, New York Times bestselling author, and columnist. He is the founder and editor-in-chief of The American Spectator. He writes under the byline R...

wrote the following about the report: "When Barrett completed his report the Clintons' lawyers, led by that legendary Clinton pettifogger, David Kendall, tried to kill off the report either by gutting it with redactions or by getting it buried altogether. Kendall entered some 140 motions pursuant to this goal. The report has been ready for publication since August 2004, but Kendall's nuisance tactics have worked, and now what do we hear from the Clintonistas? They complain that Barrett has cost too much and taken too long. As they are themselves are the reason for much of the cost and delay, advocates of good government should be up in arms. This stratagem has been used too frequently by the Clintonistas to smear an officer of the court."

Prior to his appointment as White House Press Secretary, Tony Snow wrote, "By all accounts, the 400-page Barrett report is a bombshell, capable possibly of wiping out Hillary Rodham Clinton's presidential prospects. At the very least, it would bring to public attention a scandal that would make the Valerie Plame affair vanish into comical insignificance."

In April 2005, Senators John Kerry (D-Mass.), Dick Durbin (D-Ill.) and Byron Dorgan (D-N.D.) tried to end the $22 million investigation, including $1 million for the first six months of 2005 - by cutting Barrett's budget, saying "it's a waste of money."

Kendall has not commented to the news media.

Barrett's report was released in January 2006, but three judges -- David Sentelle (D.C.), Thomas Reavley (Texas) and Peter Fay (Florida) -- blacked 120 pages worth of redactions. Barrett's investigation was far and away the longest independent counsel investigation in history. After agreeing to permit Cisneros - the target of his investigation - to plead guilty to a misdemeanor with no jail sentence, Barrett thereafter spent six years investigating whether the Department of Justice and the Internal Revenue Service had impeded his investigation.

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