Kerry's Ties to Foreign Money Scandal Deepen as Congressional Documents Reveal Secret Meetings with Johnny Chung

Strategic Insights -

The Democratic presidential hopeful's claim of a first meeting with the Taiwanese-American entrepreneur at a September 1996 event is disputed by congressional documents obtained by Newsweek, which show that they personally corresponded prior to the event. The documents reveal a series of compromising meetings and correspondence between Kerry and Chung, a central figure in the foreign-money scandals of 1996. According to these documents, Kerry's aides immediately faxed over a letter to the Securities and Exchange Commission (SEC) after meeting with Liu Chaoying, a Hong Kong businesswoman and lieutenant colonel in China's People's Liberation Army, in an effort to facilitate her company's listing on the U.S. stock exchange.

The crux of the scandal lies in the fact that the campaign contributions received by Kerry from Chung, amounting to $10,000, originated from $300,000 in overseas wire transfers sent on orders from the chief of Chinese military intelligence, routed through a Hong Kong bank account controlled by Liu. This revelations starkly contrasts with Kerry's previous claim of ignorance about the dubious origins of the campaign contributions and highlights his problematic fundraising practices, particularly with regards to foreign money.

Key Takeaways:

  • Congressional documents obtained by Newsweek reveal that Sen. John Kerry and Johnny Chung, a central figure in the foreign-money scandals of 1996, corresponded personally prior to the September 1996 Beverly Hills fund-raiser, contradicting Kerry's earlier claim of a first meeting at the event.
  • The documents show that Kerry's aides hastily faxed a letter to the SEC after meeting with Liu Chaoying, a Hong Kong businesswoman and lieutenant colonel in China's People's Liberation Army, to facilitate her company's listing on the U.S. stock exchange.
  • The $10,000 in campaign contributions Kerry received from Chung were traced directly to $300,000 in overseas wire transfers initiated by the chief of Chinese military intelligence, routed through a Hong Kong bank account controlled by Liu, raising questions about Kerry's ties to foreign money.
  • Kerry claimed ignorance about the dubious origins of the campaign contributions, starkly contrasting with the revelations presented in the congressional documents and highlighting his problematic fundraising practices.
  • A nonpartisan Center for Public Integrity report notes that Kerry has raised more than $30 million for his Senate campaigns, with a substantial portion coming from industries in line with the committees he has a seat, including more than $3 million from financial firms.
  • Kerry has shunned PAC donations, but formed a fund-raising group called the Citizen Soldier Fund, which accepted soft money exceeding his pledged limit of $10,000 and garnered nearly $879,000 in the month before the election.
  • The fund's contributions were strategically distributed to three critical states for a senator plotting a run for the White House: Iowa, New Hampshire, and South Carolina.

Statistics:

  • $300,000: The amount of overseas wire transfers initiated by the chief of Chinese military intelligence for foreign campaign contributions.
  • $28,000: The amount of illegal contributions that Chung funneled to the campaigns of Kerry and Bill Clinton.
  • $10,000: The amount of campaign contributions that Kerry received from Chung, sourced from the wire transfers.
  • $300,000: The total amount of foreign money laundered through a Hong Kong bank account controlled by Liu for campaign contributions.
  • $879,000: The amount of soft money collected by the Citizen Soldier Fund in the month before the election, with $27,500 coming from wireless telecom firms T-Mobile, AT&T, and Verizon.
  • 49 times: The number of times that Chung visited the Clinton White House.

Sources:

  • Newsweek, February 9 issue (on newsstands Monday, February 2)
  • Congressional documents obtained by Newsweek
  • Investigative Correspondent Michael Isikoff, Newsweek
  • Center for Public Integrity report on Kerry's Senate campaigns
  • Newsweek's news releases
  • Kirsty McDonald of Newsweek, phone: +1-212-445-4078
  • Newsweek website: http://www.newsweek.msnbc.com/