From: Subject: The Child Prostitution Sex Ring Involving the Bush Whitehouse Date: Fri, 5 Sep 2008 21:21:34 -0700 MIME-Version: 1.0 Content-Type: multipart/related; type="text/html"; boundary="----=_NextPart_000_0103_01C90F9D.5F9F0930" X-MimeOLE: Produced By Microsoft MimeOLE V6.00.2900.3350 This is a multi-part message in MIME format. ------=_NextPart_000_0103_01C90F9D.5F9F0930 Content-Type: text/html; charset="Windows-1252" Content-Transfer-Encoding: quoted-printable Content-Location: http://www.voxfux.com/features/bush_child_sex_coverup/article_archive.htm The Child Prostitution Sex Ring Involving the Bush = Whitehouse

HOMOSEXUAL CHILD=20 PROSTITUTION RING INVOLVING GEORGE BUSH SR.
ARCHIVE OF=20 PUBLISHED ARTICLES OF YET ANOTHER OF MASSIVELY SUPPRESSED STORY = INVOLVING THE=20 FAMILY WHO IS ABOVE ALL LAWS - THE BUSHES

In the high stakes world = of global=20 politics, it is common practice to procure sexual favors in the hopes to = gain=20 leverage or to gain power through blackmail. It's done all the time. The = Soviets=20 did it. The Americans do it, and many other countries as well. This = following is=20 the bizarre and very real child sexual prostitution ring involving the=20 Republican elite of Washington. And the trail leads right up to George = H. W.=20 Bush. Read the chilling story.

SEX AND THE = CAPITAL

KARLYN BARKER, = WASHINGTON POST, JULY=20 24, 1990: The alleged leader of what authorities have called the largest = male=20 prostitution operation in the Washington area surrendered to federal = agents=20 yesterday and pleaded not guilty to racketeering charges that have been = filed=20 against him and three alleged accomplices. Henry W. Vinson, 29, of = Williamson,=20 W.Va., a coal miner's son accused of setting up the homosexual escort = service,=20 was arraigned in U.S. District Court here yesterday afternoon after = turning=20 himself in to Secret Service agents . . . At a news conference after the = arraignment, [U.S. Attorney Jay] Stephens said the investigation into = the=20 alleged prostitution ring "is concluded" and that the indictment, which = was=20 unsealed yesterday, focused on those who allegedly set up the ring = rather than=20 on clients who reportedly patronized it. Asked about earlier reports = that some=20 of those clients included high-level officials in the Reagan and Bush=20 administrations, Stephens said the investigation had not revealed = "additional=20 conduct which suggests criminal conduct on behalf of other people." . . = . The=20 Vinson case provoked additional notice after The Washington Times = published=20 reports last summer suggesting that the alleged prostitution ring had = been=20 patronized by government officials. The Times named as clients several = low-level=20 government employees and Craig J. Spence, a Washington lobbyist and = party-giver=20 who, the paper said, took friends and prostitutes on late-night tours of = the=20 White House. Spence was found dead in a Boston hotel room last fall, and = authorities ruled his death a suicide . . . To date, however, = investigators have=20 disclosed no evidence linking any high-level government official to the = escort=20 service.

THE ARTICLES BELOW CHRONICLE THE VERY REAL BEHAVIOR OF THE POWER = ELITE IN=20 AMERICA

MINGO MESS BAFFLING TANGLE
The Charleston Gazette Editorial; Pg. P4A July 03, 1997,=20 Thursday

PERHAPS world chess champion Garry Kasparov = (or his=20 nemesis, the Deep Blue computer) would have the mental capacity to = keep=20 track of the amazing complexities involving Mingo County public = officials.=20
Vinson vowed that he'd = never be=20 convicted, because he said his "call boy" service had been = utilized by=20 officials of the Moore administration in Charleston and by = officials=20 of the Reagan-Bush White House in Washington.=20
Consider:=20

State Sen. Truman Chafin, D-Mingo, was indicted on federal = wiretap=20 charges in his messy divorce, but was found innocent.=20

Former Mingo Sheriff Gerald Chafin - no relation to Truman, and = part of a=20 rival Democratic faction - likewise was indicted on federal wiretap = charges,=20 supposedly stemming from an attempt to blackmail a "whistleblower" = deputy,=20 but likewise was found innocent.=20

Ex-Sheriff Chafin, a mortuary owner, was appointed coroner by = Mingo=20 County's commissioners - but state rules require that coroners be=20 physicians, so he couldn't take the post.=20

Next the commissioners gave the job to Dr. Diane Shafer of Mingo County, = who=20 previously was convicted of bribery in nearby Kentucky. = (She had=20 been under investigation in Kentucky for suspected overbilling, but = she=20 married the overbilling investigator and gave him $ 42,500. They = both were=20 convicted of bribery, and he of bigamy, but the convictions were set = aside.=20 West Virginia's Board of Medicine has set August hearings on whether = to=20 revoke her license.)=20

Meanwhile, Dr. Shafer may = - or may=20 not - have married a former Mingo coroner, Henry Vinson, who was = convicted=20 of running a male prostitution ring in Washington, D.C.=20

Vinson, also a = mortician,=20 had been ousted as Mingo coroner after he was convicted of making = harassing=20 phone calls to a rival funeral home director. Then he was accused in a paternity = suit. Next=20 he moved to Washington, where he was charged with operating "Dream = Boy," a=20 male escort service.=20

While the Washington = investigation=20 was in progress, Vinson "died" and his obituary was printed by = newspapers=20 around West Virginia - but his sister in Mingo County said the obit = had been=20 phoned to papers as a hoax.=20

In 1990, Vinson vowed that = he'd=20 never be convicted, because he said his "call boy" service had been = utilized=20 by officials of the Moore administration in Charleston and by = officials of=20 the Reagan-Bush White House in Washington. But the next year, he = pleaded=20 guilty and got a five-year prison term.=20

Now Vinson's sister says she thinks he's married to Dr. Shafer. = Reporter=20 Maryclaire Dale (who is white) called Dr. Shafer's office Monday and = talked=20 to a man who called himself "Henry Shafer." When she asked if his = name is=20 Henry Vinson, he screamed: "Would you like to come and have sex with = me, you=20 [racial obscenity]?" Is this another count of phone harassment?=20

Well, that's just this week's developments in murky Mingo, where = public=20 officials have always been bizarre.=20

Matewan Police Chief Sid Hatfield led strikers in a historic = shootout=20 with Baldwin-Felts detectives; Sheriff Johnie Owens "sold" his = elected=20 office to another politician for $ 100,000; Kermit Fire Chief "Wig" = Preece=20 and his relatives sold drugs from the firehouse - that's public life = in the=20 Deep South coal county.=20

Mingo residents must wonder if they're living in a=20 zoo.

 =20
'CALL-BOY' SERVICE PROSPERS USING HIGH FINANCE, HIGH=20 TECH
Paul M. Rodriguez and George Archibald The Washington = Times;=20 Final Section: NATION Page: A7 Thursday, June 29, = 1989


Elaborate telephone switching equipment = and=20 out-of-town check cashing and credit card processing centers make = it=20 possible for Washington's homosexual escort services to launder = hundreds=20 of thousands of dollars annually from clients.=20

Professional Services Inc., the dry name that appears on = customers'=20 American Express, Visa and MasterCard bills when they charge their = sexual=20 liaisons with male prostitutes, is a cover for half a dozen = different call=20 services linked in a gigantic regional sex-for-hire network, = according to=20 an investigation by The Washington Times.=20

The upscale Northwest Washington residence that served as a = switchboard=20 center for dispatching male prostitutes to local hotels, clients' = homes=20 and other meeting places was raided Feb. 28 by federal and local = police=20 authorities investigating interstate prostitution and credit card = fraud.=20

The escort firm has relocated and - using a 50-line Merlin = computerized=20 call-forwarding system - is still in operation while local = authorities try=20 to track down individual call boys with information gathered from = seized=20 documents.=20

In want ads placed in local tabloid newspapers and Yellow Pages = telephone directories, Professional Services hawks its wares under = such=20 names as Man-to-Man, Dream = Boys,=20 Ultimate First Class, Metrodate and Jovan.=20

In its own investigation of the male escort service raided in = February=20 and again May 18, The Times has obtained extensive financial = records that=20 reveal how the homosexual network handled its credit card and = check=20 cashing needs by using legitimate umbrella organizations in the = Washington area, Florida, = Kentucky and West=20 Virginia.=20

Members of the law enforcement team investigating Professional=20 Services, which includes the Secret Service and the Metropolitan = Police,=20 said a special federal grand jury is expected to hand up = indictments based=20 on violations of federal credit card statutes, mail fraud laws and = banking=20 regulations that bar illegal activities, such as prostitution.=20

Operators of the male escort service under investigation denied = in=20 dozens of interviews that they have broken any federal laws.=20

But credit card vouchers obtained by The Times reveal many = instances of=20 apparent double billing and what appear to be forged signatures.=20

As one law enforcement official explained, customers of such = services=20 are highly unlikely to call up credit card companies to complain = that they=20 had only one $150 session - not two - with one of Professional = Services'=20 prostitutes.=20

Call boys interviewed by The Times admitted that in the course = of their=20 work as "escorts" they regularly engaged in sex for hire with male = clients.=20

 

After paying = "membership" fees in=20 the $150 range, clients paid additional amounts for so-called = "referrals"=20 billed on an hourly basis. The vouchers reflected fees ranging = from $60 to=20 $1,100 for individual referrals. Most charges were in the $150 to = $225=20 range.=20

Clients and prostitutes said the amounts charged depend on the = number=20 of escorts procured ( some = clients=20 hire several for big parties), the length of time = prostitute=20 services are used and the type of sexual service provided.=20

Robert Chambers, who = handled=20 Professional Services' credit card processing, is a 35-year-old = funeral=20 director whose family owns and operates the Chambers Funeral Homes = throughout the Washington area.=20

Mr. Chambers used his family's funeral business to set up = Professional=20 Services' "sub-merchant" account with a Sovran Bank branch in = Silver=20 Spring. Credit card charges and checks were deposited in the = Sovran=20 account, while cash paid for escort services usually was deposited = at=20 other area banks, including Riggs, National Bank of Washington and = First=20 American.=20

These accounts were usually in the names of the escort = operators -=20 principally Henry W. = Vinson, a=20 28-year-old owner-dispatcher for the services, and Jimmy Mako, 27, = who=20 pleaded guilty to a misdemeanor drug charge stemming from the = February=20 police raid on the switchboard headquarters, 6004 34th Place=20 NW.=20

Sovran canceled Professional Services' account after the = comptroller of=20 Chambers Funeral Home discovered the secret sex-for-hire card = processing=20 scheme. Mr. Chambers now funnels charge slips through another = licensed=20 credit card processing company, Executive Services, in Suitland.=20

Part of the regional escort network is directly linked to = employees at=20 dozens of hotels in the area, those interviewed said. Besides = helping to=20 arrange "special" rooms for clients, these hotel employees also = help to=20 expedite guest requests for male and female sex.=20

There also are special phone banks located in each of the = hotels - some=20 public pay phones and other private lines - reserved for the = homosexual=20 network. Telephone pagers are used extensively to send call boys = from one=20 liaison to another.=20

Operators of the homosexual escort ring confirmed that female=20 prostitutes were occasionally provided if clients requested such = services.=20

Among hundreds of charge vouchers obtained by The Times were = those of=20 about a half-dozen women who availed themselves of the male = escorts.=20

Gay clubs throughout the Washington area are used by call boys = to pick=20 up clients. Many call boys also work at these clubs - some of them = "strip"=20 joints - and typically are recruited there by the escort services. =

Bars and clubs catering to a homosexual clientele include The=20 Chesapeake House, Brass Rail, Knob Hill, The Follies, Lost and = Found,=20 Tracks, and La Cage Aux Follies.=20

Photo, This house, at 6004 34th Place NW in Washington, was the = switchboard center for a male-prostitution ring until it was = raided Feb.=20 28., By Gary M. Hopkins/The Washington=20 Times

=20

Not for commercial use. Solely to be used for the = educational=20 purposes of research and open discussion.=20

 =20
POWER BROKER SERVED DRUGS, SEX AT PARTIES BUGGED FOR = BLACKMAIL=20
Michael Hedges and Jerry Seper The Washington Times; = Final=20 Section: A Page: A1 Friday, June 30, 1989


Craig J. Spence,=20 an enigmatic figure who threw glittery parties for key officials = of the=20 Reagan and Bush administrations, media stars and top military = officers,=20 bugged the gatherings to compromise guests, provided cocaine, = blackmailed=20 some associates and spent up to $20,000 a month on male = prostitutes,=20 according to friends, acquaintances and records.=20

 =20
How a man whom even = his closest=20 friends describe as a flawed, malevolent personality managed = to=20 court Washington's biggest names is a quintessential = Washington=20 story.=20
The 48-year-old D.C. power broker = has been=20 linked to a homosexual = prostitution=20 ring currently under investigation by the U.S. = Attorney's=20 Office. Its clients included several top government and business = officials=20 from Washington and abroad.=20

Among the clients = identified in=20 hundreds of credit-card vouchers obtained by The Washington Times = - and=20 identified by male prostitutes and escort operators - are = government=20 officials, locally based U.S. military officers, businessmen, = lawyers,=20 bankers, congressional aides, media representatives and other=20 professionals.=20

Mr. Spence's influence = appeared=20 unlimited, aptly demonstrated by his ability to arrange midnight = tours of=20 the White House, according to three persons who said they took = part in=20 those tours.=20

"It was a show-the-flag time for Craig Spence," said one person = who=20 went on a July 3, 1988, tour that included two male prostitutes. = "He just wanted everyone to know = just how=20 damned powerful he was," said the person. "And when we were = strolling=20 through the White House at 1 o'clock in the morning, we were=20 believers."=20

One man who was on the tour but asked not to be named for fear = it would=20 damage his business said it was cleared by a uniformed Secret = Service=20 guard whom the man had seen attending Mr. Spence's parties as a = bodyguard.=20

"For once in his life, Craig was doing something nice. We just = thought,=20 neat, we get a free midnight tour of the White House," the man = said.=20 Another person on the tour said the group walked through all the = public=20 areas of the White House and "even took pictures of ourselves in = the=20 barber's chair."=20

After arriving in = Washington in=20 the late 1970s, Mr. Spence was hosting parties during the early = Reagan=20 years attended by, among others, journalists Eric Sevareid, Ted = Koppel and=20 William Safire; former CIA Director William Casey; the late John = Mitchell,=20 attorney general in the Nixon administration; conservative = activist=20 Phyllis Schlafly; Ambassador James Lilley; and Gen. Alfred M. = Gray, the=20 commandant of the Marine Corps.=20

Arnaud de Borchgrave, editor-in-chief of The Times, went to = dinner once=20 at Mr. Spence's home to honor Mr. Lilley.=20

Efforts to reach Mr. Spence in the past week were unsuccessful. = He=20 contacted The Washington Times yesterday in response to a = telefaxed=20 message but hung up when queried about his activities.=20

According to many current and former friends, Mr. Spence was a=20 dangerous friend to cultivate. Several former associates said = his house on=20 Wyoming Avenue was bugged and had a secret two-way mirror, and = that he=20 attempted to ensnare visitors into compromising sexual encounters = that he=20 could then use as leverage.=20

One man described having a limousine sent to his home by Mr. = Spence and=20 being brought to a gathering at which several young men tried to = become=20 friendly with him. "I didn't bite; it's not my inclination," the = man said.=20 "But he used his homosexual network for all it was worth."=20

The man, a business associate of Mr. Spence who was on the = White House=20 tour, said: "He was = blackmailing=20 people. He was taping people and blackmailing them."=20

One former friend said he saw an 8-foot-long, two-way mirror=20 overlooking the library of Mr. Spence's home which, he said, he = was later=20 told was used for "spying on guests."=20

Georgetown University law professor Richard Gordon said he was = a close=20 friend of Mr. Spence's until his "behavior began deteriorating = quite=20 markedly."=20

Mr. Gordon recalled being at a gathering at Mr. Spence's home = and=20 having a conversation with veteran NBC and CBS correspondent Liz = Trotta.=20

"We were sitting in a corner, talking about our mutual concern = about=20 Craig's physical condition. He came down later and said he had = been=20 listening to us and didn't appreciate it at all," Mr. Gordon said. =

Ms. Trotta, contacted in New York City, yesterday confirmed Mr. = Gordon's comments and said it was "one in a series of incidents" = in which=20 she began to question Mr. Spence's emotional and physical = stability.=20

"He was fragmenting right before our eyes," she said. "I was = very=20 concerned about him."=20

One former Reagan administration official who worked at the = U.S.=20 Information Agency and is an open homosexual said he went to = private=20 parties at Mr. Spence's home and saw a great deal of recording and = taping=20 equipment.=20

"It was my clear impression that the house was bugged," he = said.=20 Another man, an Air Force sergeant who worked for Mr. Spence as a=20 bodyguard, said: "The house was definitely bugged. I can't say = what he was=20 doing with the information. I don't know that. But he was = recording what=20 occurred there."=20

Several others confirmed = that Mr.=20 Spence had bragged on several occasions that he had his house = bugged and=20 that conversations between guests often had been = overheard.=20 They said Mr. Spence often would come down late to parties he = hosted and=20 told close associates that he had been listening to what was being = said=20 about him.=20

Several people also said = Mr.=20 Spence boasted about getting control of the million-dollar home on = Wyoming=20 Avenue by blackmailing clients in Japan.=20

William Harbin, a former U.S. Foreign Service official who = worked for=20 Mr. Spence in the mid-1980s, said: "He pretty much blackmailed a = Japanese=20 client. He had represented this firm in Washington, the Policy = Study=20 Group.=20

"The Japanese put up the money for Spence to buy a big house on = Wyoming=20 Avenue," Mr. Harbin said. "I heard he later had a quarrel with = this=20 Japanese because he was really using this house to advance his own = purposes, not for the Japanese. But he threatened to expose that = they had=20 transferred the money illegally, so it made the Japanese back = down."=20

Another longtime friend confirmed that Mr. Spence bragged about = the=20 Wyoming Avenue deal, saying he had beaten "a very rich, old-line = Japanese=20 family."=20

Secret Service spokesman = Bob Snow,=20 when asked yesterday for records about Mr. Spence's visits to the = White=20 House, said only the White House counsel could authorize release = of the=20 material.=20

C. Boyden Gray, the White House counsel, said he did not know = why Mr.=20 Snow referred The Times to him, adding that he was unaware that = his office=20 was required to release such information. "I just don't know anything about = that,"=20 Mr. Gray said. "But maybe there's something I don't know=20 about." Federal law enforcement authorities, including = the=20 Secret Service, involved in the probe of the homosexual = prostitution ring=20 have told prostitutes and their clients that a grand jury will = deliberate=20 over evidence gathered in the ongoing investigation throughout the = summer.=20

Hundreds of credit-card vouchers, drawn on both corporate and = personal=20 accounts and made payable to the Washington-based escort service = operated=20 by the homosexual ring, have been examined by The Washington = Times.=20

Mr. Spence, a former ABC-TV correspondent who covered the war = in=20 Vietnam, was one of the biggest spending clients of the homosexual = prostitution network, according to credit-card vouchers obtained = by The=20 Times. For example, on Oct. 5, 1988, he made four separate = payments=20 totaling $1,525 with his American Express card for male escorts = from=20 Professional Services Inc.=20

On. Oct. 8, he paid $600 for male escorts, and another $600 = payment=20 Oct. 20, the documents show. There were some months when Mr. = Spence spent=20 as much as $20,000 for male escorts hired to provide him sexual = services,=20 according to documents and interviews with prostitutes who served = him.=20

Many of Mr. Spence's guests soured on his hospitality when his = darker=20 behavior emerged. A case in point is his relationship with former = U.S. Attorney Joseph = diGenova.=20

According to Mr. diGenova, he attended a few of Mr. Spence's = parties=20 both as U.S. attorney and after he left the government to enter = private=20 practice. He eventually traveled to Japan last December on a = business trip=20 with Mr. Spence and Wayne Bishop, chairman of the Washington law = firm of=20 Bishop, Cook, Purcell & Reynolds, where Mr. diGenova works.=20

 

"When I got back from Japan, some = anonymous=20 person suggested that he (Mr. Spence) might be using cocaine. = Well, of=20 course my antennae went up right away and I checked those rumors = out . . .=20 and found much to my surprise that people suspected the worst," = Mr.=20 diGenova said.=20

At that point, Mr. diGenova said, he severed his relationship = with Mr.=20 Spence. "When you compared it to his other eccentric behavior, it = made=20 sense. But I had no evidence whatsoever," he said.=20

Mr. diGenova said he never took his concern that Mr. Spence = might be=20 using drugs to authorities.=20

Others interviewed said they witnessed drug use and other = crimes at=20 parties thrown by Mr. Spence but also never shared their = observations with=20 law enforcement officials.=20

The saga of Mr. Spence, described by one friend as = "Washington's Jay=20 Gatsby," began unraveling when federal and D.C. police raided a = male=20 prostitution ring in Northwest Washington and discovered = credit-card=20 vouchers signed by Mr. Spence and others.=20

But for several years - even as publications such as The New = York Times=20 were describing Mr. Spence as Washington's ultimate power broker=20 -acquaintences noticed bizarre behavior.=20

Mr. Spence was generous = with=20 cocaine at his parties, according to several people who = said=20 they witnessed drug use at the exclusive Kalorama house.=20

"I know he was a coke freak," said the business associate who = was on=20 the White House tour. "A lot of people saw it. His behavior spoke = for=20 itself."=20

Several friends said Mr. = Spence=20 bragged that U.S. military personnel, for whom he had built a = gymnasium in=20 El Salvador, had smuggled cocaine back to him when they returned = to the=20 United States.=20

"I heard he was selling = drugs, or=20 smuggling drugs into the country from El Salvador," said a friend = who=20 worked closely with Mr. Spence. "He went down there two = or=20 three times or maybe more. He was trying to interest a Japanese = firm with=20 buying a fishery in El Salvador.=20

"I found out the United Nations had rejected a similar scheme; = they=20 found if you put more boats in there the fish would just get = smaller. So I=20 told him that it was no good," the former associate said.=20

U.S. Drug Enforcement Administration officials said this week = they had=20 no evidence of any such operation.=20

Others said the drugs came from a more mundane source - = midlevel=20 dealers in Northwest Washington.=20

How a man whom even his closest friends describe as a flawed,=20 malevolent personality managed to court Washington's biggest names = is a=20 quintessential Washington story.=20

Mr. Spence arrived in Washington in the late 1970s. Even = intimate=20 friends said his depiction of his background was as shifting as = his guest=20 list. What can be confirmed is that he attended Syracuse = University and=20 worked as a journalist with ABC in Southeast Asia during the = Vietnam War.=20

One former friend, who became acquainted with Mr. Spence in = Tokyo, said=20 that the latter had a "falling out" with ABC News because of his = political=20 views. The former friend said Mr. Spence was a hard-line = conservative and=20 was opposed to what he described as "the liberal treatment of the = news by=20 the network."=20

Mr. Spence made good contacts in Japan and among Chinese = expatriates,=20 often bragging of his close association with former Japanese Prime = Minister Yasuhiro Nakasone and appearing in public with a Chinese=20 businessman who once served as an unofficial representative of = Communist=20 China in Washington, sources said.=20

The businessman said this week that he did not know exactly = what work=20 Mr. Spence did, but that he often bragged about his contacts with = Japanese=20 businessmen and political leaders, particularly Mr. Nakasone.=20

He described Mr. Spence = as=20 "strange," saying that he often boasted that he was working for = the CIA=20 and on one occasion said he was going to disappear for awhile = "because he=20 had an important CIA assignment."=20

According to the = businessman, Mr.=20 Spence told him that the CIA might "doublecross him," however, and = kill=20 him instead "and then to make it look like a suicide."=20

The businessman also said he attended a birthday bash for Roy = Cohn at=20 Mr. Spence's house. He said Mr. Casey was at the party. "One time = he=20 stormed into another party with a big, white hat and an entourage = of=20 security guards," the businessman said. "It was all rather = bizarre."=20

Mr. Spence's trump card in courting the rich and famous = apparently was=20 his access to high-ranking orientals at a moment when Japan was = flowering=20 as an economic giant and relations with China were thawing.=20

"Craig had an interest in the Japanese economy," said Mr. = Gordon. "He=20 was very interested in breaking through the bureaucratic level and = getting=20 people to come to seminars.=20

"He developed a kind of genuine and effective influence among = important=20 doers and thinkers in Washington and from New York," Mr. Gordon = said. "I=20 met some interesting senators and representatives at his parties." =

He was doing extensive business with Japan in the early 1980s, = some of=20 which former Reagan administration officials said appeared to = violate=20 trade laws.=20

Mr. Gordon said he warned Mr. Spence of the need to be = registered as a=20 lobbyist, and documents show that in January 1985 he became a = registered=20 agent lobbying for Japanese businesses.=20

A January 1982 New York Times profile of Mr. Spence was = headlined "Have=20 Names, Will Open Right Doors." The article quoted a Washington = Post=20 columnist in 1980 saying of Mr. Spence: "Not since Ethel(D-) = Kennedy used=20 to give her famous Hickory Hill seminars for great minds of our = times=20 during the days of Camelot has anyone staged seminars successfully = on a=20 continuing social basis in Washington. That's what Craig Spence = has been=20 doing."=20

Mr. Spence was described in the New York Times as "something of = a=20 mystery man who dresses in Edwardian dandy style, a former = television=20 correspondent who now wears many hats, including international = business=20 consultant, party host, registered foreign agent and something = called=20 'research journalist.' "=20

Those who knew Mr. Spence best were astonished by his ability = to court=20 the rich and powerful.=20

"He conned people into going to parties - big people, Cabinet = members=20 and personalities and so forth," said Mr. Harbin, who wrote = research=20 papers that Mr. Spence peddled to Japanese clients.=20

"Everybody likes to go to a free party around here. He'd have a = photographer there, get his photo taken with a great man, and use = that,"=20 he said.=20

"He was quite secretive, but from what I could see these things = had=20 little or no substance," Mr. Harbin said. "Usually a grain of = truth, but=20 he'd build a pile of lies on top of it. Usually he'd start with a=20 photograph of himself with some guy and build a lie around it that = he was=20 his top adviser. Nakasone was one."=20

Mr. Spence also bragged about social companions, telling = friends that=20 he had hosted Mr. Cohn, Rock Hudson and others at his Wyoming = Avenue home.=20

The former Reagan administration aide said he decided to sever = a=20 friendship with Mr. Spence when he witnessed him trying to force = his=20 off-duty military bodyguards into homosexual acts.=20

"I'm openly gay myself," he said. "Most gays find that type of = behavior=20 reprehensible."=20

Several people who attended Mr. Spence's parties remarked at = what one=20 guest called "his personal honor guard." "I don't know where he = got them,=20 but he liked to surround himself with tall, handsome, stalwart = young men.=20 He liked to surround himself with decorations," one frequent guest = said.=20

Mr. Spence has been living on Massachusetts Avenue in recent = months,=20 friends said. His legitimate business contacts have "one by one = dropped=20 away," said one close friend.=20

He has told a number of his friends that he plans to leave the = country=20 by Aug. 15. Mr. Spence also has said his health is failing.=20

"I can unhappily confirm that. He has been in ill health. I am = not=20 truly aware of what it is that is wrong with him," said Mr. = Gordon.=20

=20

* Paul M. Rodriguez contributed to this report.=20

Photo, Power broker Craig J. Spence demonstrated his influence = by=20 providing late night strolls through the White House for groups of = selected friends., By Richard Kozak/The Washington=20 Times

Not for commercial use. Solely to be used for the = educational=20 purposes of research and open discussion.=20

 =20
RNC CALLS SCANDAL A 'TRAGIC = SITUATION'
George Archibald and Paul M. Rodriguez The Washington = Times;=20 Final Section: A Page: A1 Friday, June 30, 1989


Republican and conservative political = leaders reacted=20 cautiously yesterday to a = report in=20 The Washington Times that key Reagan and Bush administration = officials are=20 ensnared in a federal probe of homosexual prostitution. =

 =20
Rep. Barney Frank, = Massachusetts=20 Democrat and a self-proclaimed homosexual who several weeks = ago=20 threatened to reveal a list of Republican homosexuals in = Congress,=20 said he was "not surprised" by the revelations.=20
"There's no=20 reason for cleaning anybody out (of office because they used = homosexual=20 prostitutes)," said Leslie Goodman, a spokeswoman for Republican = National=20 Committee Chairman Lee Atwater.=20

"It's a personal situation. It's a tragic situation if people = have to=20 resort to prostitutes," the GOP spokeswoman said. "But there's no = standard=20 for people in the federal government that's different than for the = average=20 Joe on the street."=20

However, a top Labor = Department=20 adviser to Secretary Elizabeth Dole resigned yesterday after = acknowledging=20 to The Times that he had procured male prostitutes and was = subjected to=20 blackmail threats by one of the call boys.=20

In a letter announcing his resignation as Mrs. Dole's political = personnel liaison to the White House, Paul R. Balach wrote: = "I hereby=20 resign my position this date due to the public disclosure of = activities=20 concerning my personal life."=20

Mr. Balach said in an interview late yesterday he was told by = the=20 department's solicitor, Robert Davis, he must either resign or be = fired.=20 He said he was not allowed to talk to Mrs. Dole about the matter.=20

"They said they reached this decision with a great deal of pain = because=20 I was a valued employee. But they thought that the cloud = surrounding me=20 would not allow me to continue to hold a political job in the=20 administration," he said.=20

"I think they are protecting Elizabeth, and frankly I would do = the same=20 thing," Mr. Balach said. "I live paycheck to paycheck. They = promised me=20 that they would try and find me another position somewhere in the=20 government, but I just don't know. . . . Somebody else is going to = clean=20 out my office. They didn't want me to come back into the office."=20

According to documents obtained by The Times, the homosexual prostitution ring = includes=20 not only Reagan and Bush administration officials but military = officers,=20 congressional aides and U.S. and foreign businessmen with close = social=20 ties to Washington's political elite.=20

U.S. Attorney Jay B. Stephens confirmed in a statement = yesterday that=20 his office "has been investigating allegations involving credit = card=20 fraud" following a Feb. 28 raid on the call boy ring's Northwest=20 Washington headquarters. But Mr. Stephens refused to discuss the = matter=20 further.=20

A Justice Department spokesman said the investigation was being = led by=20 the Secret Service.=20

But the spokesman denied that the government was investigating = the=20 possibility that homosexuals who held senior posts during the = Reagan=20 administration were compromised by blackmail or by Soviet agents = who may=20 have used young male prostitutes for espionage purposes.=20

The White House distanced itself yesterday from reports that = top-level=20 Republican officeholders and Pentagon brass were involved in the=20 homosexual prostitution ring.=20

 

"I don't know anything about it," = said=20 White House spokesman Marlin Fitzwater. "Nothing at = all."=20

At the Pentagon, spokesman Pete Williams, commenting on The = Times'=20 article, said he was unaware of any Defense Department = investigation into=20 credit card fraud or homosexual conduct by members of the = military.=20

Democratic National Committee officials declined to comment on = GOP=20 involvement with the call boy ring.=20

But Rep. Barney Frank,=20 Massachusetts Democrat and a self-proclaimed homosexual who = several weeks=20 ago threatened to reveal a list of Republican homosexuals in = Congress,=20 said he was "not surprised" by the revelations.=20

Because almost all Republican homosexuals are "in the closet," = Mr.=20 Frank said, "there's an impression that there aren't any = Republicans. . .=20 . This is the proof of the prejudice in our community."=20

Bias that forces homosexuals to maintain secrecy about their = sexual=20 orientation is an "obvious waste of human talent," he said. = "People ought=20 to be judged by their work, not whether they are gay. The whole = blackmail=20 issue wouldn't exist if we didn't have this fear of homosexuals."=20

The National Gay & Lesbian Task Force and the Human Rights = Campaign=20 Fund, a gay and lesbian civil rights group, echoed Mr. Frank's = remarks.=20

"The Washington Times story is a rank attempt to sensationalize = a fact=20 that should come as no surprise to anybody: that there are gay = people in=20 the Republican Party and in this Republican administration," the = National=20 Gay & Lesbian Task Force said in a statement. "The story The = Times=20 does not tell is the story of the repression and fear that still = mars the=20 lives of gay individuals in politics."=20

The group also challenged the possibility raised in The Times' = story of=20 threats to national = security from the=20 blackmail of homosexuals in sensitive government = positions,=20 saying there has never been "even one single documented case of=20 gay-related espionage" in the past 40 years.=20

In Republican political circles, there is a clear division = between=20 those who want to clean out homosexuals from government and "more=20 pragmatic types" who are tolerant of their private behavior but = hate any=20 kind of scandal that will hurt the party, said one close adviser = to Mr.=20 Atwater.=20

"The pragmatists want it (disclosures of the homosexual = prostitution=20 ring) to go away. They hope there's no more to come," the adviser = said.=20

"I had no idea such stuff was going on," said Morton Blackwell, = president of The Leadership Institute, which gives political = training to=20 young Republicans.=20

"I think it is time to sit down and write a paper for young=20 conservatives who are washed over by all of this propaganda saying = some=20 people are naturally, genetically irresistably inclined to this = kind of=20 (homosexual) behavior," Mr. Blackwell said.=20

"We Republicans stand for traditional values and cannot = continue to=20 stand if we fall significantly away from them," he said.=20

"If this (The Times' disclosures) proves to be true, then it = would=20 explain a certain resistance to pro-family policies on the part of = the=20 Reagan administration which were popular and in the interests of = the=20 administration," said Paul Weyrich, president of Coalitions for = America.=20

"You can understand an administration's reluctance to get = involved in=20 something if they're going to have to pay dearly to be on the = unpopular=20 side of an issue," he said.=20

"But it is hard to understand why they would resist certain = policy=20 decisions which were popular with the public and which were in the = national interest: for example, treating AIDS as a public health = issue and=20 requiring testing, which was vehemently opposed at the policy = level of the=20 administration,."

Not for commercial use. Solely to be used for the = educational=20 purposes of research and open discussion.

 =20
White House mute on 'call boy' probe =
Frank J. Murray The Washington Times; Part A; Pg.=20 A1
July 7, 1989, Friday, Final Edition


Administration officials continued yesterday to = stonewall=20 reporters on the growing federal "call boy" investigation, = apparently=20 hoping the scandal will fade before President Bush is asked his = view of a=20 late-night White House tour that reportedly included two male=20 prostitutes.=20

 =20
"Mr. Bush knows about = the story.=20 Yes he does. He's aware of the story," said one White House = source=20 who, like virtually all the others, insisted on=20 anonymity.=20
Treasury=20 Secretary Nicholas Brady, who heads the Secret Service, = reluctantly=20 conceded yesterday at the White House that the agency is looking = into the=20 July 3, 1988, tour - one of several arranged by a Secret Service = officer=20 for lobbyist Craig J. Spence.=20

Meanwhile, White House sources confirmed that President Bush = has=20 followed the stories of the late-night visit and Mr. Spence's = links to a=20 homosexual prostitution ring under investigation by federal = authorities=20 since they were disclosed June 29 in The Washington Times. But top = officials won't discuss the stories' substance, reportedly even = among=20 themselves.=20

"Mr. Bush knows about = the story.=20 Yes he does. He's aware of the story," said one White House source = who,=20 like virtually all the others, insisted on anonymity.=20

Press officers have rebuffed repeated requests to obtain Mr. = Bush's=20 reaction and decline to discuss investigations or fallout from the = disclosures.=20

"I don't have anything on that," said Deputy Press Secretary B. = Jay=20 Cooper, the latest member of the press office to respond.=20

"There's no gain in talking about it," explained an official = who=20 declined to be quoted by name. "It only makes the story grow and = helps=20 keep it alive."=20

The president has not = had "serious=20 discussion" about the reports even with his most senior aides, = including=20 Chief of Staff John Sununu, according to another = source.=20

Reports on the matter have been included in the Daily Press = Summary, a=20 comprehensive half-inch-thick digest of print and broadcast media = stories=20 and editorials prepared by a division of the White House press = office for=20 the president and aides throughout the complex.=20

Because the summary is an internal document, officials would = not=20 disclose its reports on the news stories. One official said, "I'm = sure=20 that the story was summarized, but the president also reads The = Washington=20 Times and The Washington Post."=20

Mr. Brady, the ranking administration official to speak = publicly about=20 the episode, appeared nonplussed when asked yesterday about = Reginald A.=20 deGueldre, a uniformed White House officer who moonlighted as Mr. = Spence's=20 bodyguard and arranged the late-night White House tours.=20

 

"Sir, were any Secret = Service=20 policies violated by Officer deGueldre's moonlighting relationship = with=20 Craig Spence, and, if so, what actions have you taken to correct = that?" he=20 was asked.=20

"Would you repeat that again?" Mr. Brady requested.=20

"Yes, sir, I'm talking about the UD [Uniformed Division] officer, = Reginald=20 deGueldre, who was working moonlighting for Craig Spence and who = arranged=20 the tours for him. I'm wondering if any Secret Service policies = are=20 violated by such moonlighting, and whether these visits to the = White House=20 are . . ."=20

Mr. Brady interrupted at = that=20 point and said, "I can't give you a precise answer on that now. = We'll=20 certainly look into it."=20

"You don't know if your = own Secret=20 Service is conducting an investigation into something that's been = this=20 prominent?" the secretary was then asked.=20

"I am sure they're looking into it," he said. "The nature of = that=20 investigation I cannot report to you at this time."=20

A Treasury Department spokeswoman said later, "The director of = the=20 Secret Service is looking into whether or not any policies have = been=20 violated" by the moonlighting or admission of outsiders to the = White House=20 compound.=20

She said neither Mr. Brady nor the Secret Service would comment = on=20 additional matters involved in a criminal investigation by the = U.S.=20 Attorney's Office of the homosexual prostitution ring that Mr. = Spence=20 patronized.=20

White House spokesman = Marlin=20 Fitzwater and several of his deputies have said repeatedly that = they do=20 not know if Mr. Bush considered it appropriate for male = prostitutes to be=20 touring the White House at 1 a.m.=20

Yesterday, while talking informally to several reporters at the = White=20 House, Mr. Fitzwater parried one question this way: "What are they saying, that you = should have=20 sexual-preference checks on people that come into the White=20 House?"=20

He also said, "We don't have any involvement that I know of."=20

Although he has talked repeatedly to individual reporters, = including=20 those for The Washington Times, Mr. Fitzwater has not held a = general=20 briefing since before the prostitution ring stories broke, largely = because=20 of the holiday weekend and because administration experts gave = briefings=20 on Mr. Bush's European trip, which begins Sunday.=20

The last of those briefings was scheduled for today, but Mr. = Fitzwater=20 reportedly was considering holding a general briefing as well, his = first=20 in nine days.=20

Mr. Fitzwater and his staff have declined consistently to say = if they=20 would take the question to Mr. Bush, a practice done only rarely = and=20 generally only on matters they expect the president might be = willing to=20 discuss.=20

One senior official, who insisted on anonymity, said it was = unlikely=20 any staff member would ask Mr. Bush such a question, discounting = any=20 threats to security and portraying it as a sordid sex matter = beneath=20 presidential dignity.=20

Photo, Treasury Secretary Nicholas Brady concedes a probe is = under=20 way., Photo by Kevin T. Gilbert/The Washington=20 Times,

 =20
Spence was target before raid on ring =
Jerry Seper, and Michael Hedges The Washington Times; = Part A;=20 Pg. A1 July 10, 1989, Monday, Final Edition; Correction=20 Appended


Craig J. Spence, the Washington lobbyist = and power=20 broker, was the subject of a Secret Service investigation even = before a=20 February raid on a homosexual prostitution ring to which he has = been=20 linked, The Washington Times has learned.=20

 =20
Mr. Spence arranged at = least four=20 midnight tours of the White House, including one June 29, = 1988, on=20 which he took with him a 15-year-old boy whom he falsely = identified=20 as his son.=20
The Secret Service last week = expanded its=20 investigation with inquiries about friends and associates of Mr.=20 Spence.=20

Two of those friends are = former=20 U.S. Attorney Joseph diGenova and his wife, Victoria Toensing, a = former=20 deputy assistant attorney general for the Justice Department's = criminal=20 division.=20

During interviews last week with friends and associates of Mr. = Spence,=20 the Secret Service made copies of photographs from a July 4, 1988, = party=20 showing him mugging for the camera with Mr. diGenova and Miss = Toensing,=20 who in one photo is draped in an American flag.=20

It was on that same = weekend that=20 Mr. Spence arranged a 1 a.m. tour of the White House, which one=20 participant said included two male prostitutes.=20

The Secret Service also = wants to=20 talk to Mr. Spence, but has been unable to locate him,=20 according to persons the agents have interviewed.=20

Mr. diGenova couldn't be reached yesterday for comment. He has = been=20 interviewed twice by The Times over the past two weeks. In the = first=20 conversation, he described a fleeting contact with Mr. Spence = which, he=20 said, was based solely on mutual business interests.=20

In a second conversation, he said he attended a few of Mr. = Spence's=20 parties, as U.S. attorney and later after he left the government = to enter=20 private law practice. He eventually traveled to Japan last = December on a=20 business trip with Mr. Spence and Wayne Bishop, chairman of the = Washington=20 law firm of Bishop, Cook, Purcell & Reynolds, where Mr. = diGenova=20 works. Business contacts made on the trip proved fruitful and are = still=20 being pursued, he said.=20

"When I got back from Japan, some anonymous person suggested = that he=20 [Mr. Spence] might be using cocaine. Well, of course my antennae = went up=20 right away, and I checked those rumors out . . . and found much to = my=20 surprise that people suspected the worst," Mr. diGenova said.=20

At that point, Mr. diGenova said, he severed his relationship = with Mr.=20 Spence. He said he didn't report his findings or concerns to = authorities.=20

Although the Secret Service hasn't said what sparked its = interest in=20 Mr. Spence, one of the persons questioned by the Secret Service = said=20 investigators appeared to be "interested" in the connections the = lobbyist=20 had made.=20

The Secret Service was the lead agency in a Feb. 28 raid on a = house on=20 34th Place NW used by a homosexual prostitution ring, a ring with = which=20 Mr. Spence spent up to $20,000 a month, according to call boys, = his=20 friends and documents obtained by The Times.=20

The federal investigation, headed by the office of U.S. = Attorney Jay=20 Stephens and conducted by Secret Service agents, appears to be = aimed at=20 determining whether Reagan and Bush administration officials and = others=20 were compromised by Mr. Spence, through the use of female and male = prostitutes and with electronic audio and video eavesdropping at = parties=20 at his house in the fashionable Kalorama neighborhood in Northwest = Washington.=20

Another focus of the probe, persons interviewed by the Secret = Service=20 have told this newspaper, is whether White House security was = compromised=20 by the late-night tours arranged by Mr. Spence.=20

Mr. Stephens has said only that his office is investigating = "possible=20 credit-card fraud" in connection with arrests made in the 34th = Place raid.=20 But numerous sources have told The Times that the Secret Service = is asking=20 about Mr. Spence's activities.=20

Secret Service agents on = Friday=20 also asked a former Spence colleague detailed questions about = attempts by=20 the lobbyist to obtain information about the Delta Force, an elite = U.S.=20 commando team involved in top-secret military = operations.=20

The former friend said Mr. Spence=20 had given a gold Rolex watch to a highly decorated Vietnam veteran = who is=20 now associated with Army anti-terrorist units. Later, according to = the=20 former friend, Mr. Spence alluded to the gift of the watch and = asked the=20 veteran detailed questions about the Delta Force = operations.=20

The Vietnam veteran was = one of six=20 persons on the July 3 White House tour, arranged by Mr. = Spence.=20 A uniformed Secret Service guard, who admitted the group to the = White=20 House and served as an unofficial host, also told The Times that = he had=20 received a gold Rolex watch worth about $8,000 from Mr. Spence but = said=20 Mr. Spence had asked for nothing in return.=20

Mr. Spence collected key officials of the Reagan and Bush=20 administrations, media celebrities and high-ranking military = officers,=20 among others, for his glittery dinner parties at his Kalorama = home.=20 According to friends, visitors to Mr. Spence's Wyoming Avenue NW = house and=20 records, the host eavesdropped on some gatherings to compromise = guests and=20 blackmailed some associates with threats to disclose their = indiscretions.=20

 

Efforts to reach Mr. = Spence during=20 the past three weeks have been unsuccesful. He telephoned The = Times on=20 June 29 in response to a telefaxed message but hung up when asked = about=20 his activities. His fax machine number has since been = disconnected.=20

Mr. diGenova was nominated by President Reagan to be U.S. = attorney in=20 1983. Prior to that, he was an assistant U.S. attorney in the = Washington=20 office, chief counsel and staff director of the Senate Rules = Committee and=20 chief minority counsel for the Senate Judiciary Committee.=20

In 1981, as chief counsel for the Senate Rules Committee, Mr. = diGenova=20 was responsible for overseeing the Reagan transition after = Republicans=20 gained control of the Senate in the 1980 elections. From June 1975 = to=20 April 1976, Mr. diGenova was counsel to the Senate Select = Committee on=20 Intelligence, the so-called Church Committee that investigated = allegations=20 of CIA and FBI wrongdoing.=20

Mr. diGenova announced his resignation as U.S. attorney in = January=20 1988, and he left office to begin his private practice on March 1. =

Miss Toensing, who also is in private practice, was chief = counsel for=20 the Senate Select Committee on Intelligence from 1981 to 1984 when = she=20 resigned to join the Justice Department as a deputy assistant = attorney=20 general.=20

At Justice, she headed the criminal division's procurement = fraud unit=20 and was instrumental in a number of high-profile indictments, = including=20 several involving General Dynamics. She also was responsible for = the=20 investigation and prosecution of terrorists.=20

A number of photographs, including more than a dozen from the 1 = a.m.=20 White House tour, were taken over the July Fourth weekend in 1988 = by a=20 participant in Mr. Spence's revelries. The photos, copies of which = were=20 obtained last week by The Times, have been reviewed by the Secret = Service.=20

Of the several snapshots of the July 4, 1988, tour reviewed by = the=20 Secret Service, only two - both of which included Mr. diGenova and = his=20 wife - were copied.=20

Craig Spence was a registered lobbyist for several Japanese = firms=20 through 1987 and established close friendships with a number of = leading=20 Japanese politicians, including Motoo Shiina, considered by Tokyo = analysts=20 to be an inside favorite to replace scandal-plagued Sousuke Uno as = prime=20 minister.=20

Mr. Spence and Mr. Shiina were embroiled in a real estate deal=20 involving the house in Kalorama, a two-story Victorian showpiece = valued=20 last year by real estate agents at $1.15 million.=20

By the time a lawsuit filed by Mr. Shiina over the property was = settled, the Japanese official had admitted in court papers to = giving Mr.=20 Spence $345,000 in cash.=20

Mr. Spence has told = several=20 current and former friends that he obtained the money to buy the = house by=20 blackmailing Mr. Shiina. Mr. Shiina has denied he was blackmailed = by Mr.=20 Spence.=20

The lobbyist moved in November 1988 from the Kalorama house, on = Wyoming=20 Avenue, to an apartment on Massachusetts Avenue NW, but apparently = his=20 operations remained unchanged.=20

A female prostitute who worked for the escort service that = supplied Mr.=20 Spence with call boys, said he hired her to have sex with young = military=20 men in his part-time employ.=20

The prostitute, describing herself as retired, said Mr. Spence = ordered=20 her to engage in those assignations in certain specific locations = in his=20 Massachusetts Avenue apartment, enabling him to eavesdrop on the=20 encounters. One of her clients, an enlisted man stationed at a = local Army=20 base, confirmed that he worked for Mr. Spence, and the = prostitute's=20 account.=20

"Some of the men were = married,"=20 she said. "They told me he was using what I did with them against=20 them."=20

Once, Mr. Spence's influence with the Washington power elite = appeared=20 almost limitless, demonstrated by his ability to arrange midnight = tours of=20 the White House. The Times = has=20 confirmed that Mr. Spence arranged at least four midnight tours of = the=20 White House, including one June 29, 1988, on which he took with = him a=20 15-year-old boy whom he falsely identified as his son.=20

One man Mr. Spence apparently cultivated was a uniformed Secret = Service=20 officer assigned to the midnight shift at the White House. The = officer,=20 Reginald A. deGueldre, was interrogated for more than 10 hours = last week=20 about his association with Mr. Spence. Five Secret Service agents, = armed=20 with search warrants, searched his house for nearly two hours = Friday=20 night, although they wouldn't say what they were looking for. The = agents=20 seized several photographs from Mr. deGueldre's home.=20

Mr. deGueldre said he has been told he will be called to = testify before=20 a federal grand jury. According to one law enforcement official, = Mr.=20 deGueldre failed the portion of a polygraph test involving favors = he may=20 have done for Mr. Spence.=20

Photo, In a snapshot copied by the Secret Service, Craig J. = Spence=20 (right) and former U.S. Attorney Joseph diGenova watch Mr. = diGenova's=20 wife, former Deputy Assistant Attorney General Victoria Toensing, = clown at=20 a party.; Photo, Reginald A. deGauldre, a uniformed Secret Service = officer, holds the door to the White House open for two of the six = persons=20 who were given a tour at 1 a.m. on July 3, 1988. The tour, = arranged by=20 Craig J. Spence, is the subject of a Secret Service probe. The = photo was=20 taken by another tour pa[rticipant.]=20

CORRECTION-DATE: July 14, 1989, Friday, Final Edition=20

CORRECTION:=20

Due to an editing error, a story Monday in The Washington Times = incorrectly said that photographs of former U.S. Attorney Joseph = diGenova=20 and his wife, Victoria Toensing, an ex-deputy assistant attorney = general,=20 were taken during a July 3, 1988, tour of the White House arranged = by=20 former Washington lobbyist Craig J. Spence.=20

Mr. diGenova and Ms. Toensing did not go on the July 3 tour, = which,=20 according to one participant included two male prositutes. = However, the=20 couple did attend a party at Mr. Spence's house on the same = weekend,=20 during which the photographs were = taken.

 =20
Spence ma[y] be Shiina's downfall =
Edward Neilan The Washington Times, Part A; Pg. A1 July = 18,=20 1989, Tuesday, Final Edition

TOKYO
apanese nuclear-physicist-turned-politician Motoo Shiina has been = described=20 here as "a good friend of the United States" - and as a shrewd = businessman=20 who may have passed U.S. aerospace secrets to the Soviet Union.=20

 =20
The magazine "Shukan = Shincho," a=20 popular weekly, raised past allegations that Mr. Shiina = leaked=20 sensitive U.S. information to the Soviet Union - allegations = the=20 magazine said have never been explained.=20
Mr. Shiina, 54, a member of Japan's = lower House=20 of Representatives, has been keeping an extremely low profile = lately amid=20 a swirling scandal involving his relationship with Craig J. = Spence, a=20 onetime U.S. lobbyist for Japan and business associate of Mr. = Shiina's.=20

Mr. Shiina has declined to answer telephone inquiries on his = dealings=20 with Mr. Spence, but has responded cautiously to direct questions = through=20 a lawyer, Chikahiko Soda. The=20 questions have dealt mainly with a loan by Mr. Shiina to Mr. = Spence to=20 purchase the Wyoming Avenue NW house where homosexual parties took = place.=20

"If his [Mr. Shiina's] = involvement=20 in any of this is true, then it would create a serious political = problem=20 for Shiina and his political life will probably be damaged = considerably,"=20 said Hisao Imai, a well-known Japanese political = commentator.=20

Mr. Imai, head of the Japan Commentators Association and a = former=20 political editor of Sankei Shimbun newspaper, said yesterday that = there is=20 hope among younger ruling Liberal Democratic Party members that = Mr. Shiina=20 will be a future party leader or even prime minister.=20

"If we lose him, this is a great loss not only for the LDP [the = ruling=20 Liberal Democratic Party] but for the nation," Mr. Imai said.=20

"The reason that Mr. Shiina is touted as a rising star is that = he has=20 been previously untainted by any scandal and he is an = internationalist,"=20 said another political commentator, Kan Ito.=20

With his own independent style of diplomacy he has established = himself=20 as a leading expert on U.S.-Japan relations, analysts said.=20

Although several Diet = members=20 speaking anonymously yesterday described Mr. Shiina as a "true=20 internationalist" and "good friend of the United States," one = Japanese=20 magazine came close to calling him a spy for the Soviet = Union.=20

The magazine "Shukan = Shincho," a=20 popular weekly, raised past allegations that Mr. Shiina leaked = sensitive=20 U.S. information to the Soviet Union - allegations the magazine = said have=20 never been explained.=20

The magazine quoted a newsman covering the Japan Defense Agency = as=20 saying that General Dynamics Corp. in 1979 allowed Mr. Shiina to=20 photograph on microfilm specifications of the new F-16 fighter.=20

In exchange, the newsman was quoted as saying, Mr. Shiina = agreed to=20 lobby for the company's involvement in the joint U.S.-Japan = production of=20 the FSX jet fighter.=20

The magazine noted that = stories=20 surfaced in Japan that the technical data of the F-16 was leaked = to the=20 Soviet Union by "the son of an influential Japanese politician." = No name=20 was given, but the magazine followed with a description of Mr. = Shiina's=20 father, the late Etsusaburo Shiina, who was a former LDP kingmaker = and=20 holder of several key Cabinet posts.=20

But Mr. Ito said yesterday, "Any charges that he is soft on the = Soviet=20 Union doesn't add up in my opinion. He's always speaking out about = the=20 Soviet buildup in Northeast Asia."=20

Mr. Ito also said, "Mr. Shiina is regarded as well-informed on = foreign=20 affairs and defense matters and has been known to criticize both = ruling=20 and opposition members for talking nonsense on those subjects in = the=20 Diet."=20

 

Mr. Imai said = political circles=20 around Nagatacho - the Tokyo area akin to Washington's Capitol = Hill - are=20 talking more and more these days about stories in The Washington = Times=20 about Mr. Spence and Mr. Shiina.=20

He said some rumors hold = that the=20 Central Intelligence Agency cooked up the whole thing to discredit = Mr.=20 Shiina.=20

"I hope Mr. Shiina is not such a bad guy as was described in = recent=20 Japanese periodicals' reports," said Mr. Imai. "It has been = believed that=20 he will sooner or later become foreign minister. But because of = this=20 scandalous news, he may have some difficulties in reaching a = Cabinet post=20 or beyond.=20

"The news that Mr. Shiina was closely associated with Mr. = Spence was=20 quite a shock to LDP members and those in the Diet. But a possible = examination into the matter will not come before the July 23 Upper = House=20 elections for which they are waging an unprecedentedly defensive=20 campaign," he said.=20

An article profiling Mr. Shiina published 10 years ago in The = Daily=20 Yomiuri English-language newspaper began:=20

" 'What should I say about myself?' he asks smilingly, taking a = slow,=20 deep drag at his cigarette between sips of hot, steaming coffee = which=20 Hideko, his charming wife, had served. Meanwhile, outside, the = gently=20 falling snow had blanketed Shiina's quite ample garden, giving up = an=20 impression of serene quiet.=20

"In his well-modulated voice, Motoo talked of what he calls his = 'humble' existence.=20

"Not so, for this diminutive (5 feet, 5 inches) man has been = his=20 father's active and devoted campaigner for a number of years. His = father=20 is Etsusaburo Shiina, former vice-president of the ruling=20 Liberal-Democratic Party, Diet member, ex-Minister of Foreign = Affairs,=20 ex-Minister of International Trade and Industry (MITI) and = ex-Minister of=20 Finance."=20

The article said Mr. Shiina spent his campus days at Nagoya = University,=20 graduating in 1954 with a major in nuclear physics, a field in = which he=20 was awarded a scholarship by the U.S. State Department for = one-year's=20 study of nuclear reactors at the Argonne National Laboratory in = Chicago.=20

Leaving his infant daughter behind with his mother, a friend = was found=20 to sponsor Hideko's stay in the United States. "It was quite tough = for=20 both of us, but somehow we managed," he told The Daily Yomiuri, = crediting=20 his success to his wife's devotion and care.=20

On his return to Japan in 1954, the younger Shiina set up his = own=20 company which manufactures precision instruments. He founded two = other=20 companies, one a joint venture with an American firm, according to = newspaper reports that provided no additional details.=20

Mr. Shiina's lawyer said yesterday of his client's business = affairs,=20 only that he resigned as an officer of the Tokyo-registered = company=20 Samutaku Co. Ltd. on becoming a Diet member in 1979 but still = holds a=20 large number of shares in the company and remains an adviser.=20

In addition, Mr. Shiina in 1979 was a board member of two = non-profit=20 organizations - the World Economic Information Service and the = Asian Club,=20 the latter funded by MITI.=20

Mr. Shiina told a reporter at the time that World Economic = Information=20 Service collates and studies economic information from all over = the world=20 for the guidance of the Japanese government and business world."=20

The Asian Club, established in 1975, aimed at "promoting = economic=20 goals." Mr. Shiina told an interviewer prior to his first election = that he=20 devoted much time to a private organization called Participation = which=20 sent out Japanese artists and musicians to various Southeast Asian = countries.=20

On July 5, The Washington Times published a story describing = a business deal between Mr. = Shiina and Mr.=20 Spence in which the latter made more than $700,000 in four years = working=20 for Mr. Shiina's Policy Study Group.=20

Mr. Spence also bought a = Kalorama=20 house using cash loaned to him by Mr. Shiina. When he refused to = pay back=20 the loan, Mr. Shiina sued.=20

* Special correspondent Hiroyasu Tomaru contributed to this=20 report.

Not for commercial use. Solely to be used for the = educational=20 purposes of research and open discussion.=20

 =20
First lady not worried about hookers' tour of White = House=20
Paul Bedard The Washington Times; Part A; WORLD; Pg. = A10 July=20 10, 1989, Monday, Final Edition

WARSAW, POLAND
First lady = Barbara Bush said yesterday that = the Secret=20 Service investigation of a late night White House tour that = reportedly=20 included two male prostitutes has not raised security questions = the first=20 family is worried about.=20

 =20
Mrs. Bush added that = "I'm not into=20 all of this" and said it was "good" that The Washington Post = wasn't=20 following The Times' story.=20
Speaking publicly for the first time = about the=20 July 3, 1988, tour arranged by former Washington lobbyist Craig J. = Spence,=20 Mrs. Bush said she and her husband have no fears of a security = breach.=20

"Not at all," she told reporters on Air Force One shortly after = it took=20 off from Andrews Air Force Base en route here for the first leg of = a=20 10-day European trip by President Bush.=20

Mrs. Bush, noting that she reads all of the stories printed in = the=20 Daily Press Summary, a half-inch thick digest of stories in the = print and=20 electronic media, said the reports about the scandal uncovered by = The=20 Washington Times haven't alarmed her.=20

"There haven't been a = lot of=20 stories in our house about it," she said.=20

 

Mrs. Bush added that "I'm not = into all of=20 this" and said it was "good" that The Washington Post wasn't = following The=20 Times' story.=20

Ever since The Times first reported the tour on June 29, the = White=20 House has avoided comment. Last week, Treasury Secretary Nicholas = Brady,=20 who heads the Secret Service, reluctantly confirmed reports of a = Secret=20 Service investigation.=20

Presidential spokesman Marlin Fitzwater said the service hasn't = raised=20 security concerns for the White House as a result of the probe.=20

White House officials have said that the midnight tours such as = those=20 arranged for Mr. Spence do not threaten the First Family's = security=20 because they are allowed only in office areas and not the = residence.=20

The tours for Mr. Spence, who has been linked to a federal=20 investigation of a Washington homosexual prostitution ring that = catered to=20 government, media and business officials, were set up by Reginald = A.=20 deGueldre, a uniformed White House officer who moonlighted as the=20 lobbyist's bodyguard.=20

Mr. Fitzwater said the Secret Service is "looking into the = action" of=20 the officer.=20

White House officials have said any staff member with the = proper=20 credentials such as those held by Mr. deGueldre can give private = tours,=20 and after-hours tours are encouraged because they don't disturb = those=20 working during the day. The tours commonly include a view of the = Oval=20 Office.=20

"I think they've [The Times] overblown the White House angle. = No one=20 knows who these guys are," said one administration official, = referring to=20 the associates of Mr. Spence named so far in The Times.=20

But, he added, the White = House=20 continues to closely follow the=20 story.

 =20
Secret Service furloughs third White House guard=20
Jerry Seper, and Michael Hedges The Washington Times; = Part A;=20 NATION; Pg. A3 July 26, 1989, Wednesday, Final = Edition


The Secret Service, looking into possible = security=20 breaches at the White House during late-night tours arranged by = former=20 Washington lobbyist Craig J. Spence, has placed a third White = House guard=20 on administrative leave.=20

 =20
The June 29 tour, = according to=20 several of Mr. Spence's friends, occurred after the = Washington=20 lobbyist visited the ABC television studios of Nightline and = introduced a 15-year-old boy, identified as his son, Will, = to=20 anchorman Ted Koppel.
Secret Service officials also = interviewed a=20 captain on the White House security detail for more than seven = hours over=20 the weekend, although he remains on the job, according to law = enforcement=20 officials.=20

The reason for the lengthy questioning of Capt. Joseph Shober - = four=20 hours Saturday and three hours Sunday - was not immediately known, = and=20 Capt. Shober was not available yesterday for comment.=20

He was the supervisor of Officer Reginald A. deGueldre and the = other=20 suspended officers during the period when the late-night White = House=20 tours, including one July 3, 1988, that reportedly included two = male=20 prostitutes, occurred, officials said.=20

The uniformed Secret Service officer who was placed on = administrative=20 leave Monday night, whom Secret Service spokesman Rich Adams = refused to=20 identify, worked some of the same midnight shifts as Officer = deGueldre and=20 another uniformed guard placed on administrative leave last week.=20

Mr. Adams also declined to comment on why the third officer was = relieved of his duties or why Capt. Shober was questioned. "This = is an=20 internal matter and beyond that I just can't comment," he said. = "It is an=20 ongoing investigation, and we are talking to a number of people. = Just=20 because we're talking to someone does not make them a subject of = the=20 investigation."=20

The Secret Service investigation, authorities said, is aimed at = determining if White House security was breached during late-night = tours=20 arranged by Mr. Spence and attended by several of his friends.=20

 

One law enforcement official said = that,=20 while many Secret Service officers and others have taken relatives = and=20 friends through the White House on special tours, they usually = occur=20 between 7 p.m. and 9 p.m., and that 1 a.m. tours - as arranged by = Mr.=20 Spence - are "totally out of the ordinary."=20

Officer deGueldre has acknowledged knowing Mr. Spence and = attending=20 parties the Washington lobbyist held at his Wyoming Avenue = mansion. The=20 officer also admitted during interrogation by the Secret Service,=20 according to an affidavit filed in U.S. District Court, that he = removed=20 valuable china and other items from the White House, some of which = ended=20 up in Mr. Spence's house.=20

Officer deGueldre also told The Washington Times he had = accepted an=20 $8,000 gold Rolex watch from Mr. Spence. It is not clear what Mr.=20 deGueldre did for Mr. Spence, if anything, or what favors might = have been=20 expected.=20

The officer has denied any wrongdoing.=20

Mr. Spence's name surfaced following a Feb. 28 raid by the = Secret=20 Service, Metropolitan Police and U.S. marshals on a house at 6004 = 34th=20 Place NW, where a homosexual prostitution ring was operating. = Credit card=20 vouchers showed that the lobbyist, who has worked as a registered = foreign=20 agent for various Japanese organizations, spent as much as $20,000 = a month=20 on call boy services.=20

Mr. Spence has not been available for comment.=20

Alleged credit card fraud involving a number of escort services = that=20 sent male prostitutes to the 34th Place house is currently under=20 investigation by the office of U.S. Attorney Jay Stephens. Mr. = Stephens=20 has declined to discuss the matter.=20

The Secret Service has jurisdiction over credit card crimes.=20

According to several people who were on the White House tours = arranged=20 by Mr. Spence, the Washington lobbyist put together at least four = tours of=20 the presidential mansion last year, two of which - June 29 and = Nov. 22 -=20 he attended personally.=20

The June 29 tour, = according to=20 several of Mr. Spence's friends, occurred after the Washington = lobbyist=20 visited the ABC television studios of Nightline and introduced a=20 15-year-old boy, identified as his son, Will, to anchorman Ted=20 Koppel.=20

Several of the persons who went on the White House tours have = been=20 interviewed by the Secret Service about Mr. deGueldre and Mr. = Spence.=20 Those interviewed said = investigators=20 were concerned about possible security breaches and about Mr. = Spence's=20 connections to well-placed military and government officials, but = that the=20 agents did not elaborate.=20

One tour participant said some of the items allegedly taken out = of the=20 White House by Mr. deGueldre might have been smuggled out during = at least=20 one of the Spence-arranged tours. The participant said Mr. = deGueldre=20 handed over a sealed box containing "somethign that rolled around" = and=20 asked that it be hand-delivered to Mr.=20 Spence.

A portion of = the=20 editorial said: ''One child, who has been under psychiatric care, is = said to=20 believe that she saw George Bush at one of King's parties. This is the = same=20 person whose story of a severed head was looked into. Neither tale could = be=20 verified.''=20

That sounds familiar, Satanism, child abuse, and grave desecration is = not=20 new.... We hear about it in the news and we see some kid dressed in = black with=20 suicidal lyrics.. but where did they learn this behaviour?=20

 =20
SEX PARTY HELD AT AUSSIE EMBASSY 'WE'RE NOT TALKING = CROCODILE=20 DUNDEE HERE'
Michael Hedges and Jerry Seper Washington Times; Final = Section:=20 A Page: A1 Friday, July 28, 1989


Three female prostitutes took part in a sex = party at the=20 Australian Embassy in November that included several members of = the=20 embassy staff, according to one of the women involved who worked = for an=20 escort service now under federal investigation.=20

 =20
She said she had been = to Mr.=20 Spence's house on at least four occasions and that during = each visit=20 she had sex with young soldiers whom Mr. Spence bragged he = was=20 blackmailing=20
The prostitutes had sex with at = least three men=20 each during the party that lasted a little longer than three = hours, said=20 the woman. She said she was paid $800 in "crisp, new $100 bills" = after the=20 job.=20

The young blonde former prostitute, who asked that she not be=20 identified, described the men she had sex with as middle-aged, = adding,=20 "We're not talking Crocodile Dundee here."=20

The escort service which = employed=20 the woman is one of several tied to a Washington area homosexual=20 prostitution ring that serviced officials of the Reagan and Bush=20 administrations, military officers, media representatives, = lawyers,=20 businessmen and others.=20

The former prostitute also said she had sexual encounters with = U.S.=20 military personnel at the behest of former Washington lobbyist = Craig J.=20 Spence, a major client of the male call-boy ring, and with a = high-ranking=20 Canadian diplomat at his waterfront Georgetown home.=20

She provided details about her jobs, including the names of = some=20 clients, which have been confirmed by The Washington Times.=20

Both the diplomat and one of Mr. Spence's soldier-bodyguards = have=20 admitted they had sex with the woman under the exact circumstances = she=20 described.=20

The U.S. Attorney's Office is probing alleged credit card fraud = involving the escort services, and the Secret Service is looking = into=20 possible security breaches that may have occurred during = late-night tours=20 of the White House arranged by Mr. Spence for his friends. Two = male=20 prostitutes went on one of the tours, according to a person who=20 participated in the 1 a.m. White House walk-through.=20

The former prostitute, who was interviewed on several occasions = by The=20 Times, described in detail paid sexual meetings with foreign = diplomats,=20 both in their homes and in Massachusetts Avenue embassies, = scheduled=20 through Jet Set, the escort service which the woman said supplied = the=20 Australian Embassy party.=20

The woman said that during the late afternoon November embassy = party,=20 the group, which included the two other women she came with, a few = other=20 women she believed were prostitutes and a dozen or more men, met = in one=20 large office-type room.=20

"The men I had sex with took me one at a time into a smaller = room=20 nearby which was like an office, it had office-type furniture," = the woman=20 said.=20

The men never identified themselves beyond first names, she = said.=20 "There wasn't a lot of small talk. We were there for one thing."=20

The woman also described the interior of the embassy, correctly = gave=20 its address and location on Massachusetts Avenue, and depicted the = furnishings of the room where she said the sex occurred.=20

Australian Embassy officials, when told on July 6 of the = woman's=20 allegations concerning the party, originally said they would turn = the=20 information over to U.S. Attorney Jay Stephens for a full = investigation.=20

However, John McCarthy, minister of congressional liaison for = the=20 embassy, said during a second interview with The Times that he and = his=20 staff had conducted an extensive internal investigation - = coordinated by=20 Australian Federal Police stationed at the embassy - and, while = not ruling=20 out the possibility that the November affair had occurred, had = concluded=20 that the woman's story was "improbable."=20

A report of that investigation concluded, "We cannot completely = exclude=20 that a clandestine function did occur, but our investigations have = made=20 clear that it would have required a great deal of planning = beforehand to=20 gain entry surreptitiously."=20

The report said, "The = embassy's=20 investigations produced no corroboration of the = allegations."=20

An Australian television station, informed of the woman's = charges by=20 The Times, met with the former prostitute and determined that her = story=20 was valid. A story concerning the allegations ran yesterday on an=20 Australian network news program.=20

 

"I saw no good reason = to=20 disbelieve her story," said Tony Coghlan, the Network Ten bureau = chief in=20 New York City who interviewed the former prostitute. "She came to = us in=20 good faith and didn't ask to be paid.=20

"I talked with her at = great length=20 and grilled her about the incident and the embassy. It was my = feeling she=20 was telling the truth," he said.=20

Mr. Coghlan said the factors which led to the embassy staff = concluding=20 the episode probably did not occur did not impress him, and that = he found=20 the woman's depiction of the event consistent with his knowledge = of the=20 embassy and Australian customs.=20

Neale Prior, a reporter for the Sydney Morning Herald, said his = newspaper published a story yesterday recounting the television = report. He=20 said the paper planned a follow-up account in today's editions.=20

"This story has only broken in Australia four hours ago," Mr. = Prior=20 said yesterday. "If more comes out on it, there will be a big = reaction=20 here."=20

Yesterday, Brett Bayly, press officer at the embassy, said, = "Frankly,=20 we're just puzzled. We haven't been able to take it any further."=20

Kunjurit "Dennis" Singh, = the man=20 who operates the Jet Set escort service, admitted that the three = women=20 worked for the service during 1988, but he declined to = name=20 specific jobs on which they were dispatched.=20

"This is confidential, like a dating service," Mr. Singh said. = "I can't=20 tell you who was dating whom."=20

He said the men and women working for him were paid only to = spend time=20 with clients, adding that he was unaware of any illegal sexual = activities=20 which occurred on these dates.=20

One of the prostitutes employed by Mr. Singh said she was given = a W-2=20 form at the end of the year listing her job as "escort."=20

The former prostitute provided names of some of her embassy = clients,=20 including a key official at the Canadian Embassy for whom she said = she was=20 hired for sex at his Georgetown house.=20

The Canadian official originally denied the encounter. But = after he was=20 provided with detailed information about himself, his habits and = his=20 Georgetown home - all described by the former prostitute - he said = his=20 personal life was "none of the newspaper's business" and asked = that his=20 name not be used to spare him embarrassment.=20

Wesley Pruden, managing editor of The Times, said when the = newspaper=20 first broke the sex ring story that names of participants would = not be=20 made public unless their involvement appeared to compromise U.S. = or=20 friendly nation security.=20

The former prostitute, who has taken a legitimate job and said = she has=20 put her past behind her, also in a relatively brief period had = sexual=20 liaisons with a number of wealthy businessmen while working for an = escort=20 service at 34th Place NW, which federal authorities raided in = February,=20 according to her recollections and diaries she kept at the time.=20

The service was one of several that, according to federal = authorities=20 and others, accepted cash, checks and credit cards to pay for = prostitution=20 activities - from both men and women.=20

The former prostitute said she had worked on numerous occasions = for Mr.=20 Spence, the once powerful Washington lobbyist whose name has = surfaced in=20 the probe of the homosexual prostitution ring. She said she had been to Mr. = Spence's house=20 on at least four occasions and that during each visit she had sex = with=20 young soldiers whom Mr. Spence bragged he was = blackmailing.=20

One of the soldiers, now working on a prestigious detail at = Fort Myer,=20 admitted he worked for Mr. Spence, and also that he spent time = with a=20 female prostitute while at Mr.Spence's Massachusetts Avenue = apartment. He=20 said he was paid several hundred dollars to provide security at = various=20 parties Mr. Spence hosted.=20

The former prostitute said on one occasion Mr. Spence forced = her to=20 take a bath with two men and him, which degenerated into "an = unhappy=20 outing."=20

The woman said that one of the soldiers contacted her a few = months=20 after the bathtub incident and told her Mr. Spence had shown = pictures of=20 them having sex to the soldier's wife and that it led to a = separation.=20

The soldier told her that Mr. Spence initially blackmailed him = into=20 "beating up a couple guys" to keep his wife from finding out, she = said.=20 But Mr. Spence "burned him anyway" because the soldier refused to = have sex=20 with him, the woman said.=20

Photo, The Australian embassy in Washington., By The Washington = Times

 =20
SPENCE ELUSIVE, SAID TO BE EVERYWHERE BUT=20 ISN'T
Jerry Seper and Michael Hedges Washington Times, Final = Section:=20 A Page: A1
Thursday, August 3, 1989


Where in the world is Craig Spence?=20

A lot of people say they know, but the sightings of Mr. Spence, = the=20 mysterious Washington lobbyist who wined and dined the city's = power elite=20 while patronizing a call-boy ring now under U.S. investigation, so = far are=20 as reliable as the sightings of Elvis.=20

 =20
Some friends of Mr. = Spence cling=20 to the fanciful story - told often by the shadowy lobbyist - = that he=20 is on "one last desperate mission" for the CIA. He often = predicted=20 his own demise, cautioning friends not to take any account = of his=20 death at face value.=20
He (Mr. Spence, not Elvis) was seen = on a bus at=20 28th and P streets last week.=20

Or the flamboyant Washington influence peddler recently made = several=20 appearances at a Georgetown disco - sans cape.=20

Or the man the U.S. Secret Service has sought - apparently=20 unsuccessfully - to answer questions about midnight tours of the = White=20 House, is hiding out in a friend's New York City apartment.=20

Or he's curled up along a canal in Italy with his favorite = book, "Death=20 in Venice."=20

Or he's in Tokyo, sipping martinis with his favorite bartender, = Hirosumi Toyama, at the Tokyo Hilton.=20

Or he's at his boyhood hometown, Boston - or was that in New = Hampshire?=20

Or he's in the green = room on the=20 "Nightline" set at the ABC-TV studios in Northwest, waiting to be=20 interviewed by his longtime friend, Ted Koppel.=20

One member of Washington's netherworld, a procurer of = prostitutes who=20 claimed to have subcontracted lots of work for Mr. Spence, says he = knows=20 for a fact that Mr. Spence has been staying in Clearwater, Fla., = with a=20 Washington lawyer.=20

Reporters investigating that particular late-night tip lost = enthusiasm=20 when they found out the lawyer had died in January.=20

Some friends of Mr. = Spence cling=20 to the fanciful story - told often by the shadowy lobbyist - that = he is on=20 "one last desperate mission" for the CIA. He often predicted his = own=20 demise, cautioning friends not to take any account of his death at = face=20 value.=20

 

A former college = classmate of Mr.=20 Spence's, who doesn't profess to know where he is, is nevertheless = willing=20 to speculate about what disguise he might be wearing.=20

The woman said she attended Boston University with Mr. Spence = in the=20 1960s and that for two years he faked an Australian accent, that = only=20 through recent press accounts did certain old friends learn that = he had=20 not been the Australian exchange student he said he was.=20

Recently, Secret Service agents investigating how Mr. Spence = might have=20 breached White House security with late-night tours searched with = a=20 warrant his Massachusetts Avenue apartment. The building manager = said=20 federal authorities had searched the apartment at least twice.=20

One tenant of the building reported agents were staking out the = place=20 and "looking very obvious." Nevertheless, the agency was said to = have been=20 consistently thwarted in its efforts to interview Mr. Spence.=20

Mr. Spence had led some of his friends to believe that he was = seriously=20 - perhaps even terminally - ill. To others, he fostered the image = of a man=20 pursuing one last main chance in the Far East or in Europe.=20

His recent activity was quite a departure from a man who once = created=20 the illusion of great influence.=20

When Mr. Spence resurfaces, he must deal with a federal = investigation=20 headed by the office of U.S. Attorney Jay Stephens. Mr. Stephens' = office=20 insists for the record it's an investigation of credit-card fraud. =

But other law enforcement authorities, among others, say the = Secret=20 Service was interested in Mr. Spence even before the February raid = on a=20 homosexual-prostitution ring headquarters that led to the = capital's summer=20 scandal.=20

One person the Secret Service questioned for more than three = hours said=20 investigators were = "interested" in=20 Mr. Spence's connections to well-placed government and military=20 officials.=20

This person, one of six who took a July 1988 White House tour = arranged=20 by Mr. Spence, said Secret Service investigators indicated that = their=20 concern about the former lobbyist "did not result as an outgrowth = of the=20 February raid."=20

Questions asked by = Secret Service=20 investigators about Mr. Spence's activities were "not specifically = and=20 singularly tied to credit-card fraud," as suggested by Mr. = Stephens. The=20 service still won't talk about what it's doing.=20

While Mr. Spence has been a scarce commodity in the flesh, his = spirit=20 lingers among many of his friends.=20

Several say they have = experienced=20 a rash of hang-up calls at odd hours.=20

"It's what Craig used to do when he was upset with someone," = said one=20 friend. "It's classic behavior for = him."

 =20
SPENCE ARRESTED IN N.Y., RELEASED BIZARRE INTERVIEW IS = NO NIGHT=20 ON THE TOWN
Jerry Seper and Michael Hedges Washington Times; Final = Section:=20 A Page: A1 Wednesday, August 9, 1989

NEW YORK -
He must have = thought he=20 was still wearing his red-lined black cape, his wide-brimmed black = felt=20 hat and his trademark silk handkerchief dangling at a precise = angle from=20 his tailored Edwardian-cut suit.=20

 =20
"How do you think a = little faggot=20 like me moved in the circles I did?" Mr. Spence asked, his = hand=20 fondling the razor blade like the flesh of a lover. "It's = because I=20 had contacts at the highest levels of this = government.=20
His plain white knit shirt was = wrinkled and=20 soiled, with smudge marks on the back and shoulders from a night = on a=20 bench in Central Park. His high-top white Reebok athletic shoes = were=20 scuffed, his pants rumpled and loose.=20

With his belt missing, an unshaven Craig J. Spence - the = onetime=20 Washington lobbyist of the rich and powerful who is a focus of a = federal=20 investigation - kept tugging at his pleated khaki pants to keep = them from=20 falling down.=20

"Do you know who you are = talking=20 to?" he demanded in a loud voice as he moved his back along a wall = of a=20 friend's fashionable East Side apartment, his right hand tightly = clutching=20 a razor-blade dispenser from which he slid a double-edged blade. = "Do you=20 have any idea who I am?"=20

So began a rambling, eight-hour interview of Craig Spence, the = object=20 of a monthlong search by print and television reporters and agents = of the=20 the Secret Service. The interview ran from midafternoon Monday = until=20 shortly before midnight.=20

Federal authorities have been pursuing him as part of an = investigation=20 into allegations of credit-card fraud involving a Washington-based = homosexual prostitution ring he frequented and possible security = breaches=20 during late-night tours of the White House that he arranged.=20

After an initial and volatile discussion about suicide and a = tense=20 moment in a narrow hallway during which he menaced two reporters = with the=20 razor, Mr. Spence decided = to hold=20 court to "impart a few words of wisdom" and to "educate the = unwashed"=20 about journalism, politics, government operations, life and=20 death.=20

"Death, you know, is only painful to the ones you leave = behind," he=20 said, congratulating himself on what he suggested was an excellent = quote=20 and encouraging the reporters to write it down. "As a matter of = fact, I'm=20 looking forward to it.=20

"At 48, I'll still look good in hell."=20

What followed was bizarre, highlighted by moments of brilliance = and=20 wit, outrageous and obnoxious behavior, unbridled and spontaneous = humor,=20 and profound and unrelenting bragging.=20

"How do you think a = little faggot=20 like me moved in the circles I did?" Mr. Spence asked, = his hand=20 fondling the razor blade like the flesh of a lover. "It's because I had contacts at = the highest=20 levels of this government.=20

"They'll deny it," he = said, his=20 voice rising with anger. "But how do they make me go away, when so = many of=20 them have been at my house, at my parties and at my = side?"=20

Mr. Spence's recollections of times past are filled with the = names of=20 many of Washington's powerful and those of influential men and = women from=20 other countries. Most of the claims are documented in dozens of = filings at=20 the Department of Justice, which are required of lobbyists who = work for=20 foreign governments.=20

What they all had in common, Mr. Spence said, was that they = used him=20 for their personal gain, and when things went bad, they forgot his = name.=20

"I can't think of one = person who=20 hasn't benefited personally from knowing me," he said. "I had the = world at=20 my house, and now they don't know who I am."=20

During the interview, Mr. Spence picked continually at his nose = and=20 rubbed his finger across the outline of his shabby mustache. He = snorted=20 and coughed up mucus. He constantly rubbed his left eye until it = was red,=20 and he said his vision was blurred.=20

 

He walked from chair = to chair in=20 the apartment, staying only briefly in each spot. He pointed, = grabbed,=20 poked and pushed at the reporters to make a point or to avoid a = question.=20 He intermittently leaned forward to strike out at his questioners = and then=20 leaned back in a defensive mode, lowering his body into whatever = chair was=20 at hand.=20

He refused to answer inquiries he deemed "stupid" and said = several=20 times he was going to "terminate" the interview, jumping out of a = chair to=20 run to the door. He nearly left on one occasion but couldn't = figure out=20 how the locks on the sturdy wooden door worked.=20

Mr. Spence threatened on four occasions to kill himself. He had = planned=20 to do so last week, he said, but New York City police had taken = away his=20 loaded 9mm handgun. "That's the great terminator," Mr. Spence = said. "Just=20 open your mouth and point to the rear."=20

The only suicide weapon he had left was the white plastic = dispenser of=20 cheap double-edged razor blades, which he displayed threateningly. = He=20 fingered the dispenser constantly throughout the interview, = pushing one of=20 the blades halfway out to create a knifelike effect.=20

"The man who cuts himself across the veins is looking for = help," Mr.=20 Spence said, his right hand moving the razor slowly along his = outstretched=20 left arm. "The man who cuts down the vein is looking to die."=20

He pulled the razor along his arm lengthwise and smiled, then = suddenly=20 moved the thin blade to the chest of one of the two reporters and = then to=20 the other. There was silence for a few seconds, then he spoke.=20

"I am not a person to = fool with.=20 You should know that by now," Mr. Spence said.=20

His threat soon ended, however, when he remembered he hadn't = eaten=20 dinner. A mugger in Central Park, he said, had taken his last = $100,=20 borrowed the day before from a friend, who also had paid off the = last $400=20 of a $5,000 bill for three days in the penthouse at the Parker = Meridien.=20 His credit charges had exceeded the card's limit, and he had had = no cash=20 to make up the difference.=20

"I felt sorry for him," said the friend, who asked not to be=20 identified.=20

The friend, in whose apartment the interview took place, later=20 discovered that $300 stashed in a jewelry box was missing.=20

Once he arrived at a nearby restaurant, Ronasi Ristoranti = Italiano, Mr.=20 Spence's mood changed again. He became loud and demanding, = ordering the=20 waiters around with the snap of his fingers and shouting various=20 vulgarities obviously aimed at shocking both the restaurant's = employees=20 and its patrons.=20

He issued cooking instructions to the chef and chastised the = busboys=20 for almost everything.=20

Mr. Spence, a frequent visitor to Italy, found nothing on the = menu to=20 his liking. He ordered a special pasta dish with red, white and = green=20 noodles - "just like the Italian flag, but you probably didn't = know that,"=20 he shouted at the waiter. He demanded minestrone soup, but only = after=20 being assured that the vegetables in it were fresh.=20

He complimented one of the reporters for his choice of wines, = selected=20 only because it happened to be the least expensive on the menu, = and then=20 proceeded to order three bottles of it.=20

While lecturing those at his table on proper etiquette, Mr. = Spence=20 spilled his wine, knocked over his water glass (which flooded his=20 appetizer of baked clams) and blew his nose on the white linen = tablecloth.=20

After ordering chocolate cake for dessert, he berated the = waiter=20 because the piece was too small. "I want to see something brown on = this=20 white plate," Mr. Spence shouted. "I see nothing here now." The = waiter,=20 quite unhappy at this point, cut another piece and returned it to = the=20 table. His waiter's benediction, "enjoy," seemed forced.=20

At the dinner's end, Mr. Spence borrowed $10 for cab fare to = the Plaza=20 Hotel on Central Park South, where he said he had left his = luggage. He=20 said he'd be available to continue the interview in an hour.=20

He disappeared into the night, not to be seen again.=20

=20

Photo, Craig J. Spence, By Peter Kolk/Special to The Washington = Times=20

Photo, The Secret Service has searched Craig Spence's = Massachusetts=20 Avenue apartment twice to see if his late-night tours breached = White House=20 security., By Peter Kolk/Special to The Washington=20 Times

 =20
Spence arrested in N.Y., released; Once-host to = powerful=20 reduced to begging, sleeping in park
Michael Hedges, and Jerry Seper THE WASHINGTON TIMES; = Part A;=20 Pg. A1 August 9, 1989, Wednesday, Final Edition

NEW YORK
Craig J. = Spence, the=20 once-powerful Washington lobbyist under scrutiny by the Secret = Service for=20 late-night White House tours and theft from the presidential = mansion, was=20 arrested here last week for carrying a loaded gun and crack = cocaine.=20

 =20
Mr. Spence hinted the = tours were=20 arranged by "top-level" officials, including Donald Gregg, = national=20 security adviser to Vice President Bush and now = ambassador-designate=20 to South Korea.=20

"Who was it who got Felix Rodriguez [the CIA's former = Costa Rica=20 station chief, who became embroiled in the Iran-Contra = affair] in to=20 see Bush?"=20

Mr. Spence, who has spent recent = weeks prowling=20 this city's finest hotels, cutting deals with inmates to protect = himself=20 in jail and eventually sleeping on a bench in Central Park, faces = up to=20 eight years in prison.=20

Monday, in a tense eight-hour interview with The Washington = Times at a=20 friend's apartment where reporters had tracked him, Mr. Spence = said the=20 discovery in 1986 that he had AIDS triggered his descent into = using call=20 boys and crack.=20

In a conversation that plumbed the depths of morbidity and = self-pity,=20 Mr. Spence caressed a shiny, double-edged razor blade he said he = would=20 ultimately use to kill himself and alluded frequently to his = impending=20 suicide, a move he said he would take before AIDS debilitates him. =

Asked how he thought he would be remembered in Washington, he = quoted=20 Carl Sandburg: "Does it matter in the dust and the cool tombs . . = ."=20

Mr. Spence said he left Washington early in July after becoming = aware -=20 through news accounts - of the Secret Service investigation. He = spent=20 several nights in expensive hotels in New York, rapidly spending = his=20 diminishing funds, according to hotel records and his account.=20

He was arrested July 31 at the Barbizon Hotel on East 63rd = Street in=20 Manhattan. According to police records, police took Mr. Spence = into=20 custody after a disturbance there. A loaded 9mm pistol was seized, = along=20 with a small amount of crack.=20

He spent parts of the next three days in jail before being = released on=20 personal recognizance Aug. 2. He faces another hearing Aug. 28. = Maximum=20 sentences for the charges against him total eight years in prison. =

Mr. Spence's account of the episode considerably colored the = drab prose=20 of police reports. He said he had set up a meeting with a call boy = who=20 arrived with drugs.=20

When the male escort attempted to steal $10,000 in cash and = traveler's=20 checks from his room, according to Mr. Spence and police reports, = Mr.=20 Spence started the ruckus that led to the arrest.=20

"They put me in the Tombs [slang for the New York jail] for = three days=20 without a phone call," Mr. Spence said. "I survived by offering to = be the=20 valet to the biggest thug there, a man appropriately named Heavy, = and=20 giving him half my bologna sandwich. I had to teach him not to = pronounce=20 it 'val-ay' like some parking attendant."=20

Mr. Spence, who is central to an investigation into the theft = of Truman=20 administration china from the White House and a male call-boy ring = raided=20 in February by D.C. police and federal agents, has eluded Secret = Service=20 agents and reporters since his dealings were first reported by The = Times=20 on June 29.=20

Mr. Spence, 48, who is being sought by the Secret Service to = testify=20 early next week before a grand jury empaneled by U.S. Attorney Jay = Stephens, said the late-night tours could not have been set up by=20 uniformed Secret Service Officer Reginald deGueldre. Officer = deGueldre and=20 another officer were suspended without pay last week as a result = of the=20 ongoing White House investigation.=20

"Reggie couldn't have arranged anything," Mr. Spence said. = "Poor Reggie=20 is a nice guy. I gave him a Rolex watch unsolicited, and he later = gave me=20 this little 'dish,' as Rosalyn Carter would say, out of the Truman = china.=20 I didn't ask for it.=20

"Reggie's like an elevator operator pushing the buttons. But he = is not=20 the guy who can clear it for you to get in the elevator."=20

Mr. Spence hinted the = tours were=20 arranged by "top-level" officials, including Donald Gregg, = national=20 security adviser to Vice President Bush and now = ambassador-designate to=20 South Korea.=20

"Who was it who got = Felix=20 Rodriguez [the CIA's former Costa Rica station chief, who became = embroiled=20 in the Iran-Contra affair] in to see Bush?" Mr. Spence asked when = pressed=20 to say who got him inside the White House. He agreed that he was = alluding=20 to Mr. Gregg.=20

Mr. Gregg yesterday = dismissed the=20 allegation as "absolute bull." Vacationing in Delaware, Mr. Gregg = said the=20 only time he met Mr. Spence - at an April party the lobbyist = arranged for=20 former South Korean Prime Minister Nam Duc Woo - he found him to = be "a=20 thoroughly unpleasant character."=20

"It disturbs me that he can reach a slimy hand out of the sewer = to grab=20 me by the ankle like this," Mr. Gregg said. "The allegations are = totally=20 false."=20

Mr. Spence said all of the parties he held at his Kalorama home = were=20 bugged by "friendly" intelligence agents.=20

He described in detail how he rigged his apartment with = listening=20 devices in electrical outlets in the walls after he was approached = by an=20 intelligence agency that he refused to identify.=20

"They basically just wanted to be sure that nothing was being = said that=20 shouldn't be said," he said.=20

He boasted that he had "created" important Japanese = politicians,=20 conducted covert operations for Central American governments and = traveled=20 in a circle of high-ranking closet homosexuals in Washington. He = said he=20 would not identify homosexuals in the Bush administration.=20

"I'm not going to smear the Republican Party," he said.=20

Mr. Spence described other midnight White House tours, = including one he=20 said he arranged for a group of powerful Japanese businessmen who, = he=20 said, photographed themselves in the Oval Office.=20

He alluded frequently to = even=20 deeper mysteries. "All this stuff you've uncovered, to be honest = with you,=20 is insignificant compared to other things I've done. But I am not = going to=20 tell you those things, and somehow the world will carry on without = knowing," he said.=20

After he became aware of = Secret=20 Service interest in his activities, Mr. Spence said he destroyed = audio=20 tapes and hundreds of photographs, many obtained surreptitiously = during=20 his parties. By the time the Secret Service raided his apartment = in July,=20 he said all that was left behind was his AZT anti-AIDS=20 medicine.=20

A Secret Service source confirmed that the agency served a = search=20 warrant at the Massachusetts Avenue apartment and that agents did = in fact=20 find vials of AZT.=20

Careening from the wit = that had=20 won him powerful friends to glum resignation that "my life is = over," Mr.=20 Spence reserved his deepest bitterness for former acquaintences = who he=20 said have now forsaken him. "I've had the world at my house and = now they=20 don't know who I am," he said. "But they did come, didn't=20 they?"=20

Mr. Spence said that he frequently used call-boy services and = that he=20 liked "handsome young blond, 19-year-old boys," but he said he had = not=20 spent $20,000 a month for them, as reflected in credit card = documents=20 obtained by The Times. These charges were inflated illegally by = one escort=20 service manager, he said. He declined to elaborate but said he = fired his=20 accountant over the matter - although it was never turned over to=20 authorities.=20

During his hour as a Washington host, Mr. Spence dressed in = Edwardian=20 finery and lived extravagantly, affecting touches such as = scarlet-lined=20 capes and stretch limousines.=20

 

Among those who = frequented his=20 parties were journalists Eric Sevareid, Ted Koppel and William = Safire;=20 former CIA Director William Casey; the late John Mitchell, = attorney=20 general in the Nixon administration; conservative activist Phyllis = Schlafly; then-Ambassador to Korea (now to China) James Lilley; = and Gen.=20 Alfred M. Gray, commandant of the Marine Corps.=20

Arnaud de Borchgrave, editor-in-chief of The Times, said he = went to=20 dinner once at Mr. Spence's home, to honor Mr. Lilley.=20

Even in recent months, Mr. Spence insisted, he retained enough = cachet=20 to set up large business negotiations such as one between the = Washington=20 law firm of Bishop, Cook, Purcell and Reynolds - represented by = former=20 U.S. Attorney Joseph diGenova - and a major computer manufacturer, = Compaq.=20

He said influential persons such as Mr. diGenova, although = aware of his=20 increasing use of drugs, courted him for his network of business=20 connections.=20

Mr. diGenova was in Hawaii yesterday and could not be reached = for=20 comment. A secretary, told of the nature of the inquiry, said she = could=20 not divulge Mr. diGenova's vacation telephone number. In earlier=20 interviews, the former federal prosecutor said he went to Japan = with Mr.=20 Spence and Mr. Bishop in 1988 on business.=20

"When I got back from Japan, some anonymous person suggested = that [Mr.=20 Spence] might be using cocaine. Well, of course, my antennae went = up right=20 away and I checked those rumors out . . . and found much to my = surprise=20 that people suspected the worst," Mr. diGenova said.=20

At that point, Mr. diGenova said, he severed his relationship = with Mr.=20 Spence. "When you compared it to his other eccentric behavior, it = made=20 sense. But I had no evidence whatsoever," he said.=20

Mr. diGenova said he never took his concern that Mr. Spence = might be=20 using drugs to authorities and said he had never witnessed cocaine = use by=20 Mr. Spence or others at the parties.=20

A spokeswoman for Compaq, which is based in Houston, said = yesterday=20 that the firm had no record of any contact with Mr. Spence. She = said,=20 however, that there had been dealings with Mr. Bishop's law firm, = but she=20 declined to say what they were.=20

By Monday, Mr. Spence's flash had been replaced by the grim = residue of=20 his recent three-day stay in a New York City jail and a fitful = night on a=20 Central Park bench during which, he said, muggers had lifted the = last few=20 dollars he'd borrowed from a friend.=20

Located by reporters at the stylish apartment of a friend near = Central=20 Park, Mr. Spence first resisted, then relished describing his = career.=20

After initial jobs in Massachusetts politics and as a = correspondent for=20 ABC News in Vietnam, Mr. Spence began focusing on Far Eastern = affairs, he=20 said.=20

Mr. Spence said his = "genius" was=20 in recognizing before other U.S. observers that Japan was headed = for=20 economic greatness and in being able to identify and help Japanese = Diet=20 members on the way up.=20

"I became a very significant intellectual force in Japan," he = said with=20 typical braggadocio. "I created three members of the Japanese = Diet. It's=20 called perspicuity. I saw a future prime minister in an obscure = little man=20 named [Yasuhiro] Nakasone when all our spastics here didn't see = that."=20

Mr. Spence claimed he coached Mr. Nakasone on dealing with the = United=20 States, advising him to buy President Reagan a saddle for a = present rather=20 than golf clubs and always to mention the former president's = movies just=20 before the press was admitted for photo opportunities to ensure = the two=20 would be engaged in animated conversation.=20

Among his achievements, Mr. Spence said, was producing a = "brilliant"=20 position paper that persuaded the Japanese to allow the Palestine=20 Liberation Organization to open an office in Tokyo.=20

He also said he greatly enhanced the reputation of Motoo = Shiina, a=20 powerful member of the Diet, Japan's parliament, who is considered = Japan's=20 top expert on defense issues and a likely future prime minister.=20

"Motoo's father, Etsusburo, who was a great man, asked me to = help his=20 son, who he saw as playboy," Mr. Spence said. "I made Motoo Shiina = in the=20 United States, then he sued me."=20

The lawsuit over a house on Wyoming Avenue NW, in a fashionable = neighborhood of homes of senior diplomats, began when Mr. Shiina = sought=20 the return of $345,000 he had lent Mr. Spence to purchase the = property.=20 Eventually, the suit would be dropped on the day Mr. Shiina was to = give a=20 sworn deposition.=20

The settlement terms led to Mr. Spence's company's getting = $68,000 from=20 the Policy Studies Group headed by Mr. Shiina. Mr. Spence agreed = to repay=20 Mr. Shiina $379,000 at 5 percent interest.=20

The money was repaid when Mr. Spence sold the house for = $900,000, and=20 he kept the approximately $500,000 profit.=20

Mr. Spence said yesterday that he had forced Mr. Shiina's = attorneys to=20 drop the suit by threatening to reveal that the money was "hot."=20

"The money came into the = country=20 illegally from Hong Kong, and I knew it," he said. "That's why I = could be=20 so sarcastic in my deposition. I knew they wouldn't push = it."=20

Mr. Shiina has denied any wrongdoing in the case. He has = specifically=20 denied any violations of currency exchange laws.=20

Mr. Spence said he later turned his lobbying talents to China, = with the=20 intention of establishing high-level influence there. "They have = no money.=20 What were they going to pay me with - rice?" he asked. "I did it = to make=20 contacts."=20

Throughout this period, Mr. Spence admitted to leading a = dual-level=20 existence, with separate but strong excitements.=20

On the surface, he threw dazzling parties and weighty seminars, = ensnaring Washington celebrities.=20

A profile of Mr. Spence in The New York Times in January 1982 = was=20 headlined "Have Names, Will Open Right Doors." The article quoted = a=20 Washington Post columnist saying of Mr. Spence in 1980: "Not since = Ethel=20 Kennedy used to give her famous Hickory Hill seminars for great = minds of=20 our times during the days of Camelot has anyone staged seminars=20 successfully on a continuing social basis in Washington. That's = what Craig=20 Spence has been doing."=20

Mr. Spence was described in The New York Times as "something of = a=20 mystery man who dresses in Edwardian dandy style, a former = television=20 correspondent who now wears many hats, including international = business=20 consultant, party host, registered foreign agent and something = called=20 'research journalist.' "=20

One former friend, William Harben, said of those days: "He = conned=20 people into going to parties - big people, Cabinet members, and=20 personalities and so forth. Everybody likes to go to a free party = around=20 here."=20

That description eerily paralleled Mr. Spence's depiction of = the guests=20 at his soirees. "The town [Washington] is full of phonies," he = said=20 Monday. "All of these people I helped have turned on me."=20

The business was lucrative. Mr. Spence earns $200,000 a year as = a=20 consultant for Becton, Dickinson & Co., a New Jersey-based = firm that=20 makes health care products for physicians, laboratories, = pharmacies and=20 the general public. He has worked for the firm since the fall of = 1981 and,=20 according to a Becton, Dickinson spokesman, is under contract = until March=20 1990.=20

In documents filed with the Justice Department, Mr. Spence said = he made=20 $666,774 working for the Policy Study Group, a company of which = Mr. Shiina=20 was president between 1979 and 1983.=20

He made many thousands more for other foreign and domestic = companies=20 but said Monday that he had no access to money. He said his = accounts had=20 been "frozen" but refused to elaborate.=20

Mr. Spence admitted Monday to a second lifestyle he kept hidden = from=20 most, in which he pursued young "military-looking" men. He bragged = of many=20 sexual conquests of otherwise straight men, including several = servicemen=20 stationed in the Washington area.=20

Mr. Spence said he discovered he had AIDS "about three years = ago" after=20 going to Johns Hopkins Medical Center on the advice of his doctor. =

GRAPHIC: Box, On the trail of Craig J.=20 Spence

 =20
Sex sold from congressman's apartment; Frank's lover = was 'call=20 boy'
Paul M. Rodriguez and George Archibald The Washington = Times;=20 Part A; Pg. A1 August 25, 1989, Friday, Final Edition


A male escort ran=20 and provided homosexual and bisexual prostitution services from a = U.S.=20 congressman's house on Capitol Hill on a periodic basis from late = 1985=20 through mid-1987, The Washington Times has learned.=20

 =20
"I had instructed him = [Davis] not=20 to use my apartment for his illegitimate purposes ... It = just never=20 occurred to me that he'd bring people over. I guess I was = lied=20 to."=20
"I had reason to believe that he = might be trying=20 to do that," said Rep. Barney Frank, Massachusetts Democrat, who = confirmed=20 in an interview with The Times on Wednesday that the escort had = access to=20 his house in the 200 block of 8th Street SE.=20

"And when I found out about it, I kicked him out [in August = 1987]," Mr.=20 Frank said.=20

Mr. Frank said he knew that the call boy - who asked to be = identified=20 by his professional name Greg Davis - was a practicing prostitute. = But he=20 denied knowing that his former lover was involved in a = prostitution ring.=20

"I thought I could get him to stop," Mr. Frank said of Davis, = whom he=20 employed with personal funds as a housekeeper and chauffeur.=20

A senior-level Senate staffer, whom The Times has interviewed = and=20 chosen not to identify, confirmed this week that he called Davis'=20 "massage" advertisement in City Paper, a District weekly = newspaper, "about=20 two years ago" and went as instructed to meet the male escort at a = Capitol=20 Hill house.=20

Davis told him the house was Mr. Frank's, and from the aide's=20 description and documents obtained by The Times, the place they = met has=20 been identified as the congressman's home.=20

Davis said that when he used Mr. Frank's residence to operate = the=20 escort services, he or an accomplice would transfer the escort = services'=20 telephone calls from his residence to the congressman's number via = call-forwarding.=20

The prostitute, who was living with a fiancee at the time, said = he used=20 the ploy because she was unaware of his activities.=20

Davis also said that he serviced customers at the congressman's = house.=20

A former call girl who worked with Davis and often spoke to Mr. = Frank=20 on the phone confirmed this telephone switching operation. She = said that=20 she helped run the escort services, and also had sexual relations = with=20 clients in Mr. Frank's basement home.=20

Mr. Frank confirmed that he sometimes spoke to the female = escort but=20 assumed she was just a friend of Davis', not a prostitute. He also = said=20 that on at least one occasion he remembered a "strange phone call" = from=20 somebody asking for Davis and his service.=20

"The guy said a woman's name that he was supposed to meet," Mr. = Frank=20 said. "I was suspicious, but could not prove anything at the = time."=20

The congressman also said that he was told by his landlords = several=20 months before asking Davis to leave that there were "strange = things going=20 on" in the apartment with lots of people "coming and going."=20

Mr. Frank said, too, that "one time, somebody came to the door = and I=20 told him to get out."=20

When asked why he did not inform the police about Davis' = activities,=20 Mr. Frank replied: "I had reason to believe that he was doing that = [running an escort service], but I didn't have anything to take to = a judge=20 or to the cops."=20

Mr. Frank initially denied either knowing of or condoning = Davis'=20 profession. But during questioning, he acknowledged that he was = aware that=20 his lover was a working prostitute.=20

"I had no idea that he was doing anything other than personal=20 [prostitution]," Mr. Frank said.=20

"I knew that he personally did some [sex-for-hire] stuff, but = had no=20 idea" about a larger operation that advertised in local = newspapers,=20 including City Paper and The Washington Blade, a weekly gay = newspaper, the=20 congressman said.=20

Mr. Frank, one of two openly homosexual members of Congress, = said he=20 met Davis by responding to Davis' "escort/model" advertisement in = The=20 Washington Blade.=20

"I met him sexually and had a personal relationship with him," = Mr.=20 Frank said.=20

He said he subsequently allowed the male escort to use his = house and=20 car for almost 18 months after first having paid sex with him in = April=20 1985.=20

Mr. Frank also said that Davis accompanied him on several = politically=20 oriented functions and also helped to arrange a speaking = engagement at a=20 conference put on by the American Association of School = Administrators.=20

Davis said he accompanied Mr. Frank to the White House in 1986 = to=20 witness President Reagan's signing of immigration and = naturalization=20 legislation.=20

"He said he was on probation and I tried to help him out. I got = him a=20 lawyer and I hired him [Davis] to work for me - no governmental = money,"=20 Mr. Frank said. "He was my driver, my housekeeper . . . who took = care of=20 the car and took it to get it inspected."=20

The congressman said he wrote a letter to the U.S. Capitol = Police=20 authorizing Davis, who also has been linked to the homosexual = prostitution=20 ring now under investigation by federal authorities, to have = access to the=20 House garage as his driver. Mr. Frank also said Davis played on = his=20 congressional softball team.=20

"That was the only official thing I did," Davis said.=20

Mr. Frank said he did not withhold federal income taxes or = Social=20 Security from Davis's salary. "I considered him to be a = consultant," he=20 said.=20

 

Davis did not receive = regular=20 paychecks because "I tended to pay for some of his expenses. He = had use of=20 the car, I bought him a lot of meals, I bought him food to use = here, and I=20 paid for his lawyer," Mr. Frank said.=20

Describing his four years with Davis as "a sexual relationship = that=20 turned into a friendship," Mr. Frank said he also paid for the=20 prostitute's court-ordered psychological counseling stemming from = four=20 felony convictions in 1982: possession of obscene material, = production of=20 obscene items involving a juvenile, oral sodomy and possession of = cocaine.=20 Davis also was convicted in 1975 of cocaine distribution.=20

Mr. Frank said he wrote at least four letters to Alexandria = probation=20 officials on behalf of Davis. The letters had been obtained by The = Times=20 from Alexandria criminal records with a signed privacy waiver from = Davis.=20

In one of the letters, dated March 10, 1986, Mr. Frank told the = Alexandria probation officer: "Mr. [Davis] works for me on = personal and=20 political matters which should not be paid out of my congressional = allowance."=20

Each of the letters signed by Mr. Frank has the letterhead, = "Congress=20 of the United States, House of Representatives, Washington, D.C.," = lists=20 the committees the congressman serves on and the addresses of his=20 Washington and home-district offices.=20

Two of the letters include the disclaimer "Not Printed At = Government=20 Expense." Mr. Frank said it is his personal stationery.=20

"I needed those letters = to=20 continue to operate my escort services in Washington," Davis=20 said. "As a condition of my probation, I was not = supposed to=20 live outside of Virginia and I had to have a reason why I was = still in=20 D.C.," he said.=20

On two occasions the probation officer visited Davis at Mr. = Frank's=20 Capitol Hill residence.=20

Chevy Chase Elementary = School=20 principal Gabriel A. Massaro - another Davis client who met Mr. = Frank=20 through the call boy - went to the congressman's house for one of = the=20 meetings with probation officials, both Davis and Mr. Massaro told = The=20 Times.=20

Mr. Frank said he was aware of the meeting with the probation = officials=20 but did not attend them.=20

Mr. Massaro said Davis lived during this period in an apartment = in the=20 1000 block of 25th Street NW.=20

"I never lived at Barney's house," Davis said.=20

"It was a favor for me," he said, referring to Mr. Frank's = decision to=20 write letters to the probation department.=20

But Davis said Mr. Frank was constantly worried about the = escort=20 activities being discovered by the probation department, police = and the=20 news media.=20

"He was concerned about security and he was concerned about the = publicity if this were to come out," the prostitute said. "He was=20 concerned about the things that a person would be concerned about. =

"Yet the excitement, the thrill, so to speak, with being = connected to=20 that type of world, which he found to be titillating in various = ways,=20 obtaining vicarious thrills being around this type of world, he = [Mr.=20 Frank] didn't discourage it, and he was fully aware of the = situation as it=20 occurred," Davis said.=20

Interviews with resident managers and an owner of one of the = apartments=20 at the 25th Street location confirmed that Davis had a rented = apartment=20 there and was running his male and female prostitution services = from the=20 dwelling.=20

One of those prostitution services called Saxons eventually was = disbanded and Davis then opened his own services providing = heterosexual,=20 homosexual and bisexual sex-for-hire. The services were called = Touch of=20 Class, Male Ad and Bi-Couples, according to Davis.=20

When Mr. Frank first responded to Davis's prostitution ad in = The=20 Washington Blade, he paid for one hour's worth of sex, Davis said. =

"The first time the cost was $80," the prostitute said. "He = [Mr. Frank]=20 called and asked for Greg and he asked me if I was versatile = [willing to=20 assume either a male or female sex role]".=20

The two had sex at Mr. Frank's basement townhouse apartment in = the=20 early evening of April 1, 1985, Davis said.=20

"He said he would like to see me again . . . and at the door he = asked=20 me if I had recognized him," the prostitute said. Mr. Frank, = according to=20 Davis, "said his picture had appeared in The Washington Blade . . = . It was=20 very, very abnormal to be told who he really was."=20

Davis said he "wasn't blown over or anything . . . I've been = with=20 priests and others in public office . . . It was just kinda = strange."=20

Davis said Mr. Frank continued to purchase sex from him for = several=20 weeks and was provided discounted or free sex as their = relationship grew.=20

Davis also said that he later arranged discounted and free sex = for Mr.=20 Frank from other male prostitutes in return for use of the = lawmaker's=20 house to run the escort services.=20

"That's an absolute lie," Mr. Frank said in an initial = interview on=20 Wednesday. But yesterday the Massachusetts Democrat said he did = remember=20 discussing with Davis procurement of male prostitutes for himself. =

"He did offer that [call boys] to me. . . . We talked about it = . . .=20 and I put him off and finally told him no," Mr. Frank said.=20

The congressman said he never knew such sexual services were = being=20 provided to others at his house while he was at his congressional = office=20 or out of town.=20

"I had instructed him [Davis] not to use my apartment for his=20 illegitimate purposes," Mr. Frank said Thursday. "It just never occurred to me = that he'd=20 bring people over. I guess I was lied to."=20

When asked how he could = not have=20 known that his admitted prostitute friend was having sexual = liaisons with=20 paying clients in his own bed, Mr. Frank said, "I was emotionally=20 vulnerable at that time. I guess I was still coming to terms with = being=20 gay . . . It was a difficult period."=20

Concerning Davis' actions, the congressman said, "He suckered = me."=20

=20

Illustration, ANATOMY OF A FRIENDSHIP; BOX, Rep. Barney Frank, = THE=20 WASHINGTON TIMES

 =20
Sex sold from congressman's apartment; School used as = base for=20 sex ring
George Archibald and Paul M. Rodriguez The Washington = Times;=20 Part A; Pg. A1 August 25, 1989, Friday, Final Edition


A male prostitute convicted of drug = trafficking and=20 sex offenses against a minor used the=20 Chevy Chase Elementary School in late 1987 to run his prostitution = operation after the school's principal began buying sex from=20 him, an investigation by The Washington Times has = revealed.=20

 =20
The call boy was = allowed to sleep=20 and use phones in the school even after the principal left = at 5=20 p.m., while teachers and the children were still involved in = after-school activities such as chorus, Mr. Massaro = said.=20
The=20 principal, Gabriel A. Massaro, conceded in a two-hour = interview=20 with The Times Wednesday that he had=20 a four-year relationship with the prostitute and provided him with = a=20 guidance counselor's office and telephone at the model "magnet = school"=20 even while children were in classes elsewhere in the = building.=20

The 48-year-old principal also confirmed that he told the = school's=20 custodian to give the prostitute - who told The Times that he has = also=20 worked for a homosexual prostitution service now under = investigation by=20 federal authorities and the subject of earlier articles - unlimited access to the=20 building.=20

Their relationship ultimately soured, Mr. Massaro said, in part = because=20 the prostitute used his credit card number without his permission = to pay=20 for a personal ad in The Washington Blade, a weekly newspaper of = the=20 homosexual community.=20

"I knew he was an escort, but I didn't know he was running an = escort=20 service," Mr. Massaro said. "I couldn't condone it from going out = of here=20 . . . He may have done that, but I did not know that."=20

The escort, who asked to be identified as Greg Davis, the alias = he uses=20 in personal ads, told The Times he was at the school at Mr. = Massaro's=20 invitation "on a fairly regular basis" during October and November = 1987=20 and that he regularly used drugs in the building during that time. =

Davis said Mr. Massaro "was very aware of what I was doing and = what was=20 going on" when he was at the upscale Montgomery County school, = which=20 enrols about 350 children, aged 9 through 12, in the third through = sixth=20 grades.=20

"I would be allowed to use the telephones to check my = [computerized=20 answering] service and to set up appointments [with homosexual and = heterosexual clients], as long as they weren't set up at the = school - that=20 was the arrangement," the prostitute said in one of several = interviews.=20

Davis said Mr. Massaro = also=20 explained to him how to turn off the school's audio security = system so his=20 calls would not be overheard.=20

Mr. Massaro confirmed that such listening devices were = installed in the=20 school ceilings but denied telling Davis how to have the security = system=20 turned off.=20

"How would I know that = these=20 devices were in operation at the school unless he had warned me = about=20 them?" Davis asked.=20

"I normally used the time between 5 p.m. and 10 p.m. to set up = the=20 appointments for that evening with any of the ladies or myself. = And then=20 after 10 o'clock I would have a person who was used as the driver = for the=20 [escort] services pick me up at the school. He would pick me up = about 10=20 p.m.," Davis said.=20

On at least one = occasion, Davis=20 claimed to have performed homosexual sex with a client in the = guidance=20 counselor's office.=20

The 45-year-old man who came to the school to have sex with = Davis "was=20 a regular client that I knew," the prostitute said. "When I told = him that=20 he was going to come to a school, at first he sounded concerned on = the=20 telephone. In a joking sort of manner, he asked me if he was being = set up.=20

". . . The client, after thinking about it for a couple of = minutes,=20 said, 'Well, it might be a kick.' That was his response. In other = words,=20 it was a turn-on for him," Davis said.=20

The Times has been unable to locate the customer to confirm = Davis'=20 story.=20

The prostitute said that Mr. Massaro did not know "that I had = met a=20 client at the school."=20

"He knew me well enough to know that that was possible and told = me that=20 that was not supposed to be done," Davis said. "For the most part, = I=20 agreed. I went along with it because it was a threat to the = security of=20 the [prostitution] service to have anybody come to the school."=20

Davis also said Mr. Massaro never knew that his driver went = into the=20 school or about the drug use in the building. "I would be there = maybe=20 three out of the five nights a week," the prostitute said.=20

Mr. Massaro said Davis came to the school several times a week = during=20 the two-month period in question.=20

The principal's secretary, Peggy Monday, confirmed Davis's = access to=20 the school, but said she saw him no more than once a week. Mrs. = Monday=20 said that Mr. Massaro explained Davis' presence at the school by = saying=20 the man was a friend of his.=20

"I would either use his [principal's] office or I would use a = guidance=20 counselor's office upstairs" on the school's second floor where = 6th grade=20 classrooms and a science lab are located, Davis said.=20

Told that Davis had given The Times a detailed accounting of = his call=20 boy activities and criminal convictions, the principal conceded = that he=20 was aware of Davis' work as a prostitute.=20

Mr. Massaro said he knew the prostitute was still on probation = for=20 felony drug and sex offenses and undergoing court-ordered = psycho-sexual=20 therapy when he allowed him to use the school's facilities.=20

A former school counselor, Mr. Massaro said he talked to = Davis's sex=20 therapist about his court-ordered treatment after the call boy's = felony=20 conviction in 1982 on four charges: possession of obscene = material,=20 production of obscene items involving a juvenile, oral sodomy and=20 possession of cocaine. Davis was convicted in 1975 of cocaine=20 distribution.=20

"There were some = afternoons when=20 he just had nowhere to go, so I would just let him come here to = the school=20 and just use the bathroom and stuff like that," Mr. Massaro=20 said.=20

"[The prostitute] used = that=20 [counselor's] office," the principal said.=20

Asked if he authorized = the escort=20 free use of school phones, Mr. Massaro responded, "Oh, = yes."=20

Pressed whether Davis = might have=20 molested or tried to molest any children at the Chevy Chase = school, the=20 principal said, "Oh God, no. He couldn't have. I don't think so.=20 No."=20

Davis said he had no = dealings with=20 any of the children who attended the elementary school. =

The call boy was allowed to sleep and use phones in the school = even=20 after the principal left at 5 p.m., while teachers and the = children were=20 still involved in after-school activities such as chorus, Mr. = Massaro=20 said.=20

"I introduced him to one of the custodians and the custodian = just let=20 him use the facility," he said. "I told him [the custodian] that = he was my=20 friend."=20

"I would leave at five and I thought he [the prostitute] would = leave=20 shortly thereafter, but before the custodian would close the = building,"=20 Mr. Massaro said.=20

Davis said he advertised his services as an "escort/model" in = the=20 classified section of The Washington Blade. He also advertised = homosexual=20 escort services under the name "Male Ad" and services for bisexual = threesomes under the name "Bi-Couples."=20

 

Davis said he and a = woman partner=20 in the "Bi-Couples" business also ran a female prostitution = operation=20 called "Touch of Class," which advertised in City Paper, a = District weekly=20 newspaper.=20

In his interview with The Times, Mr. Massaro, who is married, = at first=20 denied procuring sex from the male prostitute.=20

But as the interview continued, and a photograph of himself = with Davis=20 in the audience of a 1986 telecast of the Phil Donahue show, the = principal=20 said he had had a longtime, secret sexual liaison with Davis.=20

"That's not true [previous denials of having homosexual sex = with=20 Davis]," Mr. Massaro said about 30 minutes into the interview. "I = did.=20 Yes, I did. But it was nothing, though. I mean it was. . . ." His = voice=20 trailed off as he fought back tears.=20

"My son died very suddenly [in 1984] and I met [Greg] through a = friend"=20 - another education professional, he said. The friend, whom he = declined to=20 identify, gave Mr. Massaro the prostitute's telephone number = listed in his=20 escort advertisement in The Washington Blade.=20

"I began to know [Greg] and I got to know him very well," Mr. = Massaro=20 said. "He became also a surrogate son to me . . . I don't want you = to=20 think I behaved this way with my son. I had a normal father-son=20 relationship with my own son, John."=20

Mr. Massaro's son died at age 19 in August 1984 of a viral = infection=20 resulting from drug abuse, the principal said.=20

Mr. Massaro acknowledged frequent payments in cash and by check = to=20 Davis ranging from $20 to $100. He also gave the call boy gifts of = clothing and restaurant outings, and the loan of his car when the=20 principal went to the beach with his wife and daughter.=20

After Davis lost his bank account, Mr. Massaro paid for his = trysts with=20 checks made out to Davis's roommate, also the call boy's = homosexual client=20 and a social friend of the elementary principal, he said. The = roommate has=20 confirmed the arrangements.=20

Both Davis and Mr. Massaro said the call boy was not only a sex = partner=20 to the principal but also a family friend. However, Mr. Massaro = said=20 neither his wife nor daughter knew about his secret homosexual sex = life.=20

Mr. Massaro acknowledged = that he=20 attended a meeting between Davis and his Alexandria probation = officer at=20 the Capitol Hill home of Rep. Barney Frank, Massachusetts = Democrat,=20 another client whose home the call boy used to perform sexual=20 services.=20

"We [Mr. Massaro and Mr. = Frank]=20 tried to help him through it [the probation]," the principal said. = "[Davis] invited me over [to Mr. Frank's house] one day and said, = 'Hey,=20 I'd like you to meet with this person,' and he was trying to get = off=20 [probation]. I don't even remember all the details . . . I went as = a=20 friend of [Davis's] who could vouch for him as being the person = who was=20 trying to pull his life together."=20

On some days, Davis said = he would=20 arrive at the Chevy Chase school as early as noon, when classes = were still=20 in session.=20

"There were times when the guidance counselor's office was not=20 available to me," the prostitute said. "I would actually use the=20 principal's office itself, and he would move to another location = and I=20 would sit at his desk using his telephones on his desk."=20

The phone numbers listed in his escort advertisements were=20 call-forwarded to a Maryland-based answering service called = Compu-Voice,=20 he said.=20

"It's all done by computer. When a client calls the answering = service,=20 they hear my voice, recorded by remote from a telephone using a = series of=20 code numbers. I would call my own phone number and, through = punching in a=20 series of code buttons [on the telephone dial] I was able to = obtain access=20 to my own system, and I was able to obtain the messages from the = system,=20 and then erase them after I had recorded them into the appointment = book,"=20 Davis said.=20

"I let them know on the tape that I usually returned calls = within one=20 hour. And at the time that I was at the school, I would check in = every 15=20 minutes," he said. "And I would go ahead and set up the = appointments for=20 the evening until Bobby [the man who would drive him to his sexual = liasons=20 and supply him with illegal drugs] would arrive."=20

Davis said he used = cocaine in the=20 school with Bobby and that the two men often raided the school's = cafeteria=20 for their dinner.=20

"Bobby and I would make something to eat, we'd play a little = basketball=20 [in the school gym], we'd do some coke, and then we'd go out to = meet the=20 appointments and to meet the ladies and obtain the commissions = from their=20 appointments."=20

On several occasions Davis said he and Bobby "did use cocaine = in the=20 guidance counselor's office," Davis said.=20

Davis said Mr. Massaro "instructed me on how to have the = [school's=20 audio] security system turned off so that the conversations would = not be=20 overheard [when he was conducting his prostitution business]. They = [security listening devices] were in operation after 5 p.m. when = all the=20 administration leaves," he said.=20

"I would call the security of the school system, report in . . = . I=20 would call in and tell them that I would be there until 10 p.m. = doing work=20 for Dr. Massaro," Davis said.=20

The prostitute said he "never stayed overnight [at the school] = or=20 anything like that. I would take a nap there maybe - there was a = couch=20 there - because I was running around a lot from place to place at = the=20 time."=20

Mr. Massaro said he helped Mr. Davis move from one apartment to = another=20 on several occasions during their relationship, and allowed the = male=20 escort to store his personal effects and furniture in the school's = basement machine room in 1987 while he was looking for a new place = to=20 live.=20

His landlord found out that he was running a prostitution = operation and=20 kicked him out of the apartment, Davis said.=20

Mr. Massaro said the relationship ultimately soured just over a = year=20 ago when Davis started stealing from him.=20

"I loaned [Greg] my car, and he literally stole it. He never = returned=20 it. He finally did return it. I sent him money and he did return = it," the=20 principal said.=20

Also, Davis used the principal's credit card number without = permission=20 to pay for his escort ads in The Washington Blade, Mr. Massaro = said.=20

A spokesman for the newspaper's publisher confirmed "a problem" = that=20 caused The Blade to cancel Davis's ads but would not elaborate.=20

"I just used very poor judgment, what can I tell you?" Mr. = Massaro=20 said. "It was just stupid. I just never thought it through. I just = thought=20 I was helping somebody."=20

After the car and credit card incidents, Mr. Massaro said he = told=20 Davis, " 'Hey, you've got real problems and I can't help you.' So = that was=20 it and he just left. And I guess it was then that I really = realized that=20 he was a drug abuser."=20

Asked if Davis had ever used drugs in his presence, Mr. Massaro = said he=20 "may have" smoked marijuana. "I don't remember that. He may have. = He never=20 used anything else, though, other than pot. I don't think I ever = knew=20 that, until very recently. . . .=20

"I've never used the stuff. I don't know what it's like. And we = talked=20 about that in trying to get off it and trying to help him get off = it . . .=20 Our lives just became very intertwined and I guess I felt as = though I=20 could save him."=20

Davis, for his part, said that the relationship with Mr. = Massaro soured=20 because of a lack of "sensitivity" and "a lack of interest" on his = part=20 sexually towards the principal.=20

Mr. Massaro characterized Davis's action in going public as "an = effort=20 to get back at me."=20

He said Davis "was always going to sell his story and I was = going to=20 write a book for him and make him famous . . . He said he had a = very=20 interesting life, and one day we were going to sit down and write = a book,=20 and I guess that's what he's doing."=20

Photo, Homosexual escort services were operated out of Chevy = Chase=20 Elementary School and the Capitol Hill basement apartment of Rep. = Barney=20 Frank., Photos by Joseph Silverman/The Washington=20 Times

 =20
THE GOBIE STORY; Frank's 'call boy' tells all=20
George Archibald, and Paul M. Rodriguez The Washington = Times;=20 Part A; Pg. A1 September 1, 1989, Friday, Final = Edition


Stephen L. Gobie wanted a sugar daddy, but = Barney=20 Frank turned out to be "Sweet'n Low" instead - "a sweet guy, low = on cash."=20

 =20
Gobie insisted again = as he has in=20 previous interviews that he used the congressman's apartment = as a=20 base for a prostitution service - with Mr. Frank's=20 knowledge.=20
That's what he called his = congressional sex=20 partner, Gobie said in exclusive interviews with The Washington = Times.=20

"In this business, the term 'sugar daddy' is popular for a = person that=20 supports you and sponsors you financially as well as otherwise," = the=20 prostitute said. "In this case, I had a nickname for Barney - it = was=20 'Sweet'n Low' - sweet guy, low on cash, that's what the moniker = stood for=20 . . . And I told him that . . . And he said, 'Hey, I'm only a = congressman,=20 I don't make a million dollars a year.' "=20

Gobie called = "preposterous" the=20 Massachusetts Democrat's claim that he was the male hustler's = Henry=20 Higgins, intent on helping him straighten out his life while = paying him=20 about $20,000 a year to be Mr. Frank's housekeeper and = driver.=20

"The true story is there were no such compensations anywhere = near that=20 level of money . . . I would say the total dollar value that came = to me=20 from the beginning of the relationship [was] maybe less than = $2,500,"=20 Gobie said.=20

Gobie insisted again as = he has in=20 previous interviews that he used the congressman's apartment as a = base for=20 a prostitution service - with Mr. Frank's knowledge.=20

One of his clients was = Washington=20 power broker and former Japanese lobbyist Craig J. = Spence, who=20 has been linked to the homosexual prostitution ring being = investigated by=20 federal authorities.=20

Gobie also said he would willingly appear before the House = ethics=20 committee which is expected to investigate Mr. Frank's = relationship with=20 the prostitute, "if my lawyer told me that it was in my best = interest."=20

Mr. Frank has acknowledged purchasing sexual services from = Gobie after=20 contacting him through an advertisement in The Washington Blade, a = newspaper catering to the homosexual community.=20

The congressman also has admitted knowing of Gobie's continued = work as=20 a prostitute while on Mr. Frank's personal payroll from mid-1985 = to early=20 1987 and while Gobie continued to have unlimited access to his = house in=20 the 200 block of Eighth Street SE.=20

But Mr. Frank has denied knowledge of Gobie's operating a = prostitution=20 service from his house and has requested the ethics probe in part = out of=20 fear that Gobie will embellish his story to improve the chances of = selling=20 it as a book.=20

The differing accounts in this unfolding story of a troubled = 18-month=20 liaison between one of the House's leading liberals and the man = Mr. Frank=20 says pushed him into publicly acknowledging his homosexuality seem = to=20 capture the inherent contradictions in both of their lives.=20

Mr. Frank, a portly middle-aged Boston career politician when = he met=20 Gobie, led the fight in the state legislature in the 1970s for = urban=20 "combat zones" for prostitutes. Calling the world's oldest = profession "a=20 victimless crime," Mr. Frank now says he was victimized by=20 Gobie.=20

The prostitute, in turn, a 28-year-old hooker when Mr. Frank = answered=20 his ad for "hot bottom and large endowment," rejects being labeled = homosexual or bisexual. Instead, he said he's a heterosexual who = isn't=20 good at deviant sex.=20

"My proclivities, my heterosexuality, precluded me from being a = successful escort for men because sex was almost non-existent, and = the=20 strength of my relationships with men was strictly on my = character,=20 personality and my sense of humor," Gobie said.=20

"But being able to to have people call you and respond [to = ads], and=20 continue to be successful and have repeats - people calling you = again - is=20 difficult. And then I realized that I was not going to make it as = an=20 escort, either for women or for men . . . So I thought if I was = going to=20 make it at all, I would make it actually running escort services = as a=20 madam because I have a good sense for business."=20

Coloring Gobie's accusations, however, are a series of criminal = convictions dating to 1975. He was convicted at 17 for the felony = sale and=20 possession of cocaine in Fairfax County.=20

Gobie was convicted on four felony counts in 1982: possession = of=20 obscene material, productions of obscene items involving a = juvenile=20 (taking photos of a 15-year-old girl with whom he was having sex), = oral=20 sodomy and possession of cocaine.=20

Gobie, whose professional name in the underground prostitute = trade is=20 "Greg Davis," grew up the son of a Marine Corps master sergeant = who was a=20 budget analyst at the Pentagon.=20

"He was a very strict conservative person from the military, . = . . your=20 traditional gung-ho Marine . . . He wanted to lock me in my room = for the=20 rest of my life until I agreed to get a haircut," Gobie said.=20

It was an unhappy boyhood marked by rebellion all the way, = Gobie said.=20 He defied all his parents' moral values and teachings.=20

"At six, I performed oral sex on my first female. She = reciprocated. She=20 was five," Gobie said. "I was having orgasms from age nine on . . = . My=20 father came to me at the age of 14, I believe, the first time in = the=20 basement of my house to discuss sex with me, and I cut him off = right away=20 and I said, 'Dad, I probably know more than you do at this point.' = "=20

By age 14, Gobie had been labeled "incorrigible" by Fairfax = County=20 juvenile authorities for skipping 9th grade classes at West = Springfield=20 High School and refusing to return home on Friday afternoons.=20

"Me and my friends at 15 were watching X-rated movies on the = family=20 projector down in the basement when my family was watching TV = upstairs,"=20 he said. "A friend of mine worked at a medical building as a = janitor at=20 night and he got them out of the psychiatrist's office who used = them for=20 sexual marriage counseling."=20

A year away from home during his sophomore year at a southwest = Virginia=20 boarding school failed to mend Gobie's ways, despite his claims of = a=20 promising record.=20

"I was a standout basketball player [at the private school]. I = played=20 for the school team. And I also brought my grades back up to an = acceptable=20 level," he said. "I wasn't real concerned with making straight As. = That=20 wasn't a goal of mine. If it had been, I would have."=20

 

Instead, Gobie turned = to marijuana=20 and other drugs after his return to Fairfax County and expulsion = from West=20 Springfield High for truancy during his senior year in 1974. He = never=20 received his diploma, although he subsequently passed the General=20 Educational Development test, the equivalent of high school = completion.=20

"I didn't start using drugs until after the trouble started in=20 Springfield, smoking marijuana and experimenting with every drug = you could=20 think of - everything," Gobie said.=20

The serious run-ins with the law then began, court records = show. In=20 1975, Gobie was convicted of a misdemeanor marijuana possession = charge in=20 the District. Later that year, he received a five-year suspended = sentence=20 in Fairfax County for distribution of cocaine and served three = years=20 probation.=20

In 1977-78, Gobie said he attended Chowan College in = Murfreesboro,=20 N.C., a fundamentalist Southern Baptist school and one of few = colleges=20 that would accept him "to get a school record that would enable me = to=20 transfer" to the University of South Carolina, where he hoped to = join a=20 girlfriend.=20

But it didn't work out. At Chowan, "I raised the roof off the = place,"=20 he said. "I threw extensive parties and I was responsible at that = time for=20 the entertainment at parties, whether it be females or whether it = be party=20 favors - drugs and things like that."=20

Gobie said his parents were divorced in 1979 and left the area. = The=20 prostitute said he hasn't seen his family, including two younger = brothers=20 and an older sister, since. By then, at age 21, he had decided to = reject=20 the family name and start a new life as a male escort.=20

"I met a woman one day in Hecht's clothing store," he said. "I = was=20 trying on a suit and she asked me if I had ever done any modeling = work.=20 She was just a customer, a very elegant looking woman, a very = attractive=20 older woman. And she approached me and asked me if I wanted to = have lunch=20 with her. She picked me up."=20

Gobie says of the 47-year-old woman, whom he refuses to name: = "I owe=20 everything to her. I'll never do anything to hurt her in any way." =

"Our first discussion centered around modeling and advertising, = things=20 like that," he said. Then I went to her apartment . . . She took = me under=20 her wing . . . I worked for her. She was a madam. She operated an=20 underground escort operation of mostly females, but she had a few = select=20 males also. She had extensive women clientele that she had a hard = time=20 finding suitable escorts for. It was very hard to find gentle = young men.=20

"It's easier to find women than men [escorts], apparently - men = who=20 have the inclination and the capabilities, who have what it takes = to be=20 successful with women as an escort."=20

Women clients - middle-aged and older women, both married and = widows -=20 place more emphasis on obtaining male escorts who are charming,=20 entertaining, good conversationalists and socially attentive, = Gobie said,=20 while male homosexual clients are more interested in obtaining=20 "animalistic" sex.=20

"Male clients are more sexually oriented. They very seldom care = about=20 character, personality, sense of humor, things like that," he = said.=20

Since becoming an escort, Gobie said he has personally serviced = "more=20 than 500" women clients and "hundreds" of male clients, but would = not be=20 more specific.=20

"There was never an occasion, even before the AIDS crisis, I = was [ever]=20 involved in any unsafe sex practices," the prostitute said. "I = always took=20 precautions . . . using condoms."=20

Asked if clients always want him to use condoms, Gobie = responded, "No.=20 Sometimes clients are willing to pay thousands of dollars for you = not to=20 use condoms. In that case, alarm bells would go off in my head, = and those=20 are the people that I wouldn't think of having sex without a = condom no=20 matter what the dollar figure was.=20

"Those are people that are potentially dangerous to you," he = said.=20 "Their motivations might be sinister, in that they might have = contracted a=20 disease from some escort in the past and now, through some sort of = revenge=20 motive, try . . . to infect other people in that business as a way = of=20 getting back."=20

However, in dozens of interviews over the last two months, = Gobie has=20 given details of sexual acts including an explicit tape-recorded=20 description of his first sexual encounter with Mr. Frank in April = 1985,=20 and it was clear that neither Gobie nor his sex partners were = wearing=20 condoms.=20

This week, Gobie said he had recently been tested for AIDS and = the=20 results were negative.=20

Gobie entered the male escort world through a prominent = free-lance=20 photographer for leading Washington-area homosexual publications = whom he=20 was introduced to by his female madam friend. The photographer = "eventually=20 got me involved in the modeling and escort work through the male = scene" -=20 including work for some of Washington's homosexual businesses and=20 nightclubs, Gobie said.=20

"I did advertisements, endorsements for the [homosexual] bars = in town=20 and things like that . . . I was the first 'Mr. Rascals,' ' he = said,=20 referring to the prominent Dupont Circle homosexual bar Rascals.=20

Gobie said he also worked at some of the area's posh hotels as = a=20 concierge and front office manager as a legitimate "front" for his = escort=20 activities from 1978 to 1984. "Hotels are very valuable places to = make=20 contacts," he said.=20

Gobie said he worked at such hotels as The River Inn in = Georgetown,=20 Guest Quarters in Foggy Bottom, the Bristol Hotel, Quality-Inn at = Pentagon=20 City and the Regency Raquet Club condominium complex in McLean.=20

But the roof on his legitimate fronts caved in when he was = convicted on=20 the four felony charges in Alexandria in 1982.=20

All but four months of his five-year prison sentence was = suspended, and=20 Gobie was placed on probation for three years, during which he was = ordered=20 to undergo psycho-sexual therapy at the Washington-based Human = Sexuality=20 Institute.=20

"I was forced into the underworld by my probation and by the = nature of=20 the charges and the fact that my probation officer was breathing = down my=20 neck to try to try to let everybody in the world know what was = going on,"=20 Gobie said. "I felt as though I couldn't go through legitimate = avenues for=20 work anymore, and the logical thing for me to do was to establish = my own=20 escort service.=20

"I knew that there was a ton of money to be made," he said. = "And I knew=20 that I could get away with it if I could provide myself with some = sort of=20 official cover to deceive and mislead the probation department, = which I=20 did."=20

That "official cover" was employment by Mr. Frank, who allowed = the=20 prostitute to use his house and wrote to the Virginia probation = department=20 saying he had hired Gobie as a personal employee, Gobie claimed.=20

Mr. Frank acknowledged writing the letters but denied they were = intended to mislead or deceive probation=20 officials.

 =20
IN DEATH, SPENCE STAYED TRUE TO FORM =
Michael Hedges, and Jerry Seper The Washington Times; = Final=20 Section: A, Page: A1 Monday, November 13, 1989

BOSTON -
Craig J. = Spence, the once-powerful = lobbyist who=20 entertained and influenced Washington's elite, died = Friday much=20 as he had lived: dressed in a tuxedo in Boston's most expensive = hotel,=20 listening to Mozart with three dollars in his pocket.=20

 =20
Mr. Spence told = several friends=20 that the call-boy operation was being investigated by the = U.S.=20 Attorney's Office and other federal authorities as a = possible CIA=20 front. He told the friends that the CIA used the service to=20 compromise other federal intelligence officials and foreign=20 diplomats.=20
Now, many questions may never be = answered about=20 the man who was a focus of a federal grand jury investigation for = spending $20,000 a month on male=20 prostitutes, orchestrating unauthorized late-night tours of the = White=20 House and possibly bribing a Secret Service officer and a member = of the=20 Army's Delta Force.=20

On a mirror in Room 429 of the Ritz Carlton Hotel, Mr. Spence = on Friday=20 left his final enigma in the form of a suicide note.=20

With a black felt-tip marker he had written, "Chief, consider this my = resignation,=20 effective immediately. As you always said, you can't ask others to = make a=20 sacrifice if you are not ready to do the same. Life is duty. God = bless=20 America."=20

As a postscript, he wrote, "To the Ritz, please forgive this=20 inconvenience."=20

Mr. Spence was found by hotel employees Friday afternoon lying = on his=20 bed, fully clothed, with a telephone cradled in his ear and a = Walkman=20 headset containing a cassette tape of Mozart's "A Little Night = Music"=20 around his neck, police detectives and other sources said.=20

Boston's medical examiner had made no official finding on the = cause of=20 death yesterday. "That may take as long a couple weeks," said a = spokesman=20 for the office. Mr. Spence's body was being held by the medical = examiner,=20 who had performed an autopsy, while police tried to contact his = survivors.=20

Found hidden in a false ceiling in the bathroom were seven = small=20 packets of Xanex, a prescription anti-depressant, with one pill = removed,=20 Detective Sgt. James McDonald said. Also found were Mr. Spence's = will and=20 birth certificate.=20

Mr. Spence was attired in the style he affected at his lavish = dinner=20 parties, according to the police report: "black Tux with white = shirt, bow=20 tie, white suspenders, black socks and shoes."=20

"There was no sign of foul play whatsoever, no marks on the = body," said=20 Boston Police Detective Robert Harrington. "It was as if he had = fallen=20 asleep talking on the telephone."=20

The door of the hotel had been barricaded with the room's other = double=20 bed and a chair, according to a police report. Hotel maintenance = workers=20 had to saw through the door to enter the room. The only other way = into the=20 room was through a fourth-floor window facing a busy street.=20

Mr. Spence may have = attempted to=20 save himself after taking an intentional overdose, according to = police=20 investigators.=20

"Someone from Washington = called=20 the hotel that day and said a Craig Spence had called the caller = and may=20 be sick," said a police detective. "But the hotel couldn't = find a Mr.=20 Spence registered. It turned out he had checked in under an alias, = C.S.=20 Kane." Friends theorized the alias was an ironic takeoff on Orson = Welles'=20 fictional hero Citizen Kane, whom Mr. Spence often said he = admired.=20

 

In an interview with = The=20 Washington Times in August, Mr.=20 Spence made frequent allusions to his work with the Central = Intelligence=20 Agency, a connection CIA sources deny.=20

But on the bed near him = when he=20 died, according to two Boston detectives who handled the = investigation,=20 was a newspaper clipping detailing efforts by CIA Director William = Webster=20 to initiate legislation giving protection to CIA agents called = upon to=20 testify before government bodies.=20

Mr. Spence had been subpoenaed to appear before a federal grand = jury in=20 Washington probing his connections to a call-boy network suspected = of=20 committing credit-card violations, to late-night White House tours = he=20 arranged and the gift of a Rolex watch to a Secret Service officer = who=20 allegedly gave Mr. Spence pieces of the Truman china collection in = return.=20

 =20
"All this stuff you've = uncovered=20 (involving call boys, bribery and the White House tours), to = be=20 honest with you, is insignificant compared to other things = I've=20 done. But I'm not going to tell you those things, and = somehow the=20 world will carry on."=20
He had=20 boasted to reporters for The Times that - if he testified - he = would=20 provide a wealth of damaging information into the workings of the = call-boy=20 ring, bribery of Japanese and U.S. officials and other sordid=20 matters.=20

But, despite the = subpoena, Mr.=20 Spence apparently never appeared before a grand jury.=20

During the past few weeks, Mr. Spence told several friends that = the call-boy operation was being=20 investigated by the U.S. Attorney's Office and other federal = authorities=20 as a possible CIA front. He told the friends that the CIA used the = service=20 to compromise other federal intelligence officials and foreign=20 diplomats.=20

One friend quoted him as saying, "Casey's boys are out to get=20 me," an apparent reference to former CIA Director = William=20 Casey, now deceased. Mr. Casey and Mr. Spence were friends, and = the former=20 CIA director attended parties hosted by the former lobbyist.=20

Mr. Spence had come to Boston several days before his death = with=20 frequent companion former Air Force Sgt. Ron Paganelli and his = dog,=20 Winston, according to police investigators.=20

During his stay at the elegant Ritz Carlton, just off the = Boston=20 Common, he entertained as many as six or seven guests in his = $285-a-night=20 room, according to hotel employees.=20

He had arrived at the hotel Nov. 4. Mr. Spence told a hotel = worker with=20 whom he had become friendly that he was in town to meet with a = former=20 boss, one-time Massachusetts Speaker of the House John Davoren, = police=20 said. But that meeting never occurred, they said.=20

Hotel employees said he was an eccentric guest, making frequent = demands=20 of the staff for chocolate truffles, fresh flowers and other = appointments=20 but then somewhat arbitrarily tipping $200 or $300 at a time. He = spent=20 much of his stay traveling in limousines to meet friends, police = said.=20

During a lengthy interview at a Manhattan apartment in August, = Mr. Spence frequently alluded to = deep=20 mysteries. "All this stuff you've uncovered (involving call boys, = bribery=20 and the White House tours), to be honest with you, is = insignificant=20 compared to other things I've done. But I'm not going to tell you = those=20 things, and somehow the world will carry on."=20

He also talked = frequently of=20 suicide, saying repeatedly, "My life is over." He reserved deep = bitterness=20 for high-powered friends he said had forsaken him. "I've had the = world at=20 my house, and now they don't know who I am," he said. "But they = did come,=20 didn't they?"=20

Photo, Craig J. Spence, who once said he was "looking forward" = to=20 death, was found dead Friday in his room at the Ritz Carlton Hotel = in=20 Boston.,=20

By Peter Kolk/Special to The Washington=20 Times

 =20
SPENCE AS MUCH AN ENIGMA IN DEATH AS HE WAS IN LIFE=20
Jerry Seper, and Michael Hedges The Washington Times; = Final=20 Section: WORLD Page: A11 Monday, November 13, 1989


"The rumors of my = death are=20 greatly exaggerated."
- Craig J.=20 Spence, two weeks ago at a Washington dinner party.=20

=20

The room where Craig J. Spence died was = awash in the=20 small mysteries and ironies that had followed him - and that he = had=20 perpetuated - since he came to Washington in the late 1970s, = already an=20 enigmatic figure with strange Asian connections and friends in = high=20 places.=20

 =20
The sergeant, who also = participated in the July 3 White House tour, allegedly was = asked by=20 Mr. Spence for information on Delta Force, a special forces=20 counterterrorism unit based in Fort Bragg, N.C.=20
On the bed=20 was a newspaper clipping referring to CIA undercover agents. = Scrawled on=20 the mirror was a note written to some unnamed "chief," which also=20 contained an obscure phrase in Japanese, "Nisei Bei," which means=20 second-generation American.=20

But hidden from view, in the room's false ceiling, were = personal=20 papers, including a birth certificate describing his arrival as a=20 small-town, middle-class boy - a heritage he spent his life trying = to=20 restyle.=20

"Death, you know, is only painful to the ones you leave = behind," Mr.=20 Spence told The Washington Times during an interview in August. = "As a=20 matter of fact, I'm looking forward to it. At 48, I'll still look = good in=20 hell."=20

The focus of a summer sex scandal, Mr. Spence was found dead Friday = in his=20 room at the Ritz Carlton Hotel in Boston. He had = celebrated his=20 49th birthday just three weeks ago at a lavish Washington party.=20

The Ritz was among Mr. Spence's favorite hostelries, one of = several=20 posh accommodations he demanded in his frequent travels throughout = the=20 United States, Europe, South and Central America and the Orient.=20

"I've always been a first-class person in a second-class world, = but=20 I've learned to adjust," he said in the interview. "But there are = places=20 I've found where a civilized man can exist with some style and = dignity."=20

Mr. Spence's name surfaced this summer after The Times = identified the=20 former lobbyist and prominent social host - who could arrange = unauthorized=20 late-night tours of the White House for his friends with a single=20 telephone call - as a major client of a homosexual prostitution = service=20 being investigated by the Secret Service, Metropolitan Police, the = U.S.=20 Attorney's Office and a federal grand jury.=20

That investigation = centered on a=20 homosexual call-boy service that operated out of a house on 34th = Place NW.=20 The ring's clients, according to hundreds of credit-card vouchers = obtained=20 by The Times, included government officials, military officers, = foreign=20 and U.S. businessmen, lawyers, bankers, congressional aides, media = representatives and other professionals.=20

The vouchers showed that Mr. Spence spent as much as $20,000 a = month=20 for call boys from various escort services run by the ring, = including=20 Man-to-Man, Dream Boys, Ultimate First Class and Jovan. He = admitted in the=20 interview with The Times that he had used credit cards to purchase = sexual=20 services, but strongly = hinted of=20 having "firsthand information" about people "high in government" = who also=20 were involved.=20

During the past few = weeks, Mr.=20 Spence told several friends that he knew "for a fact" that the = call-boy=20 operation was being investigated by the U.S. Attorney's Office and = other=20 federal authorities as a CIA front. He told the friends the CIA = used the=20 service to compromise other federal intelligence officials and = foreign=20 diplomats.=20

Mr. Spence claimed in = the=20 interview that he had worked for the CIA on numerous occasions and = had=20 been instrumental in a number of covert actions in Vietnam, Japan, = Central=20 America and the Middle East - a claim denied by the = agency.=20

"How do you think a = little faggot=20 like me moved in the circles I did?" he said. "It's because I had = contacts=20 at the highest levels of this government.=20

"They'll deny it. But = how do they=20 make me go away, when so many of them have been at my house, at my = parties=20 and at my side?"=20

The grand jury investigation begun in June by U.S. Attorney Jay = Stephens was described as a "credit card" probe. It is not clear, = however,=20 how vigorous federal prosecutors have been nor where the case may = be=20 headed.=20

The Times, in contacting = a number=20 of principal witnesses and active participants in the case, = discovered=20 that few of them had been interviewed and only a handful asked to = testify=20 before the grand jury. Several key figures had not been contacted = at all.=20 Those who were questioned were being asked mainly about national = security=20 concerns and possible security breaches at the White = House.=20

Among those not = contacted by law=20 enforcement officials or the grand jury were:=20

* Officials of the = Reagan and Bush=20 administrations who were identified in The Times as having used = the=20 call-boy service and paid with credit cards.=20

* Those running the = prostitution=20 ring raided in February, and persons who kept the = credit-card=20 records of visits with prostitutes by people who worked in the = Reagan and=20 Bush White Houses.=20

* Any of several = high-profile=20 friends of Mr. Spence's who attended parties at his Kalorama=20 home or spoke for pay at numerous seminars he sponsored = as a=20 registered foreign agent.=20

* Prostitutes who said = they=20 serviced Mr. Spence and military personnel whom the = former=20 lobbyist hired as bodyguards.=20

"I haven't heard one = word from the=20 U.S. attorney, the FBI or anyone else," said one of the men whom = Mr.=20 Spence got into the White House for a 1 a.m. visit on July 3,=20 1988. "The Secret Service talked to me back in the = summer,=20 after the stories were out, but nothing since then."=20

Mr. Spence was one key = figure who=20 was handed a subpoena more than two months ago but had yet to = testify.=20 What arrangements had been made with the former lobbyist are not = known.=20 Mr. Spence vowed during the August interview, however, that he = would=20 "never be brought back alive before any damned hearing."=20

Mr. Stephens has declined to comment on the case. Assistant = U.S.=20 Attorney Alan Strasser, who is handling the matter before the = grand jury,=20 also has refused comment. A spokeswoman, Judy Smith, said = yesterday that=20 the U.S. Attorney's Office would have no comment on Mr. = Spence'sdeath or=20 its potential impact on the investigation.=20

 

A participant in one = of the=20 late-night White House tours testified before the grand jury two = weeks ago=20 and was asked about the tours, missing china out of the = presidential=20 mansion and Mr. Spence's = interest in=20 the U.S. military's top-secret Delta Force. The = witness, a=20 longtime acquaintance of Mr. Spence's who had spent considerable = time as a=20 guest in his home, was not asked any questions about credit cards, = Mr.=20 Spence's alleged involvement with the homosexual call-boy ring or = about=20 the ring itself.=20

The witness - who was among those taking the July 3 White House = tour -=20 also described a lengthy interview with Mr. Strasser, Secret = Service=20 agents and then a brief questioning period before the federal = panel.=20

"They pulled out a picture book containing the White House = china=20 collection and asked me about the Truman china," said the witness, = who=20 asked not to be identified. "They wanted to know if I had seen = anything=20 like that. They strongly intimated that more things were missing." =

Mr. Strasser, according to the witness, also asked during the = private=20 discussion and before the grand jury about the gift by Mr. Spence = of an=20 expensive Rolex watch to a U.S. Army sergeant. The sergeant, who also = participated in the=20 July 3 White House tour, allegedly was asked by Mr. Spence for = information=20 on Delta Force, a special forces counterterrorism unit based in = Fort=20 Bragg, N.C.=20

"They asked me what I = thought=20 Spence wanted to know about the Delta project," the witness said. = "I said=20 it could mean he was just interested in the young guys there or = something=20 else."=20

The questioning by federal authorities became most detailed = when it=20 turned to the subject of the late-night tours. "They asked if we went in any = offices, if I=20 had seen any documents or if any documents had left the White = House," the=20 witness said.=20

Secret Service officials have publicly stated there was no = breach of=20 security during the tours and that they had no concern that entry = was made=20 by the late-night visitors into unauthorized areas of the White = House.=20

Mr. Spence also gave an $8,000 Rolex watch to Secret Service = uniformed=20 officer Reginald A. deGueldre, who was assigned to the White House = security detail. Mr. deGueldre has admitted in an affidavit that = he gave=20 Mr. Spence a piece of Truman china from the White House = collection.=20

In August, Mr. deGueldre and another Secret Service officer, = who has=20 not been identified, were suspended indefinitely without pay and a = third=20 was placed on administrative leave with pay. Secret Service = officials said=20 at the time that the suspensions were the first step to possible = criminal=20 prosecution of the two men, although none has yet taken place.=20

Mr. deGueldre said recently he had not been approached by any = federal=20 authorities for an interview or asked to testify before the grand = jury. "I=20 have no idea what is going on," he said. "I have not heard from = anyone at=20 all."=20

The grand jury witness said federal authorities also inquired = about Mr.=20 Spence's alleged drug use. In his interview with The Times, Mr. = Spence=20 admitted to being a heavy cocaine user. He was arrested for = possession of=20 cocaine in New York last summer.=20

The witness also was = shown a=20 collection of photographs of male youths between "14 and 17 or 18 = years=20 old" and asked if any were a youth Mr. Spence lived with and = introduced as=20 his son. "They were a rough bunch of customers," the = witness=20 said. "The photographs looked like things that might have been = found in=20 the house they raided. I was asked if Craig had a son, and I said = I didn't=20 believe he did."=20

In the August interview, Mr. Spence admitted to using the 34th = Place=20 call-boy service, but said the amounts of the charges had been = inflated by=20 someone connected with the operation. As a result, he said, he = fired his=20 accountant over charges he said he had not authorized.=20

The accountant, Peter Chase, denied he had been fired and said = all the=20 credit-card charges had been verified and each contained Mr. = Spence's=20 signature. He steadfastly has declined to comment specifically = about his=20 former client, but did confirm that records involving Mr. Spence = had been=20 subpoenaed by the Secret Service, that no one from the U.S. = Attorney's=20 Office had talked with him and that he was not scheduled to appear = before=20 the grand jury.=20

Mr. Spence, who said in August that he had AIDS and who = threatened to=20 commit suicide rather than die of the disease, was scheduled for a = hearing=20 Feb. 2 in New York City on weapons and drug charges. He was = arrested July=20 31 at the Barbizon Hotel on East 63rd Street with a 22-year-old = Brooklyn=20 man identified by police as Casey Regan, an alleged male = prostitute. Two=20 other hearings, one in September and the other last week, had been = postponed.=20

Police seized a loaded .32-caliber pistol and confiscated a = small=20 quantity of a white powder believed to be cocaine after a report = of a=20 disturbance at the hotel.=20

During his days as one of Washington's premier hosts, Mr. = Spence=20 dressed in finery and lived extravagantly, affecting touches like=20 scarlet-lined capes and stretch limousines.=20

Among those who attended = his=20 parties and were featured at seminars he sponsored were = journalists Eric=20 Sevareid, Ted Koppel, William Safire and Liz Trotta; former = Ambassadors=20 Robert Neumann, Elliott Richardson and James Lilly; the late John=20 Mitchell, attorney general in the Nixon administration; Mr. Casey = and=20 other CIA officials, including Ray Cline, former deputy director = of=20 intelligence for the agency; former Lt. Gen. Daniel O. Graham, an = expert=20 on the Strategic Defense Initiative who now heads High Frontier = Inc.; Sen.=20 John Glenn, Ohio Democrat, and Sen. Frank Murkowski, Alaska = Republican;=20 and Joseph diGenova, former U.S. attorney in Washington, and his = wife,=20 Victoria Toensing, a former deputy assistant attorney = general.=20

Arnaud de Borchgrave, editor-in-chief of The Times, attended a = party=20 for Mr. Lilly hosted by Mr. Spence at the former lobbyist's = Kalorama home.=20

Following the August interview in New York, Mr. Spence returned = to=20 Washington and reportedly stayed with friends. He maintained a = high=20 profile on the bar and restaurant circuit, and was spotted at = several=20 places during the past two months.=20

Meanwhile, several members of Congress, federal officials, = military=20 officers and others have told The Times that they are concerned = that the=20 lavish parties and Japanese-sponsored seminars thrown by Mr. = Spence, at=20 which the elite of Washington and officials from Japan, China and=20 elsewhere mingled, might have compromised U.S. security.=20

Rep. Helen Delich Bentley, Maryland Republican, for one, = recently=20 questioned the former lobbyist's ties to the Japanese government = in a=20 speech on the floor of the House. Citing news articles in the = United=20 States and Japan, Mrs. Bentley asked whether plans for the F-16 = jet had=20 been transferred by Mr. Spence to a Japanese government official, = Motoo=20 Shiina, and later turned over to the Soviet Union.=20

"I bring this to the floor today, Mr. Speaker, because I am = frankly=20 puzzled that these stories are out - in print both in Japan and in = America=20 -and there seems to be no = official=20 investigation into what to me are very grave charges," = she=20 said.=20

Photo, Craig Spence

 =20
Prostitutes corroborate Frank stories =
Paul M. Rodriguez The Washington Times; Part A; Pg. A1 = February=20 2, 1990, Friday, Final Edition


Penthouse magazine's anxiously awaited = account of=20 sexual adventuring by congressmen quotes a female prostitute as=20 corroborating Steven L. Gobie's earlier story that Rep. Barney = Frank knew=20 Gobie was operating a bordello in the congressman's Capitol Hill=20 apartment.=20

 =20
According to Gobie, = Mr. Spence=20 told him, "Do you know what kind of power you can have over = people=20 if you've got something on them? . . . I need boys and girls = for=20 people in government and high-level businessmen for my = parties, for=20 individuals, for whatever comes up."=20
The woman,=20 identified only as Lyn, said Mr. Frank called the apartment from = his=20 office before coming home to see whether she had finished with her = "trick."=20

She called Mr. Frank's = claim that=20 he didn't know what was going on in his Eighth Street SE apartment = in his=20 absence "baloney."=20

The explicit magazine article about Gobie and the sex-for-hire = world in=20 which he said he procured prostitutes for famous clients - = "Washington's=20 Mayflower Madam" - was written by Art Harris of The Washington = Post and=20 Rudy Maxa of Washingtonian magazine.=20

"Barney would call and = ask, 'Are=20 you entertaining company?' " the female prostitute told the = authors. "And=20 I'd say, 'Yeah, but they're about to leave.' And he'd say, 'I'll = give you=20 20 or 25 minutes.' "=20

Many of the details of Gobie's Penthouse story had been = reported=20 earlier by The Washington Times, but the article nevertheless cast = new=20 light on the underground world to which Gobie says he introduced = Mr.=20 Frank.=20

Mr. Frank's office did not return telephone calls from The = Times=20 seeking comment on the Penthouse article. The congressman also = would not=20 be interviewed by the authors of the magazine piece.=20

Mr. Frank, 49, whose actions are under investigation by the = House=20 ethics committee, has acknowledged purchasing sexual services from = Gobie,=20 33, and other male prostitutes. He also has admitted employing = Gobie as a=20 personal assistant while knowing that Gobie continued to work as a = call=20 boy, but has insisted that he did not know that the services of=20 prostitutes were being sold from his apartment.=20

The congressman has said he threw Gobie out in the summer of = 1987,=20 ending their two-year relationship, after he discovered the call = boy was=20 running a prostitution business from the apartment.=20

"Barney was hot," Gobie told the magazine. "He said, 'The = landlord=20 found out what's going on. One of your girls asked if this was the = place=20 to come for escort interviews. . . . Do you realize what could = happen if=20 The Washington Post got a hold of this?' "=20

But Mr. Frank has conceded that he remained in touch with Gobie = through=20 New Year's Day 1988, even allowing the prostitute continued use of = his car=20 with its congressional license plate.=20

In the Penthouse article, Gobie said Mr. Frank even offered him = $10,000=20 to $12,000 to help him relocate to Florida. Gobie, who once said = he=20 thought about opening up an escort business along Florida's "gold = coast,"=20 said he rejected the offer.=20

Gobie has said Mr. Frank, whom he dubbed Sweet 'n' Low for = "sweet guy,=20 low on cash," was aware of the larger prostitution operation and = delighted=20 in being told about the call boy's sexual encounters.=20

Mr. Frank also has admitted to using congressional stationery = to write=20 several letters to Virginia probation officials to persuade them = to=20 shorten Gobie's probation stemming from felony convictions for = drug=20 offenses and for sex offenses involving a minor girl.=20

 

Moreover, Mr. Frank = has admitted=20 fixing parking tickets that Gobie had obtained while servicing = clients=20 using the congressman's Chevrolet Chevette. Although Mr. Frank = told The=20 Times he could not remember how many tickets he fixed using his=20 congressional immunity, Gobie estimated the number at between 50 = and 60.=20

Gobie told Penthouse that "those letters kept me in operation. = . . .=20 The letters and Barney's [congressional] perks were worth far more = to me=20 than any fees I could have charged him. I wasn't a gold digger, = but I'm=20 not a dumb escort, either."=20

In fact, Gobie told the magazine that it was Mr. Frank who came = up with=20 the idea of hiring the call boy as a driver and providing a cover = for the=20 prostitution business, which catered to men as well as women.=20

"He said, 'You can use me as a reference to the probation = people,' "=20 according to Gobie, who said he listed Mr. Frank's house with = Virginia law=20 enforcement authorities as his address.=20

Mr. Frank said in an Aug. 23 interview with The Times that he = allowed=20 Gobie to use the apartment as "his house," but admitted that the = call boy=20 never lived there - even though the congressman told probation = officials=20 and at least one court-appointed social worker that the apartment = was=20 Gobie's home address.=20

Another prostitute, whom = Penthouse=20 identified as Ricky, also backed Gobie's claims that Mr. Frank = benefited=20 from the prostitution operation with reduced rates for sexual=20 acts.=20

Ricky, described as an "especially . . . trim, six-foot blond," = told=20 the magazine that Mr. Frank paid him a discounted $100 fee on one = occasion=20 for a sexual tryst arranged by Gobie and that he agreed to waive = his usual=20 referral fee as a favor to the congressman.=20

Gobie said he made about six prostitutes in all available to = Mr. Frank=20 at reduced rates.=20

Mr. Frank acknowledged in a Sept. 25 Newsweek magazine = interview that=20 he purchased sexual services from several male prostitutes but did = not=20 elaborate other than to say: "I knew it was wrong, but I just = couldn't sit=20 home."=20

Gobie, according to Penthouse, said Mr. Frank also daydreamed = about=20 living a secret life as a paid escort. "He said, 'If I'd been 20 = years=20 younger, I would have liked to have tried hustling. . . . I think = it would=20 be a thrill to get paid for sex," Gobie quoted the congressman as = saying.=20

The Penthouse article also expanded on the relationship between Gobie = and Craig J.=20 Spence, the former lobbyist who was under investigation by the = U.S.=20 Attorney's Office in connection with alleged bribery of Secret = Service=20 officers, unauthorized White House tours and credit card abuse = connected=20 to a male prostitution ring he frequented.=20

The magazine said Mr. = Spence had=20 agreed to "provide lurid details of Washington's bisexual = wonderland." But=20 before the interview could occur, Mr. Spence committed suicide in = Boston=20 on Nov. 10.=20

In the magazine, Gobie - who was not a source of The Times on = the=20 Spence story - also confirmed many of the things others had said = about the=20 lobbyist with ties to the = upper=20 echelons of the Reagan administration.=20

He said Mr. Spence tried = to=20 recruit him to help "in a sordid scheme to blackmail the powerful=20 politicians invited to his lavish parties."=20

Gobie also said he "sexually serviced" Mr. Spence for money = three times=20 and, according to the magazine, "watched [the lobbyist] snort = cocaine and=20 then do sit-ups as he hung upside down, half-naked, in gravity = boots."=20

According to Gobie, Mr. = Spence=20 told him, "Do you know what kind of power you can have over people = if=20 you've got something on them? . . . I need boys and girls for = people in=20 government and high-level businessmen for my parties, for = individuals, for=20 whatever comes up."=20

The magazine quoted = Gobie as=20 saying Mr. Spence was "the most dangerous man I'd ever met. If he = hadn't=20 turned into such a crackhead, he could have blackmailed half this = town. He=20 used to say, 'Hey, foreign intelligence agencies are doing it.'=20 "=20

* Michael Hedges contributed to this report. The Washington=20 Post

 =20
MINGO HIRES CONTROVERSIAL DOCTOR =
Maryclaire Dale The Charleston Gazette; News; Pg. P1A = July 01,=20 1997, Tuesday


A Williamson doctor facing an August = medical licensure=20 hearing and a possible criminal retrial in Kentucky was recently = named=20 Mingo County's medical examiner.=20

 =20
"A physician = has nothing=20 to gain from a suicide. A mortician does."=20
Diane=20 Shafer, who was charged with bribing a Kentucky hearing = examiner she later married, will replace former sheriff and = funeral home=20 owner Gerald Chafin, who had been named county coroner earlier in = the=20 month. Shafer is apparently = now=20 married to or involved with Henry Vinson, the former Mingo County = coroner=20 who served time in prison for running a Washington, D.C., male=20 prostitution ring which reached the White House.=20

Since 1975, all West Virginia counties have been required to = have a=20 physician serve as a county medical examiner, responding to = homicides,=20 suicides, accidents and questionable deaths. The examiner's role = is to=20 survey the body, talk to police on the scene, and gather = information for=20 the state medical examiner offices in Charleston, Morgantown and = Wheeling.=20

The Mingo County post had been vacant for about a year, forcing = police=20 to wait up to two or three hours for a medical examiner to come = from=20 Charleston.=20

In early June, Mingo County commissioners appointed Chafin = county=20 coroner. He has had his own legal troubles in recent years, having = been=20 twice indicted on federal wiretap charges that were later = dismissed.=20

"I told them he really doesn't fit the guidelines. Do you have = a=20 physician down there? Then she [Shafer] called," State Medical Examiner Irwin=20 Sopher said.=20

Sopher knew of Shafer's=20 controversial history, which included a bribery conviction in = Kentucky=20 that was later overturned, the current loss of her Kentucky = medical=20 license and a prior suspension of her West Virginia medical=20 license.=20

"Well, she has a license to practice medicine, and I discussed = some of=20 these things with her, and I think she'll be able to handle some = of this,"=20 Sopher said. "The job is mainly a reporting position.=20

"They don't do examinations, or actual autopsies."=20

He said the job pays $50 per case, making it difficult = sometimes to=20 attract physicians. At times, nurses, dentists, funeral directors = or other=20 people have served as interim coroners, as is currently the case = in about=20 six counties, Sopher said.=20

Sopher said the Mingo County medical examiner would typically = handle=20 about 60 cases a year.=20

Shafer's criminal conviction on bribery charges in Kentucky was = overturned in 1995 by the state's Supreme Court.=20

The retrial had been set for earlier this year but was = apparently=20 postponed. Shafer said she thinks the charges will be dropped. She = was=20 convicted in Kentucky state court of bribing Gregory Holmes, a = Kentucky=20 hearing examiner who was reviewing charges she overbilled insurers = for her=20 work. Holmes, a blind and already married 39-year-old lawyer, = cleared her=20 of wrongdoing 10 days after they were allegedly married and after = Shafer=20 allegedly gave him $ 42,500. Holmes, who denied marrying Shafer, = was=20 convicted of bigamy and bribery. A medical board panel in West = Virginia=20 found probable cause to take=20

 

Shafer to a hearing, = now set for=20 Aug. 20, 21 and 22, on charges she fraudulently signed four = disability=20 papers during a period when her West Virginia license was = suspended.=20

Shafer said Monday someone approached her to apply. "Well, = people ask=20 me to do house calls. This is certainly less work than that," she = joked,=20 when asked why she wanted the post.=20

She said the job should = be held by=20 physicians as opposed to funeral directors. "A physician has = nothing to=20 gain from a suicide. A mortician does. He would probably process = the body=20 for burial," she said. "I don't think it's [the funeral industry] = a=20 charity business."=20

She could not be reached for comment later in the evening about = her=20 relationship with Vinson.=20

Shafer, who ran unsuccessfully for the House of Delegates in = 1996, gave=20 her age Monday as 42.=20

According to a story published under her byline in a Temple = University=20 alumnae magazine, she graduated from Temple's medical school in = 1976.=20

The story described her long days working in an impoverished=20 Appalachian community.=20

Shafer collected more than $ 500,000 in a six-year period from = the West=20 Virginia Workers' Compensation Fund alone.=20

During the time of her licensure troubles, when she had an = office in=20 Kentucky but no license and a license in West Virginia but no = office, she=20 was photographed handing pieces of paper presumed to be = prescriptions to=20 patients out of her car at a small airfield in Mingo County.=20

Chafin said Monday he was not upset Shafer replaced him. "If we = have an=20 M.D. that is agreeable, then it is to be an M.D.," he said. = Sopher, told=20 later that Shafer appears to be involved with Vinson, said he = wanted time=20 to think about the situation before commenting on her fitness for = the job.=20

Vinson's sister, Brenda Copley of Fort Gay, said Monday that as = far as=20 she knew, Vinson married Shafer after his late 1995 release from = federal=20 prison.=20

A man who answered the phone at Shafer's medical office Monday=20 initially identified himself as Shafer's husband, Henry Shafer, = and said=20 he could answer questions about her medical examiner appointment.=20

"We were married years ago, and then we tried it again = recently," he=20 said.=20

Later in the day, the same man denied saying he was her husband = and=20 made a series of sexually explicit and racist remarks when asked = if his=20 name was actually Henry Vinson.=20

"Would you like to come and have sex with me, you f-- n--- b--. = What=20 the hell is your problem?" he shouted loudly into the office = telephone=20 line.=20

Several longtime Williamson residents said Monday Shafer has = been seen=20 around town with Vinson.=20

Vinson served as Mingo = County=20 coroner from 1985 to 1986 before resigning after a = widow=20 complained he left her husband's body in a funeral home for 42 = days=20 because of her inability to pay him. In 1990, he was charged with = running=20 prostitution rings which advertised in Washington newspapers under = the=20 names "Man to Man" and "Dream Boys."=20

Prosecutors said the = business made=20 $ 500,000 to $ 1 million between 1987 and 1989, and clients = included=20 low-level staffers in the Reagan and Bush White House.=20

Vinson, who was = represented by=20 lawyer-turned-legal commentator Greta Van Susteren, eventually = pleaded=20 guilty to racketeering and credit card fraud charges in the = 43-count=20 indictment.

[From 'Connecting the Dots: Nathan Landow']:=20

Then, there is this AP credited bookreview and summation:=20

During a 1982 investigation into the use of "drugs and sexual = activity to=20 lobby congressmen," Shoffler did indeed advise congressional = investigators to=20 look into a male prostitution ring that serviced Capitol Hill. The = veteran=20 police detective believed that the sex ring might be linked to = high-flying=20 Washington lobbyist, Robert Keith Gray, who had more than a few = connections to=20 CIA folk. According to Peter Dale Scott, some Washington investigators = also=20 suspected that the gay sex ring was connected to DC crime boss Joe "the = Possum"=20 Nesline.=20

Most interestingly, the Watergate madam, Heidi Rikan, was a = girlfriend of=20 mobster Joe "the Possum" Nesline, whose alleged connection to the = Capitol Hill=20 gay sex scandal a decade later aroused the suspicion of Washington = detectives.=20

Assorted boyfriends and former husbands of both Rikan and her = sometimes=20 roommate, Maurine "Mo" Biner (who married key Watergate figure John = Dean, which=20 makes Mo a pivotal character, according to scandal revisionists) were = associated=20 with the Quorum, an early 1960s "swingles' club run by Bobby Baker, a = former=20 aide to Lyndon Johnson. Scott surmises that all roads led to Baker's = club for a=20 reason: the Quorum functioned a lot like the = mob-and-intelligence-infested sex=20 traps of the 1970s.=20

It was Bobby Baker who introduced President Kennedy to an East German = bombshell named Ellen Rometsch, whom JFK, true to form, promptly bedded. = Scott=20 speculates that J. Edgar Hoover leaked word of this international = indiscretion=20 to the press. Whether or not Hoover was behind the leaks, they nearly = ignited a=20 global scandal.=20

Hougan, Jim. "Secret Agenda: watergate, Deep Throat and the CIA." New = York:=20 Random House, 1984.=20

Scott, Peter Dale. "Deep Politics and the Death of JFK." Berkeley, = CA:=20 University of California press, 1993.=20

[And who was one of Nesline's best buddies, and = landlord?=20 Yep. Nathan Landow. Mr. Landow knows the 'game', and has for a long=20 time.]=20

The individual further advised me of circumstances which = indicated that=20 the investigation into the activity of the Finders had become a CIA = internal=20 matter. The MPD report has been classified SECRET and was not available = for=20 review. I was advised that the FBI had withdrawn from the investigation = several=20 weeks prior and that the FBI Foreign Counter Intelligence Division had = directed=20 MPD not to advise the FBI Washington Field Office of anything that had=20 transpired.=20

No further information will be available. No further action will be = taken.=20

ACTION TO BE TAKEN BY LESD/TECS:=20

No action to be taken on the basis of this report.=20

 =20
'Call boy' leader gets 5 years =
Paul M. Rodriguez The Washington Times, Part A; NATION; = Pg. A3=20 June 13, 1991, Thursday, Final Edition


The head of the District's largest male = prostitution=20 ring was sentenced to 63 months in jail yesterday after an unusual = tirade=20 by U.S. District Court Judge Harold Greene directed at the U.S. = Attorney's=20 Office.=20

 =20
"I can't recall a = single case in=20 which the government has asked for departure before just = because=20 somebody pleaded guilty and got others to plead. . . . I = don't think=20 it's warranted . . . because there are sentences being = handed out=20 [more severe] for crimes below this."=20
The judge=20 specifically criticized U.S. Attorney Jay Stephens' office for = seeking a=20 departure from mandatory sentencing guidelines for Henry W. = Vinson,=20 operator of the callboy ring.=20

"Why propose this = departure?"=20 Judge Greene asked. "I can't recall a single case in which the = government=20 has asked for departure before just because somebody pleaded = guilty and=20 got others to plead. . . . I don't think it's warranted . . . = because=20 there are sentences being handed out [more severe] for crimes = below=20 this."=20

Judge Greene's rebuke = followed a=20 panel discussion Friday in which Mr. Stephens suggested that = federal=20 judges in Washington stop complaining about being overworked and = having no=20 room to tailor sentences to specific crimes.=20

Mr. Stephens, in an eight-page statement, said that federal = judges in=20 the District spend an average of only 13 hours a week in the = courtroom and=20 only five or six hours of them on criminal cases.=20

Federal judges, including Judge Greene, bristled at Mr. = Stephens'=20 comments and said they have been swamped with an influx of = small-time=20 criminal drug cases.=20

Yesterday's sentencing of Vinson, 29, of Williamson, W.Va., = culminated=20 a two-year investigation of the prostitution ring by the U.S. = Secret=20 Service, the Internal Revenue Service and District police.=20

 

The ring included a = small number=20 of female prostitutes. Over a two-year period, according to the = U.S.=20 Attorney's Office, the ring generated between $500,000 and $1 = million in=20 revenues.=20

At his sentencing, Vinson told the judge that "my behavior has=20 certainly not been very complimentary. I'm sorry if I did hurt = society."=20

He had pleaded guilty to = one count=20 each of credit card fraud and conspiracy to violate the = Racketeering,=20 Influence and Corrupt Organizations Act.=20

Ten days ago, Robert = Chambers, 39,=20 of Upper Marlboro, son of the owner of The Chambers Funeral Home, = was=20 sentenced to 41 months for helping to operate the prostitution = ring, which=20 went under various names in the District area, such as = "Man-to-Man,"=20 "Jovan" and "Dreamboys."=20

Two other = manager-prostitutes of=20 the ring - James A. Macko, 29, of Michigan, and James T. Smith, = 23, of=20 Florida - were sentenced to federal prison earlier this = year.=20

The investigation of the ring was triggered when police raided = a house=20 in the 6000 block of 34th Place in Upper Northwest in February = 1989.=20

In his remarks yesterday, Judge Greene excoriated Assistant = U.S.=20 Attorney Alan Strasser for seeking a waiver from the mandatory = sentencing=20 guidelines that became effective in November 1987. Judge Greene = said Mr.=20 Strasser's request was "one of the worst" made "by the faceless = departure=20 committee."=20

The committee is an internal group in the U.S. Attorney's = Office that=20 determines whether a defendant's cooperation merits a sentencing = waiver.=20

"I don't think that's warranted" because Vinson was the leader = of a=20 "sophisticated scheme," Judge Greene said, noting that others in = the case=20 had received stiff sentences.=20

Vinson's lawyer, Greta Van Susterne, said the judge's decision = would=20 dampen efforts by prosecutors to gain cooperation from defendants. = "You'd=20 have to be crazy to cooperate when the whole point of such = cooperation is=20 to get something in return."=20

In an apparent contradiction, Mr. Strasser sought a waiver from = federal=20 guidelines but in a separate sentencing memorandum called for a = harsh=20 sentence because the prostitution ring was cavalier about the = spread of=20 the AIDS virus.

 =20

 =20
U.S. EXPANDS PROBE OF 'CALL BOY' RING =
Paul M. Rodriguez and George Archibald The Washington = Times;=20 Final Section: A Page: A1 Thursday, July 6, 1989


A Secret Service officer assigned to the = midnight=20 shift at the White House was interrogated for more than 10 hours = Monday=20 about his association with Craig J. Spence - Washington lobbyist; = host to=20 the capital's political, business and media elite; and patron of=20 homosexual call-boy services - and the officer was said to have = failed a=20 lie-detector test.=20

The officer, Reginald A. deGueldre, accepted a gold Rolex = wristwatch=20 valued at $8,000 in return for "unspecified favors" from Mr. = Spence, for=20 whom he arranged at least four middle-of-the-night private tours = of the=20 White House for high-ranking military officers, well-known figures = in the=20 news media and male prostitutes.=20

 =20
Mr. Spence, said one = law=20 enforcement official close to the case, also asked Officer = deGueldre=20 to intervene on his behalf to help clear Secret Service = records of a=20 1987 arrest at a White House gate for disorderly conduct, = described=20 by one source as a lewd sex act.=20
Officer deGueldre has been told he = will be=20 called to testify before a federal grand jury.=20

President Reagan was in the White House residential quarters = during one=20 of the Spence visits, which was restricted to the West Wing, site = of the=20 Oval Office.=20

U.S. Attorney Jay Stephens, meanwhile, widened his = investigation of the=20 homosexual prostitution ring, which has ensnared Mr. Spence and = several=20 key Reagan and Bush administration officials.=20

Mr. Stephens' office is now looking closely at the White House = tours=20 and the activities of Mr. Spence, 48, a consultant to Japanese = government=20 officials and others.=20

John Pyles, the Secret Service special agent assigned to direct = the=20 investigation of allegations of breaches of White House security, = said=20 only, "We're not in a position to talk about this."=20

Mr. Pyles and Secret Service spokesman Allan Cramer said they = were=20 ordered to refer inquiries about the investigation to Assistant = U.S.=20 Attorney Alan Strasser, who is preparing evidence for presentation = to the=20 federal grand jury.=20

"You'd have to ask them why they referred you to me," Mr. = Strasser said=20 yesterday. "There is nothing I care to say to you about this at = this=20 time."=20

The Secret Service, after accounts were published in The = Washington=20 Times, has talked to people who took the July 3, 1988, White House = tour=20 set up by Mr. Spence, several of those interviewed say.=20

The agents are investigating possible security breaches by = those who=20 entered the White House compound as well as by Officer deGueldre, = The=20 Times was told.=20

One of those reached yesterday by the Secret Service said = questioning=20 focused on Mr. Spence and his associates. Questions were also = asked about=20 Mr. Spence and the use of cocaine.=20

Officer deGueldre failed the portion of a polygraph test = involving=20 favors he may have done for Mr. Spence, the law enforcement = official said.=20 The Secret Service officer visited on several social occasions = with Mr.=20 Spence, who was said to have held out=20 the offer of a high-paying security industry job in Florida to=20 him.=20

Officer deGueldre, who said he immediately reported himself to = his=20 superiors when the story of the late-night Spence visit appeared = in the=20 June 29 editions of The Washington Times, said he had done nothing = wrong.=20

"To this day, I still believe that Craig is still an American = hero,"=20 the Secret Service officer said. "The guy never hit on me. . . . = My=20 relationship to him was officer to citizen. . . . That's how I met = him -=20 when I was walking the street (as a patrolman in the embassy area = of the=20 fashionable Kalorama neighborhood where Mr. Spence lived).=20

"The first time he called me was maybe five years later," = Officer=20 deGueldre said. "He said he wanted to be my friend and invited me = to a=20 party. . . . I was shocked.=20

"I was introduced on a one-to-one basis with some very = important=20 people. . . . I met top brass, politicals . . . I was invited to a = lot of=20 functions at Craig's house. There was all kinds of heavy types = there."=20

But, the officer added: "I had no idea about sex, drugs, = nothing like=20 that. . . . A lot of stuff now makes sense though. . . . I always suspected he worked for = the=20 CIA."=20

 

Officer deGueldre said = he=20 understands, given his free access to the White House and the = president's=20 living quarters, why the Secret Service is concerned about the = Spence=20 tours.=20

Mr. Spence, said one law enforcement official close to the = case, also=20 asked Officer deGueldre to = intervene=20 on his behalf to help clear Secret Service records of a 1987 = arrest at a=20 White House gate for disorderly conduct, described by one source = as a lewd=20 sex act.=20

Three persons who went along on the post-midnight tour of the = White=20 House arranged by Mr. Spence July 3, 1988, recalled being admitted = by a=20 uniformed Secret Service officer named "Reggie."=20

"Reggie met us at the = gate, and he=20 was the one who let us in," one man said in an interview. "There = was=20 another guard who was obviously upset by this."=20

The three persons also remembered seeing "Reggie" at various = parties=20 given by Mr. Spence at which "Reggie" appeared to be serving as a=20 bodyguard or security man for the host.=20

Others said Mr. Spence = used=20 "Reggie" to arrange other White House tours, including one that = Mr. Spence=20 took with a 15-year-old boy, whom he identified as his son=20 Will.=20

That tour, according to former friends and associates of Mr. = Spence,=20 occurred June 29, 1988. The = "son" had=20 a Southern accent and was actually a male prostitute who provided = sexual=20 services for Mr. Spence and several male friends.=20

Mr. Cramer, the Secret Service spokesman, declined to answer = questions=20 about these tours, too. All = inquiries=20 about Mr. Spence's past White House dealings and visits were = covered by=20 the gag order imposed by the U.S. Attorney's Office, he = said.=20

Evidence concerning Mr. = Spence -=20 even information about his past White House connections - is being = tightly=20 held by the Secret Service "because it's tied into a criminal = fraud case=20 we are investigating."=20

"We're under orders from the U.S. attorney. . . . The U.S. = attorney has=20 restricted us from commenting on that case at all, or anything = peripheral=20 to it, because of the judicial tie-in," Mr. Cramer said.=20

Mr. Stephens' office, which first agreed to discuss the = call-boy ring=20 investigation with reporters for The Times last week but later in = the day=20 declined to do so, did not respond to inquiries yesterday.=20

The U.S. Attorney's Office to date has said only that it is=20 investigating "possible credit-card fraud" in connection with = arrests made=20 in raids on a house on 34th Place NW, described as the = headquarters of a=20 homosexual prostitution ring operating as an escort service.=20

The Times learned that the FBI is eager to investigate illegal=20 interstate prostitution activities and other possible federal = violations=20 incurred by operators of the homosexual prostitution ring, but = evidence confiscated by the = Secret Service=20 during raids on the house on 34th Place in February and in May is = not=20 being shared with the bureau.=20

This evidence includes = information=20 involving high-level government officials and political = celebrities who=20 were clients of the ring.=20

Several law enforcement authorities said relations between local and = federal law=20 enforcement agencies have been strained by the Secret Service's = behavior=20 in the call-boy case.=20

The Secret Service - an agency within the Treasury Department = whose=20 1,900 special agents and 960 uniformed personnel are charged with=20 investigating currency counterfeiting and credit-card fraud as = well as=20 protecting the president and vice president - is largely dependent = on the=20 Metropolitan Police Department, U.S. Capitol Police, National Park = Police,=20 the FBI and other law enforcement agencies, Mr. Cramer = acknowledged in an=20 interview yesterday.=20

For example, when the = Secret=20 Service arrests anyone on the White House grounds, the person is = turned=20 over to D.C. police for "processing, transportation and lock-up," = Mr.=20 Cramer said. He declined to discuss allegations that the Secret = Service=20 had "frozen out" the FBI in the call-boy investigation. =

Craig Spence was linked this week to a Japanese politician, = Motoo=20 Shiina, a leading member of the ruling Liberal Democratic Party = who is=20 considered an inside = favorite to=20 succeed Prime Minister Sousuke Uno.=20

Federal court records in Washington revealed that Mr. Spence = and Mr.=20 Shiina engaged in a bitter lawsuit in 1984 over the ownership of a = house=20 on Wyoming Avenue NW, valued last year at $1.15 million. The two-story Victorian house in = which Mr.=20 Spence later lived, was planted with electronic bugs and video = recording=20 equipment that, according to homosexual call boys and others who = routinely=20 visited the house, was used to make incriminating tapes to = blackmail=20 guests.=20

Mr. Spence has told several current and former friends that, = after=20 obtaining the money, he = blackmailed=20 Mr. Shiina by threatening to reveal that the cash to buy the house = had=20 been brought into the country in violation of currency = regulations. Mr.=20 Shiina settled the lawsuit out of court after he was ordered to = answer=20 questions about the money's origins.=20

* Michael Hedges and Jerry Seper contributed to this=20 report.

 =20
A little outrage for the children? =
Wesley Pruden The Washington Times; Part A; NATION; = PRUDEN ON=20 POLITICS; Pg. A4 August 25, 1989, Friday, Final = Edition


O.K., you guys over there on 15th Street, = if you sleep=20 through this one, too, you ought to go back to Dubuque to sell = shoes.=20

 =20
That's the energy and = curiosity=20 level of a lot of Washington reporters. They get a press = flack's lie=20 and that satisfies them.=20
When last we left those wonderful = folks at The=20 Post, they were explaining that the way to cover the Great Summer = Sex=20 Scandal, starring Craig Spence and a cast of frightened dozens, = was to=20 tell their readers that actually there's no story there.=20

"The Bombshell That Didn't Explode" is the way Eleanor = Randolph, the=20 O.P. media critic, described on Aug. 1 the story that everybody in = town=20 has been talking about since the story broke here June 29. The = Wall Street=20 Journal even did a story about how The Times had got the best of = The Post.=20

"Journalists have been left debating whether The Times = published a=20 blockbuster or a 'blockbluster,'" she wrote. The second 'l' in=20 "blockbluster" was supposed to be the equivalent of a nudge and a = wink=20 from the classy Miss Randolph.=20

Leonard Downie Jr., the managing editor at The Post, stroked = his chin=20 whiskers, put on his wise-old-owl look, and told her: " . . . we = [had]=20 already reported about this raid and we wondered what more there = was in=20 this story that we would want to publish." What he didn't say, but = what=20 his readers could only conclude, was that he couldn't get anybody = to find=20 out. So he just wondered.=20

The usual suspects were = brought in=20 to help. Jack Nelson of the Los Angeles Times conceded that his = newspaper=20 defers to The Post and The New York Times to decide what's news in = Washington, and said he sent reporters out to see whether there = was a=20 story and they couldn't find anything.=20

Howell Raines of The New = York=20 Times seemed, as usual, a bit dazed by it all. He agreed there was = "obviously some kind of investigation going on," but danged if he = could=20 figure out what it was about. He said

he would wait, as = befits a proper=20 New York Timesman, to see whether there was anything in the story = about=20 "public policy." (He ought to thinka little faster, since he's = keeping Mr.=20 Nelson's California readers waiting.)=20

"Other reporters around = Washington=20 said they were interested in pursuing the story but decided = against it=20 when they checked with the Secret Service and other investigative = agencies=20 and were told the raid was relatively routine."=20

Alas, she's probably right. That's=20 the energy and curiosity level of a lot of Washington reporters. = They get=20 a press flack's lie and that satisfies them.=20

Fortunately for the community, that doesn't satisfy The Times, = and in=20 particular it doesn't satisfy Paul Rodriguez and George Archibald, = the two=20 reporters whose work is arrayed across the top of Page One this = morning.=20

Despite the lady-like grunting and straining by Miss Randolph, = seeking=20 to explain why The Post never considered this a story, her editors = have in=20 fact tried to keep the story in sight. They ran not once but twice = a story=20 on the White House guard's accepting a gold watch from Craig = Spence.=20 Despite The Post's disdainful insistence that the story is merely = about a=20 commonplace local prostitution ring, its editors devoted 60 inches = of=20 newsprint to profile Henry Vinson, the "madame" of the ring. = Despite=20 scoffing at the importance of mid-level White House figures, as = named in=20 The Times' coverage, they ran a fanciful front-page story, citing = unnamed=20 sources (one of whom is said to be John Belushi, interviewed by = Bob=20 Woodward at Forest Lawn) about Fawn Hall, a mere secretary at the = White=20 House, who was supposed to be snorting coke.=20

But not to be too hard on Miss Randolph, who was only doing = what she=20 was told, and whose heart may not be in the debunking, anyway. Her = husband, Peter Pringle, a reporter for the London Independent, has = written=20 several stories about the call boy scandal, with none of The = Post's=20 pouting skepticism.=20

Now, with this morning's disclosures, a little domestic harmony = can=20 descend on the Pringle/Randolph breakfast table. "The bombshell" = has=20 exploded at the seat of Ben Bradlee's pants.=20

This morning's accounts = show the=20 male prostitution ring to have reached into Congress, the White = House and=20 a public elementary school. The disclosures about = Barney Frank=20 won't surprise many of us. But unless this city, the Congress, the = journalists who live here, and the U.S. attorney's office have = lost the=20 last vestige of public and private decency, we can expect a little outrage in = behalf of=20 our children.=20

Wesley Pruden is managing editor of The=20 Times.

West Virginia's Chief Medical Examiner Sopher, who hired Diane = Shafer =20 was on the medical team that examined the remains in Oswald's coffin to=20 determine the identity of the exhumed corpse.

Alexandra Colen, "Some Post-Christian Realities," The Human Life=20 Review, Spring 1997 issue, pp. 53-60.

The author, a member of the Belgian Parliament and former lecturer at = the=20 Universities of Ghent and Antwerp, discusses the pervasiveness and = excesses of=20 pedophilia and pedophilia-related murders and underground events ("The = Pink=20 Ballets") in Belgium. Pink = Ballets and=20 Protected Pornographers ... "Post-Christian Realities" by Alexandra = Cohen=20 (Human Life Review, Spring 1997)

Of course, this is all very complicated and convoluted, that's how = they=20 know they can get away with anything.
That's how they got away with = the=20 Kennedy hit.
By burying their actions under a mountain of outrageous = and=20 heinous acts,
they can count on most peoples natural tendency to = disbelieve=20
that such nice looking people like the Bushes could be capable of = being such=20 monsters -
That such evil could exist.
It is chilling that such = evil=20 people like the Bush family really do exist.
But they do. =

Know Your=20 Enemy
Wake up those around you

voxfux

voxfux.com

VOXFUX , The archive of the chilling = truth.
It's time to wake the fuck up =
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