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Sanitized Copy Approved for Release 2011/08/17 :CIA-RDP09T00207R001000030001-1 ?~' ~T T Aicles '~iQCrged in Chide Probe WASHINGTON POST - -~ i ~--- ??no contest" to a misdemeanor charge, in part because of fears that national secrets might be disclosed at a trial. That concern was raised again by defense attorneys for Gerrity and Ber rellez and by CIA director Stansfield according to Justice Depart- 'Turner , Wasbin?ton Post 8taf1 Writer ment sources. The Justice Department filed six- gut Attorney General Griffin B. count felony charges yesterday against Bell decided to approve the proaecu- two International Telephone and Tele- tions. graph Corp. officials accusing them of Bell said in a phone interview yea- lying to the Senate nearly five years terday that he didn't want to tom- ago about the company's efforts to ment on the specific cases. But he re- called that he had said after the influence an election in Chile. Helms plea bargain that "you cannot Edward J. Gerrity Jr., 54, an ITT decide never to prosecute these cases senior vice president, and Robert Ber- that might involve national security. rellez, 58, who was an ITT public To do so gives people a license. That relations man in Latin America in just can't be the law." 1970, were each charged with three Benjamin R. Civiletti, acting deputq counts of perjury, one count of ob- attorney general, told reporters the strutting a Senate investigation and Gerrity and Berrellez cases were dif? , one count of making a false state- ferent from the Helms case. ment to a separate government in- He noted, for example, that Helena quiry. had "in his defense his oath and his In addition, Gerrity was charged interpretation of his oath [not to di- with inducing another ITT official, vulge CIA secrets]. In this cireum- Ilarold V. Hendrix, to lie to the Sen- stance [involving Gerrity and at.e. And Berrellez was accused ~of Berrellez], you have private individu- conspiring with Hendrix and others als and private corporations." to block the Senate investigation of Asked why Geneen was not prosecu- charges that ITT worked S~?it'~ the ted, Civiletti said only, "The inference CIA to fund opponents of socialist could be drawn that the government candidate Salvador Allende in 1970. brought those cases in which it had The conspiracy charge against Berrel- sound cases." lez alleges that he and Hendrix con- cealed documents from a Senate sub? committee and plotted to give false tes? timony. On one occasion, Berrellez met a CIA official to tell him he and Hendrix would deny knowing any CIA offic- ials in Latin America, tl}e informa- tion alleges. Another time, Hendrix -wh6 pleaded guilty to a misde- meanor in 1976 and is now cooper- ating With the government-passed on ITT documents to a CIA official, it is charged. Gerrity and Berrellez testified before the Senate subcommittee on multina- tional corporations almost five years ago. Though they said that ITT had-not worked to block Allende's election it Reminded that Geneen was the sen- ior officer responsible for all opera- tions at ITT, Civiletti added: "The law doesn't depend on senior or junior. It depends on provable facts. Either you have them or you don't " Gerrity and Berrellez could not be reached for comment. Walter J. Bon- ner, aWashington attorney who rep- resents Gerrity, said he would have no comment until he consulted with his client. - =i, An ITT spokesman in New York said that the company "continues to have confidence in IVIr. Gerrity's and Mr. Berrellez's integrity. They both continue to serve as valued executives of ITT. We are fully confident they will be found innocent." ~ The charges against 'Gerrity and Berrellez were filed in U.S. District Court in Washington through what is called an information. The federal grand jury hearing evidence in the case expired last month without re- turning -indictments. ? - ? - But the defendants waived their right to have a grand jury vote on the felony charges, .clearing the way for prosecutors G. Allen Carver Jr. and Robert G. Andary to file the charges themselves, Civiletti said. ~., The five-year statute of limitations on the offenses alleged in the infor- mations against the two ITT officials was about to expire.' +- =i. The investigation was carried to the very end of the time allowed because the prosecutors had to examine many classified CIA documents, Justice De- partment officials have said. Carver and An!dary attempted to fashion cases that could 'not be damaged by defense discovery motions for secret documents, the officials said. The conspiracy charge against Ber- rellez shows that he and Hendrix were in frequent contact with CIA officials, usually , a Jonathan G. Hanke, for about a year before their testimony. On Apri19, 1972, the information aI- leges, Berrellez told an unidentified CIA official that he and Hendrix had agreed to deny knowing CIA officials in Latin America. In January 19?3, a few months be- fore the Senate hearings, Hendrix gave Hanke a page from a phone pad of another ITT official, according to the charges. Jack Blum, a Washington attorney- who was a subcommittee associate coun- sel at the time, said yesterday that that was about the time the Senate had sub? poenaed ITT documents relating to com- pany activities in Chile. Justice Department officials said yes- terday that despite the constant com- munication between the CIA and ITT officials mentioned, in the conspiracy ; count, there was never any consideration of naming the CIA an unindicted co- conspirator, as Hendrix was. Besides the alleged perjury before the Senate subcommittee, Gerrity and Ber- rellez also were charged with making false statements during June 1974 arbi- tration over an ITT claim for reimburse- ment from the Overseas Private Invest- ment Corp. ITT was trying to collect on insurance for expropriated property in Chile. - , . ~ , E was later revealed -that both ITT and : Sen. Joe Biden (D-De1J, a member the CIA had funded Allende's election . of the Senate Intelligence Committee, opponents. ~ - said yesterday that the new charges Harold S. Geneen, the ITT board are "a signal that the Justice Depart- chairman who also was under investi- ment is no longer willing to throw up gation, apparently will not be prose- its hands and forgo prosecution in cuted. The Justice Department said "no sensitive national security cases." other actions arising from this investi- Biden had criticized the handling of cation are being contemplated." the Helms case. The multi-count felony charges against Gerrity and Berrellez are far more serious than those filed against former CIA director Richard Helms last fall. Helms was allowed to plead Sanitized Copy Approved for Release 2011/08/17 :CIA-RDP09T00207R001000030001-1