2 ITT EXECUTIVES FACE TRIAL FOR LYING IN '73 CHILE PROBE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP99-00498R000100130007-3
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 1
• Document Creation Date: December 20, 2016
• Document Release Date: June 13, 2007
• Sequence Number: 7
• Publication Date: March 21, 1978
• Content Type: OPEN SOURCE

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pproved For Release 2007/06/14: CIA-RDP99-00498R000100130007-3
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2 ITT-,-Ex-
:.ror Lying.in '73 Chile rrabe
By Edward T. Pound
Washington Star Staff Writer
Two officials of the International
Telephone and Telegraph Corp. have
been accused in criminal complaints
of lying to a Senate subcommittee
five years ago in connection with
ITT's activities in the 1970 Chilean
presidential election.
Attorney General Griffin B. Bell
yesterday announced the4 filing of
criminal "informations" in? U.S. Dis-
trict Court here against Edward .J.
Gerrity Jr., 54, an ITT senior vice
president, and Robert Berrellez, 53,
who was an ITT Latin American offi-
cial in the early 1970s. He is now
Southwest regional manager for pub-
lic relations and civil affairs for the
conglomerate.
ITT Chairman Harold S., Geneen,
t who also was a prospective target of
,the lengthy _ Justice Department
investigation, was not charged. The
department said in a statement,
THE FELONY COUNTS dealing
with the ITT officials' Senate testi-
mony were filed as the five-year stat-
ute of limitations neared expiration.
However, the statute was not in jeop-
ardy on the arbitration hearing
testimony, department officials said.
Acting Deputy Attorney General
Benjamin R. Civiletti, when asked
why the department decided not to
prosecute Geneen, said he had no
comment on Geneen but added: -
"As a general proposition, the de-
partment brings cases where.-we
have the facts to support the charges
and meet the legal standards."-. -
'Civiletti declined to say whether
the department would plea-bargain
with Gerrity and Berrellez, as it had
done in the case involving former
CIA Director Richard M. Helms.
Civiletti noted,'however, that it was
"standard practice" for the depart-
ment to engage in "plea negotia-
tions" with defendants.- ? .
moreover, that "no other actions ... I One department source said he
are contemnlatedi " . understood that Gerrity and Ber
MOST OF THE CHARGES against
Gerrity and Berrellez grew out of
their testimony in 1973 before the
Senate Foreign Relations subcom-
mittee on multinational corporations.
Ger.een also testified before the
panel. ?
rellez have "been given the oppor-
tunity to make the strongest case
they have, with the realization that
we have a pretty strong case. I don't
think it's to the point of any real plea-
baraain. At this point, I'd say it's
1ikeTy to go to trial."
=.The department last fall accepted
ai "no contest" plea from Helms to
At the time; the subcommittee was misdemeanor charges that he lied
i
nvestigating whether ITT collabo-
rated with the CIA in an attempt to
block the 1970 election of Marxist
Salvador Allende as, president' of
Chile. Geneen and Gerrity denied
that any ITT money was funneled to
Allende's opponents to. prevent his
election.
Gerri
up to 30 years in prison and $23,000 in
fines, according to the Justice De-
partment. Berrellez also could get 30
years in prison and faces $31,000 in
fines. He lives in Chatsworth, Calif.
HAROLD V. HENDRIX, 54, the
former ITT director of public rela-
tions in Latin America, figures in
both criminal cases.
The Justice Department charged
that Gerrity induced Hendrix to lie to
the subcommitte on multinational
corporations five years ago. Further.
the department said, Berrellez con-
spired with Hendrix, among others,
to obstruct the subcommittee's probe
into whether ITT was collaborating
with the CIA to prevent. Allende's
election. ? _
Hendrix has been cooperating with
federal prosecutors in the investiga-
tion since he pleaded guilty in
November 1976 to a misdemeanor
charge of withholding information
from the subcommittee..
While Gerrity and Berrellez could
not be reached for comment, an ITT
-.spokesman said the company was
confident its two executives would be
cleared. He said:
"These charges follow months of
grand jury testimony and appear-
ances and at all times our executives
have cooperated and have had the
full support and backing of the corpo-
ration. ITT knows of no reason why
their testimony would have been
other than truthful and ITT continues
to have confidence in Mr. Gerrity's
and Mr. Berrellez' integrity. They
both continue to serve as valued
executives of ITT... -"
BELL'S DECISION to prosecute
the company officials was hailed by
Sen. Joseph Biden, D-Del., who last
fall expressed concern over the Jus-
tice Department's handling of .the
Helms case. . . ,
Biden, chairman of Intelligence
Committee's subcommittee on
secrecy and disclosure, said Bell's
decision "is a signal the Justice De-
partment is no longer willing to
throw up its hands anrforgo prosecu-
tion in sensitive national security,
cases."
He said the ITT case "illustrates
that the threat of disclosure of na-
tional secrets need not always thwart
or severely limit prosecution of these
kinds of cases."._
Biden's subcommittee'--recently:
studied 40 cases in which the Justice'
Department declined prosecutions'
because of concern that national se-!
crets would be exposed.
In 1975, however, the Senate Intel-
ligence Committee disclosed that after the intelligence community
both the CIA and ITT had given argued that a criminal trial could
money to Allende's opponents. ITT disclose national security secrets.
feared that its Chilean holdings Department sources. confirmed:
might be expropriated by Allende, yesterday that CIA Director Stans-
who won mile- election but was.killed field Turner met Thursday with Bell
in a 1973 military coup. to express similar concerns about
Gerrity and Berrellez were each prosecution of ITT officials.
named in six felony counts and both Helms, as part of his plea bargain
were accused of perjury and ob- arrangement, agreed to testify
stru cting governmental proceedings- "truthfully" if called before the
in connection with their Senate testi- federal grand jury investigating the '
mony. ITT officials. -He reportedly did
They also were accused of lying testify. The grand jury had been
about ITT's activities in Chile during hearin evidence in the case for two
a June 1974 arbitration hearing in- years, but its term expired in Febru-
volving a dispute with the Overseas ary.?_ Justice Department officials
Private Investment Corp., '.a 'U.S. said both. Gerrity and . Berrellez
agency. waived their rights to grand jury con-
sideration, permitting the charges to
._be filed as criminal informations. i
Approved For Release 2007/06/14: CIA-RDP99-00498R000100130007-3
during 1973 Senate inquiries into
possible CIA intervention in the 1970
Chilean presidential election. He was
charged with lying to two Senate
panels, including the subcommittee
on multinational corporations. Helms
received _no prison. term and was