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| For Immediate Release | |
| Sep 16, 1999 | Contact: Press Office 202-646-5172 |
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Implores Deutsche Bank And Bankers Trust To Deny Or Rescind Clintons' Mortgage, Or Force Suit (Washington, D.C.) Today Judicial Watch, a shareholder of the German bank and its subsidiary that are proposing to finance the Clintons' mansion in New York State, served a demand letter requiring that the Clintons' mortgage be rejected or rescinded. The demand letter, which is self-explanatory, is quoted below: September 13, 1999 VIA FAX AND FEDERAL EXPRESS Deutsche Bank 31 West 52nd Street, 28th floor New York, NY 10019 Re: Shareholder Demand to Refuse Approval or Rescind Mortgage to William Jefferson Clinton and Hillary Rodham Clinton. Dear Deutsche Bank and Bankers Trust Directors: Judicial Watch is a nonprofit, nonpartisan public interest law firm using the courts to fight government corruption. Judicial Watch is currently prosecuting numerous high profile lawsuits toward that end. Judicial Watch is a shareholder of Deutsche Bank. As such we are very concerned about recent reports (Exhibit 4) that Deutsche Bank and its subsidiary, Bankers Trust Company, are entertaining a home mortgage loan application by William Jefferson Clinton and Hillary Rodham Clinton, which is collateralized by a $1.35 million guarantee by Terence R. McAuliffe. Consummating this loan would be in furtherance of the commission of a felony and therefore constitute an illegal contract for Deutsche Bank and Bankers Trust Company. Additionally, it would harm the corporate interests of Deutsche Bank and Bankers Trust Company by disparaging its reputation and good will. It could also potentially subject Deutsche Bank and Bankers Trust Company to penalties of up to three times the value of the loan. If Bankers Trust Company approves the mortgage based on the guarantee offered by Terence R. McAuliffe, it will be at once a violation of Federal Election Commission rules against campaign contributions to federal candidates with respect to Hillary Rodham Clinton (Exhibit 1), and an illegal gratuity in violation of 18 U.S.C. § 201 and 5 U.S.C. § 7353 with respect to William Jefferson Clinton (Exhibit 2). Under the Federal Election Commission laws, any campaign contribution over the amount of $1,000 is a violation of campaign finance regulations. 11CFR § 110.1(a). This loan guarantee is patently against the law and is an unambiguous campaign contribution to Hillary Rodham Clinton in the amount of at least $1,350,000.00. 11 CFR § 100.7(b)(11)(i)(A)(2). It is also an illegal gratuity in the same amount with regard to William Jefferson Clinton and is subject to civil and criminal liability pursuant to 18 U.S.C. § 201 and 5 U.S.C. § 7353. If Deutsche Bank and Bankers Trust Company consummates this loan the corporation and its directors may be subjected to civil and criminal liabilities as principals to this illegal contract under the above laws and could potentially be liable for damages in an amount in excess of $4,050,000 and 15 years in prison or both. Adding fuel to these prima facie violations of law is the fact that Mr. McAuliffe is prominently named in a May 5, 1999, Department of Labor complaint focusing on a pension fund scam. He will also be called as a witness in October, 1999, in a Democratic National Committee/Teamsters corruption trial concerning an alleged illegal swap of cash between the organizations. McAuliffe is also a defendant in a Judicial Watch lawsuit on behalf of the shareholders of Loral Space and Communications, Ltd., (Exhibit 3). In light of the foregoing, as a shareholder of Deutsche Bank, Judicial Watch hereby demands that Deutsche Bank and Bankers Trust Company deny or rescind the home loan application of William Jefferson Clinton and Hillary Rodham Clinton immediately. We understand that as closing on the subject mortgage has not yet occurred, it is not too late for you, as directors of Deutsche Bank and Bankers Trust Company, to avoid significant civil and criminal liability. If Deutsche Bank and Bankers Trust Company do not immediately deny or rescind the loan application, Judicial Watch, as a shareholder, will bring a shareholder derivative action on behalf of Deutsche Bank and Bankers Trust Company, against the officers and directors of both banks, for breach of fiduciary duty, waste of corporate assets and other applicable claims necessary to preserve the companies' corporate interests, protect them against corporate waste, and prevent substantial harm to their reputations and good will. Please respond to this demand within five (5) business days from the date of receipt or Judicial Watch will be forced to file an action in federal court seeking an injunction and damages against the above-named directors and such other relief as may be appropriate. Sincerely, JUDICIAL WATCH, Inc. Larry Klayman Chairman and General Counsel |
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