Meat Industry INSIGHTS Newsletter

981209 Former Ag Sec’y Espy Cleared of All Counts

December 3, 1998

Washington - Former Agriculture Secretary Mike Espy was acquitted of all counts in a corruption case involving sports tickets and travel that he accepted from companies that did business with his department. The acquittal followed a seven-week trial that focused on Espy's attendance at parties and sporting events while he was President Clinton's first agriculture chief in 1993 and 1994. In a written statement, Clinton said Espy served the administration and the nation with distinction. The president also said Espy and his family have been through "challenging times"-but he has emerged to tell the world he is stronger. The jury deliberated nine hours over two days before finding Espy innocent of all 30 counts. The accusations included three charges - that Espy had violated a 90-year-old federal law banning gifts to meat inspectors - that would have carried a minimum sentence of one year each if he had been convicted. Espy, 45, pleaded innocent, and has always maintained that he did nothing wrong by accepting favors from chicken producer Tyson Foods Inc. and other firms.

Family Emotional When Verdict Read He and his lawyers hugged when the jury forewoman read the verdict. Family members and supporters in the front rows of the courtroom gasped and began crying. "It's cost a lot, it's been tough, but I knew from day one that I would stand here before you completely exonerated," Espy said outside the courthouse. Independent Counsel Donald Smaltz, who spent more than four years and $17 million prosecuting Espy, his associates and businesses that gave him gifts, had no visible reaction in the courtroom. Espy had faced 30 counts covering about $33,000 worth of gifts and entertainment. U.S. District Judge Ricardo Urbina had thrown out an additional eight charges before the jury began its deliberations. The secretary was forced to resign in 1994 after the White House became concerned with the continuing revelations about his off-hours socializing with farm company executives. He was the first Cabinet-level official to face trial since Raymond Donovan, labor secretary under Ronald Reagan. Donovan was acquitted in 1987 on charges involving old business deals.

Charged Involved Trips and Tickets Former Clinton Housing and Urban Development Secretary Henry Cisneros faces trial in February on charges involving payments he made to an ex-lover. Smaltz claimed that Espy had his hand out from his first night on the job, when Tyson gave him extra tickets to an Inaugural dinner for Clinton. Other charges involved trips Espy took to the 1994 Super Bowl, a Chicago Bulls playoff game and the U.S. Open tennis tournament. In some cases, Espy sought out the tickets or made no attempt to conceal the fact that a company he regulated was paying the bills. In other cases, Espy never knew who was paying the bills, or believed the favors were fine under federal gift laws, witnesses testified. Federal ethics laws forbid expensive gifts to officials such as Espy, but make some exceptions for presents between established friends. Espy claimed many of the gifts fell under that exception. Espy was a Democratic congressman from Mississippi when Clinton picked him for the Cabinet. Thus he was already familiar with federal ethics requirements, Smaltz argued during the trial.

Espy Lawyers Didn't Call Witnesses Among the 70 witnesses in the case were farm executives who testified that they expected nothing in return for their gifts and that Espy had never showed any favoritism. Indeed, Espy often worked against the farm companies on such issues as the timing of new, clearer labels for chicken even as he accepted perks from them. Espy's lawyers did not put on any witnesses, leaving the jury to decide guilt or innocence only on the strength of Smaltz's case. The trial is the culmination of Smaltz's multifaceted prosecution, which won convictions or guilty pleas involving some companies and lobbyists who gave things to Espy. Smaltz also lost several other important cases, including his attempt to prosecute Espy's brother, Henry, for campaign violations. Henry Espy made an unsuccessful run for Congress in 1993, hoping to fill the seat Mike Espy vacated when he became a Cabinet secretary. Mike Espy returned to his home state after leaving Washington. He has a law office in Jackson.

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Iotron Technology Inc.

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