Sen. Kerrey Interviewed In Teamsters Probe

By Pierre Thomas/CNN

WASHINGTON (Oct. 23) -- Federal investigators looking into the Teamsters Union and its fund-raising have interviewed Democratic Sen. Bob Kerrey, CNN has learned.

Sources say prosecutors wanted to know the extent of Kerrey's knowledge about possibly illegal plans to help fund Teamsters President Ron Carey's re-election last year.

Kerrey's interview is a sign the Teamsters probe is closely examining the role Democratic Party officials might have played in developing schemes aimed at re-electing Ron Carey.

Sources close to the senator said he dismissed the Teamsters proposal upon hearing it. They say Kerrey has cooperated fully and they have no indication he is a focus in the probe.

Law enforcement sources did not dispute those claims, but added the investigation will go wherever leads take them. A spokesman for Kerrey acknowledged the interview occurred, but declined further comment.

At issue is whether fund-raisers for Ron Carey's re-election engaged in a criminal conspiracy to defraud the Teamsters. The alleged deal would have involved a swap of campaign contributions between Teamsters and Democratic Party operatives.

Under the plan, which was apparently never carried out, Democratic Party officials were to ask major party donors to give money to Ron Carey's campaign. In exchange, Teamsters political action committees would donate money to Democrats.

A Democratic source told CNN that Kerrey learned of the deal from a staffer with a Democratic party committee. The proposal had allegedly been discussed at a meeting involving staffers from the Democratic National Committee, the Democratic Congressional Campaign Committee and the Democratic Senatorial Campaign Committee.

Investigators want to know just who hatched the scam and what role, if any, key Democrats played. Kerrey serves as chair of the Democratic Senatorial Campaign Committee.

A one-time presidential candidate, Kerrey is widely regarded as a potential candidate in the 2000 presidential campaign.

Just last month, three associates of Ron Carey pleaded guilty to organizing illegal schemes to fund Carey's campaign. Carey has flatly denied involvement in any of the alleged scams. But regardless of where Carey fits into these questions, sources tell CNN the Teamsters probe is intensifying and could significantly widen.

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Thursday Oct. 23, 1997

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