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Kantor Aided Hubbell In L.A. Fee Dispute

Times says ex-commerce secretary has admitted helping Hubbell in dispute with city

LOS ANGELES (AllPolitics, Dec. 15) -- Former Commerce Secretary Mickey Kantor has told congressional investigators he interceded on behalf of former Justice Department official Webster Hubbell in a dispute over unpaid L.A. airport consulting fees, according to a report in Sunday's Los Angeles Times.

Kantor, who earlier this year had denied his involvement, said he asked a lobbyist, Lisa Specht, to inquire why Hubbell had not received a consulting fee from the city.

Los Angeles hired Hubbell in 1994 as an airport lobbyist after he left the Justice Department because of a dispute over billing at Hubbell's former law firm in Little Rock, Ark.

Hubbell later pleaded guilty to mail fraud and tax fraud, and the city voided Hubbell's six-month, $49,500 consulting contract. But Hubbell sought payment for three months he had worked.


According to the Times, Kantor told lawyers with the House Government Reform and Oversight Committee that Hubbell was "a close friend and someone I care a lot about." Kantor said he talked with Specht, one of Kantor's former law partners, about Hubbell's dispute with the city.

"She [Specht] indicated that she might be able to inquire as to why he had not been paid by the L.A. airports or by the city of L.A.," Kantor testified. "She called me sometime subsequent to that ... and suggested to me that I should tell Mr. Hubbell that he needed to document his work."

Hubbell submitted more specific descriptions of the work he claimed to have done for the city and in September 1995 received a check for $24,750. Later, the Los Angeles controller said Hubbell had misrepresented the extent of that work and asked Hubbell to repay the $24,750. The two sides are reportedly talking about a settlement.

Whitewater prosecutor Kenneth Starr has been looking at Hubbell's consulting fees, trying to determine if they served as "hush money" to buy his silence on Whitewater matters.

In Other News:

Monday Dec. 15, 1997

Clinton Makes Lee Acting Civil Rights Chief
Reno Not Expected To Expand Indian Casino Probe
Kantor Aided Hubbell In L.A. Fee Dispute
Clinton Family Together for Holidays

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