Democratic Fund-Raiser Lum Admits Tax Violations
By Terry Frieden/CNN
WASHINGTON (Aug. 13) -- Democratic fund-raiser Gene Lum pleaded guilty Thursday to violating federal tax law by falsely claiming more than $7 million in tax deductions for himself and his wife.
In a plea bargain agreement filed in a Tulsa, Okla., courtroom shortly
before his plea, Lum admitted violations which involved the funneling of money
overseas through his company, Dynamic Energy Resources.
Last year Lum pleaded guilty to a charge of felony conspiracy for making
illegal campaign contributions to 1994 congressional campaigns.
Lum faces up to three years in prison. Under terms of the plea agreement
the government said it will not seek an indictment against his wife Nora Lum.
The Lums were investigated by the Justice Department's campaign finance
task force. Several leading Republicans have demanded Attorney General Janet
Reno appoint an independent counsel to take over that investigation. Reno said
Thursday she is continuing to review internal memos which also ask for such an