◆ SpookStack

.and trust to Joseph Meltzer, an FBI wae aici friday, APM Z, 1982 3” a Victims Tell ouse Panel of LOsses Ask Protection From Effects of FBI Undercover Operations By RONALD J. OSTROW, Times Staff Writer WASHINGTON—A San Diego struggling to stifle her sobs. businesswoman tearfully pleaded with a House Judiciary subcommit- tee Thursday to come to the aid of innocent third parties who suffer. from FBI undercover operations. ._. “Please don’t let this happen to recounted similar experiences in- . in 1980 of using his detailed knowl- edge of the FBI’s undercover Ab- scam operation to swindle business- other people,” said Brandy Troche, menin an offshoot of the scheme. who testified that she and her hus-. {. - Turned Qver Money band, Bill, lost their interior design. 3. i - business after giving their money. Meltzer claimed to represent Ab - toinvest Arab capital in new or ex- inforrnant who was running his own panding US. enterprises. The busi- bogus operation on the side. ‘ “If you can’t trust the FBI, who ing on Abdul Enterpri ~ ‘7 prises with a cen you trust? Troche asked, man they believed to be an officer so, ‘ of Chase Manhattan Bank; turned: | own illegal operation, the one that the six business people say they fell The six witnesses told the House - subcommittee Thursday that they © never received investment funds forthcoming from his Arab friends, In some cases, the witnesses said, they even traveled to airports and waited fruitlessly for Arab planes that never appeared with the prom- ised money. The witnesses, most of whom were ienced businessmen, told cage a. meee ee people currently engaged in criminal activity! Why plan crimes though? president’s position with Concept — Industries, Inc.. over the incident, estimated that his experiences with Meltzer cost him $75,000. He said it also cost him “emotional depression, of confidence, integrity and respect in my Industry and community.” “You have done a service by . Yes, crime does pay, doesn't it? She was one of six witnesses who volving Meltzer, who was convicted dul Enterprises Ltd., which sought. ness operators, usually after check- wat Meiizer wid them would be--. “within hours ‘after ‘they “attempted . toe 8 pe ee "- Chasen, who said he lost his vice coming a my of gaining confidence in Meltzer through telephone conversations: and correspondence with a: man° they knew as John M. McCloud, Ab--- dul Enterprises’ “chairman of the. Rep. Don. - Edwards (D-San Jose), the’ sub- : ' committee chairman, was in reality | FBI special agent Jack McCarthy, a: .: McCloud, according to key figure in the Abscam case. -: ' . Charles C. Francis, a ~’ cause of possible or pending hitiga-} “We are satisfied that any actions { over to Meltzer sums of “earnest Reh ate - : ‘yp- Which Chase might~ have taken | Z 8 9 meng ene from $5,000 ‘up Francis rene, negate. _ 5 8 ar a icted con-* ‘’ Francis would -neither!.confirm 3 9 3 fidence san another et, oon nor deny that Michael Elzay, who a sy 5 in setting up its Abscam operation, ™0st of the witnesses said they con- an which eventually led to the convic- . ‘acted at Chase Manhattan, works a tion of seven members of Congress * for the bank.. However; a telephone Ba % f aa ; - operator at Chase Manhattan ac- “a for accepting bribes from FBI un- | 9P ‘ e2e dercover agents posing as Arab ° CePted a call for Elzay. The phone rar sheiks, ae of ‘Was not answered. ee ee a a At the same time that Meltzer . Testimony Planned . ; was assisting the in the Abscam An “‘Spokesm: Y decli; 8 3 investigation, he was running his ment, epokesman also declined comment, noting that FBI Director William H. Webster is scheduled to the - subcommittee GS oe oe hoe testify before roche ahd other. ‘Witnesses said they: gained faith in Meltzer-when he would call them to complain to check him with FBI officials. . Joel B. Chasen, an: Aptos, Calif. advertising executive, told of the collapse of his highly publicized ef- forts to buy the San Jose Earth. quakes soccer club with money that he said Meltzer had Promised to provide. Oe Co we, g forward.” Rep. Henry Hyde (R-IlL) -told the witnesses,” _.."You may feel betrayed by. your . Country, but the last chapter hasn't” been written,” Poe, “We have to know to what extent. . . - family disturbance and the loss the FBI cooperatéd with Meltzer” : Hyde said. “Did their (the FBI's) ‘ conduct amount to being accesso. 2 ries? What did they xnow and when; did they know it? I don’t want 5 leap to conclusions,” woe eS Edwards told the witnesses that’. : spokesman ; for Chase Manhattan Bank, declined * comment on the testimony, saying ' that it would be inappropriate be- ! an i I do not understand why the F.B.I. would involve itself with known con~-men, as it did with Weinberg, in the ABSCAM deal, or this jerk. not furthering the fine image it has held for years. convictions in ABSCAM, but at what cost to itself? con-games, gloats over his latest victims, while free to fish our southern “I have always held the F.B.I. in the highest esteem, and have counted some of its men my friends. ; _ it is I am against such close working arrangements with criminals, unless fleeced hundreds of people over t he years, perhaps thousands, with his waters. to trap | they had “‘made a huge impact on alf’'! of us. When the United States:- government is somehow involved in ~- doing great damage to the fabric of. ~ ; . your lives, it must be especially de-:- : 7 / Ty fe _ Vastating,” Edwards, a former FBI. - Fea efp ) agent, said. ' oe Yet, there are other ways to catch them, rather oa I have deplored such activities. than cook up schemes with crooks. Frank Hague. b-© Ste fe eee sine pete ee tne ee ree es mn, -