The Casey File

No blind trust for the CIA boss

More than a few wheeler-dealers on Wall Street would love to have a pipeline into the CIA. The agency is privy to plans and plots that could affect international economic activity, it secretly monitors overseas communications of multinational firms, and it helps to ar-range the purchases of large quantities of technological material. Thus, such past directors of the CIA as George Bush and Stansfield Turner set up blind trusts to distance themselves from their investments and avoid the appearance of a conflict of interest.

William Casey, the current director of the agency, has decided not to follow their example. He has kept control of his investments, which may be worth as much as $3.4 million. Among his holdings: more than $250,000 in Superior Oil Co., which has contracts to drill oil in Abu Dhabi and mine platinum in South Africa and is negotiating to sell gas in Thailand.

Federal conflict of interest regulations, formulated in 1965, are very broad and merely require that officials avoid actions that “might result in or create the appearance of using public office for private gain.” Says CIA General Counsel Stanley Sporkin: “There is no requirement that I know of for Casey to put his holdings in a blind trust.” New York Democratic Senator Daniel Patrick Moynihan offered a more backhanded defense, scoffing: “I would like to think that you could make a killing in the stock market just having the information the CIA does, but they know about as much as Forbes magazine knows.”

In the previous Administration, Jimmy Carter insisted that all high officials with significant investments shield themselves through blind trusts. President Reagan has set up such a trust for himself, but he has not ordered his top aides to do the same. This has led some critics to suggest that the Administration is insensitive to the appearance of financial impropriety. “Perhaps we’re going to have to consider some strong, mandatory legislation,” says Vermont Democratic Senator Patrick Leahy. Casey’s hand-picked deputy, Max Hugel, resigned in July amid accusations of past illegal stock manipulation. And Casey is currently under investigation by the Senate Intelligence Committee for his own financial dealings, including his involvement in a New Orleans agricultural firm that went bankrupt. A report due to be released soon will not recommend Casey’s ouster, but it will raise a few additional questions that the President’s longtime political pal may be called upon to answer before the full committee. ∎