Libby Guilty Verdict Spurs Fundraising for Legal Defense Bill

By Robert Schmidt

March 13 (Bloomberg) -- Supporters of Lewis ``Scooter'' Libby, who was convicted March 6 of perjury, are mobilizing to help the former chief of staff to Vice President Dick Cheney pay spiraling legal bills.

News of Libby's guilty verdict has brought in $70,000 in Internet contributions in a week. Wealthy supporters including actor Fred Thompson, publisher Steve Forbes and Wayne Berman, a Washington lobbyist and leading Bush donor, plan to raise much more. Thompson, a former Tennessee senator who's weighing a bid for the 2008 Republican presidential nomination, is hosting a Washington fundraiser that may bring in more than $100,000.

Libby's bills, including an expected appeal, will run into the millions, defense lawyers say. Three top criminal lawyers are spearheading his defense. Lead attorney Ted Wells charges about $800 an hour.

``You would have to be an extraordinarily wealthy person for an ordeal like this not to ruin you financially,'' said Bradford Berenson, a white-collar crime specialist at the Sidley Austin law firm in Washington and a former White House lawyer for President George W. Bush. ``An overall estimate of $10 million for this whole mess is not unreasonable.''

Though he spent almost five years working in the White House, Libby, 56, is still wealthy from his days as a private attorney. A federal ethics form he filed in 2005 after his indictment and resignation shows his investments valued somewhere between $6 million and $18.5 million. The form, which only gives broad ranges, didn't include assets such as homes.

Legal Bills

Libby's only debt at the end of 2005 was for legal bills of between $15,000 and $50,000 to the Dechert law firm. He had been a partner there before joining the administration in 2001 and was represented by its lawyers early in the probe by Fitzgerald.

The Libby Legal Defense Trust has raised $4 million to date. The fund is headed by Melvin Sembler, a Florida developer and former ambassador to Italy under Bush. Sembler declined to be interviewed for this article.

Jurors found that Libby lied to investigators and a grand jury during an investigation into who leaked the identity of Valerie Plame, a CIA official whose husband had questioned the administration's rationale for going to war.

Libby's defenders say his prosecution was unjust and are seeking a presidential pardon. Many question special prosecutor Patrick Fitzgerald's decision to bring the case, noting that other officials had leaked Plame's name with impunity.

`Inherently Unfair'

``The way it has played out -- that the prosecution was inherently unfair -- will help him in his ability to be viewed sympathetically both for fundraising purposes and pardon purposes,'' said Howard Schiffman, Libby's former law partner at Dickstein Shapiro in Washington.

White House officials have refused to speculate about a Libby pardon. Republican strategists say Bush will be reluctant to take up the matter until after the 2008 elections for fear of hurting party candidates. That timetable puts pressure on Libby to stretch out his appeal process beyond next November.

The Libby fund's advisory committee includes Forbes, Berman, Frederic Malek, chairman of Thayer Capital Partners in Washington and lobbyist Bill Paxon, a former House member from New York.

Other participants are Martin Peretz, former owner of the New Republic magazine; former Housing Secretary Jack Kemp; and R. James Woolsey, a vice president at Booz Allen Hamilton in McLean, Virginia, and a director of central intelligence under President Bill Clinton.

Star Power

Thompson, working closely with Mary Matalin, a former political strategist for Cheney, has taken the early lead in organizing events on Libby's behalf.

Last year, Thompson hosted a Washington fundraiser that collected more than $100,000 and a second dinner or cocktail reception is being planned in the city.

``I will continue to help and remain committed to working with the defense fund to raise money to restore Scooter's good name,'' Thompson said in an e-mail.

Barbara Comstock, a Washington public-relations specialist who is assisting Libby, said several large pledges have come in from donors whom she declined to name. The fund isn't required to disclose contributors because Libby is no longer a public official.

``There's a good-sized group of people who care about this guy, think he's honorable, and believe in his innocence and integrity,'' said Malek.

Legal Trio

Libby is represented by three main attorneys: Wells of the New York-based Paul, Weiss, Rifkind, Wharton & Garrison firm; William Jeffress of Baker Botts in Washington; and San Francisco attorney John Cline of Jones Day. There have been about a dozen lawyers working on the case and attending the trial.

Wells, in an e-mail, declined to comment on fees for the case. He said the legal team will continue to represent Libby in the appeals process.

Meanwhile, Libby's fundraisers, by necessity, will pick up the pace. Said Washington defense attorney Victoria Toensing: ``Not many people have seven figures sitting around in a bank account, particularly those that have been in government service for a long time.''

To contact the reporter on this story: Robert Schmidt in Washington at rschmidt5@bloomberg.net .

Last Updated: March 13, 2007 06:17 EDT

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