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citizens to support those activities, by obtaining voluntary contributions,
selling literature and borrowing from individuals (especially through
telephone solicitation, use of the mails, and credit cards). All of the
individuals convicted along with Mr. LaRouche were directly involved in these
fund-raising activities.
Beginning in 1983, at Mr. LaRouche’s personal direction, the NCLC
resorted to increasingly aggressive and illegal fund-raising tactics,
including schemes to obtain money by fraudulent pretences. In particular, it
was proved at trial that donors were asked to loan money to the organization
with the promise of repayment at specific times and with specific rates of
interest, when in fact defendants knew that the loans would not be repaid in
the manner promised and had no intention of honoring their promissory notes
and letters of indebtedness. Many lenders lost significant amounts of money,
some their life savings. Moreover, the organization engaged in credit card
fraud. It obtained credit card account numbers from private individuals who
offered donations or purchased subscriptions to LaRouche publications, and
then made fraudulent billings against those accounts without the individuals’
knowledge or consent. These activities, together with Mr. LaRouche’s failure
to file income tax returns and his efforts to mislead and obstruct the
United States internal revenue service, were the basis of investigation and
prosecution by a number of state and federal authorities.
A federal grand jury initially issued an indictment against the LaRouche
Organization in Boston, Massachusetts, on 6 October 1986; a second superseding
indictment naming Mr. LaRouche and various of his colleagues, was issued in
July 1987. The charges included credit card fraud and obtaining fraudulent
loans, as well as conspiracy to obstruct justice. Trial began in Boston in
December 1987, and continued for four months but was terminated when the
presiding judge declared a "mistrial" due to "severe hardships" that would be
suffered by several of the jurors if the trial had continued.
Retrial in Boston was set for January 1989, but in October 1988,
Mr. LaRouche and his colleagues were separately indicted by a federal grand
jury sitting in the Eastern District of Virginia on similar grounds including
mail fraud, conspiracy to commit mail fraud, and conspiracy to obstruct income
tax collection. At trial, a number of defrauded investors as well as several
of Mr. LaRouche’s former associates testified; by their own choice, none of
the defendants took the stand. On 16 December 1988, the jury returned
verdicts of guilty on all of the counts with which the defendants had been
charged. As noted above, that conviction has been affirmed by the Court of
Appeals, and the Supreme Court has declined to review it further.
The Government of the United States categorically denies the allegations
that have been made to the Special Rapporteur on religious intolerance and
notes that the prosecution of those who engage in criminal fraud is a fully
legitimate exercise of a Government’s authority to enforce its own laws. The
United States further notes that, even though he is incarcerated at the
federal correctional institution in Rochester, Minnesota, Mr. LaRouche has
continued his political activities, publishing his writings and, in 1990,
running as a candidate for the House of Representatives in the United States
Congress."