HILLARY'S BROTHER RETURNS CASH FOR PARDON WORK

Former President Bill Clinton's brother-in-law has returned almost $400,000
he was paid to help win a presidential pardon for a businessman now under
criminal investigation and the commutation of a prison sentence for a
convicted drug dealer.

Mr. Clinton and his wife, Sen. Hillary Rodham Clinton, New York Democrat,
said yesterday they did not know that Hugh Rodham had solicited the cash
and were "deeply dismayed."

"Yesterday, I became aware of press inquiries that Hugh Rodham received a
contingency fee in connection with a pardon application for Glenn Braswell
and a fee for work on Carlos Vignali's commutation application," the former
president said in a statement.

"Neither Hillary nor I had any knowledge of such payments. We are deeply
disturbed by these reports and have insisted that Hugh return any moneys
received," said Mr. Clinton, already under fire for his pardon of fugitive
financier Marc Rich.

Mr. Rodham, a Florida attorney, was not available yesterday for comment.

In a separate statement last night, Mrs. Clinton said: "Hugh did not speak
with me about these applications. I believe that the payments should be
returned immediately, and I understand he has taken steps to do so."

The payments have now become the focus of a House committee already
investigating Mr. Clinton's pardon of Mr. Rich and its connections to
Democratic campaign contributions.

Mr. Rodham returned the cash to his clients yesterday, according to lawyers
familiar with the matter.

The lawyers said the money went to Mr. Rodham for unspecified services on a
commutation request for Mr. Vignali, a convicted drug dealer, and a pardon
for Mr. Braswell, a convicted herbal-remedy marketer now under
investigation for tax fraud.

The sources said the money included $200,000 after the Braswell pardon was
granted and the rest paid over a period of time as Mr. Rodham worked on the
Vignali commutation.

Mr. Vignali was among 36 persons granted commutations by Mr. Clinton. He
was ordered released Jan. 20 from prison after serving six years of a
15-year term for his role in a massive crack cocaine distribution ring that
operated from California to Minnesota.

His arrest in Minneapolis followed a two-year investigation by state and
federal authorities and led to his conviction on narcotics charges for his
role in a drug ring that sold more than 800 pounds of crack cocaine.

His father, Horacio Vignali, a wealthy California businessman, contributed
nearly $200,000 to political candidates, mostly Democrats, including Rep.
Xavier Becerra of California. Mr. Becerra was one of several Democratic
lawmakers who wrote to Mr. Clinton to lobby on Mr. Vignali's behalf.

Mr. Vignali had argued that he was a first-time drug offender whose 15-year
sentence was unfair. The commutation of his sentence was supported by a
Catholic cardinal, a sheriff and community leaders, although Cardinal Roger
Mahoney of Los Angeles later announced that he had made "a serious mistake"
in writing to Mr. Clinton on Mr. Vignali's behalf.

Federal prosecutors in Minneapolis personally wrote to the Justice
Department to oppose the Vignali commutation, saying that although he was a
first-time offender, he played a central role in a massive drug conspiracy
that collected millions of dollars in illicit profits.

Mr. Braswell was convicted in 1983 on charges of fraud in connection with
false claims he made about the effectiveness of a treatment for baldness. A
federal judge sentenced him to three years in prison and five years of
probation.

Mr. Clinton said the pardon was granted because the crime had occurred
nearly 20 years ago with no indication of later problems.

White House officials said they were unaware of an ongoing investigation of
Mr. Braswell, adding that a Justice Department request for a criminal
background check showed nothing negative.

But after his Inauguration Day pardon, it was learned that federal
prosecutors in Los Angeles were investigating Mr. Braswell in "a massive
tax evasion and money-laundering scheme," according to court filings.

The Braswell pardon request went directly to the White House, bypassing the
normal routine of sending it through the pardon attorney's office at the
Justice Department. President Bush's presidential campaign and the Florida
Republican Party returned $175,000 in contributions from Mr. Braswell last
fall after they learned he was a convicted felon.

House Government Reform Committee investigators probing the Clinton pardons
said yesterday they want to know more about Mr. Rodham's involvement in the
matter. They also have focused on what the White House knew regarding Mr.
Rodham's connection — particularly the role of former White House Deputy
Counsel Bruce Lindsey, who they said was aware of Mr. Rodham's ties to the
Vignali commutation request.

"We intend to look into this," said Committee Chairman Dan Burton, Indiana
Republican.

He sent letters last night demanding answers and records from the key
figures, including Mr. Rodham and the Vignali family.

In 1997, Ralph Nader questioned Mr. Rodham's role as part of the coalition
of plaintiff's attorneys negotiating the tobacco industry settlement.

He said regular meetings Mr. Rodham had with Mr. Lindsey, the White House
point man on the tobacco issue, concerning the settlement raised questions
of "ethics and special access."

Mark R. Levin, who was chief of staff to Attorney General Edwin Meese III,
questioned what legal service Mr. Rodham could have provided for the two men.

"It would appear that he was paid for his connections," he said. "And the
idea that he would not tell his sister or his brother-in-law about his
clients' desires is unbelievable."

Former White House officials have said the decisions on both men were made
on the merits of their applications and their situations. A similar
argument was made in the Rich pardon, which has drawn the ire of both
Republicans and Democrats, along with that of law enforcement authorities.