Follow The Money: How China Bought The President
Courtesy of CapitalHillBlue.com

The relationship between Johnny Chung and the Clintons goes
back to the fall of 1992 and continued through 1996. From 1993
on, Chung was a frequent White House visitor, often meeting with
First Lady Hillary Clinton.

Chung received at least $300,000 from a Chinese senior military
official, who said "we really like your President," and Chung then
funneled money to the Clinton Presidential campaign, the Democratic
National Committee and Democratic candidates.

On April 26 and 27, 1999, Majority and Minority staff of the House
Committee on Government Oversight interviewed Johnny Chung, five
hours the first day and four hours the second. From that and documents
provided by Chung and other sources, the committee's Majority Staff
put together and extraordinary money trail.

Among their findings:

After watching the presidential debates in the fall of 1992, Chung
visited with Hillary Clinton in Little Rock, Arkansas, regarding his blast
fax business.

In a letter dated April 26, 1993, First Lady Hillary Clinton wrote
Chung regarding his blast fax business and apologized for her belated
letter.

In an effort to promote his blast fax business, Chung attended a meeting
of the National Governor’s Association where he posed for pictures
with a number of Governors and met Reta Lewis, then-Special
Assistant to the President for Political Affairs.

Chung has photographs of himself with various governors from the
event. See Exhibit 2. Lewis’ business card was provided to the
Committee by Chung.

On August 2, 1994, John Huang, Johnny Chung, and Melinda Yee
were invited to the White House by Reta Lewis to discuss an issue of
interest to Taiwanese-Americans. Huang and Chung entered the White
House together. Chung met with Huang, Yee and Lewis in the Indian
Treaty Room.

White House entrance records indicate that Huang, Chung and Yee
entered the White House on August 2, 1994, and were signed in by an
individual with the last name of Lewis. These records further indicate
that Huang and Chung entered and exited the White House at the same
exact time.

On two separate occasions, Chung was informed of the President’s
Birthday Party fund-raiser to be held on August 2, 1994. He was
informed once by Reta Lewis and once by Grace Ho, a DNC official.
A check from Chung was collected by Ho at his hotel on August 1,
1994.

Chung’s bank records and DNC documents indicate that Chung wrote
two checks dated August 1, 1994, totaling $11,000 in conjunction with
the President’s Birthday Party fund-raiser. See Exhibit 5. White House
and DNC documents further indicate that Chung was made a Co-Chair
of the event. See Exhibits 6 & 7. A DNC Memorandum from Grace
Ho to David Mercer is evidence of Ho’s involvement with Chung’s
contribution.

At the August 2, 1994, Birthday Party fund-raiser, Chung was
introduced to Jude Kearney, who told him that then-Commerce
Secretary Ron Brown was organizing a business delegation to China for
later in the month. Kearney chided Chung for never having visited
China and encouraged him to go as an ex-officio member of the
delegation. Chung visited China, where he had his picture taken with
Ron Brown. During his visit to China, Chung was taken to a restaurant
by Kearney where he saw Wang Mei Trie, Charlie Trie’s wife; and Jim
Dailey, the Mayor of Little Rock, Arkansas. Chung later saw Yah Lin
"Charlie" Trie at a hotel.

Commerce Department documents indicate that Ron Brown led a
delegation to China during August 27-September 3, 1994. See Exhibit
9. A picture of Secretary Brown and Chung in addition to another
Commerce Department document confirms Chung’s attendance on the
trip. See Exhibits 10 & 11. The document states that: "The Secretary
[Ron Brown] knows Mr. Chung as he was on the trip to China with
him last year." A Commerce Department memorandum discusses
Charlie Trie’s plans to host a brief reception for the delegation in
Beijing. See Exhibit 12. Chung’s passport indicates that his first visa for
entry into China was issued in August 1994.

Richard Sullivan began soliciting Chung for contributions to the DNC
soon after Chung’s August 1994 trip to China. Sullivan solicited
Chung’s $40,000 contribution for the DNC’s December 3, 1994,
fund-raiser in Los Angeles featuring First Lady Hillary Clinton. Chung
took several guests, including immigration lawyer Larry Liou. On the
afternoon of the December 3, 1994 event, Chung traveled to Taiwan.

A DNC check-tracking form indicates that Sullivan was the DNC
contact for Chung’s $40,000 contribution made in conjunction with the
December 3, 1994, event. See Exhibit 14. A DNC list of attendees for
the December 3, 1994 event indicates that a Larry Liu [sic] of Sunrider
International attended the event. See Exhibit 15. Chung’s passport
indicates that he entered Taiwan on December 4, 1994.

On December 19, 1994, Chung escorted two Chinese businessmen
associated with the Haomen beer company to the DNC Business
Leadership Forum fund-raiser at the Hay Adams Hotel. Chung paid
$40,000 to attend this event with his guests.

The DNC check tracking form lists Richard Sullivan as the DNC
contact for Chung’s $40,000 contribution. See Exhibit 17. The White
House entrance records indicate that Chung entered the White House
several times on December 19, 1994. See Exhibit 18. A DNC guest
list for the event lists Chung as an attendee.

Chung escorted his Haomen guests to the White House Christmas
party on December 20, 1994. At the party, Chung and his guests
posed for a photograph with the President and Mrs. Clinton. Chung’s
guests were overt and brazen in the promotion of their beer at the
White House. A gunman was arrested at the White House on or
around the day that Chung and his guests visited.

The picture taken at the White House Christmas party shows the
President, the First Lady, Chung and his guests gathered around a
Christmas tree.. An article in the China Youth Journal of February 8,
1995, describes Chung and his guests’ visit to Washington. See Exhibit
21. Press reports indicate that a gunman was arrested outside the
White House complex on December 17, 1994. See Exhibit 22. The
White House entrance records indicate that Chung entered the White
House on December 20, 1994.

At the December 20, 1994, White House Christmas party, Chung met
Secretary of the Navy John Dalton. Chung took pictures of Dalton and
his family for him at Dalton’s request. Afterwards, Chung and Dalton
exchanged letters. That was the extent of Chung’s contact with Dalton.

The December 21, 1994, and March 3, 1995, letters from Dalton to
Chung discuss the photographs Chung took of Dalton.

Chung was welcomed with a banner when he returned to China in
January or February 1995 to visit the Haomen businessmen who had
earlier visited Washington, D.C. with him.

A photograph of Chung’s trip to China’s Haomen beer company
shows the hero’s welcome that Chung was given.

Upon his return to the United States, Chung began arranging a trip to
Washington, D.C. for several Chinese government officials and
businessmen, including Zheng Hongye, the head of the Chinese
government-run Chamber of Commerce, and SINOPEC Director
Sheng Huaren, the Chinese government’s oil and energy concern.
Chung sought to arrange a tour of the White House, attendance at the
President’s weekly radio address, and a meeting with Secretary Ron
Brown at the Commerce Department.

Two letters dated February 22, 1995, and February 27, 1995, from
Chung to Richard Sullivan list Chung’s guests who were planning to
visit the White House and the requested itinerary. See Exhibits 27 &
28. A February 28, 1995, letter from Chung to Ann McCoy at the
White House details Chung’s request to dine in the White House mess
hall with "very important and powerful business leaders from China."
See Exhibit 29. A March 1, 1995, DNC memorandum from Richard
Sullivan and Ari Swiller to Kathleen LNU details a request for Chung
to meet for a photo-op with Chairman Donald Fowler. The memo
indicates that: "[Chung’s] group will be meeting with Secretary Brown
earlier in the day."

On March 9, 1995, Chung and his Chinese guests visited with First
Lady Hillary Clinton at the White House and had lunch at the White
House mess with a U.S. Embassy official from Beijing, Steve
Hendricks. During his visit to the First Lady’s office, Chung gave the
First Lady’s Chief of Staff, Maggie Williams, a check to the DNC in
the amount of $50,000. Chung and his guests had their picture taken
with the First Lady.

One of two photographs of Chung and his guests at the White House
mess appears to include Mr. Hendricks. See Exhibits 31 & 32. The
$50,000 check written to the DNC and given to Maggie Williams is
dated March 9, 1995.

On March 11, 1995, Chung and his Chinese guests attended the
President’s weekly radio address. On this occasion, Chung and his
guests were allowed photographs with the President. During this same
Washington visit, Chung and his guests also met with Don Fowler, but
were unable to meet with Secretary Ron Brown. John Huang told
Chung that it was not a good time to meet with Brown because he was
under investigation.

In letters dated April 5, 1995, from Chung to Maggie Williams and
Don Fowler, Chung complained of the delay in receiving his pictures
with the President and his Chinese guests. See Exhibits 34 & 35. In
two letters dated March 14, 1995, and March 16, 1995, respectively,
DNC Chairman Don Fowler wrote Zheng Hongye and Chung
regarding their visits with him. See Exhibits 36 & 37. Chung’s phone
records indicate that Chung telephoned John Huang numerous times in
the months leading up to his March 1995 visit to Washington, D.C.
Press accounts indicate that Secretary Brown was under investigation
by the Justice Department and Congress in March 1995.

Sullivan solicited and accepted a $125,000 contribution from Chung to
attend a DNC fund-raiser at the home of Steven Spielberg on April 8,
1995. Chung was accompanied by several Chinese nationals.

Chung’s check to the DNC in the amount of $125,000 is dated April
8, 1995, the date of the Spielberg fund-raiser. See Exhibit 38. The
DNC’s guest list and letters from President Clinton, DNC Chairman
Don Fowler, and DNC National Finance Chairman Truman Arnold to
Chung confirm his attendance at this April 8 event.

Chung said that on one occasion that he witnessed Yei Jun He of the
Haomen Group give Charles Parish, a consular official at the U.S.
Embassy in Beijing, a bag of cash and passports to be stamped with
visas. Chung indicated that he first met Parish in early 1995 and last
saw him in China in 1997. Parish helped many of the Chinese nationals
that visited Chung obtain visas for travel to the United States. On
September 21, 1995, Chung attended the Century Plaza Clinton/Gore
event in Los Angeles. Parish accompanied Chung in addition to
numerous Chinese nationals.

In a March 2, 1997, Los Angeles Times article, Parish described
himself as "a good friend of [Chung]." See Exhibit 42. The Clinton/Gore
guest list for the September 21, 1995, event and Chung’s letter to
Clinton/Gore lists Charles Parish and a number of foreign nationals as
guests of Chung. See Exhibits 43 & 44. Parish has confirmed to the
Los Angeles Times that he attended the fund-raiser.

At this same September 21, 1995, Los Angeles fund-raiser, Ari Swiller
and Richard Sullivan pressured Chung to contribute $70,000 to the
DNC. Sullivan and Swiller indicated that Chung had promised to raise
the additional funds, and it would cost Chung the additional $70,000 in
order for his friends to have their photographs taken with the President.
Sullivan told Chung that "a promise is a promise."

A DNC Finance call sheet indicates that Chung "[p]ledged to write 70k
for Re-elect event in LA last week. Did not show up to event with
check even though he had promised Ari and Richard that he would.
Tell him that you are extremely disappointed that he has sen [sic] in
70k." See Exhibit 45. An additional call sheet dated November 10,
1995, prepared by Ari Swiller indicates that if Chung does not give the
contribution, "bad things will happen."

Chung met Lynn Cutler at the December 1995 White House Christmas
party. Cutler later solicited and on February 2, 1996, received a
$25,000 contribution to the Back to Business Committee. David
Mercer later told Chung that Sullivan was upset by Cutler’s solicitation
of Chung.

Chung’s check to the Back to Business Committee and a March 8,
1996, fax from Lynn Cutler to U.S. Ambassador to China James R.
Sasser evidences Cutler’s relationship with Chung.

During Chung’s visit to China in early 1996, a "Mr. Pai" of the China
Construction Bank indicated that Yah Lin "Charlie" Trie sought
$1,000,000 from the Chinese government for political donations.

Chung’s rolodex contained two business cards from officials of the
China Construction Bank. See Exhibits 49 & 50. While there was no
card for "Mr. Pai," the two other cards indicate that Chung had an
association with the bank. Trie’s bank records indicate that from May
1994 through December 1996, Trie received approximately
$1,000,000 from Ng Lap Seng a.k.a. Mr. Wu, a Macao businessman
with close links to the Chinese government. Most of Trie’s funds
received from Mr. Wu originated with the Bank of China. See the
Committee’s Interim Report, November 5, 1998.

During the Spring of 1996, Chung had contacts with a Macao
businessman named Dr. Chio Ho Cheong a.k.a. Mr. Chit Kai Kit
a.k.a. Sir Chen. Dr. Chio had a photograph taken with President
Clinton at a May 13, 1996, fund-raiser and used that photograph to
win election as a Communist in Macao. During one of Chung’s trips to
China, Mr. Fu told Chung that he had been told by Dr. Chio that Ted
Sioeng had paid Dr. Chio’s way to a fund-raiser in the United States.
Chung was shown a videotape of a DNC fund-raiser held in the United
States. Dr. Chio, Ted Sioeng, Don Fowler, Rep. Matsui and President
Clinton were present.

See Exhibit 51. A DNC guest list for a May 13, 1996, DNC
fund-raiser lists Dr. Chio as seated at the head table. See Exhibit 52. A
DNC memorandum dated July 10, 1996, from Karen Sternfeld to
Richard Sullivan discusses Chung’s request to have a certificate from
President Clinton presented to Dr. Chio. See Exhibit 53. An article in
the Asian Wall Street Journal details Dr. Chio’s election and use of his
photograph with President Clinton. "The Macau Connection II," Asian
Wall Street Journal, March 2, 1998.

Chung met Liu Chao Ying for the first time in Hong Kong in June 1996.

Chung’s passport indicates that he was in Hong Kong during early and
late June 1996.

On June 10, 1996, Chung escorted several guests, including Chinese
nationals, to a DNC fund-raising event at the home of Lew Wasserman
in Los Angeles. One of the Chinese nationals, Zhen Fa, spoke no
English. Chung’s recollection of this event is particularly vivid because a
guest of Chung’s, "Mr. Fu," attempted to videotape the Wasserman’s
bedroom.

Chung is included on the DNC guest list for this event. See Exhibit 54.
Kimberly Ray, the DNC’s Southern California Finance Director, wrote
"thank you" letters to Chung; S.B. Fu, an amateur movie maker; and
Chun-Fat Leung for their attendance at the fund-raiser, "support" and
"assistance." The letters to S.B. Fu and Chun-Fat Leung were
addressed c/o Chung.

Chung routinely sent invitation letters to Chinese nationals, including Li
Mui Jie and Liu Chao Ying, to enable them to obtain visas.

In a July 3, 1996, letter, Chung invited Li Mui Jie to the U.S. See
Exhibit 58. In a August 18, 1996, letter, Chung invited Liu Chao Ying
to the U.S. See Exhibit 59. In an August 15, 1996, letter, DNC
Chairman Don Fowler invited Liu Chao Ying to the Democratic
National Convention. See Exhibit 60. In an August 19, 1996, letter,
DNC Chairman Don Fowler invited Jing-Wei Li, a Chinese national, to
the Democratic National Convention.

On July 18, 1996, Chung escorted Mr. Yat Hung Yiu of the China
Medical Development Company and Ms. Liu Chao Ying of China
Aerospace International Holding Limited to a DNC fund-raiser at the
home of Eli Broad in Los Angeles.

A July 16, 1996, letter from Irene Wu to Karen Sternfeld lists both Mr.
Yiu and Ms. Liu as guests of Chung. See Exhibit 62. On July 25, 1996,
Eli Board wrote Chung a thank you letter for his attendance at the
fund-raiser.

Chung met Federal Reserve Executive Vice President Israel Sendrovic
on a cross-country plane trip. Chung subsequently took Sendrovic and
Chinese national Yat Hung Yiu to the August 18, 1996, Presidential
Birthday Party fund-raiser reception in New York.

A May 9, 1996, letter from Chung to Sendrovic memorializes their
meeting on an airplane. See Exhibit 64. An August 15, 1996, letter
from Irene Wu to Ari Swiller lists Sendrovic and Yat Hung Yiu as a
guest of Chung for the August 18 reception in New York. See Exhibit
65. In an August 19, 1996, letter to Chung, Sendrovic thanks Chung
for taking him to the President’s reception. See Exhibit 66. Two letters
from Chung to Ms. Tsui King of Yat Hung, Yiu’s company in Hong
Kong, discuss Chung’s meetings with Sendrovic. See Exhibits 67 &
68. A May 10, 1996, letter from Sendrovic to Chung is further
evidence of their relationship.

Chung established Marswell Investment, Inc. with Liu Chao Ying in late
July or early August 1996.

The stock certificates of Marswell indicate that the corporation was
established on August 9, 1996. Chung and Liu Chao Ying received
20,000 shares and 30,000 shares respectively. See Exhibit 70. On July
30, 1996, Chung mailed a FedEx package to Liu Chao Ying, which
she received on August 2, 1996.

Chung arrived in Hong Kong on August 7, 1996. A few days later
while he was in Zhu Hai, China, Liu Chao Ying invited him to dinner
with "someone important." Shortly thereafter, Liu Chao Ying picked
Chung up at his hotel and traveled to Hong Kong with him for a dinner
with her and General Ji Shengde on August 11, 1996.

Chung’s passport indicates that he entered Hong Kong on August 7
and departed for China on August 10. His passport further indicates
that Chung traveled to mainland China on August 10 and returned to
Hong Kong via Macau on August 11, 1996.

On August 13, 1996, Chung traveled from his hotel in China to Hong
Kong where he met with Liu Chao Ying and General Ji Shengde, the
Chief of Chinese Military Intelligence, for the second time. At that
meeting, General Ji told Liu Chao Ying "I will wire $300,000 to your
account and you wire it to him."

Chung’s passport indicates that he arrived in Hong Kong on August 13.
Chung’s bank statement of his account at the Overseas Trust Bank
Limited in Hong Kong indicates that on August 14, 1996, Liu Chao
Ying wired U.S. $300,000 (H.K. $2,318,850) into Chung’s account.
At the time of the $300,000 wire, Chung’s account balance was H.K.
$1,068.87, less than U.S. $150.00.

Upon meeting General Ji Shengde for the first time on August 11,
1996, Chung was unaware of the General’s title and occupation.
However, later that day, Liu Chao Ying explained that General Ji
Shengde is the Chief of Chinese Military Intelligence.

Reports in both the South China Morning Post and the Intelligence
Newsletter confirm Ms. Liu’s description of General Ji and his position.

On August 14, 1996, Liu Chao Ying angrily scolded Chung for not
having an U.S. Dollar account in Hong Kong. Ms. Liu was aggravated
because she was unable to wire U.S. Dollars to Chung. As a result, she
had to exchange her U.S. Dollars for Hong Kong Dollars and pay a
commission for that exchange.

Chung’s bank records obtained from the Overseas Trust Bank Limited
in Hong Kong indicate that as of August 14, 1996, Chung had only one
account, a Hong Kong Dollar account. These records further indicate
that Chung opened a U.S. Dollar account at the Overseas Trust Bank
Limited on August 16, 1996.

On August 14, 1996, Chung expressed reservations to Liu Chao Ying
over accepting General Ji’s $300,000 because Chung wanted money
for his business as he had discussed with Ms. Liu in July 1996, not for
the narrow purpose of political contributions. In order to placate
Chung’s fears, Ms. Liu told him that he could use the money for three
things: he could give it to the President and the Democratic party; he
could use it to take care of the General’s son, Alex; and he could use it
for his own business purposes and to set up his and Liu’s companies.

Chung’s bank records indicate that Chung did in fact use the $300,000
for various purposes, including making political contributions and
supporting his business. The political contributions include $20,000,
$10,000 and $5,000 to the DNC for a total of $35,000. Bank records
indicate that $20,000 was wired to Chung’s company, AISI.

On August 14, 1996, Liu Chao Ying told Chung that Mark Middleton
received $500,000 from a Singapore group and an individual named
"Hwang," "Huang," or "Wong" in order to "do good things for the
benefit of China."

Mark Middleton had a relationship with Singapore businessman Y.Y.
Wong as evidenced by a letter dated June 27, 1996, from Mark
Middleton to Y.Y. Wong. See Exhibit 75. That same letter mentions a
"Ms. Liu." Between January 1996 and December 1996, Middleton
received approximately $1,750,000 from Asian business sources,
including a $500,000 wire transfer from the Sinar Mas Group of
Indonesia on September 27, 1996, the Sinar Mas Group used the
Development Bank of Singapore for the majority of its wire transfers to
Middleton, although the $500,000 wire came from the Group’s own
bank.

On August 14, 1996, Liu Chao Ying told Chung that a "Boeing
representative in Hong Kong" had received a lot of business from the
Chinese government in order to "do good things for the benefit of
China."

An August 18, 1996, letter from Chung to Liu Chao Ying indicates that
Chung believed Ms. Liu had an interest in Boeing and the purchase of
aircraft parts.

During the summer of 1996, Chung was also working with a "Mr. Li" of
the Homlyn Group, whom he met through a "Mr. Yu." Through Mr.
Yu, Mr. Li set up CM Information, Inc. as part of his plan to purchase
a hotel in Los Angeles, which was in bankruptcy. Chung pointed out
that both Li and Yu forced him to resign from their companies when
Chung's involvement in the campaign finance scandal broke.

The corporate records of the Homlyn Group and C.M. Information
evidence Chung’s involvement. In letters dated March 10, 1997,
Chung resigned from his position of Vice President and Director of the
Homlyn Group.

In the fall of 1996, Chung enlisted the assistance of General Ji Shengde
in locating a Chinese student about which he had read in order to
deliver a letter from Education Secretary Riley to her.

While such a letter has not been produced, a series of correspondence
involving Chung and Secretary Riley detail Chung’s contacts with
Secretary Riley prior to the fall of 1996. See Exhibits 83-87. In one
letter, Secretary Riley describes Chung as a "good friend." See Exhibit
86.

On October 17, 1996, Chung escorted the wife and son of General Ji
Shengde to the Democratic "Back to the Future" fund-raiser in
Universal City, California, featuring President Clinton.

Documents indicate that Chung received an invitation and directions to
this event.