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Former Watergate defense lawyer Jacob A. Stein was named...

By JUDI HASSON

WASHINGTON -- Former Watergate defense lawyer Jacob A. Stein was named special prosecutor Monday to investigate Edwin Meese's finances and the charges of cronyism blocking his confirmation as attorney general.

Acting on a request from Attorney General William French Smith, a special three-judge court named Stein as a 'independent counsel' under the Ethics in Government Act to investigate whether Meese violated any criminal law.

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Stein, reached at home, declined to comment on his appointment as special prosecutor or discuss his timetable for the investigation.

President Reagan has nominated Meese, a longtime friend and now White House counselor, to succeed Smith as the head of the Justice Departmentand the nation's top legal official.

Stein, 59, was given the authority to 'investigate any allegation or evidence of violation of any federal criminal law by Mr. Meese developed during the independent counsel's investigation.'

The court also gave Stein jurisdiction to prosecute any violations.

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Stein, a past president of the District of Columbia bar, has been in private practice since 1948, handling both civil and criminal cases. He also has teaching experience at Harvard and Georgetown universities.

Among Stein's more notable courtroom experiences was his defense of Kenneth Parkinson, a lawyer for Richard Nixon's Committee to Re-Elect the President who stood trial for the Watergate coverup -- the scandal that inspired passage of the Ethics in Governemnt Act. Parkinson was acquitted.

Watergate judge John Sirica, in his book 'To Set the Record Straight,' called Stein 'one of Washington's finest attorneys,' and had this to say of Stein's successful defense of Parkinson: 'He delivered a terrific closing argument, working himself nearly into tears in pleading for Parkinson's acquittal.'

Stein also was the attorney for Dwight Chapin, presidential appointments secretary who was found guilty on two counts of lying to the grand jury in the Watergate investigation.

Stein was also White House Press Secretary James Brady's lawyer in his $2 million lawsuit against would-be presidential assassin John Hinckley, which is still wrapped up in the courts.

Stein is not the only Watergate-era lawyer involved in the Meese case. One of Meese's three lawyers, Leonard Garment, served as Nixon's White House counsel during the Watergate era.

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'We're pleased that the judicial panel has acted promptly and has appointed a distinguished lawyer as the independent counsel. We look forward to cooperating fully with him,' Garment said.

The naming of Stein is only the fourth time a special prosecutor has been named since the ethics law went on the books in 1978 with its provision to remove investigations of high-level government officials from the usual workings of the Justice Department to avoid political influence.

Meese had called for the independent counsel to put to rest questions about his fitness for the job of attorney general.

Smith, in a formal request to the special court revealed last week, asked for appointment of a special prosecutor to conduct a fullblown investigation of Meese's failure to disclose a $15,000 interest-free loan that his wife, Ursula, obtained from longtime Meese associate Edwin Thomas and used to purchase stock.

Thomas, his wife, Gretchen, and their son, Tad, all got federal jobs after the loan was made.

Smith sought broad jurisdiction for the independent counsel to investigate Meese's financial transactions with several other individuals who received federal appointments; stock traded by Meese and his family, and special treatment for businesses in which Meese held a financial interest.

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He also asked for an investigation of Meese's sudden promotion in the Army Reserve, which allowed him to get bigger pension benefits and his sworn statements about his knowledge of the 1980 Reagan campaign's use of President Jimmy Carter's campaign materials.

In the wake of a daily onslaught of accusations, Meese declared his innocence of any wrongdoing, accused his critics of 'systematic character assassination,' and promised to fight as long as it necessary to win Senate confirmation.

Reagan has steadfastly backed Meese, and has echoed Meese's complaints that the accusations against him are politically motivated.

The last time a special prosecutor was appointed was for an investigation of Labor Secretary Raymond Donovan following allegations he had dealings with organized crime while he was a private contractor. He was cleared of any wrongdoing in a probe that cost more than $300,000.

Stein, a past president of the District of Columbia bar, has been in private practice since 1948, handling both civil and criminal cases. He also has teaching experience at Harvard and Georgetown Universities.

Among Stein's more notable courtroom experiences was his defense of Kenneth Parkinson, a lawyer for Richard Nixon's Committee to Re-Elect the President who stood trial for the Watergate coverup -- the scandal that inspired passage of the Ethics in Governemnt Act. Parkinson was acquitted.

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Stein is not the only Watergate-era lawyer involved in the Meese case. One of Meese's three lawyers, Leonard Garment, served as Nixon's White House counsel during the Watergate era.

'We're pleased that the judicial panel has acted promptly and has appointed a distinguished lawyer as the independent counsel. We look forward to cooperating fully with him,' Garment said.

The naming of Stein is only the fourth time a special prosecutor has been named since the ethics law went on the books in 1978 with its provision to remove investigations of high-level government officials from the usual workings of the Justice Department to avoid political influence.

Meese had called for the independent counsel to put to rest questions about his fitness for the job of attorney general.

Smith, in a formal request to the special court revealed last week, asked for appointment of a special prosecutor to conduct a fullblown investigation of Meese's failure to disclose a $15,000 interest-free loan that his wife, Ursula, obtained from longtime Meese associate Edwin Thomas and used to purchase stock.

Thomas, his wife, Gretchen, and their son, Tad, all got federal jobs after the loan was made.

Smith sought broad jurisdiction for the independent counsel to investigate Meese's financial transactions with several other individuals who received federal appointments; stock traded by Meese and his family, and special treatment for businesses in which Meese held a financial interest.

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He also asked for an investigation of Meese's sudden promotion in the Army Reserve, which allowed him to get bigger pension benefits and his sworn statements about his knowledge of the 1980 Reagan campaign's use of President Jimmy Carter's campaign materials.

In the wake of a daily onslaught of accusations, Meese declared his innocence of any wrongdoing, accused his critics of 'systematic character assassination,' and promised to fight as long as it necessary to win Senate confirmation.

Reagan has steadfastly backed Meese, and has echoed Meese's complaints that the accusations against him are politically motivated.

The last time a special prosecutor was appointed was for an investigation of Labor Secretary Raymond Donovan following allegations he had dealings with organized crime while he was a private contractor. He was cleared of any wrongdoing in a probe that cost more than $300,000.

Meese, who reportedly was near bankruptcy when he was helped by loans and the sale of a house in 1982, could run up major new debts from financing his legal defense.

However, he could seek reimbursement from the federal government under certain circumstances and if he is not indicted.

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