Ethics Chief Asks Investigation of Deaver : Seeks to Learn Whether Conflict-of-Interest Laws Were Violated

WASHINGTON — The government’s top ethics officer asked the Justice Department on Friday to investigate whether Michael K. Deaver, a former White House aide who operates a lobbying business, violated conflict-of-interest laws.

David Martin, head of the Office of Government Ethics, referred the case to the Justice Department on the same day that President Reagan said he thinks it is “ridiculous” to appoint a special prosecutor to investigate Deaver.

Martin’s letter to Atty. Gen. Edwin Meese III activates the procedure for establishing a special prosecutor to look into Deaver’s dealings.

The Justice Department has 90 days to conduct a preliminary inquiry into the case and decide whether to refer it to a three-judge panel. That court would make the final decision on whether to name an independent counsel.

Peter Andriole, a spokesman for the ethics office, said he could not comment on what caused the agency to request the Justice Department’s involvement in the case.

On Thursday, five Democratic senators wrote Meese, saying Deaver’s lobbying raised enough questions to warrant a special prosecutor’s attention.

“We believe that the alleged facts which have been widely written about in the news media are sufficiently specific to trigger the statute” calling for a special prosecutor, said a letter signed by Senate Minority Leader Robert C. Byrd of West Virginia and Sens. Joseph R. Biden Jr. of Delaware; Paul Simon of Illinois; Howard M. Metzenbaum of Ohio, and Patrick J. Leahy of Vermont.

The letter cited concern about Deaver’s activities on behalf of four clients: Canada, South Korea, Puerto Rico and Rockwell International.

Reagan was asked what he thought about appointing a special prosecutor as he stepped off Air Force 1 in Los Angeles.

“I think the whole thing is ridiculous,” said the President, who left Washington earlier in the day on the first leg of his trip to the Tokyo economic summit.

The President also defended Deaver at an April 9 news conference at which he said he had “utmost faith” in Deaver’s integrity and was distressed by criticism of his former deputy chief of staff.

Deaver, a dear friend of Reagan’s for many years, resigned last May 10 to establish a lobbying firm that immediately attracted big-name foreign and domestic clients.

‘Absolute Integrity’

Deaver’s office released a statement saying he is “confident that a presentation of the complete set of facts will show his absolute integrity while in public service and private business.”

Rather than comment on specifics, Deaver prefers “to deal with these allegations in the official investigations that are now in progress,” the statement said.

Federal law makes it a crime for former top government officials to lobby the colleagues with whom they worked for one year after leaving office. For two years, the ex-officials are barred from lobbying on issues in which they were involved.

John Russell, a Justice Department spokesman, said lawyers in the public integrity section will probably spend about a week studying the Deaver file before any preliminary investigation is launched.

Handled by FBI

The FBI would handle such a probe, reporting its findings along with its recommendation to a three-judge panel within 90 days. The court makes the final decision on whether to name a prosecutor.

Meanwhile, White House spokesman Larry Speakes, who was traveling on Air Force 1, said the President “doesn’t have any problem” with allowing Deaver to have Reagan’s daily, private schedule. “Others do,” Speakes added.

Speakes said the private version given to Deaver and a “half-dozen or so” others outside government--mainly former White House staffers and personal friends--is not much different from the public schedule provided to reporters.

But the private schedule contains staff meetings, including those involving national security, and other events, he said.

Secret Service Policy

The Secret Service has a policy of not revealing information about the President’s whereabouts. Asked about the private schedule, spokeswoman Jane Vezeris said: “Nothing has been brought to our attention that has been a security concern.”

Deaver’s lobbying has contributed to intense scrutiny of the issue. Here are some other developments:

- A House Energy and Commerce subcommittee intends to hold hearings on Deaver’s activities in mid-May after receiving a General Accounting Office report, Michael Barrett, the committee’s chief counsel said.

Rep. John D. Dingell (D-Mich.), chairman of the full Energy and Commerce Committee, asked the GAO, the congressional watchdog agency, to investigate Deaver’s role in acid rain issues before he left the White House.

After leaving the public domain, Deaver was paid $105,000 to advise the government of Canada on acid rain policy as well as other issues.

- The Office of Government Ethics is investigating Deaver’s lobbying.

- The Senate Judiciary Committee will hold a hearing on April 29 to study a bill introduced by Sen. Strom Thurmond, (R-S.C.), the committee’s chairman. Among other things, the measure makes it illegal for a small number of high-ranking officials to work for a foreign government after leaving office.

A similar bill has been introduced in the House.