FOR IMMEDIATE RELEASE	CRM

MONDAY, JULY 13, 1998	(202) 616 2777

	TDD (202) 514 1888

 
KANCHANALAK AND KRONENBERG INDICTED


 
	Attorney General Janet Reno announced that the Justice Department's Campaign
Financing Task Force today secured the indictment of DNC fundraiser Pauline Kanchanalak,
47, and her business associate and sister in law, Duangnet "Georgie" Kronenberg, 41.  The
24 count indictment charges the pair with conspiring to impair and impede the Federal
Election Commission (FEC) and to cause the submission of false statements to the FEC.

 
	Praitun Kanchanalak (Kronenberg's mother and Pauline Kanchanalak's mother in law),
and Jeb Kanchanalak (Pauline Kanchanalak's husband) were named as unindicted
coconspirators.

 
	"The Campaign Financing Task Force has brought new charges against four defendants
in 6 days," said Reno.  "This is our largest criminal investigation, and the Justice Department
has charged ten individuals so far."

 	

	Pauline Kanchanalak, a Thai citizen, is prohibited by federal election laws from making
contributions in connection with the nomination and election of candidates to political office.

 
	According to the indictment, Pauline Kanchanalak and Georgie Kronenberg used funds
from foreign corporations and individuals (including Pauline and her husband Jeb) to make
prohibited campaign contributions, totaling at least $679,000 to the DNC and other political
committees located in the United States.  The foreign sourced money was funneled through the
accounts of Georgie Kronenberg and Praitun Kanchanalak, both of whom, as greencard
holders, are entitled under the federal election laws to make contributions with their own
funds.

 
	The indictment alleges that through these circuitous contributions, Pauline Kanchanalak
and Georgie Kronenberg gained access to the President and various members of the
Administration; this access was intended by the defendants to impress clients and help their
business ventures.  

(MORE)


	As set forth in the indictment, the largest recipient of the illegal contributions was the
DNC, which received more than $333,000.  Various state Democratic parties (including
California, Florida, Illinois, Ohio, and Pennsylvania) also benefitted from the illegal scheme. 
So too did many Democratic candidates for both federal and state office.

 
	Defendants Pauline Kanchanalak and Georgie Kronenberg are also charged with 13
counts of causing false statements to be filed with the FEC.  These charges stem from their
having arranged for contributions to the DNC and various Democratic candidates in the name
of legal contributors (Georgie Kronenberg and Praitun Kanchanalak) when in fact the true
source of the money was non greencard holders and foreign corporations.

 
	Both the DNC and the political committees of candidates for federal office are required
by law to file reports with the FEC detailing the amount of money they have received and the
source of the funds.  Because the true source of the money was not specified to the DNC and
political committees, the information they passed on to the FEC was inaccurate. 

 
	In addition to the prohibitions against contributions by foreign nationals, federal
election law prohibits conduit contributions (made in the name of another) as well as corporate
contributions.  The indictment alleges that Pauline Kanchanalak and Georgie Kronenberg
violated the ban against corporate contributions by funneling corporate funds into accounts
held in the name of Georgie Kronenberg and/or Praitun Kanchanalak, and then having Georgie
Kronenberg and Praitun Kanchanalak make campaign contributions to the DNC.

 
	Finally, both Pauline Kanchanalak and Georgie Kronenberg are charged with
conspiring to obstruct justice by having corporate documents removed and computer hard
drives erased in an effort to destroy and/or conceal records that were relevant to the federal
grand jury and congressional investigations of financing irregularities.  Georgie Kronenberg is
a resident of McLean, VA.  Pauline Kanchanalak is currently believed to be in Thailand.

 
	On July 9, fund raiser Howard Glicken was charged with soliciting a political
contribution from a foreign national and causing it to be made in someone else's name.  Maria
Hsia was indicted July 7 on four tax counts, and on February 18 with conspiring to defraud
the United States and causing false statements to be submitted to the FEC.  On March 5, Johny
Chung was charged with using straw donors and his own donations to exceed federal limits in
contributing to Clinton/Gore and Senator John Kerry reelection campaigns.  On January 29,
Charlie Trie and Antonio Pan were indicted on 15 charges, including obstruction of justice and
various crimes relating to campaign financing.  Last year, the Task Force obtained guilty pleas
from Democratic fund raisers Nora and Gene Lum, their daughter Trisha, and Michael Brown
for illegal fund raising activities after their cases were referred from Independent Counsel
Daniel Pearson.

 
	All charges made by the government are merely accusations, and all criminal
defendants are presumed innocent until proven guilty.

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