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Haddow Is Sentenced To Year In Prison And Fined $15,000

September 15, 1987 GMT

WASHINGTON (AP) _ C. McClain Haddow, former chief of staff at the Department of Health and Human Services, was sentenced Tuesday to a year in prison for improperly pocketing $55,330 from the government and a private foundation.

U.S. District Judge Gerhard Gesell, sentencing Haddow on two conflict of interest charges, said Haddow breached the public trust with ″a course of conduct which involved concealment, perpetuation and personal gain.″

The judge ordered that Haddow serve the sentence at a minimum-security prison and be released after serving a third of the term. With credit for good time, Haddow would serve 90 days, the judge said.

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Gesell fined Haddow $15,000 and ordered restitution payments of more than $12,000 to the foundation and the government.

Haddow could have been sentenced to up to four years in prison and fined up to $500,000.

Haddow, 37, who pleaded guilty in July, admitted he arranged to receive $33,540 from the private T. Bear Foundation, which he helped set up under government auspices.

The money represented 90 percent of $37,400 in fund-raising fees that the foundation paid to Michelle Magoon.

Haddow also admitted he arranged the award of $25,300 in contracts to two friends to write speeches for then-HHS Secretary Margaret Heckler.

Haddow acknowledged that his friends, Gordon and Susan Jones, paid his wife Alice $21,790 to write the speeches for Mrs. Heckler, according to a statement of facts.

Gesell rejected Mrs. Heckler’s denial in a recent FBI interview that Mrs. Haddow wrote speeches for her.

The judge found Mrs. Heckler ″made use of the work of your wife to a considerable extent. I believe her knowledge was greater than she now professes.″

Haddow, a former member of the Utah legislature and a former aide to Sen. Orrin Hatch, R-Utah, contended Mrs. Heckler wanted his wife to write her speeches because she liked her writing style.

But Mrs. Heckler, now U.S. ambassador to Ireland, ″wanted me to conceal this activity and I cooperated.″

″It was a decision by Mrs. Heckler to conceal it for her own reasons,″ Haddow told the judge.

In the FBI interview alluded to during the 90-minute proceeding, Mrs. Heckler called ″preposterous″ the suggestion that she had speeches written by Mrs. Haddow.

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Quoting from Shakespeare, defense attorney Brian Gettings said ″methinks the lady doth protest too much.″

Haddow denied he intended to defraud HHS or the foundation, which was set up to raise private money to promote handwashing by health professionals to reduce infections in hospitals, day-care centers and nursing homes.

Prosecutors agreed to drop five other charges of mail fraud and the filing of false statements in return for Haddow’s guilty plea to the two ethics charges.

Justice Department attorney G. Allen Carver Jr. said Haddow ″characterized his actions as merely a failure to get away with it.″

″What occurred here was specific actions of conduct designed to enrich the defendant and his family,″ Carver said.