When prosecutors filed insider-trading charges against a group of prominent New York socialites on June 4, the news shocked the Long Island enclave of Southampton. There, the government contends, in a mansion on Ox Pasture Road, Edward R. Downe Jr. swapped inside corporate information with at least six friends. During parties, over poker, and on yachting excursions in the late 1980s, Downe allegedly provided this inner circle with stock tips that enabled the group to reap more than $23 million in profits. Downe has pleaded guilty to related criminal charges, while retired Kidde Chairman Fred R. Sullivan settled civil charges of giving Downe a takeover tip. Sullivan agreed to pay $58,000 in penalties.
Clinton pardoned the man on his last day in office.
In the case of Marc Rich, a fugitive billionaire indicted on tax evasion and other charges, the prosecutors were not consulted at all. Mr. Clinton pardoned Mr. Rich, whose ex-wife, Denise, has been a benefactor of Democrats, including Mrs. Clinton. Ms. Rich wrote to the president asking for the pardon.
Ms. White’s office learned last Friday that Mr. Clinton would pardon Edward R. Downe Jr., a onetime socialite and investor who gave $1,000 to Mrs. Clinton’s campaign and was invited to a state dinner at the White House last year. By that time, it was too late for the office to weigh in against Mr. Downe, according to a government official.
Three United States senators supported the application, the official said, declining to identify them.
Mr. Downe pleaded guilty in the early 1990′s to insider trading and was sentenced to probation and stiff fines. He has also been a contributor to other Democrats. In a telephone interview, Mr. Downe declined to say whom he had enlisted in his bid for a pardon. ”I think that it is wonderful to have, and it will make my grandchildren very happy,” he said.
We now know that Chris Dodd was one of those unidentified Democrats and that he bought out Downe’s share of the infamous Irish cottage for a below-market price shortly thereafter. I’m sure Downe’s grandchildren understood this tit-for-tat and probably don’t resent the Connecticut senators’ theft of their patrimony. After all, Pop Pop did get pardoned and was spared paying an $11 million fine. What’s the value of a bog cottage compared to that?
Update: in 2006, Downey joined the board of the Thomas J. Dodd Research Center at UConn. I don’t know what a board seat sells for but I’m sure Chris was delighetd to receive the proceeds in honor of his disgraced father.
