North, Poindexter Among Four Indicted

WASHINGTON--President Reagan's former national security adviser, John M. Poindexter, and fired White House aide Lt Col. Oliver L. North were indicted yesterday along with two arms dealers on charges they conspired to divert Iranian arms sales profits to the Nicaraguan contras.

The long-awaited 23-count indictment, which also named retired Air Force Maj. Gen. Richard V. Secord and his business partner. Albert Hakim, said the four men "deceitfully and without legal authorization" organized, directed and concealed "a program to continue funding of and logistical and other support for military and paramilitary operations in Nicaragua by the Contras" at a time U.S. law barred such action.

The indictment charged that proceeds from the $30 million worth of U.S. arms sales to Iran were diverted illegally to foreign bank accounts controlled by Secord and Hakim for their personal financial gain.

Only $12.2 million from the arms sales was turned over to the U.S. government, according to the indictment.

Hakim and Secord also were charged with conspiring to pay illegal gratuities to North by arranging the installation of a security system at the Marine officer's home and by creating a $200,000 fund for his family in a Swiss bank.

Outside the U.S. Courthouse, Iran Contra Independent Counsel Lawrence F. Walsh told reporters the investigation was continuing but declined to say whether there would be any more criminal charges brought in the case.

"The grand jury is not finished," Walsh said. "This is simply an interim report."

North, who was fired from his job as a National Security Council aide in late 1986, said: "I did not commit any crime. I intend to fight the allegations of wrongdoing for as long as necessary."

His voice breaking, North said the months ahead will be difficult. But he added: "Nonetheless, I can asure you, I will never give up, we will win, I just cannot tell you how soon."

North's attorney, Brendan V. Sullivan Jr., told reporters it will be necessary to call high-ranking officials to North's trial.

Secord, appearing on ABC-TV's "Nightline" program called the indictments "crazy. There's going to be no plea. We're going to defend this case successfully, and I think the IC [independent counsel] is going to be looking very silly very soon."

Poindexter's lawyer, Richard Beckler, told The Washington Post: "It's a shame that a man who worked as hard as he did in carrying out the national security obligations at the White House is involved in the criminal case. We're going to vigorously contest this case."

White House spokesman Marlin Fitzwater said Reagan was informed of the indictments by Kenneth Duberstein, his deputy chief of staff. Speaking of Reagan, Fitzwater said, "He had no response," He said there was no White House comment because "It's a matter before the courts."

Just hours before the indictment, Reagan was asked if he still stood by his assertion that no laws were broken in the Iran-Contra affair. "I have no knowledge of anything that was broken," he replied.

The indictment, among other things, charged that North and Secord conspired to divert millions of dollars from the sale of U.S. government arms to the alleged "Enterprise."

Among other things the indictment charged that North persuaded the CIA to lower its price from $6000 to $3469 for each of the 1000 TOW missiles sold to Iran in February 1986 even though the Iranians were paying $10,000 apiece.

As a result, the "Enterprise" kept more than $6 million and turned over only $3.7 million to the U.S. government, the indictment said.

In May 1986, only $6.5 million of the $15 million that Iran paid for spare Hawk missile parts was turned over to the U.S. government, leaving nearly $8.5 million for the "Enterprise," the indictment said.

All four defendants were charged with conspiracy to defraud the government and commit criminal offenses against it, theft of government property and wire fraud arising from the diversion of arms-sale proceeds.

These charges together carry maximum penalties of 25 years imprisonment. Each of the three chargess carries a potential $250,000 fine.