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July 15, 1981 - Image 2

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Publication:
Michigan Daily, 1981-07-15

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Page 2-Wednesday, July 15, 1981--The Michigan Daily
Millionaire spy
charged with
illegal practices

From AP and UPI
WASHINGTON-Max Hugel, a
millionaire whose appointment irked
career intelligence officers, resigned
yesterday as overseer of the CIA's spy
network hours after allegations that he
gave inside information about a firm he
once headed to two Wall Street brokers:
Hugel called the allegations in
yesterday's Washington Post by two
former business associates "unfoun-
ded, unproven and untrue."
HUGEL WENT to the Post on Friday
to rebut the information the newspaper
was preparing to publish. He was ac-
companied by his lawyers and CIA
general counsel Stanley Sporkin. Upon
learning what the paper planned to
publish, Sporkin told Post editors he
had to "make a recommendation," ap-
parently to CIA Director William
Casey about Hugel.
The Post based its report on the
allegations of two former Wall Street
brokers, Thomas McNell, and his
brother, Samuel McNell, that they
joined Hugel in the mid-1970s in
prohibited actions intended to boost the
stock of his New York wholesale firm,
Brother International Corp.
The newspaper said Hugel called the
McNell brothers "vindictive" people
who first attempted to swindle him and
later to "blackmail" him.
HUGEL SAID in a statement issued
through his attorney Monday night and
printed by the Post, "I have never
made a penny of unlawful profit or done
anything else to bring discredit upon
my company, my family, myself or the
United States.
"I deny any wrongdoing, and I can
demonstrate that none was intended or

committed."
At the White House, chief spokesman
David Gergen said Casey discussed the
impending Post story last Thursday
with White House Chief of Staff James
Baker III and White House Counsel
Fred Fielding and that Fielding met
later with Hugel.
THE CIA DOES not announce in-
house appointments, but it was learned
in. mid-May that Casey had selected
Hugel, a 56-year-old New Hampshire
executive who had worked with Casey
on Ronald Reagan's presidential cam-
paign, as deputy director of operations.
As "DDO," Hugel, whose intelligence
background was limited to post-war
work with the Army in Japan, was in
command of the agency's clandestine
service. He was responsible for world-
wide intelligence-gathering and for the
CIA's most delicate covert operations,
such as supporting guerrilla fighters or
trying to influence foreign politicians.
Former CIA officials complained
Hugel was unqualified, but Casey's
closeness with Reagan allowed him the
freedom to pick his own man.
CASEY DEFENDED Hugel as an
aggressive businessman, who had
worked well as an organizer of ethnic
groups in the Reagan campaign and
would bring an independent view to the
CIA.
But, Hugel said in a letter to Casey,
"Under-present circumstances, I feel I
can no longer effectively serve you or
the agency."
Accepting the resignation 'with
deepest regret," Casey appointed John
Stein, a career intelligence officer, as
Hugel's permanent replacement.

Today
Video kids
T HE WAY POLICE IN Norfolk, Va. tell it, the two teen-agers were so
caught up in an electronic space game that they played until dawn,
stopping only for beer, ice cream and candy. They were still at it when a
clerk arrived at 5:20 a.m., and because the store was closed, he called police.
"They forgot what time it was," said Police Detective W. L. Garrison of
Mark Alan Jeffers, 18, and a 16-year-old unidentified juvenile. Both were
charged with burglary Tuesday, Garrison said. The detective said the
youths told police they had been playing "Defenders" at the convenience
store and a clerk pulled the plug before they could play the final game. After
midnight, they climbed on the roof, slid down an air-conditioning vent,
walked across some rafters and dropped into the store, Garrison said.
"They really couldn't get back out," he said. "They had just gotten so in-
volved in the . .. game that they didn't think about getting out." Q
The elusive Oscar
O SCAR THE alligator has turned up his snout at fast-food chicken,
and nothing else seems to be able to tempt the gadabout gator out of a
neighbor's pond, either. An effort by Oscar's owner, Charles Mudd, to lure
his four-foot, eight-pound reptile back home after an escape more than a
week ago ended in failure Monday night, and Mudd isn't sure when he'll try
again. Mudd said crowds drawn to the edge of a pond, owned by Gerald Can-
non, have excited Oscar, and Mudd can't get close enough to pull the
creature into a boat. Local television stations have sent crews to the pond,
hoping to catch sight of the elusive alligator, and The Indianapolis Star has
begun a "Gator Watch" column. The city's Humane Society sent employees
out to baita trap on the shore with chicken parts. Numerous people have of-
fered to wrestle Oscar from the pond and crowds of curious on-lookers are
beginning to irritate the Cannons. "I wish they would just stay away and let
the authorities take care of the situation," Cannon said Monday. Oscar slip-
ped from Mudd's pickup truck through a cracked window and was spotted by
Cannon on Friday. "I just forgot to roll the windows up all the way," says
Mudd, who concedes he isn't all that anxious to reclaim his pet. "If it wasn't
for all the fuss, I probably would have just forgotten about him after he
escaped and let him go forever," he sajd. Q
Today's weather
Partly cloudy today with a high in the lower 80s. A low tonight is expected
around60.0.
Happenings ...
Films .
C2-The Island, 7:30 pp.m., Tokyo Story, 9:30 p.m., Lorch Hall Aud.
CFT - Autumn Sonata, 4,7 & 9 p.m., Michigan Theatre.
Miscellaneous
School of Music-Organ Recital, R. David Thompson, MM: Hill, 8 p.m.
Ark - Concert, Open Mike Night, 9 p.m., 1421 Hill St.
Karma Thegsum Choling-Meditation, 7 to 9 p.m., 734 Fountain.
ARK-Hoot night, open mike, 9 p.m., 1421 Hill.
Rackham Christian Forum-Meeting, noon, Michigan League studio.
The Michigan Daily
tip
Vol. XCi, No. 40-S
Wednesday, July 15, 1981
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