Show NATIONCLASSIFIEDS The Salt Lake Tribune Court Reinstates Fraud Lawsuit Against Bakker THE ASSOCIATED PRESS Va —A federal appeals court reinstated a lawsuit Friday that claims former TV evangelist Jim Bakker defrauded about 150000 people who bought "lifetime partnerships" in his religious empire The 4th US Circuit Court of ct now-defun- CIA: Ames Did More Damage Than Previously Admitted Bakker had been ordered to pay nearly $260 million in damages for fraud Bakker was convicted of criminal fraud and conspiracy in 1989 He has been released on parole and is now under supervision at a halfway house in Asheville NC He is expected to be out in December Bakker raised $158 million by selling about 153000 lifetime partnerships which included timeshare lodging in PTL's Heritage Village a resort in South Carolina Bakker oversold the lodging units and used the funds to pay PTL operating expenses and support a lavish lifestyle As a result many of the investors never received the benefits promised RICHMOND Appeals said US District Judge James B McMillan of Charlotte NC erred when he threw out the securities fraud claims A jury should have considered the matter the appeals court ruled eral's investigation of confessed spy Aldrich that the veteran counterintelligence officer exposed 55 clandestine US and allied operations over nine years far more damage than previously admitted according to sources familiar with a draft of the inspector general's findings e classified document preThe pared under the direction of Inspector General Frederick Hitz attempts to explain what happened as a result of Ames' duplicity and how the longtime officer was able to avoid detection while supplying highly sensitive information to Moscow including the identities of more than 34 secret US and allied agents these sources said The inspector general's report puts the blame initially on the "almost complete indifference of senior CIA supervisors" who beginning in 1986 failed to recognize the importance of their losses and did not put "adequate resources" into the internal search for a Soviet mole The report however focuses solely on the CIA's loss of agents and the Ames case sources said and does not take into consideration CIA performance in other worldwide operations being run by these same officials including covert wars in Afghanistan Angola Cambodia and Nicaragua This broad criticism of the highest ranks of the intelligence agency comes at a time when the future of the CIA is uncertain It is wracked by internal turmoil caused by budget cuts uncertainty about its War mission and allegations of racial and sexual discrimination Congressional critics have become increasingly restive some calling for reorganization and a few for abolition of the agency There also is a cry from Capitol Hill for "heads to roll" as a result of the Ames debacle Ames has found 400-pag- sa9700 Fully Guaranteed Comparabk to models lolling for SI500 OFFER EXPIRES OCT 31 1994 See Ava Ilahle now! 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VERY LOW FEES US-pai- SALT LAKE SINGLE'S Free 1st vistt VERY LOW FEES EASY PAYMENTS US-pai- g BANKRUPTCY WAR CRASHES 12DOWN I plead UP Special 010 Notices then-Sovi- post-Col- d Services VUtJ POST — The CIA inspector gen- WASHINGTON ONLY e inspector general's report on Ames represents "the endgame" in an unprecedented agency scandal that has "shaken this organization badly" The 55 clandestine operations exposed by Ames according to the report is about double the number that the CIA previously has publicly admitted Knowledgeable sources said that the inspector general's report could lead to the reprimanding early retirement or even dismissal of a number of important agency officials In modern times such personnel actions in response to internal crises have been extremely rare at the CIA an agency that has always prided itself on a powerful sense of team loyalty According to the findings in the draft inspector general's report that institutional loyalty and indifference helped protect Ames particularly inside the directorate of operations the largest element of CIA whose roughly 6000 officers manage and conduct clandestine activities For example after a poor performance in Mexico City where he showed bouts of alcoholism and complained about needing money Ames was turned down by the Latin American Division as deputy chief of station in Bogota Colombia Nonetheless when he returned to CIA headquarters he was given a highly sensitive post as chief of the counterintelligence branch of the Soviet Division where he had access to the identities of US and allied-pai- d Soviet agents According to the inspector general's report Ames was chosen for that position by the Division chief because Ames had worked for him five years earlier in New York City There Ames had superbly handled two important Soviet agents one of whom was ArSoviet kady Shevchenko the highest-rankindiplomat recruited up to that point and who eventually defected to the United States The inspector general's report discloses for the first time that Ames at one point had some help from Moscow in avoidingodetection In 1986 Ames told his Soviet handlers in Rome that he feared he would be a suspect when several agents were suddenly arrested The KGB then began an elaborate By Walter Pincus THE WASHINGTON having one of their case officers in tell a CIA contact that he knew Berlin East Moscow had learned of the penetrations through a leak in the CIA worldwide secret communications facility at Warrenton Va For almost a year according to the inspector general's report the CIA investigated its own personnel at Warrenton and Ames went unnoticed When it came to the CIA itself uncovering Ames the inspector general's report found that agency security and counterintelligence operations repeatedly failed to follow up on indications that Ames could be the mole they were looking for The internal "mole hunt" begun in 1986 agents suddenly after the first dozen were arrested or disappeared was halted in 1988 after new agents among the KGB were recruited and the CIA investigators at the Langley Va headquarters underwent a reorganization into a new counterintelligence center Four officers working on the mole hunt were reassigned In 1989 when Ames returned to CIA headOur in Rome a quarters after his three-yea- r CIA employee reported to Ames' superiors that he was spending excessive amounts of money But a security office investigation of his sudden wealth bogged down when CIA security officials haggled over whether they could request his private bank and brokerage starecords At the same time the then-CItion chief in Bogota balked at trying to track down whether Ames had inherited money through his wife Rosario's Colombian family The station head said it would divert from the station's main task of going after drug dealers and would require bribing someone to get will Ames' In 1991 Ames passed a full security review including a polygraph where the machine indicated he showed some deception Ames said in an interview with The Washington Post last April that he talked the young polygraph operator into accepting his responses anyway The IG report confirmed this The IG report along with a psychological profile of Ames and an annex of past CIA internal investigations of its counterintelligence failures is scheduled to be delivered to CIA Director R James Woolsey this weekend diversion that the A senior CIA official said Friday Critical Report Comes at Time Of Great Uncertainty for Agency New Hearing Aid Technology! 140P Saturday September 24 1994 clays 7 Resorts STONES AND Traveli LMVEAWAY Boca Palm Ron 03 and Fort Lauderdale lioacla NOt Pad |