White House spokesman Larry Speakes said yesterday that National Security Council officials are studying a request by a House subcommittee chairman for the background investigation report on NSC deputy assistant Thomas C. Reed, whose 1981 stock dealings are being investigated by a federal grand jury in New York.
The request was made by Rep. John D. Dingell (D-Mich.), whose subcommittee on oversight and investigations is reviewing how the Securities and Exchange Commisssion settled a civil complaint against Reed. In late 1981, the SEC charged Reed with using inside information to turn a $3,125 investment in stock options into a $427,000 windfall.
The March, 1981, transactions involved the Amax Corp., whose board of directors includes Reed's father and a longtime family friend. Reed was required to return the $427,000 and sign a pledge not to use inside information for stock trading in the future. He could not be reached for comment, but he has denied any wrongdoing.
Speakes said national security adviser William P. Clark and a lawyer from the office of White House counsel Fred Fielding would examine Dingell's request for records to "see if we can comply."
Subcommittee investigators have said no one from the White House, NSC or FBI reviewed the SEC investigative files before Reed was appointed special assistant to the president for national security affairs last June.
On Friday, U.S. Attorney John S. Martin Jr. said in New York that he was "in the preliminary stage of investigation" in the Reed case.
Subcommittee investigators said yesterday, however, that they have determined from SEC records and other other sources that federal prosecutors and grand juries in Washington, San Francisco and New York began criminal inquiries in the Reed case as early as March, 1981.
These sources said that details and results of the earlier inquiries were not immediately apparent but that the Justice Department had been forced last year to sort through the conflicting investigations and consolidate the cases in New York.
Prosecutors in San Francisco could not be reached for comment. Contacted in New York, Martin would not comment on any earlier probe and referred questions to Rudolph W. Giuliani, associate attorney general, who could not be reached.