>>March 2, 2001

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Russia recants spy charges against jailed grad student

MOSCOW - Russian security officials reversed themselves Wednesday and said that a U.S. postgraduate student jailed in southern Russia on marijuana charges was not involved in spying.


The Federal Security Service (FSB, in its Russian initials) said John Edward Tobin, 24, whom it originally had identified as Tobin, remains under investigation for drug possession. But the agency softened its earlier assertion that the American scholar was linked to the U.S. defense community and appeared to be in Russia training as a spy. The FSB is the successor to the KGB, the Soviet security agency.


Tobin remained Wednesday in a preliminary detention cell in Voronezh, about 300 miles south of Moscow, with three other inmates while officials investigate if he was selling drugs out of his Voronezh apartment. He was charged with drug possession after authorities arrested him Feb. 1 in Voronezh with 1.5 grams of marijuana. Another 3.5 grams were found in his apartment, the FSB said.


Tobin is a postgraduate student at Voronezh State University, where he was preparing a thesis on Russian politics in the post-Soviet era.


"The political information that Tobin was gathering is within the limits of his thesis and did not inflict any damage on Russian security," said Pavel Bolshunov, a spokesman for the FSB's Voronezh office.


On Tuesday, Bolshunov charged that Tobin was connected to the "U.S. special services" and appeared to be in Russia awaiting his "main appointment," an allegation that was widely broadcast by the Russian media and reported in the United States by Knight Ridder and others. But on Wednesday, the FSB spokesman said his agency has "no security-related questions for this American citizen."


The FSB announced Tobin's arrest only Tuesday. Russian officials said they were concerned about his background as an Army reservist who underwent Russian language training at a U.S. defense facility in Monterey, Calif., and attended a military intelligence school in Fort Huachuca, Ariz.


A spokesman at Fort Huachuca said Tobin attended the basic interrogation course from March 3 to April 29, 1997, while he was a private first class in the Army Reserve.

Fund-raisers charged with ties to anti-Iranian group

LOS ANGELES - Five Iranian nationals and two Iranian-Americans appeared in federal court in Los Angeles Wednesday on charges of raising more than $1 million to fund terrorist activities abroad.


Most of the money was solicited from unsuspecting travelers at Los Angeles International Airport and sent to bank accounts in Turkey controlled by an anti-Iranian government group called the Moujahedeen Khalq, according to the Federal Bureau of Investigation.


The FBI arrested the seven people Tuesday after a three-year investigation, said James V. DeSarno Jr., assistant director in charge of the FBI Los Angeles office.


All seven are suspected of being members of what the FBI called a cell of Moujahedeen Khalq, although at least one of those arrested denied belonging to the group. The Moujahedeen Khalq, also called MEK, routinely solicits money, usually from Asian travelers, at airports on behalf of a charity called the Committee for Human Rights. The travelers are shown photographs of starving children and victims of alleged Iranian government atrocities and told the money is used to support these refugees. The FBI says the group raises between $5,000 and $10,000 daily just in Los Angeles.


The FBI says the Committee for Human Rights is a sham charity. The money, the agency alleges, is funneled to MEK bank accounts in Turkey. From there, investigators allege, more than $400,000 has been transferred to an auto-parts store in the United Arab Emirates.

Combs ready to take the stand in shooting case

NEW YORK - As Sean "Puffy" Combs prepared to give his version of a 1999 nightclub shooting, lawyers in the gun and bribery case argued Wednesday over what the hip-hop mogul's ex-girlfriend, Jennifer Lopez, told a grand jury last year.


Combs' lawyer continued to dangle the tantalizing possibility that Lopez would take the stand in Combs' defense.


"My expectation would be to call Mr. Combs and after he completes his testimony, we'll rest," Combs' lawyer Benjamin Brafman told State Supreme Court Justice Charles Solomon in Manhattan Wednesday. "The additional evidence may or may not include Ms. Lopez. We'll alert you."


Later, Assistant District Attorney Matthew Bogdanos squared off with Brafman over Lopez's account of events on Dec. 27, 1999.


The singer is crucial because she drove in from Long Island with Combs and accompanied him to Club New York where three people were later shot.


The couple fled the nightspot with bodyguard Anthony "Wolf" Jones in Combs' Lincoln Navigator.


Lopez was initially arrested after police found a gun in the Navigator and was in a station house holding cell with the defendants when Combs allegedly offered his driver, Wardel Fenderson, a $50,000 bribe to claim ownership of the weapon. Charges against her were eventually dropped.

Greenspan seems gloomier about economy

WASHINGTON - Telling Congress the economic slowdown "has yet to run its course," Federal Reserve Board Chairman Alan Greenspan signaled Wednesday he is ready to cut interest rates for a third time this year - but he didn't say when.


The Fed chief implied the central bank might be inclined to wait until its March 20 meeting before taking such a step. That hint sent the weak stock market into another tumble, chiefly because investors had been expecting faster Fed action on the heels of this week's disappointing economic news.


Many analysts have said they believe the Fed will lower interest rates by another one-half of 1 percent, following up on two cuts of that magnitude in January. The chairman did not tip his hand, but his analysis of economic developments - including a collapse in consumer confidence - appeared to tip opinion in favor of such a cut.


"Changes in consumer confidence will require close scrutiny in the period ahead," Greenspan said, citing two recent reports that this important gauge of consumers' attitudes had deteriorated in February.

Previously, the Fed chief had told Congress that he feared a break in consumer confidence as a result of the economic slowdown.

 
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