`Broke' LaRouche siphoned millions from firms, U.S. says

WASHINGTON (AP) - The Justice Department has charged in courtpapers that political radical Lyndon H. LaRouche Jr., who says he ispenniless, has siphoned millions of dollars from three corporationsthe government forced into bankruptcy proceedings.

Interim trustees appointed by federal bankruptcy court assumedcontrol of the corporations yesterday as LaRouche lawyers sought waysto block involuntary bankruptcy. LaRouche followers generally stayedaway from their Leesburg, Va., headquarters, which federal agentsalso have seized.

LaRouche, who left for Europe last December, has acknowledgedfiling no personal income tax returns in more than 10 years,contending he has no income.

The latest allegations about his use of corporate money emergedin the government's court pleadings unsealed yesterday by a federalbankruptcy judge. They cited a pattern of transferring assets fromthe companies "to cover the expenses and luxuries of LaRoucheorganization insiders."

"Millions of dollars have passed through the books with nocorporate purpose, on the whim of Lyndon LaRouche," the papers said."Assets continue to be siphoned off for the personal use of LyndonLaRouche and his cronies.

"The assets are used not only to pay ordinary living expenses ofmembers of the LaRouche organization . . . but also to provide LyndonLaRouche with a mansion and estate."