Press release: 1973-01-17: Former General and Secretary Convicted of Trying to Cheat Army

This is an unaltered copy of a press release, for use as a primary source on Sega Retro. Please do not edit the contents below. Language: English Original source: www.nytimes.com (archived)

ALEXANDRIA, Va., Jan. 16 (AP)


Former Brig. Gen. Earl F. Cole and his secretary were convicted in United States District Court today on seven counts of making false statements to cheat the Army.

Cole, 53 years old, was a central figure in Senate hearings on post exchange and civilian contractor actions in Vietnam. He was reduced in rank to colonel and retired from the Army on July 31, 1970, after more than 25 years of service.

The Army said at the time that it was taking the action, which also included stripping him of the Distinguished Service Medal, “because he failed to maintain a high degree of personal and professional integrity.”

An Army spokesman said that after “a careful review of the evidence” it had been decided that no criminal prosecution would be justified.

Each of the violations on which Cole and his former secrectary, Katherine Jean Baker, 49, were found guilty today carries a maximum penalty of five years in prison and a $10,000 fine.

After three days of testimony and arguments, the jury deliberated for six hours before returning verdicts.

Judge Oren R. Lewis set sentencing for Feb. 9 and allowed Cole and Mrs. Baker to remain free on personal bond. Their lawyers said the verdicts would be appealed.

All but one of the charges were connected with trips made by Mrs. Baker and allegedly authorized by Cole during 1968. Cole was the Army's assistant chief of staff for personnel and administration and later was in charge of civil operations and revolutionary development supply in Vietnam.

Cole testified that he had sent Mrs. Baker to the United States to track down missing soldiers in military hospitals and to learn why millions of dollars worth of beer and whisky shipped to Vietnam had never arrived.

The Government charged that the trips had been arranged to allow Mrs. Baker to shop and visit friends and relatives.

The charge not connected with the trips accused Mns. Baker of filing for rent allowances for a period when she was occupying Governmentfurnished quarters.

Cole had been in charge of the post exchange system in Europe from January to September, 1969, when he was abruptly removed from the job.

Later he was recalled to Washington, the Army said at the time, “in connection with the current Senate hearing on alleged irregularities in the operation of noncommissioned officers' clubs.”

In later hearings before the Senate Permanent Investigation Subcommittee in 1971 witnesses testified about Cole's relations with William J. Crum, the so‐called “money king” of Vietnam, and other brokers seeking to get their product sold in post exchanges:

Cole charged that he had been slandered, and, in turn, he was told by Senator Charles H. Percy, Republican of Illinois, that there was a “very good chance” he was guilty of perjury in his sworn testimony and of tax violations.