RICK CALLS ON HILLARY TO COUGH UP SHADY BIZMAN'S DONATIONS

Rick Lazio called on Hillary Rodham Clinton yesterday to turn over to the U.S. Treasury all "ill-gotten" soft money she accepted from a deadbeat businessman.

The Lazio campaign was reacting to a Daily News story that reported that immigrant restaurateur Sant Singh Chatwal, who funneled at least $210,000 in soft money to the First Lady, has been accused of misusing his bank director's position to obtain $14 million in bad loans.

Chatwal, an Indian-American, also owes untold millions to creditors pursuing him, including an estimated $30 million or more in taxes owed to the IRS, the city, the state and several other states.

"Mr. Chatwal owed money to the U.S. taxpayers and instead gave it to Mrs. Clinton's campaign," said Lazio spokesman Michael Marr. "Given Mrs. Clinton's use of the Lincoln Bedroom and Camp David to raise money, perhaps this latest revelation isn't surprising, but it's still wrong."

"It would be appropriate for Mrs. Clinton to turn her campaign's ill-gotten financial gain over to the federal treasury," Marr said.

The Clinton campaign brushed aside questions about Chatwal. "We'll look into the information," Clinton said in Brooklyn, outside the sixth church she visited yesterday.

Apparently aiming to avoid the issue for the remaining two days of the race, campaign spokesman Howard Wolfson, provided with documents and written questions, would say only that "after reviewing the story we will take whatever actions are appropriate."

In September the President and First Lady raised a reported $500,000 in a private party at Chatwal's penthouse, including checks from at least 14 Chatwal businesses.

Editor and publisher Venugopal Naidu of the India Monitor, a local weekly, has criticized Chatwal for years.

Chatwal, who started the Bombay Palace restaurant chain and acquired several New York hotels, has eluded creditors for more than a decade, filing for bankruptcy protection at least 62 separate times. In 1995, Indian banks trying to recoup $22 million in all forced Chatwal into bankruptcy court to liquidate his personal assets.

But he claimed in court to have only $2,600 to his name and no checking account.

Richard Last, attorney for the banks in India, said Friday his clients expect to recover very little. "We lost basically," Last said. "He beat us."

Chatwal's attorney, Mitchell Greene, did not return a telephone call yesterday seeking comment.

Monday, November 6th 2000, 2:14AM
Source: Daily News