Iran-Contra Figures Plead Innocent : North Sees Success; May Subpoena ‘Highest’ Officials

WASHINGTON — With hugs and vows to win acquittal, former Reagan aides Oliver L. North, John M. Poindexter and two associates pleaded not guilty today to charges they ran the Iran-Contra scandal as a vast criminal conspiracy and defrauded the government of $17 million.

Each defendant said “not guilty” in firm, clear tones before U.S. District Judge Gerhard Gesell, formally launching what is expected to be a major legal battle over charges of high-level White House wrongdoing unprecedented since the Watergate trials of 1974-75.

Marine Lt. Col. North, portrayed as the linchpin of secret efforts to sell U.S. arms to Iran and divert proceeds to Nicaragua’s Contra rebels, has said he may subpoena “the highest-ranking officials in our government” in his defense.

Motions on April 12

Gesell set a hearing on pretrial motions for April 12, saying he would move the trial along as quickly as possible.

North, Poindexter, retired Air Force Maj. Gen. Richard V. Secord and Iranian-American businessman Albert Hakim were released on their personal recognizance. Although criminal defendants are often asked to surrender their passports, Gesell did not impose that condition.

Outside the heavily guarded courthouse, where top Nixon White House aides were convicted of Watergate charges, police kept hordes of television cameramen and reporters behind barricades while about 50 North supporters chanted support for their hero and demanded President Reagan pardon him now.

Colleagues Embrace

Inside, before the pleadings, North and retired Rear Adm. Poindexter, his old White House boss, embraced and the dour admiral patted his former aide on the back. Both were dressed in civilian business suits, a recent departure for North, who became famous wearing his trim Marine uniform.

They also shook hands warmly with co-defendants Secord and Hakim. They were North’s chief outside operatives in what is portrayed as a clandestine arms-dealing and money-shuttling network created to sell Iran arms and back the Contras.

The arraignment stemmed from a federal indictment with a total of 23 counts last week against Poindexter, who was Reagan’s national security adviser in 1985-86; North, a Poindexter aide on the National Security Council, Secord and Hakim.

McFarlane Guilty Plea

Robert C. McFarlane, Poindexter’s predecessor as national security adviser, has already pleaded guilty to Iran-Contra misdemeanors under a plea bargain with independent counsel Lawrence E. Walsh. He is expected to testify at the trial.

On his way out, North, who was the object of a popular “Olliemania” craze after his testimony at congressional hearings into the scandal last summer, told reporters:

“I would like to thank the American people for their support and all their prayers. . . . We will see it to a very successful conclusion.”

Poindexter’s lawyer also vowed an all-out defense. The admiral, who has a distaste for the press, merely pointed at his newly sprouted mustache and said, “My wife likes it.”

Instant Pardon Urged

During the arraignment, Sen. Steven D. Symms (R-Ida.) told the pro-North courthouse rally that Reagan should immediately pardon North and Poindexter.

The President has refused to rule out an eventual pardon for his two former aides, whom he regards as patriots who did nothing illegal.

A New York Times-CBS News poll published today said Americans opposed a pretrial pardon for North by 64% to 27%. They divided 43%-43% on a post-trial pardon.

If convicted on all charges, North would face a maximum penalty of 85 years in prison and a $4-million fine. Poindexter would face 40 years and a $1.75-million fine; Secord 29 years and a $1.5-million fine; and Hakim 27 years and $1.25-million fine.