MIAMI — A protege testified Wednesday against a former
president of the University of South Carolina that it was a mistake
to get involved with a purported Russian mobster in need of visas
and laundered drug profits.
That mobster turned out to be an undercover officer.
“I don’t know whose idea it was to start with, but I agreed I was
there for that purpose,” said Rafael Diaz Cabral, a former Texas
college administrator and intern for ex-university president James
Holderman. “Dr. Holderman knew as well as I did what we were
doing.”
At times, Diaz sounded vague about his own criminal actions and
agreed with the defense that he was motivated to help his father
sell his license for a casino in the Dominican Republic.
“You didn’t want to launder money. You didn’t want to get
involved in visa fraud. You just wanted to help your dad,” said Neil
Nameroff, Holderman’s attorney. Diaz agreed.
Diaz testified that he was “very suspicious” of the purported
mobster but added, “To be quite honest, I didn’t want to know what
his business was ... after we helped him.”
Holderman had taken $7,500 to help get a visa for the officer in
a false name. Diaz said he and Holderman later agreed to try to get
student visas for the officer and as many as 200 associates through
Diaz’s Brookhaven College, a Dallas community college.
Diaz said that idea fell through when he realized they couldn’t
come up with immunization and other records required to enroll
students. The next plan was to have the officer buy the Dominican
casino for $250,000, which would allow him to get Dominican
residency and immigration papers.
With that in hand, prosecutors said the officer could turn around
and get a multiple-entry U.S. travel visa. The officer said he had
arrived in the United States by boat from the Cayman Islands.
Holderman and Diaz were arrested counting out money from $400,000
dumped by the officer on a table during a hotel meeting last March.
Diaz said he would take $15,000 to the Dominican Republic to begin
work on the visa deal.
Diaz said he and Holderman agreed to split their profits
50-50.
Diaz, 39, of Greenville County, quit as a vice president of the
Dallas college after his arrest. He is to start serving a 14-month
prison sentence in November.
Holderman, 67, of Charleston, landed visits by Pope John Paul II
and President Reagan during his 13 years as head of USC.
He dropped the names of White House chief of staff Andrew Card,
former U.S. Secretary of State Lawrence Eagleburger and former White
House chief of staff Howard Baker during the nine-month
investigation. Diaz said Holderman knew all three.
Nameroff claims Holderman is a victim of government entrapment
because no crime would have occurred without the undercover push, no
money was ever laundered and he never accomplished any visa
fraud.
During cross-examination of the officer, Miami Beach police
Detective Sgt. Peter Smolyanski, Nameroff indicated Holderman was
running a small-time scam because he was desperate for money to
treat his bipolar disorder and never intended to commit big-time
federal crimes.
“At some point, didn’t you scratch your head and say, ‘Wait a
minute, this doesn’t make sense,’” Nameroff asked.
Jurors have been told that Holderman pleaded guilty to bankruptcy
fraud in 1996. He also pleaded guilty to receiving extra
compensation and no contest to state tax evasion charges in a
university financial scandal that ended his career in 1990.
Holderman plans to take the stand today, and the jury should get
the case later in the
day.