Former Heckler Assistant Indicted for Fraud, Lying

WASHINGTON —  The former chief of staff of former Health and Human Services Secretary Margaret M. Heckler was indicted today for mail fraud, lying and engaging in a conflict of interest by allegedly using his official position to promote a company in which he was a director.

The seven-count indictment issued by a federal grand jury accused C. McClain Haddow, a key adviser while Heckler was secretary, of persuading private companies to make donations to a nonprofit organization from which Haddow and his wife then received more than $33,000.

He held numerous conversations with corporate executives and mailed a letter to Upjohn Co. urging it to make donations.

The nonprofit group, T. Bear Foundation Inc., was created largely through Haddow’s efforts and was set up to promote department efforts to reduce infections in hospitals, day-care centers and nursing homes through a hand-washing campaign. He served as its unsalaried vice president and director.

Urged Contributions

Money from T. Bear, the indictment said, was funneled to Haddow and his wife through an associate, Michelle Magoon.

The indictment said Haddow repeatedly urged executives of private companies, including Abbott Laboratories and Eli Lilly & Co., to contribute money to T. Bear.

While he was at HHS, Haddow participated in matters involving T. Bear after signing a waiver saying that he received no financial returns from the foundation. The indictment accuses him of lying when he signed the waiver form.

The indictment concluded that his activities violated a provision of federal conflict-of-interest laws.

Speech-Writing Campaign

The indictment also said Haddow lied and was involved in a conflict of interest in connection with a speech-writing campaign for the department that involved his wife and Magoon.

According to the charges, Haddow falsely told a department official that Magoon and another woman, Susan Jones, could supply speeches written in a style compatible with Heckler’s.

The department paid more than $25,000 for Jones’ speeches, and the indictment alleged that Haddow and his wife had “a large share of each payment.”