Iran Ties to Campaigns Denied by Conservative Fund-Raiser

WASHINGTON —  Conservative fund-raiser Carl Russell (Spitz) Channell dismissed Tuesday as “outrageous, libelous lies” allegations that an organization he heads helped funnel some Iranian arms sales profits into American political campaigns.

In a statement, Channell promised that an upcoming audit will show that funding for his conservative groups came only from “patriotic American citizens who ardently support the policies of President Reagan.” He did not say when that audit will be released.

The Sun, a Lowell, Mass., newspaper, reported Sunday that fired National Security Council aide Oliver L. North diverted $5 million in proceeds from the secret U.S. arms sales to Iran for use in television commercials against members of Congress and others who opposed aid to the Nicaraguan rebels. It said some of the money was funneled through the National Endowment for the Preservation of Liberty, a conservative Washington-based group headed by Channell.

Story Not Verified

The newspaper did not identify its sources on the story, and The Times has been unable to verify the report independently.

Channell said in the statement that his organizations “have never received any monies from or through sources related to either a foreign citizen, bank, corporation or nation. Nor have they ever been solicited or offered.”

Channell last week told the Miami Herald that the groups he directs spent “$4 million or $5 million or more” on commercials aired in 37 states.

Reports and rumors of possible diversion of the arms profits into political campaigns have triggered outrage on Capitol Hill. Rep. Michael D. Barnes (D-Md.), who was one of the targets of the advertising, has called for an investigation.

Also raised was the issue of whether North violated a Defense Department policy prohibiting U.S. military officers from engaging in partisan political activities.

Sought-After Speaker

North, who was the NSC’s point man in efforts to help the Nicaraguan contras , had long been considered one of the most sought-after speakers participating in a White House Office of Public Liaison project aimed at generating public support for the Administration’s Central American policy.

Jack Abramoff, former executive director of Citizens for America, a group headed by businessman Lewis E. Lehrman, said he relied on North for advice and information. Abramoff said, however, that North did not get involved in political fund raising.

Former National Security Adviser Robert C. McFarlane told an interviewer last year that North had briefed 100 groups at McFarlane’s direction.