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This episode, of course, suggests that someone may have tipped Billy off that the Justice Department had learned about the payments. Press Secretary Jody Powell insists that no one in the White House did so; he speculates that the FBI's questioning of many of Billy's associates or banking acquaintances could easily have aroused Billy's suspicions about the agents' knowledge. Anyone in the White House or elsewhere who warned Billy risked prosecution for obstructing justice.
After his telephone call to the Justice Department on June 10, Billy asked to see Brzezinski the following day to inquire whether he could reveal all his dealings with the Libyans, including his role in seeking Libya's help on the hostages, without violating any national security considerations. Brzezinski quickly summoned Counsel Cutler, and the two advised Billy that he was free to tell the Justice Department about the meetings.
Cutler understandably was appalled that Billy was being quizzed by Justice Department lawyers without the help of his own counsel, and, getting the White House even further involved in the case, referred him to a number of Washington-based lawyers. Cutler recommended, among others, Henry Ruth, the former Watergate prosecutor, and Stephen Pollack, who had successfully defended Hamilton Jordan, the White House chief of staff, against charges of using cocaine.
Finally, the President broke his long silence and briefly telephoned Billy twice. On June 28, in a three-minute call, Jimmy asked Billy how he was dealing with the investigation. Billy assured his brother that he had good lawyers and was responding to the Justice Department's questions. Billy's lawyers, meanwhile, were keeping Cutler advised on the case. When they told Cutler that Billy still did not want to register as a foreign agent, Cutler told the President, and on July 1, Jimmy called Billy again to urge him to make a full disclosure of his Libyan connections.
On July 11, still not sure they could successfully bring a criminal action against Billy because of the rigid terms of the registration act, Justice Department lawyers worked out a settlement. In the agreement, Billy admitted that he had been acting as an agent of the government of Libya and that he had received a "loan" from the Libyans, although there are no supporting papers. "Under protest," Carter registered as a foreign agent on July 14. He has since said that he has no plans to work for the Libyans, but he could still make money from his contract with Charter. He will need every cent. In April, the Internal Revenue Service clamped a lien for back taxes on 38.6 acres that are part of the 58-acre site of his home in Buena Vista, Ga.
On July 15, Billy angered his brother by telling reporters that he had never talked to the President about the status of his case. Jimmy told newsmen on July 17 that he had talked to Billy one time earlier, apparently forgetting his first brief call on June 28. The President told his aides that his brother must have thought the denial would protect him, when, in fact, it embarrassed him.
The news that Billy had admitted accepting $220,000 from his Libyan friends and had