In Re SEALED CASE

                  United States Court of Appeals

               FOR THE DISTRICT OF COLUMBIA CIRCUIT

       Argued February 25, 2000      Decided July 14, 2000 

                           No. 99-3125

                       In re:  Sealed Case

          Appeal from the United States District Court 
                  for the District of Columbia 
                         (No. 98ms00003)

                            ---------

     Before:  Williams, Ginsburg and Rogers, Circuit Judges.

     Opinion for the Court filed by Circuit Judge Williams.

     Williams, Circuit Judge:  A lawyer resisted compliance 
with a federal grand jury subpoena on grounds of privilege, 
and the government filed a motion to compel compliance.  
Finding the documents privileged, the district court reviewed 
them in camera and found them subject to the crime-fraud 
exception.  Accordingly it ordered them produced.  We re-
verse:  the understanding of the federal elections laws sup-
porting application of the crime-fraud exception is erroneous.

                             *  *  *

     Because this case is under seal we endeavor to provide no 
more information than is necessary to our disposition.  Prin-
ciples governing the relationships of courts and agencies, 

however, compel us to address--and, indeed, ultimately defer 
to--a civil enforcement recommendation issued by the Feder-
al Elections Commission ("FEC") when the matter was be-
fore it.  See In re RNC, Alec Pointevint, and Haley Barbour, 
Matter Under Review ("MUR") 4250.  We thus divulge facts 
of the case to the extent they appear in the Statement of 
Reasons associated with the MUR, Statement of Reasons of 
Commissioners Wold, Elliott and Mason, MUR 4250 (Feb. 11, 
2000), a document that 11 CFR s 4.4(a)(3) requires be made 
public.  Of course, the subject of this case might theoretically 
be different from that of the Commission proceeding, but the 
factual similarity is so obvious that it would be pointless to 
suppress the actual names.

     In May 1993 three officials of the Republican National 
Committee ("RNC"), including the Chairman Haley Barbour, 
founded the National Policy Forum ("NPF"), a separately 
incorporated, not-for-profit think tank.  Through September 
1994 NPF received loans totaling $2,345,000 from the Repub-
lican National State Elections Committee ("RNSEC").  
RNSEC is a "nonfederal" account of RNC and thus is not a 
"political committee" for purposes of certain disclosure re-
quirements and contribution rules of the Federal Election 
Campaign Act of 1971 ("FECA"), 2 U.S.C. s 431 et seq.  See, 
e.g., id. s 433 (registration requirements of political commit-
tees), s 434(a)-(b) (reporting requirements of political com-
mittees), s 441a(1)-(2) (limitations on contributions to and by 
political committees).

     In September 1994, when NPF still owed RNSEC 
$2,145,000, Barbour and other NPF and RNC officials arrived 
at an agreement with Ambrous Young, a foreign national.  
Young's corporation, Young Brothers Development, Ltd.-
Hong Kong ("YBD-Hong Kong"), would provide $2,100,000 in 
collateral through its U.S. subsidiary to secure a loan of that 
amount from Signet Bank to NPF.  On October 17, 1994 
Signet disbursed the loan to NPF, and on October 20 NPF 
used $1,600,000 of the proceeds to repay a portion of the 
original loan from RNSEC.

     The FEC's General Counsel recommended that the Com-
mission find probable cause to believe that RNC and its 
officials had violated 2 U.S.C. s 441e(a)--a prohibition on 
receipt of contributions from foreign nationals.  The Commis-
sion split 3-3, and because a majority of commissioners is 
required to find probable cause, 2 U.S.C. s 437g(a)(4)(A)(i), 
the vote precluded Commission enforcement action.  In re 
RNC, Alec Pointevint, and Haley Barbour, MUR 4250.  The 
three commissioners who voted for no-action provided a 
Statement of Reasons, details of which will follow.

     NPF's loan repayment also drew the attention of the 
Department of Justice, which here rests its crime-fraud ex-
ception claim on the theory that the repayment transaction 
amounted to solicitation and receipt of foreign contributions 
by the RNC in violation of s 441e(a), and conspiracy by 
various RNC officials to defraud the United States for failing 
to disclose the transaction, 18 U.S.C. ss 371, 1001.

     On September 8, 1997 a grand jury subpoenaed the lawyer 
who had served as general counsel of RNC in the period 
surrounding the loan repayment.  He declined to produce a 
number of documents that he claimed were subject to the 
attorney-client and work-product privileges.  The government 
filed a motion to compel compliance, and the RNC intervened 
to oppose the motion.  Finding that the privileges did not 
attach, the district court ordered the general counsel to 
produce some of the withheld documents;  on appeal by the 
RNC, this court reversed.  In re Sealed Case, 146 F.3d 881, 
888 (D.C. Cir. 1998).  On remand the district court ordered 
the documents produced, holding that those privileges, 
though applicable in the first instance, were subject on the 
facts here to the crime-fraud exception.  Not discussing the 
alleged "crimes" in detail, the district court said simply that 
"the evidence shows that the RNC sought the advice of [the 
general counsel] in an effort to construct the loan guarantee 
transaction in a manner designed to conceal from the FEC 
the source of the funds used to acquire the loan," and "to 
evade federal election campaign laws."  Concluding that the 
government has failed to allege any conduct that is criminal 
under FECA, we reverse.

                             *  *  *

     Appellant RNC first argues that the case is moot.  The 
theory is that this court lacks, and the district court before it 
lacked, authority to enforce the subpoena because the grand 
jury that issued the subpoena had expired before the district 
court issued its order on September 24, 1999 granting the 
motion to compel compliance.  The RNC relies primarily on 
the First Circuit's opinion in In re Grand Jury Proceedings 
(Caucus Distributors, Inc.), 871 F.2d 156, 161 (1st Cir. 1989), 
in which the court held that the running of civil contempt 
fines must stop at the expiration of the grand jury under 
whose aegis the contempt citation was issued, even though a 
second grand jury pursuing the same matter had been con-
vened.

     But whereas in Caucus Distributors the shift in grand 
juries occurred during the contempt enforcement process, 
here it occurred before that even started.  The analogic force 
that the Caucus Distributors court drew from the statutory 
rule that recalcitrant witnesses may not be confined beyond 
"the term of the grand jury, including extensions, before 
which such refusal to comply with the court order occurred," 
28 U.S.C. s 1826(a)(2);  871 F.2d at 160-61, is plainly absent.  
Indeed, the First Circuit was explicit that a "subpoena issued 
by one grand jury may be used to obtain evidence for a 
second grand jury."  Id. at 160.  While the court saw the 
continuous running of fines after expiration of the contempt 
grand jury as posing difficult questions as to when "an 
investigation has ceased," id. at 161, such questions, if perti-
nent at all in this context, impose no comparable risk of ever-
accumulating penalties for an offense that may have become 
moot.  Finally, the court relied heavily on language in Shilli-
tani v. United States, 384 U.S. 364 (1966);  although there the 
initial grand jury investigation had evidently ceased altogeth-
er, with no successor grand jury, the Court had written 
broadly, seeming to require termination of contempt remedies 
after any such expiration, regardless of successorship.  See 
id. at 372, cited at 871 F.2d at 161-62.

     Appellant has identified no prejudice arising from enforce-
ment of a subpoena where the originally issuing grand jury 
has expired and another has indisputably carried the investi-
gation forward.  A parallel situation was presented in United 
States v. Kleen Laundry & Cleaners, Inc., 381 F. Supp. 519, 
521 (E.D.N.Y. 1974), where the district court upheld enforce-
ment of a subpoena issued by a federal prosecutor in the 
name of a grand jury that was not sitting at the time but 
would be sitting on the return date.  The court saw no 
prejudice to the witness and noted that it is "the prosecutor 
who has the initiative and power by subpoena to bring proof 
to the courthouse."  See id. at 522;  see also In re Immunity 
Order Dated April 21, 1982, 543 F. Supp. 1075, 1078 
(S.D.N.Y. 1982).  Thus we reject the claims of a lack of power 
in the district court to enforce the subpoena.

                             *  *  *

     On the merits, there are slightly different--and here imma-
terial--differences in the formulation of the test for the 
crime-fraud exception as applied to the two privileges in 
question, attorney-client and work-product.  To establish the 
exception to the attorney-client privilege, the court must 
consider whether the client "made or received the otherwise 
privileged communication with the intent to further an unlaw-
ful or fraudulent act," and establish that the client actually 
"carried out the crime or fraud."  In re Sealed Case, 107 F.3d 
46, 49 (D.C. Cir. 1997).  To establish the exception to the 
work-product privilege, courts ask a slightly different ques-
tion, focusing on the client's general purpose in consulting the 
lawyer rather than on his intent regarding the particular 
communication:  "Did the client consult the lawyer or use the 
material for the purpose of committing a crime or fraud?"  
Id. at 51.  Here the application of the crime-fraud exception 
turns on a pure question of law, which we resolve de novo.  
United States v. Kim, 23 F.3d 513, 517 (D.C. Cir. 1994).

     This case does not fall within the crime-fraud exception 
because what RNC and its officials are accused of is not 
criminal.  The government alleges that RNC "conspire[d] 

either to commit an[ ] offense against the United States or to 
defraud the United States" in violation of 18 U.S.C. s 371.  
Contrary to the government's assertion that impossibility as a 
matter of law is not a defense to conspiracy, it clearly is in 
this context.  Because the transaction described by the gov-
ernment does not violate FECA, there can be no finding of 
conspiracy.  "Pure legal impossibility is always a defense.  
For example, a hunter cannot be convicted of attempting to 
shoot a deer if the law does not prohibit shooting deer in the 
first place."  United States v. Hsu, 155 F.3d 189, 199 n.16 
(3rd Cir. 1998).  Obviously a charge of conspiracy to shoot a 
deer would be equally untenable.

     As we understand the government's position, the RNC's 
guilt turns on two alternative theories, both of which assume 
that the prohibition of 2 U.S.C. s 441e(a) on contributions by 
foreign nationals applies not only to contributions to a "feder-
al account" such as RNC's but also to contributions to a non-
federal account, here RNSEC.  Besides that each theory has 
what may be viewed as a substantive element (characterizing 
a specific element of the transaction as the illicit "contribu-
tion") and an element collapsing legally distinct entities.  In 
the first theory, (1) NPF's repayment of the loan to RNSEC 
is classified as a "contribution";  and (2) YBD-Hong Kong is 
seen as the contributor, by an elision of the entities.  In the 
second, (1) YBD-Hong Kong's provision of the loan guarantee 
to NPF is the relevant "contribution";  and (2) RNSEC is 
viewed as the recipient.  In light of the Commission's statuto-
ry interpretation, both theories flunk;  the collapsing of enti-
ties is unjustified, and the substantive element of the first 
theory (treating a loan repayment as a "contribution") is 
false.

     Because the Commission has in effect spoken to both 
theories, we start by considering whether we should defer to 
Commission interpretations in the context presented here--
where the Department of Justice in a criminal case relies on 
an interpretation of the relevant statutes that has been 
rejected by the Commission in a 3-3 decision that, under the 
statutory voting mechanism, 2 U.S.C. s 437g(a)(4)(A)(i) (re-
quiring affirmative vote of four commissioners), controls 
Commission enforcement.

     We have already held that we owe deference to a legal 
interpretation supporting a negative probable cause determi-
nation that prevails on a 3-3 deadlock.  See FEC v. National 
Republican Senatorial Committee, 966 F.2d 1471, 1476 (D.C. 
Cir. 1992).  There the issue involved interpretation of an 
FEC regulation rather than of FECA (a distinction we return 
to later), and we relied on an earlier decision of this court 
insisting that, to enable judicial review, a no-action decision 
by three commissioners must be backed by their statement of 
reasons.  Id. (citing Democratic Congressional Campaign 
Committee v. FEC, 831 F.2d 1131, 1134-35 (D.C. Cir. 1987)).

     It is irrelevant that the prevailing interpretation was estab-
lished in the context of agency enforcement, whereas this is a 
criminal prosecution.  Deference is due as much in a criminal 
context as in any other for interpretations made outside that 
context, such as those found in published regulations.  See 
United States v. Kanchanalak, 192 F.3d 1037, 1047 n.17 (D.C. 
Cir. 1999) ("That criminal liability is at issue does not alter 
the fact that reasonable interpretations of the act are entitled 
to deference.");  see also Babbitt v. Sweet Home Chapter of 
Communities for a Great Oregon, 515 U.S. 687, 703-05 
(1995).

     Here, unlike in National Republican Senatorial Commit-
tee, agency interpretation of a statute rather than a regula-
tion is at issue.  The Supreme Court has recently elaborated 
its view of the conditions for deference, both as to regulations, 
see Auer v. Robbins, 519 U.S. 452 (1997), and statutes, see 
Christensen v. Harris County, 120 S. Ct. 1655 (2000).  As to 
statutes, the focus of our interest here, the Court drew the 
line between interpretations that are controlling on us if 
"reasonable," under Chevron U.S.A., Inc. v. Natural Re-
sources Defense Council, Inc., 467 U.S. 837, 844 (1984), or 
merely "entitled to respect" to the extent that they have 
"power to persuade," under Skidmore v. Swift & Co., 323 U.S. 
134, 139 (1944).  The Court appeared to make the interpreta-
tion's legal effect the touchstone:  "Interpretations such as 
those in opinion letters--like interpretations contained in 
policy statements, agency manuals, and enforcement guide-
lines, all of which lack the force of law--do not warrant 

Chevron-style deference."  Christensen, 120 S. Ct. at 1657 
(emphasis added).  (As examples of agency documents that 
merit Chevron deference the Court listed formal adjudica-
tions and notice-and-comment rulemakings.  See id.)  In 
support, the Court cited Martin v. OSHRC, 499 U.S. 144 
(1991), where it had made Chevron-style deference turn on 
whether the interpretation "derive[d] from the exercise of the 
[agency's] delegated lawmaking powers."  Id. at 157.  Al-
though Martin involved a regulatory interpretation, its use 
by the Christensen Court supports its application to statutory 
interpretation as well.  Regardless of possible differences of 
nuance between these views, we find the Commission's proba-
ble cause determination here entitled to deference under 
both.

     Under ss 437g(a)(4)(A)(i), (5)(C), and (6)(A) the probable 
cause determination is part of a detailed statutory framework 
for civil enforcement and is analogous to a formal adjudica-
tion, which itself falls on the Chevron side of the line.  Like 
the citation to which the Court deferred in Martin, the 
probable cause determination "assumes a form expressly 
provided for by Congress."  Martin, 499 U.S. at 157.  The 
General Counsel advocates and the respondent opposes a 
finding of probable cause;  through this statutorily mandated 
adversarial process, see 2 U.S.C. s 437g(a)(1), (3), the agency 
"gives ambiguous statutory terms concrete meaning through 
a process of case-by-case adjudication."  INS v. Aguirre-
Aguirre, 526 U.S. 415, 425 (1999) (citation and internal quota-
tion marks omitted).  Unlike a judicially unreviewable SEC 
no-action letter, which this court has said would not merit 
Chevron deference, Roosevelt v. E.I. Du Pont de Nemours & 
Co., 958 F.2d 416, 427 n.19 (D.C. Cir. 1992) ("[T]he principle 
of deference described in [Chevron] is not applicable here, for 
neither the staff's no-action letter nor the Commission's brief 
ranks as an agency adjudication or rulemaking."), the no-
action decision here was made by the Commission itself, not 
the staff, and precludes further enforcement.  Compare 
Board of Trade of Chicago v. SEC, 883 F.2d 525, 529 (7th Cir. 
1989) ("[The SEC staff] could change [its] mind tomorrow, or 
the Commissioners might elect to proceed no matter what the 

[staff] recommends.  The SEC has not, in other words, issued 
a 'final' decision....").  Congress vested enforcement power 
in the FEC, carefully establishing rules that tend to preclude 
coercive Commission action in a partisan situation, where the 
Commission, itself statutorily balanced between the major 
parties, 2 U.S.C. s 437c(a)(1) ("No more than 3 members of 
the Commission appointed under this paragraph may be 
affiliated with the same political party."), is evenly split.  If 
courts do not accord Chevron deference to a prevailing deci-
sion that specific conduct is not a violation, parties may be 
subject to criminal penalties where Congress could not have 
intended that result.

     This reasoning is consistent with FEC v. Democratic Sena-
torial Campaign Comm., 454 U.S. 27, 37 (1981), where the 
Court, in deciding whether the Commission's decision to 
dismiss a complaint was "contrary to law," 2 U.S.C. 
s 437g(a)(8)(C), deferred to the Commission's interpretation.  
Although the Court cited Skidmore (Chevron after all had not 
yet been decided), it spoke in terms more consonant with 
Chevron.  The interpretation need only be "sufficiently rea-
sonable," FEC v. Democratic Senatorial Campaign Comm., 
454 U.S. at 39 (citation omitted), and "[t]o satisfy this stan-
dard it is not necessary for a court to find that the agency's 
construction was the only reasonable one or even the reading 
the court would have reached if the question initially had 
arisen in a judicial proceeding."  Id.  Similarly, as this court 
has said (again not explicitly in Chevron terms), a 3-3 dead-
lock would be subject to great deference:  "In the absence of 
prior Commission precedent ..., judicial deference to the 
agency's initial decision or indecision would be at its zenith."  
Democratic Congressional Campaign Committee v. FEC, 831 
F.2d 1131, 1135 n.5 (D.C. Cir. 1987).

     We now turn to the Commission's (i.e., the prevailing) 
interpretation of the applicable statutes in the Statement of 
Reasons for MUR 4250.  The Department's first theory here 
strikes out on the failure of its basic claim that a loan 
repayment is a contribution.  On its face this is improbable.  
It would be unusual to characterize a loan repayment--which 
could include, for example, simple payment on a purchase 

money mortgage on a property sold by a political commit-
tee--as a "contribution."  The Commission here rejected the 
idea that the final loan repayment from NPF to RNSEC fell 
within the definition of "contribution." The statute defines 
"contribution" as "any gift, subscription, loan, advance, or 
deposit of money or anything of value made by any person for 
the purpose of influencing any election for Federal office."  2 
U.S.C. s 431(8)(A)(i).  No reason appears why repayment of 
a lawful debt could qualify.  It is true that strictly speaking 
the definition applies only to hard money contributions ("any 
election for Federal office"), and thus not directly to a contri-
bution to RNSEC, which because of its non-federal character 
is not a "political committee."  But in the absence of a 
separate definition for soft money contributions, we have no 
reason to think that Congress would intend a broader defini-
tion of "contribution" in the soft money context than in the 
hard money context.  Cf. Kanchanalak, 192 F.3d at 1046-47 
& n.19.

     In rejecting the inclusion of a loan repayment in the idea of 
"contributions," the Commission observed that its regulation 
did not purport to expand the statutory definition.  MUR 
4250 at 3 & n.3.  Indeed, the regulation's formal definition 
contains no reference to "loan repayments," and goes on to 
say that "[r]epayment of the principal amount of [a loan by a 
political committee] to such political committee shall not be a 
contribution by the debtor to the lender committee."  11 CFR 
s 100.7(a)(1)(i)(E).

     The FEC's General Counsel before the Commission sought, 
and the government here seeks, to turn this regulation into a 
sword.  It points to the clause of 11 CFR s 100.7(a)(1)(i)(E) 
saying that repayment to a political committee of the princi-
pal of a loan "shall be made with funds which are subject to 
the prohibitions of" various regulations, including a regulato-
ry equivalent of the ban on foreign contributions.  But as the 
Commission responded, the regulation is specifically limited 
to repayments to political committees, and thus is not applica-
ble here.  MUR 4250 at 5.  The government says the Com-
mission and appellant cannot rely on s 100.7(a)(1)(i)(E) selec-
tively, that they must take the bitter with the sweet.  But 

citation of a regulation purporting only to govern loans by 
political committees as support for the obvious reading of the 
statutory term does not seem to us logically to require 
accepting its caveat on source of funds, where the caveat has 
no visible statutory support and the regulation does not even 
purport to cover non-political committees.

     We thus turn to the government's theory that RNC offi-
cials violated 2 U.S.C. s 441e(a)'s ban on foreign contribu-
tions by bringing about, or helping to bring about, YBD-
Hong Kong's guarantee of the loan to NPF.  That a loan 
guarantee is a contribution is an easy step.  It is clearly a 
valuable economic contribution, and the Commission's regula-
tions (again for political committees), having defined contribu-
tion to include a loan, go on to define loan to include a 
"guarantee."  11 CFR s 100.7(a)(1)(i).  And the government's 
contention that 2 U.S.C. s 441e(a) covers contributions for 
non-federal elections (e.g., to RNSEC) is here supported by 
the Commission, MUR 4250 at 6, and meets the test of 
reasonableness.  The ban speaks to contributions in connec-
tion with an election "for any political office," 2 U.S.C. 
s 441e(a);  although as we have seen, the statutory definition 
of contribution addresses only elections "for Federal office," 2 
U.S.C. s 431(8)(A)(i), we have already upheld the FEC's 
resolution of that contradiction in favor of a broad reading of 
the ban.  Kanchanalak, 192 F.3d at 1046-50.

     But unless NPF can somehow be telescoped together with 
either RNSEC or RNC, YBD-Hong Kong's contribution to 
NPF is no violation.  One possible device would be a notion 
that NPF was really part of RNC, but the government has 
not seriously voiced such a claim.  Although its brief contains 
occasional language such as the assertion that "NPF was 
operated as a de facto division or subsidiary of the RNC," 
nowhere does it coherently argue that NPF is not, legally 
distinct from RNC, that the rules applicable to political 
committees apply to NPF, or that the relevant "contribution" 
was the loan guarantee directly from YBD-Hong Kong to 
NPF.  Instead it considers NPF an intermediary:  "[YBD-
Hong Kong's domestic subsidiary's] apparently innocuous 
guarantee of a $2.1 million bank loan to the NPF suspiciously 

begins to resemble a prohibited foreign campaign contribu-
tion that was simply passed through the NPF."

     Thus the heart of the government's case is the argument 
that the transactions should be considered end-to-end, begin-
ning with the loan guarantee made by YBD-Hong Kong and 
ending with the repayment from NPF to RNSEC.  Here the 
Commission is flatly to the contrary, and its view that there is 
no basis for treating the several legally distinct transactions 
as one is reasonable.  The Commission considered each of the 
various elements--the "loan from the RNSEC to NPF, the 
collateral from [YBD-Hong Kong] to Signet, the loan from 
Signet to NPF, and the repayment from NPF to the 
RNSEC," MUR 4250 at 10--and found none of them to be 
without valid business purpose.  Id. at 10-11.  The govern-
ment has weakly claimed that the initial loan was sham, the 
creation of a debt for which the RNC never expected full 
repayment.  The Commission found the charge rebutted "by 
the documentation of the loans with a promissory note and 
RNC's reporting of the loans;  by the fact that NPF did repay 
$200,000 of the loans prior to receiving the loan from Signet 
Bank;  and by the efforts of the RNC's officers to find sources 
of funds for NPF that would enable NPF to repay the loans."  
MUR 4250, at 9.  The government points to nothing contra-
dictory.

     Second, the government relies heavily on the idea that 
RNC's purpose in bringing about the YBD-Hong Kong guar-
antee, and perhaps Young's in giving it, was to enable NPF to 
repay its loan to RNSEC.  But the Commission rejected the 
principle that the parties' purposes can tie together a set of 
lawful transactions, each with a legitimate business purpose, 
to create an unlawful one.  MUR 4250 at 9-14.

     In so doing, the Commission relied on precedent.  In In re 
Fisher, MUR 4000 (1994), a candidate for Senate invited 
potential contributors to donate $1000 to the current cam-
paign, and an additional $1000 to each of three previous 
campaigns (assuming they had not already contributed to 
them), to help those committees retire their debts.  The 
candidate promised that he would match, with contributions 

to the current campaign, any funds contributed for retirement 
of the old debts.  Because the only debts of the prior cam-
paigns were to the candidate himself, the overall effect was to 
generate funds--in excess of the $1000 per-individual limit--
for the current campaign.  The Commission nonetheless 
found unanimously that these contributions would not be 
deemed to have exceeded the $1000 maximum.  Here the 
FEC General Counsel sought to distinguish Fisher on the 
theory that the donors did not know that their donations 
would eventually reach Fisher's current campaign.  The claim 
is highly improbable, as the campaign solicitations set a 
target for each "couple" of "$5000 for Richard's campaign."  
MUR 4000 at 3.  In any event, the Commission then did not 
consider the contributors' knowledge to be relevant.  This 
seems reasonable:  where the recipient is fully informed, 
there appears no reason why varying degrees of knowledge 
on the part of donors should be pivotal in determining the 
recipient's guilt.

     The government's theory of a reporting violation is even 
weaker.  11 CFR s 104.8(e) requires that "National party 
committees [e.g., RNC] shall disclose ... information about 
each ... entity that donates an aggregate amount in excess 
of $200 in a calendar year to the committee's non-federal 
account(s) [e.g., RNSEC].  This information shall include the 
donating individual's or entity's name...."  We need not 
consider whether a loan guarantee such as that made by 
YBD-Hong Kong falls within the donations covered by 
s 104.8, or whether a guarantor such as YBD-Hong Kong is 
properly considered a "donating individual."  Our rejection of 
the government's effort to treat the two transactions as one 
moots both issues.  To the extent that YBD-Hong Kong 
"donated" a loan guarantee it did so to NPF and not to the 
RNSEC, and thus the RNC was not required to report the 
identity of the guarantor.

     The government has noted that in making its case to the 
district court for the crime-fraud exception it has included 
evidence not before the Commission in MUR 4250.  (The 
appellant notes, in parallel, that it has never seen the evi-
dence before the district court.)  But this does not alter or 

even bear on the gaps in the legal theories marshaled by the 
government to support the exception.  There may somewhere 
be evidence such that, under valid legal theories, the govern-
ment can justify applying the exception.  But until the gov-
ernment tries to assemble its evidence around valid theories, 
the character of the evidence is largely irrelevant.

                             *  *  *

     Because we find that the legal theories invoked to support 
application of the crime-fraud exception are without exception 
faulty, we reverse.

                                   So ordered.