Bush Nixes Pardon to N.Y. Developer

In another case, Toussie pleaded guilty to having a friend send his local county a letter that falsely inflated property values.

President Bush sat down for an interview with ABC News' Cynthia McFadden.

(AP Photo)

The Daily News located a lawyer representing hundreds of ex-customers who have sued Toussie in federal court, accusing him of luring poor, minority homebuyers into buying overpriced homes with mortgages that had hidden costs.

The attorney, Peter E. Seidman, said Wednesday that news of the pardon was "gut-wrenching for his clients" and left him "baffled."

"I am glad somebody at the White House woke up," he said in an interview.

Maxine D. Wilson, 42, bought one of Toussie's homes on Long Island in 1996. She later sued Toussie, claiming the house started to fall apart after she moved in in 1997. She said she was shocked when she learned Bush was going to pardon Toussie.

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"I was angry at how money, power and influence seemed to trump justice," she said. But on Wednesday, she said she felt "somebody paid attention. Somebody stepped back and made us feel equal."

The Justice Department advises the president on who qualifies for pardons. Only people who have waited five years after their conviction or release from prison can apply for a pardon under the department's guidelines. Criminals are required to begin serving time, or otherwise exhaust any appeals, before they can be considered for sentence commutation.

But the president can forgive people outside that process if he chooses. Under the Constitution, the president's power to issue pardons is absolute and cannot be overruled — meaning he can forgive anyone he wants, at any time.

Perino said she did not know of another instance of a pardon reversal in "recent memory," but that the White House couldn't say for sure it never had happened before.

"The counsel to the president reviewed the application and believed, based on the information known to him at the time, that it was a meritorious application," she said. Bush now believes the case should rest with the pardon attorney.