NEW YORK (CNN) --- New York real estate tycoon Abe Hirschfeld on Wednesday withdrew his $1 million offer to Paula Jones to settle her sexual harassment case against President Bill Clinton, accusing her attorneys of dragging their feet.

Hirschfeld spokesman Morty Matz told CNN that no one had accepted his client's third-party offer.

Matz also said the Rutherford Institute, the conservative group footing many of Jones' legal bills, has indicated they are not interested in settling the case. "Obviously they would like to continue the controversy between Paula Jones and President Clinton, so he's withdrawing the money," Matz said. Jones attorneys have said in the past they were willing to discuss settlement offers.

Abe Hirschfeld

The money had been factored into a $2 million offer by the Jones team to drop the lawsuit; $1 million would have come from Clinton on top of the real estate developer's $1 million.

Clinton rejected the deal and the White House confirmed that an association with Hirschfeld was a consideration.

Hirschfeld told The Associated Press Wednesday he still has hopes for a settlement. "I have the money and I'd like to spend it, but I think it's a wasteful wish," he said in a telephone interview from his Manhattan office.

He had originally made the offer on October 2, 1998, with a deadline of October 16, 1998, for Jones' attorneys to accept the $1 million. When that date passed without hearing from Jones or her attorneys, Hirschfeld extended the offer indefinitely.

But Hirschfeld had stipulated that the money was for Jones herself and must be free of any claims by her current and former lawyers.

Jones claims Clinton propositioned her in a Little Rock hotel room in 1991, when she was a state employee and he was governor of Arkansas. Clinton says he does not recall meeting Jones and has denied anything improper happened.

The case was dismissed last April by Judge Susan Webber Wright, but Jones appealed to the 8th Circuit U.S. Court of Appeals in St. Paul, Minnesota, last week to have it reinstated.

Hirschfeld himself has unrelated legal problems as he is facing 123 counts of income tax evasion.

Wednesday, October 28, 1998

• Lobbyist testifies he lied to FBI about gifts to Espy
• Tycoon withdraws $1 million offer in Jones case
• Salsa music spices up White House
• Susan McDougal takes stand in embezzlement case
• Judiciary Committee Democrat asks Starr to justify probe
• Starr rejects Democratic request for data
• Clinton seeks defamation case delay
• Ex-Nixon panel chief says don't impeach Clinton
• Washington welcomes Colombia leader

Election '98
• Clinton: Democratic agenda best bet for voters on election day
• Nice guy looks to finish first in Maine governor's race
• Trouble in paradise for Democrats
• GOP finally raises Lewinsky scandal in ads
• Supporters rally for hospitalized L.A. sheriff
• D'Amato endorsement sparks protests
• Some GOP candidates ride coattails
• Poll: Hispanics back Davis in California
• Friend: Looper says he's innocent
• Pollsters back off Bronco ban
• Donors asked for last-minute money
• Democrats must battle history
• GOP continues to out-raise Democrats
• Candidate accused of lewd behavior
• Faircloth, Edwards in tight race
• Colorado to vote on school choice
• Illinois gubernatorial candidate trying to raise money

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