Whitewater - Hillary and Bill Clinton's Roles
Whitewater was a 1970's real estate venture that failed in which Governor Bill Clinton and his wife were partners.
To see exactly the roles of Governor Clinton, later to become President of the United States and his wife had with this real estate venture you have to start at the beginning. In 1978, Arkansas Attorney General Bill Clinton and his wife, Hillary Clinton join in a business deal with James B. and Susan McDougal. The two couples borrow $203,000 in which to purchase 220 acres of land in the Ozark Mountains in Arkansas. Shortly after the purchase, they form Whitewater Development Corporation with the idea of building vacation homes on the recently purchased acreage. Bill Clinton is elected Governor of Arkansas during this same year.
In 1980, Bill Clinton returns to private legal practice after losing his reelection bid. James McDougal quits the government position where he had been Governor Clinton's economic development director. Mr. McDougal buys a bank in Kingston, Arkansas. At this time, he loans Hillary Clinton $30,000 to build a house on the acreage to be the model home for prospective buyers.
In 1982, Mr. McDougal purchases a savings and loan company and names it Madison Guaranty. Bill Clinton is reelected Governor of Arkansas.
In 1985, Mr. McDougal in order to pay off a $50,000 Clinton campaign debt, holds a fund raising event at Madison Guaranty. (Later investigators learn some of this money was withdrawn improperly from depositor funds.) The savings and loan company owned by Mr. McDougal is in financial trouble. He hires the Rose Law Firm to do the legal work in which Hillary Clinton is an active partner. Along with another attorney of the Rose Law Firm, Hillary seeks state regulatory approval for recapitalization plan for Madison Guaranty.
In 1986, McDougal borrows $300,000 and received federal funds from the Small Business Administration to for disadvantaged business owners. (Investigation found at a later date proved he lent around $3 million to political figures instead of disadvantaged business owners.) During this same year, McDougal was removed from the presidency of Madison Guaranty but retained ownership.
In 1988, witnesses from Rose Law Firm stated Hillary Clinton asked for the destruction of Madison land contract files. During this same year, Hillary Clinton wrote to McDougal and asked that he give her power of attorney to sell off the lots at the Whitewater development and to clear up bank obligations.
In 1989, Madison Guaranty collapses. The federal government closes its doors and spends $60 million bailing it out of debt. This same year, McDougal is indicted on federal fraud charges to do with his management of Madison real estate
In 1990, McDougal is acquitted.
In 1992, a report by the Clinton presidential campaign claimed the Clinton's lost $68,000 on Whitewater however; this was adjusted to $40,000 at a later date. The Federal Resolution Trust Corporation investigated the failure of Whitewater and Madison Guaranty. After their investigation, they sent a referral to the Justice Department that named Bill and Hillary Clinton as “potential beneficiaries” of the illegal activities at Madison Guaranty.
In January of 1993, Bill Clinton becomes President of the United States.
In June of 1993, Deputy White House Counsel Vincent Foster files three years of delinquent Whitewater corporate tax returns. Shortly after filling the taxes, Foster is found dead in a Washington area park. The police rule the death as a suicide. The police are not allowed to enter the residence of Foster; however, White House aides do enter the premises.
In December of 1993, the White House agrees to hand over all documents concerning Whitewater to the Justice Department. The files handed over also included files that had been found in Foster's office.
In January of 1994, Robert B. Fiske Jr is requested by Attorney General Janet Reno to investigate both the President and his wife for any link to Foster's suicide and his knowledge of the scandal centered on Whitewater.
In January of 1995, The Democratic majority on the Senate Banking committee release their report that explains no laws were broken with Whitewater.
Hearings begin on July 18, 1995 concerning Whitewater and Foster's suicide.
On August 17, 1995, a grand jury charges James and Susan McDougal with bank fraud, which was in relationship with questionable loans along with Governor Jim Guy Tucker.
On January 4, 1996, billing records from the Rose Law Firm were found on a table in the White House two years after they were requested to be turned over to the Justice Department.
On May 26, 1996, Governor Tucker along with the McDougal's are convicted of most of the fraud and conspiracy charges.
On August 19, 1996, Tucker is given a four year suspended sentence when his physician testifies that he would more than likely die of liver disease if placed in prison. He was also fined $319,000.
On August 20, 1996, Susan McDougal is given two years in prison for her role in receiving an illegal loan for the Whitewater venture.
On April 14, 1997, James McDougal received a three-year sentence in prison on 18 fraud and conspiracy charges.
On July 15, 1977, Foster's death was concluded a suicide by Starr's office.
All records indicate the Clinton's did no wrong with their involvement in the Whitewater real estate venture or with the suicide of Foster.
