Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: FRIDAY, August 18, 1995 TAG: 9508180069
SECTION: NATIONAL/INTERNATIONAL PAGE: A7 EDITION: METRO
SOURCE: ASSOCIATED PRESS
DATELINE: LITTLE ROCK, ARK. LENGTH: Medium
James B. McDougal, his ex-wife, Susan H. McDougal, and Tucker were named in the 48-page indictment. The same grand jury indicted Tucker in June on charges he lied about a loan and tried to avoid taxes.
Adding to the significance of the latest charges is the fact that four of the counts against McDougal and his wife relate to a $300,000 loan made to her in 1986 by David Hale, a former municipal judge, through his federally backed Capital Management Services Inc.
Hale has said Clinton pressured him to make the loan. Clinton has called Hale's statement ``a bunch of bull.''
A statement by prosecutor Kenneth Starr released along with the indictments pointed out that the counts do not charge Clinton or Hillary Rodham Clinton with any criminal wrongdoing. The Clintons, in fact, are not mentioned anywhere in the lengthy indictment.
In Washington, Mark D. Fabiani, special White House associate counsel to President Clinton, noted Starr's statement and said, ``We continue to cooperate fully and hope the independent counsel will conclude his inquiry expeditiously.''
At a news conference, Tucker denied the allegations against him:
``I have not violated any law. I have not been part of a conspiracy between their captive witness, David Hale, or anyone else. I will continue doing my job as governor.''
Thursday's indictments deal with about $3 million in loans from Madison Guaranty Savings and Loan and Hale's company. McDougal and his wife owned Madison. Tucker held interests in businesses that received loans from both companies.
Some of the loans were made to others, including Stephen A. Smith, who was an aide to Clinton when Clinton was state attorney general in 1977-78 and in Clinton's first term as governor, 1979-80.
The indictments accuse Tucker and the McDougals of lying about the purposes of the loans and using the money for personal benefit.
The Clintons and the McDougals were partners from 1978-92 in Whitewater, a failed vacation and retirement development in north Arkansas. The Clintons say they were passive investors in Whitewater and had nothing to do with the operation of the S&L. Their Whitewater interest was sold in December 1992 to McDougal for $1,000 just before Clinton became president.
Tucker had previously been indicted on charges he lied about how a $300,000 loan from a federally backed lender would be used, and of conspiring to avoid taxes by hiding the value of a cable TV venture sold for millions of dollars.
McDougal said the indictment against him was not unexpected.
``I look forward to once again having an opportunity to defend myself in court and to again clear my name,'' he said. ``These are political charges which I will fight vigorously.'' McDougal and two others were acquitted in 1990 on several charges arising from Madison deals.
The 21 counts in Thursday's indictments include: wire, mail and bank fraud; fraudulent participation in loans; making or causing a false statement to a financial institution, and misapplying financial institution funds.
The charges are punishable by up to five years in prison and a fine of up to $250,000.
Ms. McDougal could not be reached. Her lawyer, Bobby McDaniel, was in court Thursday and did not immediately return a call to The Associated Press.
Hale pleaded guilty in 1994 to two felony counts of defrauding the Small Business Administration by misrepresenting the amount of private capital in his company in order to get more federal funding.
by CNB