Sue Hartigan <[EMAIL PROTECTED]> writes:


Deadline Nears for Whitewater Panel

>           LITTLE ROCK, Ark. (AP) -- The federal grand jury
>           investigating President Clinton's dealings in Arkansas
>           reconvenes Tuesday with the deadline for its term
>           running out for Whitewater prosecutor Kenneth Starr.
> 
>           Starr suggested two weeks ago that he might not need
>           another grand jury here.
> 
>           The panel, set to expire May 7, was empaneled two years
>           ago to continue the work of the original Whitewater
>           panel seated in 1994.
> 
>           The Whitewater investigation has produced charges
>           against 17 people, leading to 15 convictions including
>           former Gov. Jim Guy Tucker and James and Susan McDougal,
>           Clinton's former Whitewater business partners.
> 
>           The current grand jury has produced no indictments.
> 
>           Recent grand jury witnesses have signaled prosecutors'
>           focus on legal work that first lady Hillary Rodham
>           Clinton did in the mid 1980s related to a failed real
>           estate development south of Little Rock called Castle
>           Grande -- the brainchild of McDougal.
> 
>           The investigation had cost taxpayers $35 million by the
>           end of September, according to an audit of the
>           independent counsel's expenses by the General Accounting
>           Office.
> 
>           Starr would not say Monday whether he would ask for
>           another grand jury or whether he was winding down his
>           operations in Arkansas.
> 
>           ``We're just continuing with our work. The assessment
>           process is under way,'' Starr said outside his Little
>           Rock headquarters.
> 
>           Tucker, who is cooperating with prosecutors after
>           pleading guilty to charges unrelated to his 1996
>           Whitewater conviction, spent six hours before the grand
>           jury last month and said he would be back.
> 
>           Sources familiar with the case say Tucker, whose
>           dealings with McDougal led to their convictions on bank
>           fraud and conspiracy charges, may have information about
>           Mrs. Clinton's involvement in the project.
> 
>           Mrs. Clinton has said in sworn statements she recalls
>           almost nothing about her work on the project.
> 
>           Little Rock businessman Seth Ward and McDougal owned the
>           Castle Grande development, which failed at a cost to
>           taxpayers of nearly $4 million. The development was
>           financed almost entirely with loans from McDougal's
>           savings and loan.

-- 
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