-Caveat Lector-
---------- Forwarded message ----------
Date: Wed, 20 Sep 2000 11:04:48 -0700
From: Ray Heizer <[EMAIL PROTECTED]>
To: cl <[EMAIL PROTECTED]>
Subject: CAS: AP: Ray's Statement on Whitewater Probe
Ray's Statement on Whitewater Probe
Independent Counsel Robert W. Ray issued the following statement
today:
This Office has now concluded, with certain limited exceptions,
its investigation of the matters commonly referred to as
''Madison Guaranty/Whitewater.'' At this time, it is appropriate,
in the public interest, and consistent with the law to inform the
public of the findings and conclusions regarding the core matters
within this Office's Madison Guaranty/Whitewater jurisdiction.
Except for limited pending matters, the Madison
Guaranty/Whitewater investigation is now closed.
Following enactment of the Independent Counsel Reauthorization
Act of 1994, this Office was established on August 5, 1994 to
continue the work of regulatory Independent Counsel Robert B.
Fiske Jr. to investigate the relationship of James B. McDougal
and President and Mrs. Clinton to Madison Guaranty Savings & Loan
Association (''Madison Guaranty''), Capital Management Services,
Inc. (''CMS''), and the Whitewater Development Corporation
(''Whitewater Development''). Eleven months ago, on October 18,
1999, the judges of the United States Court of Appeals for the
District of Columbia Circuit's Division for Appointing
Independent Counsels appointed me as Independent Counsel with
respect to all matters within the previously ordered jurisdiction
of this Office, including the Madison Guaranty/Whitewater
investigation. Since my appointment, this Office has concluded
two matters within our jurisdiction -- matters commonly referred
to as the ''FBI Files'' matter and the ''Travel Office'' matter.
The Madison Guaranty/Whitewater investigation resulted in the
conviction of 12 defendants, including former Arkansas Governor
Jim Guy Tucker, Jim and Susan McDougal, and former Associate
Attorney General Webster L. Hubbell. This Office investigated
whether Jim and Susan McDougal committed any crimes in connection
with Madison Guaranty, CMS, or Whitewater Development by using
control of two financial institutions -- Madison Guaranty and
Madison Bank & Trust -- to lend money to or for the benefit of
Whitewater Development and to pay Whitewater Development
financial obligations at a time when the McDougals and the
Clintons jointly owned Whitewater Development. In May 1996, Jim
and Susan McDougal were convicted in federal court in Arkansas of
various crimes involving Madison Guaranty, CMS, and Whitewater
Development. According to one federal bank regulatory agency, the
failure of Madison Guaranty cost the taxpayers $73 million.
This Office investigated whether President and Mrs. Clinton
knowingly participated in any criminal conduct related to Madison
Guaranty, CMS, or Whitewater Development or had any knowledge of
such conduct. This Office determined that the evidence was
insufficient to prove to a jury beyond a reasonable doubt that
either President or Mrs. Clinton knowingly participated in any
criminal conduct involving Madison Guaranty, CMS, or Whitewater
Development or knew of such conduct. The evidence relating to
their testimony and conduct, in connection with this
investigation and other investigations involving the same
entities, was also, in the judgment of this Office, insufficient
to prove to a jury beyond a reasonable doubt that either of them
committed any criminal offense, including perjury (18 U.S.C.
1621) or obstruction of justice (18 U.S.C. 1503).
The following findings and conclusions relate to publicly
disclosed matters investigated by this Office. Information
obtained through grand jury proceedings or other confidential
methods is not included in this statement. Upon conclusion of
pending matters, this Office intends to submit to the Court a
final report ''setting forth fully and completely a description
of the work'' of the Office. 28 U.S.C. 594(h).
1. The investigation made the following findings and conclusions:
This Office investigated whether President Clinton gave knowingly
false testimony when he testified in the 1996 trial of Mr.
McDougal, Ms. McDougal, and Governor Tucker that he ''never
borrowed any money from Madison Guaranty,'' ''[never caused
anybody to borrow any money for [his benefit,'' and ''[never ha[d
any personal loan with Madison Guaranty at any time.''
At Susan McDougal's 1999 trial for criminal contempt (18 U.S.C.
402) and obstruction of justice (18 U.S.C. 1503) for her refusal
to testify about matters that included an alleged $27,600 Madison
Guaranty loan to President Clinton, the government introduced two
checks as evidence of the alleged loan. The first check was an
actual Madison Guaranty cashier's check, dated November 15, 1982,
made out to ''Bill Clinton'' in the amount of $27,600 that was
found, by happenstance, among other Madison Guaranty records in
the trunk of a car in July 1997 following a tornado. The second
check was a microfilm copy, dated August 1, 1983, from the James
B. McDougal Trustee account in the amount of $5,081.82 made out
to Madison Guaranty. The latter check was signed by Susan
McDougal, and the government presented testimony at trial that
the amount of the check was precisely equal to the amount of
principal and interest remaining due on the alleged loan at the
time. The memo line of the check contained the words ''Payoff
Clinton.''
Neither check reflected a signature or endorsement by Bill
Clinton. The backs of both checks contained bank stamps,
indicating that they had been deposited and processed. The
government presented evidence at trial that both checks were used
to the benefit of Whitewater Development. A government agent
testified at trial that the fingerprints on the $27,600 check
were not sufficiently clear to permit a comparison to any known
fingerprints.
This Office determined that the evidence regarding this alleged
loan was insufficient to prove beyond a reasonable doubt that
President Clinton borrowed money from Madison Guaranty, caused
anyone to borrow money for his benefit from Madison Guaranty, or
had any personal loan at any time from Madison Guaranty.
Consequently, the evidence was, in the judgment of this Office,
insufficient to prove beyond a reasonable doubt that his
testimony regarding the alleged loan was knowingly false. This
Office also investigated whether President Clinton gave knowingly
false testimony when he testified at the same trial that he did
not know of a $300,000 loan made by CMS to Susan McDougal in
April 1986 that benefitted Whitewater Development and that was
the subject of Susan McDougal's 1996 convictions for fraud.
This Office determined that the evidence was insufficient to
prove beyond a reasonable doubt that President Clinton knew of
the loan or that his testimony regarding the loan was knowingly
false. This Office investigated whether President Clinton gave
knowingly false testimony at the same trial regarding the
circumstances of Madison Guaranty's retention of the Rose Law
Firm.
This Office determined that the evidence was insufficient to
prove beyond a reasonable doubt that President Clinton's
testimony regarding these matters was knowingly false. This
Office also investigated whether Mrs. Clinton made knowingly
false statements to the Resolution Trust Corporation regarding
the relationship between Madison Guaranty and the Rose Law Firm,
as well as her own work related to Madison Guaranty.
This Office determined that the evidence, including evidence
reflected in the billing records of the Rose Law Firm, was
insufficient to prove beyond a reasonable doubt that her
statements to the RTC regarding these matters were knowingly
false. This Office investigated whether Mrs. Clinton was involved
in any effort to obstruct this or other investigations by
withholding relevant evidence or information in connection with
Rose Law Firm billing records.
On January 5, 1996, some 18 months after Mrs. Clinton received a
subpoena for all records in her possession involving Madison
Guaranty and related entities, a copy of the Rose Law Firm
billing records reflecting the Firm's and Mrs. Clinton's
representation of Madison Guaranty and related entities were
produced by counsel for Mrs. Clinton.
The circumstances surrounding the 18-month delay in producing the
billing records could not be established. Mr. Hubbell testified
in the Senate that he and former Deputy Counsel to the President
Vincent W. Foster Jr. had the billing records in February/March
1992. Carolyn Huber, an assistant to President Clinton, testified
in the Senate that she found certain documents in the White House
residence in August 1995 and placed them in an office where they
remained until January 1996. She also testified in the Senate
that in January 1996, she found them again and realized that
those same documents were the billing records. At that time, they
were produced to this Office.
This Office determined that the evidence of the circumstances
surrounding the handling of the records between March 1992 and
August 1995 and January 1996 was inconclusive and thus was
insufficient to prove beyond a reasonable doubt that any person,
including Mrs. Clinton, knowingly and wilfully possessed the
billing records with the intent to obstruct justice or that any
person, including Mrs. Clinton, gave knowingly false testimony
regarding the handling of the billing records.
This Office investigated whether the employment of Webster L.
Hubbell by supporters of the President following Mr. Hubbell's
resignation from the Department of Justice constituted a criminal
quid pro quo to obstruct this investigation's access to truthful
testimony from Mr. Hubbell.
This Office determined that the evidence was insufficient to
prove beyond a reasonable doubt that the employment of Mr.
Hubbell constituted a criminal quid pro quo and, consequently,
the evidence was also insufficient, in the judgment of this
Office, to prove beyond a reasonable doubt that President or Mrs.
Clinton was involved in any effort to provide such a quid pro quo
to Mr. Hubbell.
This Office also investigated whether contacts between White
House and Treasury Department officials regarding the Resolution
Trust Corporation's criminal referrals involving Madison Guaranty
and President and Mrs. Clinton constituted an effort to obstruct
justice by corruptly influencing the handling of the referrals.
This Office determined that the evidence was insufficient to
prove beyond a reasonable doubt that any White House official, or
President or Mrs. Clinton, was involved in any effort to obstruct
justice in this matter.
* * * * *
As in the Travel Office investigation, this Office experienced
delay caused by the White House and others involving both the
production of relevant evidence and the filing of legal claims
that were ultimately rejected by the courts. Delays in obtaining
relevant evidence included Susan McDougal's refusal to testify,
despite a court order compelling her testimony, and the failure
of the White House to produce the Rose Law Firm billing records
until January 1996. Unmeritorious litigation by the White House
included its claim to an attorney/client privilege between an
individual involved in a federal criminal investigation and a
government lawyer. In re: Grand Jury Subpoena Duces Tecum, 112
F.3d 910 (8th Cir. 1997).
Finally, the remaining matters within this Office's
Madison/Whitewater jurisdiction include pending appeals and the
continuing investigation of the White House's failure to search
and produce relevant records, including electronic mail, to this
and other investigations. Former Arkansas Governor Jim Guy
Tucker's second appeal of his conviction for conspiracy and mail
fraud has been pending before the Eighth Circuit since oral
argument on September 13, 1999. Governor Tucker's sentence of
restitution for one million dollars on his tax fraud conspiracy
conviction was remanded to the Eastern District of Arkansas for
resentencing, which is scheduled for October 27, 2000. Once these
matters are concluded, this Office intends to file a final report
promptly.
Accordingly, the Madison Guaranty/Whitewater investigation, with
the exception of these matters, is now closed. The investigation
of other remaining matters within the jurisdiction of this Office
continues.
1. Under the Independent Counsel statute, a report filed with the
Special Division remains under seal until such time, if at all,
the Special Division authorizes its public release. Historically,
public release occurs only after those persons named in a report
are notified, pursuant to the statute, and have a full
opportunity to read the relevant portions of the report that
pertain to them and to prepare and file comments. This process
typically takes several months after a report is filed.
AP-NY-09-20-00 1343EDT<
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Kadosh, Kadosh, Kadosh, YHVH, TZEVAOT
FROM THE DESK OF: <[EMAIL PROTECTED]>
*Mike Spitzer* <[EMAIL PROTECTED]>
~~~~~~~~ <[EMAIL PROTECTED]>
The Best Way To Destroy Enemies Is To Change Them To Friends
Shalom, A Salaam Aleikum, and to all, A Good Day.
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