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From: "FMARTINO3" <[EMAIL PROTECTED]>
Subject: Whitewater Conspiracy
Date: Saturday, September 09, 2000 10:53 AM
Whitewater: A Shell Game With Taxpayer's Money
Copyright � 1999 Francis Martino
The single most important event in the Whitewater affair was the withholding
of subpoenaed documents which were concealed in the White House residence for
over two years. It was that obstruction of justice which prevented the Federal
auditors from resolving the matter in a timely fashion.
The Initial Inquiry
One of the first things Bill Clinton did as President was to fire all the US
Attorneys, something that no other President had ever done before. That
disposed of the US Attorney in Arkansas that was investigating both Madison
Guaranty and Whitewater Development.
Clinton replaced that attorney with Paula Casey, one of Clinton's political
campaign workers.
That was the first of Clinton's stonewalling in all the Federal
investigations that ultimately ended up in the hands of Ken Starr.
Richard Nixon ended his Presidency with a Saturday night massacre, but
Clinton began his with a massacre of his own.
During the invesitgation of the now defunct Madison Guaranty Savings and
Loan, whose owner was James McDougal, it became appearant that the Whitewater
Development Corporation played a role in the mishandling of funds. The owners
of Whitewater were James and Susan McDougal and Bill and Hillary Rodham
Clinton.
Madison was being investigated because funds had been illegally given to
political campaigns in Arkansas as was testified by Federal bank examiners. As
a result, the U.S. taxpayers paid 60 million dollars to bail out Madison.
In 1993, the Republicans asked for a Congressional inquiry which was promptly
denied by the Democratic chairmen of the House and Senate Banking Committees.
At that time, the Democratic Party controlled both houses of Congress.
For that reason a special prosecutor, to be appointed by Attorney General
Janet Reno, was requested by the Republicans.
Here are some statements that were made at that time, in late 1993 and
January 1994. From them you may now determine who made the more reasonable
statements:
Senator Bob Dole, in accusing Janet Reno of "dragging her feet" on appointing
a special prosecutor: "There are dozens of questions that need to be answered.
For the President's sake and for the sake of the integrity of the attorney
general's office, she should move." "The Democrats aren't going to touch this.
That's why we need the attorney general to act...The president probably will be
cleared and this will not be an issue, but let's go ahead and get it done."
Congressman Newt Gingrich said there were "too many implications...of
breaking the law" for the attorney general not to act. In speaking of the
Clintons, he said, "If they are innocent, why don't they go ahead and agree to
an independent counsel to clear their name?"
Presidential adviser George Stephanopoulos, speaking on behalf of the White
House: "There's no need at this time for an independent counsel."
Reno said that the investigation is being handled by Justice Department
prosecutors and to appoint an outside prosecutor would increase the perception
of political interference rather than diminish it.
Cogressman Jim Leach, a Republican from Iowa, and other Republicans,
requested the special prosecutor because the Justice Department could be used
to shield, not only Clinton, but any other seated President.
Bill Clinton volunteered to turn the Whitewater files over to the Justice
Department.
Which of the above people made reasonable statements? Which of the above
statements were false?
Here is the way the events followed since those statements were made in early
1994:
Whitewater records were turned over, not in early 1994 as Bill Clinton had
promised, but in January of 1996, after being both subpoenaed by the special
prosecutor and having been declared by the Clinton's to be missing for over two
years. (See below under "Obstruction of Justice")
There have been, until now, fifteen or more people convicted in the
Whitewater investigation.
Webster Hubbel, a partner in the Rose Law firm which was involved with
Whitewater, was appointed Associate Attorney General in early 1993. In December
of 1994, he pleaded guilty to two counts of fraud as charged by Whitewater
prosecutors.
Was Jim Leach playing politics when he spoke of his distrust of the Attorney
General's office? Did Leach and other Republicans do well to believe the
Justice Department would shield Clinton based on Janet Reno's appearant
"dragging of her feet?"
Did Leach and other Republicans do well to believe the Justice Department
would shield Clinton based on Hubbel, a participant in the Whitewater legal
affairs, being appointed by Clinton to be Associate Attorney General, a
position in which he would literally be responsible for investigating himself,
and a position in which he could influence or spike the investigation?
Was Clinton's appointment of Hubbel to the Attorney General's office an
attempt to obstruct justice?
For doumentation of Whitewater events, go to your local library and look at
the microfiche of your local newspapers and also issues of the Wall Street
Journal and the Investor's Business Daily. Here are some valuable dates and
pages:
Wall Street Journal 1/3/94 pg 38,1/4/94 pg A12, 1/14/94 pg A10, 2/12/98 pg
A22, Investor's Business Daily 2/28/94 pg 1, 1/3/96 pg A1, A2, 1/26/96 pg A1,
A2, 3/9/96 pg A38, Financial Times 1/26/96 pg 6, Columnnist Arianna Huffington
11/19/97, Columnist Cal Thomas 4/29/98
The Key Figures
The Clinton's were fifty per cent owners of the Whitewater Development
Corporation, and Jim and Susan McDougal owned the other fifty per cent. The
investigation includes whether
Madison Guaranty, owned by Jim McDougal, improperly placed money into the
Whitewater Corp and into Clinton's 1984 re-election campaign for governor of
Arkansas.
No Whitewater Corporation tax returns were filed by either the Clintons or
the McDougals during a three year period. In addition, the Clintons claimed
interest deductions on their
own income tax totaling $5133 that properly belonged to Whitewater Corp.
Supporters of the Clintons often speak of how brilliant Hillary is, although
her income tax reporting, if honestly done, would put the lie to her
brilliance. Perhaps her brilliance is better
attested to by her actions of taking five dollar deductions for donating her
husband's used underwear to charities.
There are now three witnesses who will no longer talk about Whitewater:
1) Vincent Foster, whose suicide note was apparently written after his death.
The note was torn into pieces and found in the bottom of Foster's briefcase. It
had been "overlooked" during the initial search following Foster's death. It
was "discovered" one week after Foster's death and was turned over to
investigators 30 hours after it was discovered. The note had one smudged palm
print and no finger prints.
2) James McDougal, who was given prozac in a Federal prison even though he was
on heart medicine, a combination that was well known to be fatal in nearly all
patients.
3) Susan McDougal, who was let out of jail for back problems by a Clinton
appointed judge who is more interested in politically correct politics than in
justice. In Connecticut, two months prior to McDougal's release, a man in his
seventies was sentenced to four years in jail even though he was physically
unable to stand up when the judge pronounced his sentence. I don't feel sorry
for the man. He was able to run a drug ring in his condition.
Susan McDougal was asked to give a simple answer of specifically "Yes" or
specifically "No" to the specific question: "Did Bill Clinton know about an
illegal $300,000 Small Business Administration loan the McDougals got in 1986,
or about the property it helped buy for Whitewater Development Corp?"
That is exactly the question Ken Starr asked Susan McDougal for which she was
imprisoned for refusing to answer.
If she said "Yes" the investigation would take on more heat against the
Clintons. If she said "No" she will either help to clear the Clintons or,
later, when more facts were revealed, she may have been found guilty of
perjury. What was her reason for refusing to say "Yes" or "No" if her answer
was the truth?
The score is now fifteen grand jury convictions from the Whitewater
investigation.
Should Bill and Hillary Rodham Clinton be placed above the law by ending an
investigation in which the circumstances demonstrate a clear probable cause for
criminal investigation, indeed an investigation that may well lead to
additional convictions?
Obstruction of Justice
The Whitewater and Rose Law Firm billing records were "found" on a table in
the White House residence in January 1996, two years after being subpoenaed and
just days before Hillary's appearance before a grand jury that was
investigating Whitewater.
The re-appearance of the records was just as mysterious as their
disappearance. Of course, the question that would have been raised by the Grand
Jury if the records were not "found" would have been: What or who caused the
records to disappear?
Now that the records have re-appeared, it is reasonable to ask: What or who
caused the records to re-appear?
Indeed, what is it that we should believe is the cause of the mysterious
disappearance and re-appearence that occurred in the White House? Was it the
ghost of Abraham Lincoln? Perhaps a witch who can cause material objects to
vanish and then re-appear? Was it El Chuppa Cabra?
Setting aside the supernatural explanations, perhaps the disappearance of the
records for two years was due to an obstruction of justice that allowed the
records to be purged, back-dated and forged.
The Resolution Trust Corportion (RTC) was mandated to investigate Madison,
Whitewater and the Castle Grande development. The RTC investigation was
originally scheduled to end on December 31, 1995. The records that had been
subpeoned were "found" in the white House residence on January 4, 1996. Even
before the "discovery" of the subpeonaed records, the RTC found reason to
believe that other Whitewater records had been back-dated.
In May 1995, Hillary Clinton made statements under oath that she knew nothing
about Castle Grande. When the Rose billing records were discovered in the White
House, they showed that not only had Hillary worked on Castle Grande but also
that she had worked 14.5 hours over what had been shown in other records.
Thus, Hillary Rodham Clinton had committed perjury in a Federal Grand Jury
investigation. Perjury seems to be a consistent problem that runs in her
American-family-values marriage.
During the Whitewater hearing, Hillary gave the answers "I don't remember,"
"I don't recall," and "I don't believe that was so" over one-hundred times.
Convienient loss of memory can also legally be held as perjury.
The taxpayers paid four million dollars to bail out the losses incurred by
Madison in the Castle Grande development.
The Illegal Use of Taxpayer's Money
The Clinton's 50% interest in the Whitewater Corporation was liquidated in
December of 1992, one month before Clinton took office.
Margaret Williams, Hillary's Chief of Staff, was seen carrying several
stacks of files out of Vincent Foster's office and into the White House
residence on the evening of July 20, 1993, the day of Vincent Foster's timely
death. That observation was made by Secret Service agents whose job is to
observe.
It has indeed been determined that Foster had been working on the Whitewater
records and that he had the records in his office. It was Foster who completed
and submitted to the IRS three years of Income Tax filings that had never been
filed for which the Whitewater Corporation was in violation of the IRS
reporting laws. These were the same records that were subpoenaed and which had
"disappeared" for a two year period and then suddenly re-appeared in the White
House residence.
On the morning of July 20, 1993, just hours before Foster's death, the FBI
requested a search of David Hale's office. Hale had been, in 1986 and 1987,
operating an investment firm known as Capital Management. The company was
licensed to provide Small Business Administration funds to socially or
economically disadvantaged individuals. Hale has given testimony that then
Governor Bill Clinton had pressured him into making a $300,000 loan to Susan
MacDougal in 1986. Jim and Susan McDougal owned 50% of the Whitewater Corp. The
investigation is to determine if $100,000 of that money, which was indeed
taxpayer's money, went into Whitewater.
Jim Guy Tucker had bought 34 acres of land in the Castle Grande development.
In addition, a company partly owned by Tucker, Southloop Construction, bought
Tucker's land from him with the aid of a $100,000 loan from Hale's Capital
Management.
Tucker borrowed an additional $150,000 from Capital Management to make a down
payment to purchase a sewer and water utility on the Castle Grande property.
The purchase price was $1.2 million.
So it is that another $250,000 of taxpayer's money went into a venture
controlled by those who were neither socially or economically disadvantaged.
Tucker went on to replace Clinton as Governor of Arkansas and is presently in
jail, where he is reaping the fruits of his
investments. The Resolution Trust Corporation took custody of the property
since it was purchased with additional monies from McDougal's Madison Guaranty.
Some of Tucker's land was later dicovered to be on a flood plain, whch made
Castle Grande an even bigger swindle.
The $250,000 of taxpayer's money that was borrowed by Tucker was never paid
back.
Hale pleaded guilty to defrauding the Small Business Administration.
Many Whitewater files were known to be missing in early 1992 during the
presidential campaign and have become the subject of the Special Prosecutor's
investigation. On the morning of July 20, 1993, with the FBI search closing in
on David Hale's files, the dreaded subpoena was getting closer to Vincent
Foster, his office files, and Hillary's perjury in the Castle Grande inquiry.
Derailing the Investigation
As the investigations continue, the White House and others within the
Administration have begun rumors to discredit Ken Starr and others within his
office. The rumor campaign has included accusations of homosexuality, sexual
misconduct, personal corrupton and vice, and conspiracy to politically
discredit Bill Clinton. Such has been the Clinton's defense against the
Independent Counsel investigation.
It is a violation of the law to attempt to influence, intimidate or impede
the members of the office of Independent Counsel and the investigation.
In March 1998 four attorneys general who served under Presidents Carter,
Reagan and Bush sent an open letter to all concerned, condemning the Clinton
defense:
"We are concerned that the severity of the attacks on Independent Counsel
Kenneth Starr and his office by high level government officials and attorneys
representing their particular interests, among others, appear to have the
improper purpose of influencing and impeding an
ongoing crinimal investigation and intimidating possible jurors, witnesses and
even investigators." - Griffin B. Bell, Edwin Meese III, Richard L. Thornburgh
and William P. Barr.
(The letter is published in the Investor's Business Daily, March 9, 1998, page
A38 in the article: "The Gutter Tactics of Clinton's Camp.")
The present Attorney General, however, sees no evil, hears no evil, and
speaks no evil concerning the illegal diversion of taxpayer's money that went
into political campaigns in Arkansas and to the personal benefit of those who
owned Whitewater, Castle Grande and Madison Guaranty. However, she has indeed
publically threatened to find some way to prosecute Ken Starr.
Success of Stonewalling
With the obstruction of justice through delaying and stonewalling by both the
White House and Attorney General Janet Reno, the holding back of subpoenaed
records, and the perjury by Hillary Clinton, we have thus far witnessed a
successful obstruction of justice. The primary success of the delaying tactics
is due to the public's short memory and the news media choosing to look away
from the obvious.
We have witnessed the establishment of a reign of anarchy.
VOTE for Mark MaMahon in the Tuesday, September 12th New York Democratic Party
primary.
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