-Caveat Lector-
Any ideas on why shy is being silent? Hilary
MARCH 07, 12:44 EST
McDougal Defiant in Face of Trial
By PEGGY HARRIS
Associated Press
LITTLE ROCK, Ark. (AP) — Whitewater figure Susan McDougal remains adamant.
She says she has no pertinent information on President Clinton and the
first lady's business dealings in Arkansas and insists she's ready to go
back to prison.
She's already served 18 months on a civil contempt citation, and now Mrs.
McDougal goes on trial Monday facing a three-count indictment alleging
criminal contempt and obstruction of justice for refusing to answer
Independent Counsel Kenneth Starr's questions about the Clintons.
If convicted, she could get more prison time and face a fine up to
$750,000. Nevertheless, her lawyer says Mrs. McDougal stands ready.
``I would say that Susan's resolve is as strong as it's always been,'' said
Mark Geragos. ``She understands the consequences.''
In the other corner stands Starr and his deputies. The trial may be the
last bit of business for Starr's Little Rock office in his 4 1/2 year
investigation of Whitewater.
U.S. District Judge George Howard Jr. said last week he would consider
allowing evidence of ``prosecutorial misconduct or outrageous government
conduct,'' specifically whether Starr wanted Mrs. McDougal to lie about the
Clintons.
Deputy Independent Counsel Hickman Ewing Jr. is unfazed.
``We know in any high profile case, it is a normal thing where the
prosecutor is attacked,'' he said.
Prosecutors will introduce evidence that Mrs. McDougal had relevant
information on the Clintons, Ewing said. According to the indictment,
prosecutors want to know:
—Whether Clinton was aware of a $300,000 loan to Mrs. McDougal from David
Hale, who pleaded guilty to mail fraud and conspiracy. Hale said Clinton
pressured him to make such a loan in 1986. The government claims Mrs.
McDougal used the money for purposes other than what it was intended for.
—Whether Clinton knew about Lorance Heights, an 800-acre tract south of
Little Rock that the Clintons' and the McDougals' Whitewater Development
Corp. purchased in 1986. Prosecutors say the company used money from the
$300,000 loan to secure the land. The Clintons have said James McDougal,
Mrs. McDougal's former husband, never told them about Lorance Heights or
the loan.
—Whether Clinton testified truthfully during the 1996 trial of Mrs.
McDougal, her late husband and then-Gov. Jim Guy Tucker.
—Why the words ``Payoff Clinton'' were written in the notation section of a
$5,081.82 check drawn on a McDougal account and payable to Madison
Guaranty, which the McDougals owned.
Mrs. McDougal's defense centers around her ``state of mind'' when she
refused to answer questions before the Whitewater grand jury Sept. 4, 1996,
and April 23 of last year.
Because she believed Starr would use her words against her or charge her
with perjury if he didn't like what she said, Mrs. McDougal should be
acquitted, the defense will argue.
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