Washington Times-EDITORIAL • June 19, 2000
Webster Hubbell, felon
For the record, in an 8-to-1 decision the Supreme Court
voided Hubbell's misdemeanor guilty plea to tax-evasion charges,
determining that Whitewater prosecutors improperly based their
tax allegations on information gleaned from 13,120 pages of
financial documents Hubbell submitted to them under a grant of
limited immunity. But that ruling had no effect on the felony
plea Hubbell also made last June. In that case, he admitted that
over a five-year period he lied to federal bank regulators about
legal work he and Hillary Rodham Clinton had done for a
fraudulent real estate project which contributed to the collapse
of Madison Guaranty, which cost taxpayers more than $60 million.
Appointed chief justice of the Arkansas Supreme Court and
associate attorney general of the U.S. Justice Department,
Hubbell resigned in disgrace in March 1994 from the No. 3
position at Justice with Whitewater prosecutors hot on his trail.
In December 1994, Hubbell pleaded guilty to a felony, admitting
that he had effectively embezzled $400,000 from the Rose firm and
more than a dozen clients, including Madison, by submitting false
billings used to finance personal expenditures. Like Al Capone,
Hubbell neglected to pay taxes on his ill-gotten loot, and he
pleaded guilty to a felony charge of tax evasion as well.
Hubbell spent 17 months in prison and promised to pay his
back taxes and penalties as well as make restitution to the Rose
firm. It didn't quite work out that way, however. Based on the
financial documents Hubbell had submitted under a grant of
limited immunity, prosecutors discovered that Hubbell and his
wife earned more than $1 million from 1994 through 1997. But they
managed to pay less than $30,000 against their tax obligations of
$894,000, including taxes and penalties due on the embezzled
funds and hundreds of thousands of dollars in tax payments due
from his "consulting" work. During the same four-year period,
however, according to an April 1998 indictment for tax evasion,
the Hubbells did manage to spend $750,000 on clothes, personal
accessories, domestic help, private school tuition for their
children, etc. And there was the amended tax return for 1994 that
added $77,000 in income after their tax records were subpoenaed.
It was Hubbell's June 1999 guilty plea to tax evasion that
the Supreme Court overturned, leaving three felony convictions on
his rap sheet and, so far, the taxpayer holding the bag.
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Shalom, A Salaam Aleikum, and to all, A Good Day.
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