CLINTON'S STATE-LEVEL ATTACK DOGS
By DICK MORRIS
HAS the White House employed close allies to persuade politically-connected local prosecutors to strategically intimidate, harass, and, most important, discredit Kenneth Starr's most formidable witnesses?
Last week, as Linda Tripp testified day after day before the Starr grand jury, Maryland prosecutor Stephen Montanarelli announced that his local grand jury would investigate whether Tripp had committed a crime in taping the infamous phone calls with Monica Lewinsky.
As Yogi Berra once said, "this is deja vu all over again." Two years ago, Little Rock prosecutor Mark Stodata made an eerily similar announcement. On the very eve of the trial of Arkansas' then-Gov. Jim Guy Tucker, Stodata announced that Starr's key witness, David Hale, who had already pled guilty to federal criminal charges in the Whitewater case, would be indicted on new state criminal charges of insurance fraud.
Hale was expected to - and did - deliver the most damaging evidence against Tucker and Jim and Susan McDougal and to directly contradict the sworn testimony of President Clinton that he knew nothing about Hale's illegal loans to them.
The pattern is all too obvious. Clinton's allies are using the identical M.O. whenever they need to discredit a threatening accuser. Firefighters facing a burning forest will light a blaze of their own to consume the fuel before it feeds the main fire; in the same way, Clinton's allies in these Democratic states are going after Starr's star witnesses. In effect, they are enlisting the power of state-level criminal-justice systems to obstruct the federal investigations. The apparent goal? To boldly and publicly compromise the credibility of any threatening witness at the very time that the substance of the witness' accusations are at issue. No waiting for trial, no waiting for cross-examinations - just in-your-face guerrilla warfare, dressed up as a quest for justice.
Little Rock prosecutor Mark Stodola, who indicted Hale, is a long-time Clinton sycophant. In 1974, Stodola was the volunteer scheduling director in Clinton's race for Congress. In 1992, he traveled the country working for his mentor, then kept in touch after the election.
Like the Clintons and Jim Guy Tucker, Stodola also had a dubious connection to Madison Guaranty Savings and Loan Association, Jim McDougal's piggy bank. Stodola defaulted on a $169,000 loan from Madison, eventually sticking the taxpayers with the loss. Cynically, Stodola denied having a political agenda in indicting Hale; he cited, with a straight face, the need to bring wrongdoers to justice.
Hale's alleged "crime"? Making an untruthful statement several years earlier on a regulatory filing with the state Insurance Department. He was indicted on this flimsy charge even though no consumers or investors lost a dime and published sources indicate that no other insurance executive had ever been charged with such an offense. But the indictment achieved its goal; the jury pool in the Tucker-McDougal case heard loudly and clearly the intended message: Hale is a liar who cannot be believed.
Within weeks of the announcement, contributions from Clinton allies began pouring into Stodola's Congressional campaign. John Huang, Charlie Trie, Don Tyson, Tyson Foods' political action committee, Jim Blair (Hillary's commodities investment advisor) and Stephens, Inc. (the Arkansas investment firm that bankrolled the '92 Clinton presidential campaign), all gave. Rush Deacon, an associate of James Riady of the notorious Lippo group, chipped in. So did Ernest Green, who had arranged for a Chinese arms dealer to visit the Oval Office. After giving $50,000 to the Democratic National Committee a day after the visit, he sent in $500 for Stodola.
According to lifelong Democrat and former Carter administration Attorney General Griffin Bell, the Hale indictment, "looks like people in high places in Arkansas set out to thwart the special prosecutor. ... Were he ^Stodola_ not a state prosecutor, he could be charged with tampering with a witness or obstruction of justice. He's interfering with a federal criminal trial."
Now Clinton supporters appear to be using the same tactics on Tripp. Stephen Montanarelli's announcement of an investigation of Tripp at the same moment as she was testifying before Starr's grand jury is a page right out of Stodola's Little Rock playbook: Discredit, discredit, discredit the witness and do it early.
Curiously, one month ago, Montanarelli knocked press reports that he was going to investigate Tripp. On June 18, Montanerelli pointed out the difficulty of convicting a person of making non-consensual recordings: Maryland law requires that the person actually know that she is breaking the law in taping the call.
So what changed Montanarelli's mind? Here's a hint: 49 Democrats in the Maryland House of Delegates signed a letter urging the investigation. How did those 49 Democrats happen to come up with the same idea to send such a letter? Your guess is as good as mine.
Starr needs to ask some tough questions:
1) Did the White House encourage Stodola to act?
2) Did it urge Trie, Huang, Tyson, Blair, Stephens, Deacon or Green to contribute to Stodola's campaign?
3) Did it encourage the 49 Democratic House of Delegates members to sign on to calling for the Tripp investigation?
Mr. President: you will survive the Lewinsky matter, however Tripp or Monica testify. The danger to your future is not the scandal itself, but from the over-reaction of the White House.
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