To: PiMac who wrote (12861 ) 6/24/1999 9:30:00 AM From: Catfish Read Replies (1) | Respond to of 13994
Mrs. Clinton May Be Hubbell Witness By Pete Yost Associated Press Writer Wednesday, June 23, 1999; 6:40 p.m. EDTFor discussion and educational purposes only. Not for commercial use. WASHINGTON (AP) -- In a move that could complicate the first lady's political aspirations, prosecutor Kenneth Starr has named Hillary Rodham Clinton as a potential witness for the trial of former law partner Webster Hubbell, legal sources said today. The independent counsel's office submitted Mrs. Clinton's name April 21 as one of 63 potential witnesses in the Hubbell case, said the sources, who spoke on condition of anonymity. Hubbell's lawyers countered with a list of 17 possible defense witnesses May 25. The defense filed both lists under seal in federal court. At a hearing Wednesday, U.S. District Judge James Robertson estimated the trial -- scheduled to begin Aug. 9 -- would last five weeks at most. Mrs. Clinton is pondering a race for the Senate seat from New York. If Starr calls her to the witness stand, it would be her second appearance to testify at the federal courthouse in Washington. Her first was before a grand jury in January 1996, amid a furor over the discovery of her law firm billing records that revealed the work she and Hubbell had done on a fraudulent Arkansas real estate development called Castle Grande. The billing records turned up in the White House family residence under still-unexplained circumstances in early January 1996, two years after prosecutors subpoenaed them. The fingerprints of Mrs. Clinton, Hubbell and former Rose partner Vincent Foster were on them. The 15-count felony indictment against Hubbell stemming from the emergence of the billing records mentions Mrs. Clinton three dozen times. Hubbell, a former associate attorney general in the Clinton administration, is charged with concealing his and Mrs. Clinton's legal work on Castle Grande. The 1,050-acre project -- which federal banking regulators concluded was riddled with ''insider dealing, fictitious sales and land flips'' -- was owned by Hubbell's father-in-law, Seth Ward, and Mrs. Clinton's Whitewater business partner, Jim McDougal. Federal regulators concluded that Castle Grande transactions cost McDougal's savings and loan nearly $4 million, contributing to the institution's failure. Mrs. Clinton ''will be like most of the witnesses prosecutors have to call in public corruption cases, trying to prove their case with testimony from colleagues and confidants and friends who aren't happy to be government witnesses,'' said former Iran-Contra prosecutor John Barrett, who now teaches at St. John's University. Starr spokeswoman Elizabeth Ray declined to comment. Clinton lawyer David Kendall wasn't immediately available for comment. ''Unless there's a smoking gun in her testimony, I don't think it's going to have much impact at all'' on a Senate race, said Democratic strategist Gary Nordlinger. Any testimony she gives at Hubbell's trial ''won't be televised so she won't have that video image in people's minds; it's far enough ahead of the election; and both Clintons are the most investigated people in the world. The American public has already formed an opinion on Bill and Hillary,'' said Nordlinger. The billing records revealed that Mrs. Clinton drafted a real estate option that pegged the price of a 22-acre slice of Castle Grande at $400,000. The government, which ended up owning the property when the S&L collapsed, got $38,000 for the parcel. The inspector general at the Federal Deposit Insurance Corp. concluded that McDougal's S&L used the option prepared by Mrs. Clinton to deceive federal bank examiners about the payment of hundreds of thousands of dollars in real estate commissions to Ward. Mrs. Clinton told federal regulators 55 times in a 1996 interview that she didn't recall various aspects of the work she and her law firm did on Castle Grande -- including authorizing the destruction of her warehoused law firm files on the project. Nonetheless, her testimony may be valuable to Starr. ''Prosecutors may need her to authenticate some of the Rose Law Firm records, things she actually authored, and she's the witness and they need to put it in evidence,'' said Barrett. ''She knows how the firm worked, how Hubbell worked, what his day-to-day lawyering was like and she certainly does have some recollection.'' search.washingtonpost.com