To: DMaA who wrote (6184 ) 9/17/1998 2:24:00 PM From: Les H Read Replies (1) | Respond to of 13994
Starr's inquiry attacks Hillary on three fronts By Ambrose Evans-Pritchard Public will see Clinton video THE investigation of Kenneth Starr is moving ahead rapidly on several fronts. The impeachment referral on the Lewinsky affair contained a blunt warning that "all phases of the investigation are now nearing completion". Two federal grand juries are continuing to hear witness testimony, to review transcripts, and to evaluate possible indictment against senior officials in the Clinton administration. One jury is in the predominantly black, pro-Democrat district of Washington DC. The other is in the white, more Republican catchment area of northern Virginia. Mr Starr tipped his hand when he reported to Congress that "evidence is being gathered on . . . the Rose Law Firm's representation of Madison Guaranty Savings and Loan Association, events related to the firing of the White House Travel Office, and events related to the use of FBI files". (1) The Clintons' ties to Madison Guaranty, a defrauded, bankrupt building society, were the original trigger for the appointment of the special prosecutor in January 1994. The bank was owned by Jim McDougal, the Clintons' partners in the Whitewater land deal. Prosecutors are interested in learning whether the Clintons received pay-offs, through their Whitewater account, from Madison Guaranty. When outside regulators recommended that the institution be closed down on grounds of insolvency and mismanagement, the Arkansas state government, under Governor Clinton, allowed it to remain open. This led to a $60 million loss guaranteed by the US taxpayer. Did the Clintons intervene to keep the bank afloat? Did they receive bribes for doing so? But the Madison Guaranty investigation has branched off into three areas in which the First Lady faces possible legal action. Perhaps the most dangerous for Mrs Clinton is Castle Grande, a sham business transaction described by regulators as a "series of flips and fictitious sales". She denied under oath that she had been the attorney handling transactions for the venture, but billing records later came to light showing that she had conducted 14 meetings and conversations related to the matter. Mrs Clinton is also under scrutiny for her testimony over a $2,000 monthly retainer she received from Madison Guaranty, and over her suspected role in keeping auditors at bay in a venture called Flowerwood Farms. (2) "Filegate" involves the request by the White House of 900 confidential FBI files on Republicans and opponents of the President. It is a subject of great political resonance. Misuse of the FBI was central to the downfall of President Nixon. A member of Nixon's circle, Charles Colson, went to prison for misusing a single FBI file. The White House aide directly responsible for the 900 files, Craig Livingstone, was Mrs Clinton's prot‚g‚. Nobody has taken responsibility for his appointment as head of personnel security, but there are suggestions that the order came from the First Lady herself. (3) "Travelgate" resulted from the firing of seven public servants in the White House Travel Office. After the sackings, there were allegations that the office had been cleared so business could be steered towards people close to the first couple, including a cousin of Mr Clinton. White House officials justified the sackings by accusing the Travel Office of embezzling money. They instigated an FBI investigation and the office director, Billy Dale, was prosecuted. But the trial was a fiasco, the prosecution case collapsed, and Mr Dale was acquitted by a jury. Mr Starr has been investigating whether Mrs Clinton was the driving force behind the Travel Office firings. "We both knew there would be Hell to pay if we failed to take swift and decisive action in conformity with the First Lady's wishes," wrote the White House Director of Administration, David Watkins, In one internal memo. David Sapsted in New York writes: Gloomy Democrats have gone to the polls for the first time since publication of the Starr Report to pick their candidates in nine states for November's mid-term elections. The sad state of a party so deeply wounded by the scandal was reflected not only in record numbers not bothering to vote, but in the macabre fact that, in Oklahoma, a candidate who died in July - too late to have her name removed - got almost 25 per cent of the vote in the Democrats' primary for the Senate. State law required that Jacquelyn Ledgerwood's name remained on the ballot.