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Judicial Watch • NARA Whitewater OIC report pg 17-38

NARA Whitewater OIC report pg 17-38

NARA Whitewater OIC report pg 17-38

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emorandum
Office the Independent Counsel All OIC Attorneys Date
hon:
HRC Team
S.bjecl:
4/10/98
Hillary Rodham Clinton: Summary Evidence
and Suggested Reading have been asked provide material the earliest opportunity assist you
assessing the evidence relating Hillary Clinton. This first memorandum intended brief
introduction our theory the case. includes, section II, annotated reading list the
relevant portions earlier memorandum produced OIC that contain pieces the evidentiary
puzzle. You will receive more detailed memorandum the next week two.
....--..
..- Theory the Case 1985 and 1986, Hillary Clinton and Hubbell provided legal services relating real
FOIA(b)6
FOIA(b)7 (C)
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estate known.as Castle Grande. The transactions involving Seth Ward, Jim McDougal, Madison
Guaranty Savings and Loan (MGSL) and Castle Grande were crimes. Hillary Clinton and
Hubbell, whether knowingly not, provided legal .services that faeilitated those crimes and
exposed themselves, and the RLF potential criminal and civil liability. particular: attorneys
from the Rose Law Firm (RLF) did the legal work the real estate transaction using language
provided Hubbell; Hillary Clinton worked two fraudulent cross-loans and option
agreement that were used deceive bank examiners the true nature the Castle Grande
transactions and the involvement MGSL those transactions; Hubbells secretary typed the
agreements and Ward received the documents directly from Hubbell. Madison officials used the
option agreement deceive the bank examine~ and their deception materially effected their
assessment MGSL. __.Hillary Clinton destroyed her person records her work for MGSI:, includirig
the file relating her work the option agreement less than two years after the work wru/
completed and while civil law suit relating that very option agreement, Seth Ward and
MGSL was pending. the same time there was ongoing criminal investigation MGSL.
Hubbell received and solicited business from the Federal Deposit Insurance Corporation
(FDIC) and the Resolution Trust Corporation (RTC) represent the FDIC and th~ RTC
lawsuit conservator MGSL accountlng malpractice case, Madison Guarant.Y Frost.
During the Emst litigation read various reports that described Castle Grande and Ward
having engaged crimes. Hubbell concealed all work that Hillary Clinton, Hubbeil .and the RLF
had done for MGSL and Seth Ward. When, 1989, Jim McDougal was indicted;for
,,.--..
FOIA(b)6
FOIA(b)? .(C)
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....-.,
transactions related Castle Grande, Hillary Clinton and Hubbell followed his trial closely. 1992, during the Clinton campaign for President, media inquiries caused Hillary
Clinton, Hubbell and Vince Foster collect additional RLF records relating Hillary Clintons
work for MGSL, induding her billing records and all the finns MGSL files which were then remote storage archive. They reviewed them thoroughly, familiarizing themselves with them
and refreshing their recollections. During his review the billing records, Hubbell particularly
focussed Hillary Clintons multiple conferences with Ward the !DC/Castle Grande matter.
The political exposure added slightly different tinge the naturcl __.
concern.
they now had political concerns: Hillary Clinton and Bill Clinton were business partners ofthe
owner failed SL; was alleged McDougal had hired Hillary Clinton represent him/
,.-...._
before state agencies that reported her husband way indirectly wielding influence oy~r
the decisions being made. _I_ _IJ-Iillary Clintons role the representatidn
MGSL, the campaign and Hillary Clinton personally provided the public with inaccurate
information regarding: how MGSL came retain the
RLf and the extent and nature f!~ilary
Clintons work before state agencies inaccurate stories tha~ Hillary Clinton and Hubbe~i were
stuck with official investigations began.
Following the campaign, Hubbell and Vince Foster remo~ed all remaining
RLF records
relating the RLF and Hillary Clintons work for MGSL from th~-law firm. varyous parcels
....
those records were sent Washington, D.C. Two copies the most significant ili,ese records,
Hillary Clintons billing records for the work she did for MGSL, are kno~_to exist-- one set
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FOIA(b)6
FOIA(b)7 (C)
the Book Room adjacent Hillary Clintons office-in August 1995 and publicly released
January 1996. If, contend, the evidence supports the conclusion that Hillary Clinton
reviewed the billing records detail February March 1992, and that she retained copy
the records for reference and use during 1992-1995,
What, then, are the crimes under consideration? .Between January 1994 and February
1996 both Hillary Clinton and Hubbell made nwnerous sworn statements the RTC, the FDI
the Senate and the House Representatives, and OIC. Each these reflected and embo~1ed
materially inaccurate stories relating to: how RLF came retained MGSL; Hillary
Clintons role the JDC/Castle Grande venture; Hillary Clintons role representing MGSL
before state agencies; Hubbells representations the RTC and FDIC regarding Hillary Clintons role the JDC/Castle Gran4e venture; and the removal records from RLF. The
questiqn, generally, not whether the statements are inaccurate, but whether they are willfully
so.
Below annotated reading list which summarizes more detail the evidence/that
would show that the time the statements ~ere made the 1994-96 time period l-lubbell
and Hillary Clinton had recently refreshed their recollection_!-------~---- _IIt.alsp ~irects the reader portions existing memorandwn where/the//
---- --....
evidence reviewed even greater depth.
---- ...
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...
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,,,,-....,
II. Annotated Reading List Castle Grande The Castle Grande transactions were crimes. Briefly outlined they
were follows: October and November 1985, MGSL needed increase its book profits
meet the federal regulatory requirement that have net worth 3%. meet this requirement
MGSL arranged book fraudulent profits the IDCiCastle Grande transaction. McDougal
arranged for Madison Financial, subsidiary ofMGSL, purchase the IDC property.
Arkansas banking regulation limited, however, the amount money that MGSL could invest
its subsidiary, Madison Financial, provide the capital make the purchase. Accordingly,
Jim McDougal enlisted Seth Ward (Webb Hubbells father-in-law) straw man purchaser for
half the property and MGSL loaned Ward the money for the purchase non-recourse basis. reward for his role straw man, Ward was promised conunission the resale the
property. After the land was purchased was resold (or flipped) inflated prices based upon
fraudulent real estate appraisals that MGSL could book profit the sales. One such
property flip involved small sewer utility the JDC property known Castle. Sewer and
Water. Seth Ward was the nominee purchaser the property for $400,000. February 28,
1986 the utility was flipped group ptirchasers including Jim Guy Tucker (who also
received loans for the purchase from MGSL) for inflated price $1.2 million. Overall, the
entire property sold for inflated price approximately million.
The elate the utility land flip, which also the date several other flip transactions,
significant two respects: First, MGSL was notice that the Federal Home Loan Bank Board
(FHLBB) was going begin examination OfMGSL March 3rd, the next Monday with
NW: 15416 Docld: 70001585 Page ,,,.,,,,.-... date February 28th. any transactions booked that day would part the
examination. Second, the 28th, Hillary Clinton.billed the IDC file 0.8 hours for entry
marked only Seth Ward. [This one separate entries relating Hillary Clinton
contacts with Seth Ward between December 1985 and June 1986]. the FHLBB examination progressed, Seth Ward became concerned that would not paid his commissions. insisted McDougal that get the money due him roughly
$300,000. March 31, 1986 Ward and McDougal arranged for payment follows: MGSL
made loan roughly $300,000 Seth Ward which was funded two checks from MGSL. the same time Madison Finance executed loan document the same amount acknowledging
that owed Seth Ward $400,000. This second cross-loan was not funded. Thus, Wards
obligation repay MGSL the loan made him was off-set the unfunded obligation
..-
Madison Finance pay Ward. April 1986, the original cross loan notes were replaced with two other cross-loan
notes, which were also fraudulent nature that day Hillary Clinton billed 0.2 hours the
IDC matter for telephone conference with Don Denton~ a.loan officer with MGSL. [It bears
noting that the 115 pages the
~illing
records recovered the White House, Vince Fosters
fingerprint were found only pages; one the biJling
memor~dum
that contains this entry.]
Denton has testified that the purpose the call was that Hillary Clinton was involved the
execution the cross-loans and that advised Hillary Clinton that the loans would raise legal
questions.
These off-setting cross loans raised questions with the FHLBB bank examiners, who,
.-..
late April 1986, questioned MGSL the relationship between the two loans. that time the
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,,,-.-.
bank examiners were told that the loans were unrelated each other and that the Madison
Finance loan was its obligation commissions while the MGSL loan Ward was loan
anticipation the execution option agreement under which GSL would take option
purchase small parcel ofland held Wards name, known Holman Acres. Not
surprisingly, the examiners asked MGSL show them the option agreement. May 1986,
Hillary Clinton billed 2.0 hours for the preparation option agreement. That agreement was
subsequently shown the bank examiners, who accepted truthful and thereby limited their
inquiry.
Su22ested readjn~ The facts relating the Castle Grande transaction are detailed
Section Bittman OBrien, Clinton Finaiice, 255-335, June 1997. Other RLF Work for MGSL and before State Agencies Three other aspects
Hillary Clintons work for MGSL also have come under scrutiny, particularly during the 1992
campaign how RLF came retained MGSL; the work Hillary Clinton did before state
agencies behalf MGSL; and how Hillary Clinton terminated the relationship with MGSL.
Two wildly diverging stories exist how MGSL came retain RLF. Jim
McDougals version, now famous, that Bill Clinton jogged his office one afternoon and said
Hillary Clinton needed some additional business. response McDougal says agreed put RLF retainer and that Hillary Clinton came later that same day make the arrangements.
Hillary Clinton has completely different recollection, first described detail during the
1992 campaign. According her, John Latham, young officer MGSL and Rick Massey,
young associate RLF, agreed that RLF should some work for MGSL. However, McDougal
had outstanding legal bill for more than $5,000 that had not been paid for years. Hillary
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Clinton says that her role was intercede with McDougal for payment the unpaid bill and
arrange for advance against fees from MGSL. She served only the billing partner and
did little work.
While affirmative proof Jim McDougals version will difficult, not impossible,
after his death, disproof Hillary Clintons version available us. Massey has, with
admittedly varying degrees certitude, denied-being the source the MGSL business. More
importantly, detailed below, 1992 Vince Foster recovered the old file fromRLF storage and
actually found copy the so-called unpaid bill which had, fact, been paid October
1984, well before MGSL retained RLF April 1985. This bill, marked paid was found along set Hillary Clintons billing records, Fosters attic July 1997. note, the set
billing records the attic was identical that found the White House January 1996,
..--..
for the paid bill. Also during the campaign, Hillary Clinton minimized the role she played seeking state
regulatory assistance for MGSL. She characteriied her role making single ministerial
phone call the head the Arkansas Securities Department (ASD), Beverly Bassett Schaffer, relation MGSL plan raise capital through the sale stock. [This was another plan
raise capital meet the net worth requirement. However, the stock sale never was completed,
and the Castle Grande transaction acted, effect, replacement method increasing
MGSLs net worth.]. The billing records reveal, however, that Hillary Clinton also worked
matters relating the Arkansas Alcohol Beverage Commission, the Election Commission and
the Public Utilities Commission. note, well, information derived from the cooperation Jim Guy Tucker, which
.~.
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_.--.
docwnents the far larger volume work done, with regularity, for MGSL the Mitchell,
Williams, Selig Tucker firm. Some inference can drawn from the fact that MGSL chose not use its regular firm for these State-related contacts that MGSL hoped gain some
advantage thereby. June 1986, the FHLBB called MGSL management meeting Dallas. Given
the tone the letter they sent, was evident that McDougal would soon out CEO
MGSL and that MGSL was serious trouble. particular, MGSL was ordered immediately
cease all work with IDC, Castle Sewer and Water and other McDougal-operated companies. copy the letter went Beverly Bassett Schaffer, the ASD, who forwarded copy Governor Clinton July 1986. Friday, July 11th, the DaJlas meeting occurred and
McDougal was ousted. The following Monday, July 14th three things occtlrred: Betsey Wright,
,.,--...
Governor Clintons chief staff wrote him note saying that she was worried about his
Whitewater stock Clinton wrote back, incorrectly, that did not have any stock Whitewater
anymore. the same day, Hillary Clinton wrote McDougal and returned the unexpended
advance against fees. And also the same day Seth Ward gave MGSL backdated revision
his original agreement receive commissions from Madison Financial.
Su22ested readin2 The facts relating RLFs retention MGSL, Hillary Clintons
work before the Arkansas Securities Department (ASD) and the return the retainer are
detailed Sections II, III and Bittman OBrien, Clinton Finance, 11-32, 110-18,
126-70, and 436-64, June 1997. Hillary Clintons work before other state agencies behalf
MGSL, and Jim Guy Tuckers cooperation are not detailed any memorandwn. The
.----.
significance the second set billing records Vince Fosters attic discussed
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Rosenzweig, Clinton Campaign: FebrUary March 992, 42-48, January 1998. 1987-1992 -A) RLF Conflicts Before was taken over the FDIC February 1989,
MGSL hired law firm, known Borod Huggins, examine transactions that had occurred the bank. result that examination, MGSL hired BH represent law suit
against MGSLs accountants, Frost Co:, alleging that Frosts accounting work had contributed losses the bank. One Frosts defense the case was, course, that McDougal actions
were the fraudulent ones and that was running shady real estate deals that caused the losses.
When the FDIC took over MGSL conservator the bank, inherited the law suit. After examining the matter the FDIC disqualified BH from representing because BH had
.--.
conflict interest. that juncture, the FDIC approached Hubbell and asked ifRLF would
serve counsel the pending Frost litigation. the time the FDIC hired RLF, Hubbell did not
disclose the nature his firms work for MGSL --though that workmight have rendered RLF
civilly liable the FDIC conservator MGSLs assets. Instead (at most) said that RLF
had done small amount collection work for MGSL and that was not close and had done legal work for his father law, Seth Ward.
Several aspects ofRLFs representation MGSL are significant:
First, the misrepresentation allowed RLF earn fees the Fro~t case excess
$400,000 and, ultimately earn fees from the FDIC and RTC more than million.
Second, during discovery, Beverly Schaffer reminded Hubbell that RLF had done work
for MGSL and that the ASD had relied upon the work. She questioned how RLF could now
represent the FDIC with such conflict interest. .,,,..,-..
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Third, the 1986 FHLBB examination reports and the BH report expressly suggested that
McDougal and Ward might have engaged criminal conduct with respect the Castle Grande
transactions. part his preparation for the Frost case, Hubbell admitted reviewed the
1986 examination and billed for reviewing the BH report. Also his fingerprints are all over
the report. Moreover, RLF attorneys actually billed the RIC for attending Jim McDougals
criminal trial.
Fourth, the history ofHubbells statements the FDIC and RIC reflect continuing
effort his part cover the RLFs representation ofMGSL and hi; own earlier
mis~presentations the FDIC. When the FDIC and RTC first began investigating the
possibility that Hubbell had concealed his conflicts January February 1994, lied
investigators. Thereafter the and FDIC Offices oflnspectors General conducted more
,,--,,
comprehensive investigations which culminated Congressional testimony August 1995
During those investigations Hubbell again concealed the true nature his, and Hillary Clintons
work for MGSL and Ward. The lead lawyer from the Inspector Generals office, Pat Black, will
testify that she was affirmatively misled Hubbells and Hillary Clintons misstatements and
induced thereby testify inaccurately before Congress.
One final note: 1986-88 RLF was involved another serious conflicts issue, that
resulted significant loss the firm. November-December 1986, Foster sought represent
the FSLIC outside counsel the receivership the FirstSouth Savings and Loan. part
that solicitation, Foster certified that RLF had conflicts interest. the contrary, however, RLF partner, Joe Giroir was borrower and had served counsel FirstSouth several
loans and RLF was disqualified from the representation
.-..
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Beyond that, however, the new outside counsel for FSLIC cletennined that Giroir
representation was the basis for legal malpractice claim against RLF. early 1987 Foster and
Hubbell were summoned Washington, D.C. where they were excoriated for having bid the
work with such major conflict interest an_d advised that RLF would sued. According
Hubbell, Hillary Clinton was furious this, participated some the phone calls with FSLIC
and Hubbell, Foster and Hillary Clinton met almost daily order determine what do.
Eventually, RLF was sued for more than million and the case settled for more million.
that million, $500,000 came from the firm directly, not its insurance carrier. Joe Giroir was
ousted from the finn well. short, the FirstSouth matter was traumatic experience for RLF that almost caused the
dissolution the firm. Thus Hillary Clinton and Hubbell (as well all the partners RLF)
..- were keenly aware the critical nature conflicts interest and the ptential for civil
malpractice liability.
--~~~~~~~~~~~~~~~~~~~~~~~
statements made Hillary Clinton her claim November 1994 interview with the F,bICOIG. She said that she was unaware what those issues [relating Joe Giroir] may have been
and that she had involvement with the FSLIC any negotiations involving FirstSouth and
Mr. Giroir.
Su22ested readi~2 The RLFs conflict interest representing the RTC in/Madison Frost and the FirstSouth incident are detailed Dreiband Myers, Summary Rose
Conflicts, April 1998. Ward Madison and U.S. McDougal Two other events occurred during
the 1987-92 time period that bear Hillary Clinton and Hubbell continuing attention issues
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relating Jim McDougal, Seth Ward, Castle Grande
and MGSL.
First, 1987 the FHLBB began further examination Wards interaction with
McDougal. investigative subpoena was issued him for his records relating the
commissions was supposed receive the Castle Grande transaction .Employing the
best defense good offense theory, Ward brought suit against MGSL for payment the
commissions which alleged had never been paid him. Thus, the cross-loans and the option
agreement were critical issues the trial. Evidence exists that Hubbell was completely familiar
with the progress his father-in-laws case attended portions the two day trial; received
pleadings; served and filed
~ts garnishment; drafted indemnification agreement between
Ward and Wards attorney; notified Wards attorney the dismiSSal ofMGSLs appeal;
~d,
1993, advised Ward the settlement the case. The case came for trial August 1988,
..,--~
and judgement was entered for Ward. Ultimately, however, Ward settled the case with Hubbells
advice, agreeing repay the FDIC (as MGSLs successor) some the loan money had
received. not have direct evidence that Hillary Clinton knew any details about the Ward case
although she acknowledges that she may have known something about it. was, however,
reported the local press and was known Hubbell. While the suit was pending, prior trial, and just two years after she had completed the work, Hillary Clinton ordered her personal MGSL
files destroyed, including files directly relevant Ward case, including file marked Ward
Option.
When MGSL got the BH report, suggesting possible criminal conduct the bank,
sent copy the .S. Attorney Little Rock. 1989, the U.S. Attorney charged Jim
.--.
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McDougal, John Latham and Susan McDougals two brothers with crimes relating two the
land flips Castle Grande. Ultimately Latham pied guilty, though McDougal and the Henley
brothers were acquitted. RLF .attomeys attended the trial. Sam Heuer, McDougals attorney, has
testified that had lunch with Hubbell and Hillary Clinton separately after the verdict and that
both were very familiar with the case. fact, both were impressed with his work that they
offered him position RLF. seems fair inference that with McDougals acquittal; and
Wards litigation victory, Hubbell and Hillary Clinton must have thought that the problem
Castle Grande was behind them.
Suiiiested reaclini -The facts relating Ward Madison and U.S. McDougal are
covered some detail, though not comprehensively, Orieband Myers, Summary Rose
Conflicts, April 1998. The facts relating Hillary Clintons destruction her own records are
,,,...-
detailed Section Bittman OBrien, Clinton Finance, 469-84, June 1997. 1992 Campaign __.lttillary Clinton and Hubbells role
MGSLs representation really began earnest Febru3ry I.992. that time national press
began make inquiries into Hillary Clintons relationship wifu .MGSL part their coverage Clintons presidential campaign. February 11th, the first t~porter appeared the ASD
review the recordsofMGSLs securities application. ASD employee notified the Clinton
campaign and the very ~ext day, F.ebruary 12th, 8:42 AM, copy the payment history for
RLFs representation ofMGSL was run-off the RLF computer. Over the next tWo weeks, all
the files MGSL were called from the RLF archive and delivered Fl_~bbell Vince
Foster.
The evidence striking that during this time frame Hubbell, Foster anci-Hillary Clinton
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.----
reviewed, detail, Hillary Clintons representation MGSL. Among the most relevant pieces evidence this are the following:
The billing records created February 12th have red ink handwriting them Vince
Foster hand, addressing questions and observations Hillary Clinton.
The billing records have Hillary Clintons fingerprint them, and she has acknowledged
reviewing them February March, 1992.
Hubbell has testified before the Senate that reviewed the billing records detail and
the focussed Hillary Clintons conferences witli Seth Ward.
Vince Foster and Hubbell retrieved all the archived RLF records and reviewed them
detail, evidenced detailed MGSL chronology created Foster March 1992.
Significantly, this chronology reflects the fact that Foster knew that the unpaid bill had,
.---.. fact, been paid October 1984. copy the chronology was secreted away
Foster briefcase his attic and discovered there July 1997.
Hubbell had discussions with Clinton staffer, Loretta Lynch, the details which
strongly suggest that reviewed the billing records detail with Hillary Clinton.
Specifically; the billing records contain single obscure mention work the Hillary
Clinton did for Susan McDougal, without describing what that work was. Hubbell told
Lynch that the work was for interior decorating project Mrs. McDougals information could only have learned from Hillary Clinton.
Hubbel.I and Foster interviewed Rick Massey who described his work MGSL to.them
and signed statement reflecting his recollection that work. Significantly, the Massey
statement did not contain assertion that Massey brought the MGSL business via ....
NW: 154)6 Docld: 70001585 Page
,-..-
Latham omission significant light the then-swirling public questions the
issue and Masseys subsequently conflicted testimony. lbis statement wa5 never released the Clinton campaign and the only known copy existence was found Fosters
briefcase the attic.
Hillary Clinton prepared detailed 2-page statement for the campaign regarding her
relationship with MGSL. The statement sufficiently detailed (e.g. the exact dollar
figure her billings MGSL and the exact date her retention McDougal) that the
information could only have come from the billing records.
Hubbell and Foster worked with Hillary Clinton preparing this statement. Evidence
their joint effort includes: the discovery version Hillary Clintons statement the
archived files Vince Fosters computer RLF; and short fllX from Diane Blair
Webb dated March 23rd which has Diane Blairs handwritten note: webb Vince+
Hillary are drafting her answers law practice. Ignore marginal notes. may therefore reasonably infer from this evidence that any misstatements Hillary Clintons campaign statement omissions were either the resul_ considered discussion
between Hillary Clinton, Foster and Hubbell resulted from deliberate decision Foster and
Hubbell conceal the facts they knew from Hillary Clinton.
Following the election, Foster and Hubbell made concerted effort remove all of.the
MGSL files from RLF. None the files removed from the archives were returned st0 tage. ....
Several comprehensive searches RLF have proved unavailingj_ _..,._.....,.I
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....__..___ _.....J .:.--....
.....
....-
......
..-
....
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Some the files were stored Hubbell his basement Washington D.C. and
eventually turned over Clinton attorney David Kendall, who returned them RLF who
produced them OIC. Some, such the billing records themselves, disappeared altogether,
only reappear the White House and Fosters attic years later, after the statute
limitations had lapsed. Still other files, such Hillary Clintons original time sheets, have never
been found.
Su22ested readini The facts relating the Clinton campaign are detailed
Rosenzweig, Clinton Campaign: February-March 1992, January 1998 and Rosenzweig,
Hillary Clinton, Webb Hubbell and Vince Foster: What Did They Know? January 1998. Foster Documents Where the documents from RLF went open question.
_,.,-..-
Some evidence suggests they went.to Vince Fosters White House office where they remained
until his suicide July 20, 1993. Several pieces evidence support the inference that personal
documents which Hillary Clinton did not want disclosed were located Fosters office the
time his death and then removed.
First, Gail Kennedy, Bill Kennedys wife, has testified that the Foster house that
evening she overheard conversation between Hubbell, Bill Kennedy and possibly David
Watkins Marsha Scott which they expressed concern that something hannful
embarrassing the Clintons might found Fosters office.
Second, the afternoon July 21st Bernard Nussbaum, then White House Counsel,
initially agreed allow two career DOJ employees review the documents Fosters office for
evidence that might shed light the cause his death. That evening and then next morning
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_,,,.,,-..._
Nussbaum, Hillary Clinton, Susan Thomases and Maggie Williams (Hillary Clintons chief
staff) exchanged separate phone calls the contents none which they can now
remember. That morning, according the DOJ employees, Nussbaum changed his mind and
refused allow the DOJ prosecutors review the documents; instead reviewed them himself
and segregated several personal the Clintons. the evening July 22nd, Thomas Castleton, intern the White House, assisted
Williams carrying the box personal documents the 3rd floor the Residence the
White House. Williams told Castleton that the documents were going given the
Clintons attorney, after they had been reviewed Hillary Clinton and the President. Castleton
placed the box closet Hillary Clintons office, Room 323. That closet approximately
feet from the table the Book Room, Room 9A, where the billing records were found years
,,,..-,,
later.
Su22ested readin2 The facts relating the handling the documents Vince Fosters
office are detailed Colloton K~vanaug~, Foster Documents Memorandum, 36-40, and
83-185, August 1996, RTC Contacts During late 1993 and early 1994 nine criminal referrals relating
MGSL were sent DOJ Washington and the USAO Little Rock. Those referrals named
the Clintons witnesses and the Clinton gubernatorial _campaign committee subject the
referral. White House officials were told the referrals within two days their receipt
Washington.
Furor over the referrals led, November 1993 the recusal the Attpmey and
assignment the case career DOJ prosecutor, Donald MacKay. was replaced the
_.--...,,
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regulatory independent counsel, Robert Fiske, January 12, 1994. [Coincidentally, January
11th the date Hubbells interview DOJ with the FDIC which falsely told the FDIC that RLF did only little collection work for MGSL, nothing more. Based primarily that
statement~ the FDIC issued report clearing RLF conflicts late February.] February 1994, concerned with the ongoing investigations, President Clinton asked
Harold Ickes about the potential for civil liabilicy Hillary Clinton and RL,F. Ickes had Neil
Eggelston memorandum the subject which was forwarded Hillary Clinton March
1994. That memo contained portion the just-completed FDIC report including sununary
Hubbells false statements.
Su22ested readin2 The facts relating contacts between the White House and the
Treasury late 1993/early 1994 are detailed Bates Az.ar, White House-Treasury ContactS
Investigation, 194-99, September 1996. Billing Records The billin~ records were found table the Book Room, Room
319A, just outside Hillary Clintons office Carolyn Huber, her personal executive assistant, August 1995. Ms. Huber boxed them and put them away and did not re-discover them
an