Official Statement From Robert Ray on Whitewater
Sept. 20 -- Independent Counsel Robert W. Ray today issued the following statement on the Whitewater investigation:
This Office has now concluded, with certain limited exceptions, its investigation of the matters commonly referred to as “Madison Guaranty/Whitewater.” At this time, it is appropriate, in the public interest, and consistent with the law to inform the public of the findings and conclusions regarding the core matters within this Office’s Madison Guaranty/Whitewater jurisdiction. Except for limited pending matters, the Madison Guaranty/Whitewater investigation is now closed.
Following enactment of the Independent Counsel Reauthorization Act of 1994, this Office was established on August 5, 1994 to continue the work of regulatory Independent Counsel Robert B. Fiske Jr. to investigate the relationship of James B. McDougal and President and Mrs. Clinton to Madison Guaranty Savings & Loan Association (“Madison Guaranty”), Capital Management Services, Inc. (“CMS”), and the Whitewater Development Corporation (“Whitewater Development”). Eleven months ago, on October 18, 1999, the judges of the United States Court of Appeals for the District of Columbia Circuit’s Division for Appointing Independent Counsels appointed me as Independent Counsel with respect to all matters within the previously ordered jurisdiction of this Office, including the Madison Guaranty/Whitewater investigation. Since my appointment, this Office has concluded two matters within our jurisdiction — matters commonly referred to as the “FBI Files” matter and the “Travel Office” matter.
The Madison Guaranty/Whitewater investigation resulted in the conviction of 12 defendants, including former Arkansas Governor Jim Guy Tucker, Jim and Susan McDougal, and former Associate Attorney General Webster L. Hubbell. This Office investigated whether Jim and Susan McDougal committed any crimes in connection with Madison Guaranty, CMS, or Whitewater Development by using control of two financial institutions — Madison Guaranty and Madison Bank & Trust — to lend money to or for the benefit of Whitewater Development and to pay Whitewater Development financial obligations at a time when the McDougals and the Clintons jointly owned Whitewater Development. In May 1996, Jim and Susan McDougal were convicted in federal court in Arkansas of various crimes involving Madison Guaranty, CMS, and Whitewater Development. According to one federal bank regulatory agency, the failure of Madison Guaranty cost the taxpayers $73 million.
This Office investigated whether President and Mrs. Clinton knowingly participated in any criminal conduct related to Madison Guaranty, CMS, or Whitewater Development or had any knowledge of such conduct. This Office determined that the evidence was insufficient to prove to a jury beyond a reasonable doubt that either President or Mrs. Clinton knowingly participated in any criminal conduct involving Madison Guaranty, CMS, or Whitewater Development or knew of such conduct. The evidence relating to their testimony and conduct, in connection with this investigation and other investigations involving the same entities, was also, in the judgment of this Office, insufficient to prove to a jury beyond a reasonable doubt that either of them committed any criminal offense, including perjury (18 U.S.C. § 1621) or obstruction of justice (18 U.S.C. § 1503).
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