Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SATURDAY, January 22, 1994 TAG: 9401220095
SECTION: NATIONAL/INTERNATIONAL PAGE: A-1 EDITION: METRO
SOURCE: Associated Press
DATELINE: LITTLE ROCK, ARK. LENGTH: Medium
The subpoena issued to Gov. Jim Guy Tucker says a federal grand jury is interested in records involving Clinton's former gubernatorial campaigns, business associates involved with the Clintons' Whitewater Development Co. and banks where the first family had loans.
It also names prominent Arkansans, many of them friends or associates of the first family. They include:
The father-in-law of top Justice Department official Webster Hubbell, a former law firm partner of Hillary Rodham Clinton.
J. William Fulbright, the former U.S. senator who gave Bill Clinton his political start in the late 1960s and who also had financial dealings at the now-failed S&L.
Steve Smith, a banker who served as an aide to Clinton and his gubernatorial campaigns in Arkansas.
The U.S. District Court grand jury's work, which is sealed from public scrutiny, was started by a government lawyer the Justice Department sent to Little Rock to investigate the failure of Madison Guaranty S&L.
The job is now likely to be taken over by former U.S. attorney Robert Fiske, named Thursday by Attorney General Janet Reno as a special counsel to oversee a sweeping investigation into the Clintons' ties to the Whitewater real estate venture and Madison S&L. The financial institution's owner, James McDougal, was the Clintons' business partner in Whitewater.
Among the things the government has been investigating is whether S&L funds were illegally diverted to other entities such as Whitewater or used to pay the political and personal debts of prominent Arkansans, including Clinton and Tucker.
Regulators also are investigating whether the former law firm of Hillary Rodham Clinton and Hubbell failed to properly inform the government of possible conflicts when it applied for and received a federal contract to oversee the lawsuit trying to recoup taxpayers' money after Madison failed.
Tucker was not ordered to appear before the grand jury. McDougal had been scheduled to testify Thursday, but his attorney, Sam Heuer, said Friday the appearance had been postponed until next month.
In a sign of the investigation's scope, Tucker estimated his subpoena was among 83 issued for documents related to Madison.
by CNB