
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: SUNDAY, April 3, 1994                   TAG: 9404030074
SECTION: NATIONAL/INTERNATIONAL                    PAGE: A-1   EDITION: METRO 
SOURCE: Associated Press
DATELINE: WASHINGTON                                LENGTH: Medium

CLINTON'S '84 RACE CHECKED PROBE LINKS FAILED S&L TO CAMPAIGN FUNDING

Federal regulators last year named President Clinton's 1984 gubernatorial campaign as a suspect in recommending a criminal probe of Madison Guaranty Savings and Loan, according to an official familiar with the investigation.

Resolution Trust Corp. investigators noted that up to $60,500 in funds from the failed Arkansas thrift may have been diverted to the campaign, with the knowledge of campaign officials, the official said, speaking on condition of anonymity.

The allegation about the campaign fund was included in one of 10 criminal referrals prepared by the RTC, which investigates civil claims, and forwarded to the Justice Department for possible criminal prosecution.

The referral contained no evidence that then-Gov. Clinton knew about the alleged diversion of funds, according to the official familiar with the case.

White House spokeswoman Dee Dee Meyers declined to comment on the matter Saturday. "We haven't seen the referrals," she said.

The RTC was created by Congress to oversee the cleanup of S&L failures in the 1980s.

All of the referrals are being considered by special counsel Robert Fiske, who has grand juries in Washington, D.C., and Little Rock, Ark., investigating whether Clinton and his wife, Hillary, benefited from the use of federally insured deposits in Madison.

The RTC recommended the probe after finding indications that $10,500 donated to the 1984 campaign may have been passed through accounts at Madison, including one dedicated to the Whitewater land development project, the official said.

"The question was, how could the campaign take a contribution cleared through an account with these connections?" the official said. "That was something the RTC felt needed further investigation."

James McDougal was the owner of Madison. He and his then-wife, Susan, were partners with the Clintons in the Whitewater venture.

The questionable contributions noted by RTC investigators either came from overdrawn accounts or were from the proceeds of loans made for other purposes, the official said.

Keywords:
INFOLINE

by CNB