ROANOKE TIMES

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

DATE: WEDNESDAY, December 7, 1994                   TAG: 9412070115
SECTION: NATIONAL/INTERNATIONAL                    PAGE: A-5   EDITION: METRO 
SOURCE: Associated Press
DATELINE: LITTLE ROCK, ARK.                                LENGTH: Medium


CLINTON CONFIDANT PLEADS GUILTY

Webster Hubbell, the former No. 3 Justice Department official and a friend of President Clinton, pleaded guilty Tuesday to bilking his former law firm and clients out of nearly $400,000.

In a plea agreement, Hubbell, 46, pledged to cooperate with Whitewater prosecutor Kenneth Starr's wide-ranging investigation into the business activities of the Clintons and other prominent Arkansans.

The first Clinton administration official to admit to criminal activity as a result of the Whitewater probe, Hubbell pleaded guilty to mail fraud and tax evasion, two felonies.

The charges carry a maximum of 10 years in prison and $500,000 in fines.

U.S. District Judge William R. Wilson agreed to release Hubbell on his own recognizance pending sentencing. No date was set.

Hubbell was accused in documents filed by prosecutors of defrauding his former law firm in Little Rock and its clients of $394,000 from 1989 to 1993 through excessive billings.

The tax-evasion charge stems from underreporting his income for 1992. Hubbell reported he made $194,000 that year but actually made $309,000, according to the charges.

In a statement immediately after the court appearance, President Clinton's lawyer sought to distance the White House from Hubbell's legal troubles.

``This matter simply does not concern the president, the first lady or Whitewater Development Company in any way,'' Attorney David Kendall said in Washington.

``The charges here are totally unrelated - they arise out of Mr. Hubbell's personal income-tax returns and individual billing procedures as an attorney in private practice in Little Rock before he came to Washington,'' he said.

The charges against Hubbell stemmed from allegations brought by former colleagues at the Rose Law Firm of Little Rock, where Hubbell and Hillary Rodham Clinton were partners before Clinton was elected president.



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