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Convicted Whitewater Partner: Clinton Knew About Illegal 1986 Loan

HeadlineFeb 10, 1997

Convicted Whitewater partner Jim McDougal is now telling independent counsel Kenneth Starr that then-Governor Bill Clinton knew about an illegal 1986 loan issued to McDougal’s wife at the time, this according to The New Yorker magazine. ABC News reported last night that McDougal has told it the same thing. Both McDougal and President Clinton have testified under oath that Clinton did not know about the loan and was not present at a 1986 meeting where it was discussed, as alleged, also under oath, by David Hale. Hale is now serving a federal prison term after pleading guilty to charges stemming from his issuance of the loan, backed by the federal Small Business Administration, to Susan McDougal.

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