Government & PoliticsUnsubstantiated Whitewater investigation (1994-2000)
The Whitewater controversy concerned a 1978 land purchase in Arkansas by Bill and Hillary Clinton and their partners James and Susan McDougal, later run through the Whitewater Development Company, and the Clintons' ties to McDougal's Madison Guaranty Savings and Loan, which failed at a cost to taxpayers that Independent Counsel Robert Ray's report put at $73 million. Resolution Trust Corporation criminal referrals led to investigations by Robert Fiske (from January 1994) and then Ken Starr (from August 1994). In May 1996 a jury convicted James McDougal, Susan McDougal and Arkansas Governor Jim Guy Tucker of fraud-related offences; the Clintons were witnesses, not defendants, and were never charged. On September 20, 2000 Ray announced that the evidence was insufficient to prove beyond a reasonable doubt that either Clinton knowingly participated in any criminal conduct, and his five-volume final report was released on March 20, 2002. The report found that the Clintons realised no profit from the Whitewater venture, but also that McDougal's fraud indirectly benefited them (it forestalled foreclosure on the land), and it left questions open, including how Hillary Clinton's subpoenaed billing records reached the White House residence. The investigation's scope later widened into the Monica Lewinsky matter and Clinton's 1998 impeachment. The claim that the Clintons committed crimes through Whitewater has never been proved, and has not been fully disproved either: unsubstantiated.