Death of American Virtue - Ken Gormley [473]
For now, in the fall of 1989: “Indictment,” 20 Nov. 1989, Heuer papers; Wells, “Ex-Banker: No Assets.” Jim McDougal and Susan’s two brothers were indicted for setting up “sham transactions” totaling about $950,000, filing “false statements relating to Madison Guaranty financing the transactions,” and paying themselves royal commissions.
“numerous tracts of land”: Borod & Huggins Report, 4–6.
“So it is a sad tale”: Transcript of Proceedings Before the Hon. George Howard, Jr., vol. 1, 16 Jan. 1996, 23, 30, Heuer papers.
McDougal still insisted: McDougal to Heuer, 10 July 1990, Heuer papers.
“[It was] the documents”: Sam Heuer, interview by author.
Banks was a no-nonsense prosecutor: Charles Banks, interview by author.
took a stab at pleading: Transcript of Proceedings Before the Hon. George Howard, Jr., vol. 1, 16 Jan. 1996, 104, Heuer papers.
“spellbinding effect”: Joe Conason and Gene Lyons, The Hunting of the President: The Ten-Year Campaign to Destroy Bill and Hillary Clinton, 31.
“had left ’em alone”: Simmons, McDougal and Heuer, transcript of conversation, 16.
Jim McDougal and Susan’s brothers were: Stewart, Blood Sport, 177.
Charles Banks was sure beyond: Charles Banks, interview by author.
“Do you have peppermints?”: McDougal and Wilkie, Arkansas Mischief, 240.
“He was taking lithium”: Susan McDougal, interview by author.
“Would you get”: Ibid.; Stewart, Blood Sport, 178–79; McDougal and Wilkie, Arkansas Mischief, 242–43.
“Jim was living in the house”: Claudia Riley, interview by author.
Jim listened as Clinton: McDougal, Arkansas Mischief, 240.
“Jim visibly crumbled”: Claudia Riley, remarks made while author was interviewing Susan McDougal.
“Jim could never forgive”: Susan McDougal, interview by author.
“Jim McDougal was a friend”: Betsey Wright, interview by author.
Although the essence of the Whitewater story: John Reed, “Clinton Tops List of Gift Receivers,” Arkansas Democrat-Gazette, 1 Feb. 1990. See also James Merriweather, “Governor, Wife List Salaries, Plane Trips,” Arkansas Democrat-Gazette, 4 May 1990.
“I mean, you really got to hand”: Bill Clinton, interview by author.
“The Whitewater case unfolded”: McDougal and Wilkie, Arkansas Mischief, 236–38.
Nelson had lost: Lyons, Fools for Scandal, 47–50.
Nichols had been: Larry Nichols v. Bill Clinton et al., LR-C-90–746, U.S. District Court, Eastern District of Arkansas, filed 25 Oct. 1990; Larry Nichols, interview by author. Nichols was terminated, according to an Associated Press report, after using state-owned telephones to make hundreds of calls in support of Nicaragua Contra rebels. Nichols’s case was dismissed with prejudice in February 1992.
convening a press conference: Larry Nichols, interview by author; McDougal and Wilkie, Arkansas Mischief, 244; Conason and Lyons, The Hunting of the President, 16–17.
Records contained in the files: Sheffield Nelson, Janet Lawrence, and Jim McDougal, transcription of recorded conversation, Mar. 1992, Heuer papers. It is unclear whether McDougal knew the conversation was being recorded.
Soon afterward, McDougal: McDougal and Wilkie, Arkansas Mischief, 244–45.
Jeff Gerth’s article appeared: Lyons, Fools for Scandal, 31.
Gerth became the first journalist: Jeff Gerth, “The 1992 Campaign: Personal Finances; Clintons Joined S&L Operator in an Ozark Real-Estate Venture,” New York Times, 8 Mar. 1992, 1.
(McDougal later admitted): McDougal and Wilkie, Arkansas Mischief, 245.
Even in that context: The nature of the alleged wrongdoing by the Clintons would change over time. However, the original Gerth story focused on the facts that (a) the Clintons contributed little to the failed Whitewater venture and took little risk financially, but stood to “cash in” and reap a windfall if the venture succeeded; (b) the Clintons improperly deducted $5,000 on their tax returns in 1984 and 1985 for interest paid on Whitewater loans, saving themselves about $1,000 in taxes; (c) once federal