For those of you who are keeping count James McDougal was involved in the Whitewater issue yes however his wife Susan was also involved in this matter as well. As a matter of fact, because of her involvement Susan was actually put into prison for fraud.
James and Susan McDougal were building developers yet also became bank financiers at one point prior to starting the Whitewater Development Corporation. What is more interesting is James and Susan McDougal were friends with Bill and Hillary Clinton when Bill Clinton was governor of Arkansas. There were many issues brewing with the Whitewater Development matter starting with the fact investment funds were not there. That matter did not seem to slow down issues any as the building continued and the borrowing of funding continued between all parties with hiding of assets.
What was the most frustrating of this matter is the cost building and items not being sold. Instead of paying for items that are purchased more money was loaned from banks that were personally purchased. No attention was given to prior loans taken out, instead more funding was removed which was the wrong type of business practice to follow. This issue became the tax payer’s problem as the money owed was put on their dime instead of where it needed to be.
A larger problem came about when things started to shatter and dominoes began to fall. Loan monies started to pile up and could no longer be hidden and suddenly questions arose on the matter. What came about next James McDougal was removed from his presidential position in the financial bank once created. Even though Hillary Clinton was working for Rose Law Firm and being his attorney questions did come about for her actions and conflict of interest in the entire matter as things were not appearing ethical. Other matters showing at the Rose Law Firm began to get questioned as conflict of interest due to Hillary’s involvement and unethical influence.
It is quite apparent as to why Susan McDougal went to jail for the time given; her involvement in Whitewater, her refusal to work with attorneys including the business involvement had with her husband.