FLASHBACK – Clinton Administration Officials INDICTED

From CM Library

Henry Cisneros, Secretary of Housing and Urban Development became the second Clinton administration official to be indicted.

The Justice Department probe began on Sept. 22, 1994, it’s investigating whether Housing and Urban Development Secretary Henry Cisneros lied to the FBI about payments he made to his former mistress, Linda Jones. In March ’95 Attorney General Janet Reno concluded HUD Secretary Henry Cisneros made yearly payments to Jones of between $42,000 and $60,000—contradicting Cisneros’ claim to the FBI that his yearly payments totaled no more than $10,000. In May 1995, an independent counsel was named to investigate if the lies HUD Secretary Henry Cisneros told to the FBI constitute a felony.

On Dec. 11, 1997 a federal grand jury in Washington handed down a 21-count indictment, charging Cisneros and Jones variously with conspiracy, obstruction of justice, fraud and perjury. Evidence including 40 hours of secretly recorded telephone calls, IRS records and canceled checks suggests to prosecutors that Cisneros committed perjury and conspired with his ex-mistress and others to lie about the hush money. Those records indicate Cisneros paid Jones about $250,000 and continued to pay her after he came to Washington, including payments totaling some $40,000 prior to his interview with the FBI.

Former Agriculture Secretary Mike Espy was indicted on charges he accepted illegal gifts and lied to investigators. In August, 1994 Attorney General Janet Reno asked for an independent counsel to investigateAgriculture Secretary Mike Espy for accepting gifts from companies regulated by his department. On Oct. 3, 1994, Mike Espy resigns amid charges he accepted gifts and perks barred by federal ethics laws and rules.

In Dec. 1997, Tyson Foods Inc., the nation’s largest poultry processor, pleaded guilty to giving former U.S. Agriculture Secretary Mike Espy more than $12,000 in illegal gifts, and agreed to pay $6 million in fines and investigative expenses.

Ultimately, Independent Counsel Smaltz s investigation of Agriculture Secretary Espy, has resulted in 14 indictments yielding 2 convictions, 3 guilty pleas, 4 acquittals, 3 companies paying enormous fines, and 3 defendants awaiting trial or retrial.

In the tenth major probe into high level Clinton appointees, the Justice Department has opened an investigation into whether or not Labor Secretary Alexis Herman was involved in a scheme of influence peddling during ‘94-’96 when she was a White House aide. The seventh independent counsel of the Clinton era will investigate influence peddling and corrupt campaign fundraising allegations against Labor Secretary Alexis Herman. In response to these allegations, President Clinton remarked, “I don t believe that for a minute.”

Under investigation for overbilling clients, mail fraud and tax evasion, Associate Attorney General Webster Hubbell resigned on March 14, 1994. On Dec. 6, ’94 Hubbell pleads guilty and on Aug. 7, 1995 he began serving 21-month sentence for defrauding the federal government and tax evasion. A June 24, 1997 Los Angeles Times story revealed a City of Los Angeles audit found Webster Hubbell cheated Los Angeles out of almost $25,000 by lying about the consulting work he did for them.

The Justice Department began investigating Commerce Secretary Ron Brown on Feb. 19, 1995 for violation of tax and financial disclosure laws and whether he took money from people seeking to influence him. Apparently, he took bribes from almost everybody saying it is part of the way Washington works. Ron Brown was still under investigation by an Independent Counsel when he died mysteriously in a plane crash in 1996. Former Brown business associate and lover Nolanda Hill revealed on the June 18, 1997 ABC Prime time Live that deceased Cabinet Secretary Ron Brown was set to accept a $700,000 cash payoff from Vietnam in return for pushing normalized trade relations with the communist country.

On Jan. 20, 1994, an independent counsel is named to investigate the Clintons’ personal, political and business finances in the 1980s, including their role in the Whitewater Development Corporation. As a result, Clinton’s cronies begin to fall around him.

Former Arkansas Municipal Court Judge David Hale was indicted for defrauding the federal government by misrepresenting Capital Management’s paid-in capital. David Hale pleads guilty on Mar. 22, 1994 to conspiracy and mail fraud.

Arkansas Gov. Jim Guy Tucker was indicted on three felony charges of making false statements and conspiracy to defraud the United States in the Whitewater venture. Later, 11 new counts of conspiracy, wire fraud, making false statements and misapplying funds are added. When Clinton loyalist Judge Henry Woods dismisses the original three-count indictment against Gov. Tucker, independent counsel Kenneth Starr files an immediate appeal. Tuckeris eventually found guilty of fraud in connection with the failed savings and loan institution and faces 10 years in prison and $500,000 in fines. After Tucker’s resignation as Governor, Lt. Gov. Mike Huckabee replaced him.

Clinton’s partner in the Whitewater venture, Jim McDougal, was indicted on 19 counts of conspiracy, mail fraud, making false statements and false bank reports, and misapplying funds. McDougal was found guilty of fraud in connection with the failed savings and loan institution. Jim McDougal was serving his 3 year sentence for bank fraud at the Fort Worth Federal Medical Center in Texas, a facility operated by the federal Bureau of Prisons for inmates who need medical attention. Just prior to another round of testimony before Kenneth Starr’s grand jury, Jim McDougal suffered a heart attack while in solitary confinement, which may have been brought on by the diuretics forced on him.

Susan McDougal was indicted on eight counts of conspiracy, wire fraud, mail fraud and making false statements.

• On Feb. 6, 1996, President Bill Clinton is subpoenaed in the bank fraud and conspiracy trial of James and Susan McDougal, his partners in the failed Whitewater development project and on Mar. 26th, the White House agrees to have Clinton videotape his testimony.
• The White House releases on Feb 20, more than 100 pages of “mistakenly overlooked” Whitewater records subpoenaed in 1994.
• On May 16, 1996, the Senate Whitewater committee votes to subpoena FBI reports showing that Hillary Clinton’s fingerprints were found on hundreds of pages of Rose law Firm documents found in the White House residence quarters in January. The records, subpoenaed in 1994, and had been missing. In a two-page affidavit to Senate Whitewater investigators on June 17th, Hillary Clinton states that she “does not know” how her Rose Law Firm billing records ended up in the White House.

Criticized for attempting to quash a Whitewater investigation at the RTC through White House liaisons, obstructing justice in the Foster suicide investigation by blocking access, removing documents, lying about his removal of documents, and by retrieving Foster’s pager from Park Police, White House Counsel Bernard Nussbaum resigns on Mar. 5, 1994 and is under investigation for lying to Congress.

Director of White House Administration, Patsy Thomasson, lied to Congress about the composition of the Health Care Task Force and the size of its budget and obstructed justice when she removed documents from the office of Vince Foster.

Deputy Treasury Secretary Roger Altman resigned on Aug. 17, 1994 amid charges of lying to Congress in his testimony concerning Whitewater/Resolution Trust Corporation (RTC) investigation.

Treasury Counsel Jean Hanson resigns on Aug. 18, 1994 amid charges that she briefed the White House on Whitewater/RTC investigation.

On Dec. 15, 1995, Former White House lawyer William Kennedy refuses to comply with Senate Whitewater Committee subpoena demanding Whitewater-related documents.

Jury selection began on June 17, 1996 in the Whitewater-related trial of Herby Branscum and Robert Hill, two Arkansas bankers indicted on charges of fraud. Prosecutors maintain Hill and Branscum funneled $7,000 to then-Gov. Bill Clinton’s 1990 re-election campaign.

Deputy Chief of Staff, Harold Ickes, broke into New York Republican headquarters in 1970 but has never been indicted for this crime which was similar to what the Watergate Plumbers spent time in jail for. He also lied to Congress about his involvement in the Whitewater coverup.

Former White House Counsel, Lloyd Cutler lied to Congress and attempted to withhold vital information from Congress. He obtained a confidential Treasury report and showed it to witnesses before they testified before Congress in the Whitewater hearings. He again lied to Congress when he denied having shown testimony to witnesses. Lloyd Cutler has resigned.

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