In September 1996 and April 1998, McDougal refused to talk to grand jurors investigating Arkansas business deals involving the president or Hillary Rodham Clinton. McDougal has said she refused to answer questions because she believes Starr would twist her words to suit his purposes and may charge her with perjury if he doesn't get the testimony he wants. Ewing said the government can prove that McDougal had relevant information about the Clintons. McDougal, her ex-husband James McDougal and the Clintons were business partners in the failed real estate development known as Whitewater. James McDougal died in prison a year ago today.
Prosecutors say the money was misused.
The president has said he knew nothing about the loan. Jim Guy Tucker. The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.