Jim McDougal
Encyclopedia
James B. "Jim" McDougal a native of White County, Arkansas
, and his wife, Susan McDougal
(the former Susan Carol Henley), were financial partners with Bill Clinton
and Hillary Rodham Clinton
in the real estate
venture that led to the Whitewater political scandal of the 1990s. Starting in 1982, McDougal operated Madison Guaranty
Savings and Loan.
counts of fraud
and conspiracy charges. The counts had to do with bad loans made by Madison in the late 1980s. As his savings and loan was federally-insured, the $68 million was paid by taxpayers. During the McDougal case, special prosecutor Kenneth Starr
requested a reduced sentence for McDougal because of McDougal's assistance in the investigation.
He joined with his wife, from whom he was later divorce
d, and the Clintons to borrow $203,000 to buy land in the Ozark Mountains for vacation homes. When the development failed, he attempted to cover the losses with S&L
funds. McDougal was prosecuted for fraud in 1984 and hired the Rose Law Firm
which Hillary Clinton was a partner of to defend him. McDougal
held a fundraiser that paid off Clinton's then campaign debt of $50,000. Madison cashier's checks accounted for $12,000 of the funds raised.
Jim McDougal was also found by federal regulators to have made fraudulent loans with regards to his Castle Grande
project that was a real estate development about 10 minutes south of Little Rock. The project was a 1050 acres (4.2 km²) lot where he hoped to build microbrewery, shopping center, a trailer park and other future projects in 1985. The sales price was $1.75 million. State regulations prohibited McDougal from investing more than 6% of his S&L assets in the project, so he put in $600,000 of Madison Guaranty money and had Seth Ward put in the difference, $1.15 million. The money Ward borrowed from Madison Guaranty was in the form of a "non-recourse loan".
Jim McDougal was a Democrat
and a former aide to the late U.S. Senator James William Fulbright. He later was a political science
professor at Ouachita Baptist University
in Arkadelphia. Another Arkansas politician
, Bob Cowley Riley, lieutenant governor
from 1971–1975, also taught political science at OBU.
In 1982, McDougal made a failed bid for the United States House of Representatives
against the Republican
incumbent
John Paul Hammerschmidt
in Arkansas's northwesterly Third Congressional District. Hammerschmidt, who had a reputation for excellent constituent services, polled 133,909 votes (66 percent) to McDougal's 69,089 (34 percent). Coincidentally, Clinton himself had been defeated by Hammerschmidt in this same district in 1974. McDougal entered the political arena again at the height of the Whitewater controversy, running in the 1994 Democratic Primary in Arkansas' Fourth Congressional District in South Arkansas. McDougal ran last in a three-man race, getting twenty-three percent of the vote in a primary won by State Senator Jay Bradford of Pine Bluff, who in turn lost the general election to first-term Republican Congressman Jay Dickey
in 1994's "Battle of the Jays".
at the Federal Correctional Facility in Fort Worth, Texas
, aged 57.
White County, Arkansas
White County is a county located in the U.S. state of Arkansas. As of 2010, the population was 77,076. The county seat is Searcy. White County is Arkansas's 31st county, formed on October 23, 1835, from portions of Independence, Jackson, and Pulaski counties and named for Hugh Lawson White, a...
, and his wife, Susan McDougal
Susan McDougal
Susan McDougal is one of the few people who served prison time as a result of the Whitewater controversy although fifteen individuals were convicted of various federal charges...
(the former Susan Carol Henley), were financial partners with Bill Clinton
Bill Clinton
William Jefferson "Bill" Clinton is an American politician who served as the 42nd President of the United States from 1993 to 2001. Inaugurated at age 46, he was the third-youngest president. He took office at the end of the Cold War, and was the first president of the baby boomer generation...
and Hillary Rodham Clinton
Hillary Rodham Clinton
Hillary Diane Rodham Clinton is the 67th United States Secretary of State, serving in the administration of President Barack Obama. She was a United States Senator for New York from 2001 to 2009. As the wife of the 42nd President of the United States, Bill Clinton, she was the First Lady of the...
in the real estate
Real estate
In general use, esp. North American, 'real estate' is taken to mean "Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water; immovable property of this nature; an interest vested in this; an item of real property; buildings or...
venture that led to the Whitewater political scandal of the 1990s. Starting in 1982, McDougal operated Madison Guaranty
Madison Guaranty
Madison Guaranty was a Little Rock, Arkansas financial trust company.Starting in 1982 and operated by Jim McDougal-Susan McDougal Madison Guaranty Savings and Loan failed in the late 1980s. On April 14, 1997, Jim McDougal was convicted of 18 felony counts of fraud conspiracy charges...
Savings and Loan.
Biography
On April 14, 1997, James McDougal was convicted of eighteen felonyFelony
A felony is a serious crime in the common law countries. The term originates from English common law where felonies were originally crimes which involved the confiscation of a convicted person's land and goods; other crimes were called misdemeanors...
counts of fraud
Fraud
In criminal law, a fraud is an intentional deception made for personal gain or to damage another individual; the related adjective is fraudulent. The specific legal definition varies by legal jurisdiction. Fraud is a crime, and also a civil law violation...
and conspiracy charges. The counts had to do with bad loans made by Madison in the late 1980s. As his savings and loan was federally-insured, the $68 million was paid by taxpayers. During the McDougal case, special prosecutor Kenneth Starr
Kenneth Starr
Kenneth Winston "Ken" Starr is an American lawyer and educational administrator who has also been a federal judge. He is best known for his investigation of figures during the Clinton administration....
requested a reduced sentence for McDougal because of McDougal's assistance in the investigation.
He joined with his wife, from whom he was later divorce
Divorce
Divorce is the final termination of a marital union, canceling the legal duties and responsibilities of marriage and dissolving the bonds of matrimony between the parties...
d, and the Clintons to borrow $203,000 to buy land in the Ozark Mountains for vacation homes. When the development failed, he attempted to cover the losses with S&L
Savings and loan association
A savings and loan association , also known as a thrift, is a financial institution that specializes in accepting savings deposits and making mortgage and other loans...
funds. McDougal was prosecuted for fraud in 1984 and hired the Rose Law Firm
Rose Law Firm
Rose Law Firm is headquartered in Little Rock, Arkansas. It is the oldest law firm in the United States west of the Mississippi River and the third oldest in the United States....
which Hillary Clinton was a partner of to defend him. McDougal
held a fundraiser that paid off Clinton's then campaign debt of $50,000. Madison cashier's checks accounted for $12,000 of the funds raised.
Jim McDougal was also found by federal regulators to have made fraudulent loans with regards to his Castle Grande
Castle Grande
Castle Grande was a real estate development in Arkansas about 10 minutes south of Little Rock. It came into National news as a result of the Whitewater investigations. The project was a lot where Jim McDougal hoped to build a microbrewery, shopping center, a trailer park and other future projects...
project that was a real estate development about 10 minutes south of Little Rock. The project was a 1050 acres (4.2 km²) lot where he hoped to build microbrewery, shopping center, a trailer park and other future projects in 1985. The sales price was $1.75 million. State regulations prohibited McDougal from investing more than 6% of his S&L assets in the project, so he put in $600,000 of Madison Guaranty money and had Seth Ward put in the difference, $1.15 million. The money Ward borrowed from Madison Guaranty was in the form of a "non-recourse loan".
Jim McDougal was a Democrat
Democratic Party (United States)
The Democratic Party is one of two major contemporary political parties in the United States, along with the Republican Party. The party's socially liberal and progressive platform is largely considered center-left in the U.S. political spectrum. The party has the lengthiest record of continuous...
and a former aide to the late U.S. Senator James William Fulbright. He later was a political science
Political science
Political Science is a social science discipline concerned with the study of the state, government and politics. Aristotle defined it as the study of the state. It deals extensively with the theory and practice of politics, and the analysis of political systems and political behavior...
professor at Ouachita Baptist University
Ouachita Baptist University
Ouachita Baptist University is a private, liberal arts, undergraduate institution located in Arkadelphia, Arkansas, which is about 65 miles southwest of Little Rock. The university's name is taken from the Ouachita River, which forms the eastern campus boundary. It is affiliated with the Arkansas...
in Arkadelphia. Another Arkansas politician
Politician
A politician, political leader, or political figure is an individual who is involved in influencing public policy and decision making...
, Bob Cowley Riley, lieutenant governor
Lieutenant governor
A lieutenant governor or lieutenant-governor is a high officer of state, whose precise role and rank vary by jurisdiction, but is often the deputy or lieutenant to or ranking under a governor — a "second-in-command"...
from 1971–1975, also taught political science at OBU.
In 1982, McDougal made a failed bid for the United States House of Representatives
United States House of Representatives
The United States House of Representatives is one of the two Houses of the United States Congress, the bicameral legislature which also includes the Senate.The composition and powers of the House are established in Article One of the Constitution...
against the Republican
Republican Party (United States)
The Republican Party is one of the two major contemporary political parties in the United States, along with the Democratic Party. Founded by anti-slavery expansion activists in 1854, it is often called the GOP . The party's platform generally reflects American conservatism in the U.S...
incumbent
Incumbent
The incumbent, in politics, is the existing holder of a political office. This term is usually used in reference to elections, in which races can often be defined as being between an incumbent and non-incumbent. For example, in the 2004 United States presidential election, George W...
John Paul Hammerschmidt
John Paul Hammerschmidt
John Paul Hammerschmidt is an American politician from the U.S. state of Arkansas. A Republican, Hammerschmidt served for thirteen terms in the U.S. House of Representatives from the northwestern Arkansas district before he retired in 1993...
in Arkansas's northwesterly Third Congressional District. Hammerschmidt, who had a reputation for excellent constituent services, polled 133,909 votes (66 percent) to McDougal's 69,089 (34 percent). Coincidentally, Clinton himself had been defeated by Hammerschmidt in this same district in 1974. McDougal entered the political arena again at the height of the Whitewater controversy, running in the 1994 Democratic Primary in Arkansas' Fourth Congressional District in South Arkansas. McDougal ran last in a three-man race, getting twenty-three percent of the vote in a primary won by State Senator Jay Bradford of Pine Bluff, who in turn lost the general election to first-term Republican Congressman Jay Dickey
Jay Dickey
Jay W. Dickey, Jr. is a former U.S. Representative from the Fourth Congressional District of Arkansas. He served in Congress from 1993 to 2000...
in 1994's "Battle of the Jays".
Death
McDougal died of a heart attackMyocardial infarction
Myocardial infarction or acute myocardial infarction , commonly known as a heart attack, results from the interruption of blood supply to a part of the heart, causing heart cells to die...
at the Federal Correctional Facility in Fort Worth, Texas
Fort Worth, Texas
Fort Worth is the 16th-largest city in the United States of America and the fifth-largest city in the state of Texas. Located in North Central Texas, just southeast of the Texas Panhandle, the city is a cultural gateway into the American West and covers nearly in Tarrant, Parker, Denton, and...
, aged 57.
External links
- Washington Post time line
- CNN whitewater report
- CNN report
- CBS
- CNN Report: McDougal had no access to his heart medication nor doctors just before his death
- Hickman Ewing reduced Jim McDougal's prison sentence in exchange for testimony that Susan McDougal refused to confirm.
- PBS, WGBH educational foundation, Frontline
- Labaton, Stephen. "Appraiser on Madison Loans in Plea Accord", New York Times, December 6, 1994
- Jim McDougal's death