Hillary Clinton

Hillary Clinton

NEW YORK – Washington-based watchdog Judicial Watch has released 246 pages of previously undisclosed internal memos from Ken Starr’s Office of Independent Council investigation in 1998 showing prosecutors had evidence that Hillary Clinton and her associate Webb Hubbell at the Rose Law Firm in Little Rock, Arkansas, were guilty of criminal fraud in the Whitewater affair.

Judicial Watch said the newly released documents also show Clinton and Hubbell engaged in a criminal cover-up conspiracy that included destroying material documents and lying under oath to federal authorities.

Their efforts, Judicial Watch said, were aimed at preventing the Whitewater affair from denying Bill Clinton the White House in 1992 and from derailing his presidency in its first term.

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In an presage of the drama unfolding as the FBI investigates the private email server Hillary Clinton used as secretary of state, the newly released documents also show that Starr declined prosecution in 1998 only out of concern a jury would not convict the first lady.

“These new Hillary Clinton prosecution memos are damning and dramatic,” said Judicial Watch President Tom Fitton. “Hillary Clinton’s bank fraud, obstruction, lies and other fraud began in Arkansas, continued in the White House and actually accelerated because of the suicide of her friend Vincent Foster.”

Fitton said the memos suggest that if Clinton weren’t first lady, she would have been successfully prosecuted in federal court.

“As we continue the court fight to get the actual draft indictment of Hillary Clinton we first uncovered in this investigation, Americans would do well to read these memos,” Fitton said. “If you want to understand the deplorable ethics and corruption at the Clinton State Department, these documents provide important background.”

Criminal scheme

An April 20, 1998, memo by the “HRC (Hillary Rodham Clinton) Team” addressed to “All OIC Attorneys” outlines the conclusions reached by the federal prosecutors:

  • Hillary Clinton’s legal work at the Rose Law Firm with Webb Hubbell included a criminal scheme to defraud a local savings and loan bank arranging fraudulent loan purchases in a real estate transaction known as “Castle Grande.”
  • The criminal fraud committed by Clinton and Hubbell was further complicated by a criminal cover-up scheme.
  • The criminal cover-up perpetrated by Clinton and Hubbell was accomplished by the following acts: (1) destroying legal files regarding the fraudulent transaction, (2) lying under oath to federal investigators, including the FDIC and Congress, (3) removing incriminating records from Vince Foster’s office after his death, and (4) destroying other records, including Rose Law Firm records that would provide incriminating evidence against Clinton and Hubbell in the Whitewater scandal.

The memo said that during the 1992 campaign for president, media inquires caused Hillary Clinton, Hubbell and Foster to collect additional Rose Law Firm records relating to Hillary Clinton’s work for Madison Guarantee Savings and Loan.

Judicial Watch noted Hillary Clinton, according to Starr’s federal prosecutors, drafted an option agreement that concealed from federal bank examiners a fraudulent $300,000 cross-loan in the Castle Grande transaction.

Judicial Watch said Clinton’s subsequent concealment of her role in the fraudulent transaction, including the hiding of her Rose Law Firm billing records concerning her legal work for Madison, were the subject of an Office of Independent Council, or OIC, obstruction of justice probe.

Finally, Judicial Watch found that the 1998 memo included substantial evidence Clinton and her former Rose Law Firm partners Hubbell and Foster – both of whom went on to senior positions in the Bill Clinton presidency – as complicit in activities that “facilitated crimes.”

Vince Foster’s office

The memo confirmed that when Foster died, on or about July 20, 1993, Hillary Clinton, most likely with the complicity of White House Counsel Bernard Nussbaum, removed from Foster’s office Whitewater-related documents that Clinton did not want disclosed to the public.

Subsequently, Clinton managed to move the documents to a hiding place adjacent to her White House office, where they were found two years after Foster died.

Regarding the removal of documents from Foster’s office after his death, the OIC prosecutors’ memo stated:

On the evening of July 22nd [1993], Thomas Castleton, an intern in the White House, assisted [Maggie] Williams [Hillary Clinton’s chief-of-staff] in carrying the box of personal documents [removed from Foster’s office] up to the 2nd floor of the Residence of the White House. Williams told Castleton that the documents were going to be given to the Clintons’ attorney, after they had been reviewed by Hillary Clinton and the President. Castleton placed the box in a closet in Hillary Clinton’s office, Room 323. That closet is approximately 30 feet from the table in the Book Room, Room 319A, where the billing records were found two years later.

The memo said two copies “of the most significant of these records, Hillary Clinton’s billing records for the work she did for MGSL, are known to exist – one set was discovered in a briefcase in Vince Foster’s attic in July 1997; the other set was the Book Room adjacent to Hillary Clinton’s office in August 1995 and publicly released in January 1996.”

The memo said Clinton and Hubbell committed perjury under oath, prefiguring the criminal offense that caused Bill Clinton to be impeached over the Monica Lewinsky affair.

A key paragraph reads:

Between January 1994 and February 1996 both Hillary Clinton and Hubbell made numerous sworn statements to the RTC [Resolution Trust Company], the FDIC, the Senate and the House of Representatives, and to OIC. Each of these reflected and embodied materially inaccurate stories relating to: how the RLF [Rose Law Firm] came to be retained by MGSL; Hillary Clinton’s role in the IDC/Castle Grande venture; Hillary Clinton’s role in representing MGSL before state agencies; Hubbell’s representations to the RTC and FDIC regarding Hillary Clinton’s role in the IDC/Castle Grande venture; and the removal of records from RFL.

Judicial Watch further said the newly released documents proved Hubbell received several “jobs” from Clinton supporters for which he apparently did little or no work.

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