Hillary’s low profile

Two years ago, I suggested that Hillary Clinton had her own problems, even without Bill. Before writing off the Starr investigation, remember that Whitewater includes both the Clintons. From the Oct. 5, 1996 issue of Conservative Consensus:

Mainline Media Indicts Hillary

Hillary Rodham Clinton and Webster Hubbell drew up sham legal documents and defrauded taxpayers out of over $2 million dollars, The Washington Post reported. The information comes from Hillary’s mysterious billing records which “reappeared” in the White House several months ago, after being sought by subpoena for several years.

The legal work [Hillary Clinton] performed along with Hubbell allowed Hubbell’s father-in-law Seth Ward, a Madison real estate consultant and longtime client of the Rose Law Firm, to collect commissions in a way that “evaded regulations designed to protect the safety and soundness of the institution, and violated the integrity of its books and records. Further, Madison Guaranty used a document drafted by Clinton to deceive federal bank examiners as to the true nature of the payments to Ward.

The Post cites as its source a supplement to an earlier Federal Deposit Inspector General’s report on the failure of Madison Guaranty. The report was written by Patricia M. Black, deputy inspector general of the FDIC. The Post continues:

The inspector general found that Clinton and Hubbell performed work that “appears to have facilitated the payment of substantial commissions to Ward, who acted as a straw buyer for Madison in a large land purchase at the Castle Grande development.

Rose failed to disclose that its partners had represented Madison when it took a case on the FDIC’s behalf. Nor did it disclose Hubbell’s family ties to Ward, the Madison executive whose loans were cited in the government lawsuit as risky, insider deals that helped bring down the S&L.

When federal bank examiners reviewed Madison’s books, the firm tried to hide the $400,000 in commissions due Ward. In the end, the Post relates:

… bank examiners found the land was sold at a grossly inflated price to Madison employees and insiders, financed with Madison loans borrowers had no personal obligation to repay. Most pocketed the money, and taxpayers lost some $2 million on what the government said were “sham” sales.

The inspector general’s report finds that Hillary Clinton and Webster Hubbell were party to a complex series of transactions that advanced Ward the cash. The Post concludes:

In May 1986, Hillary Clinton prepared the option stating that the
S&L would pay Ward $400,000 for 22.5 acres. The government eventually sold the land for $38,000.

Hillary Clinton has previously testified under oath that she “cannot remember” the work detailed in the mysterious billing records. Lies under oath are perjury, which is punishable with prison time.

David Kendall, Hillary Clinton’s attorney, said the report “does not allege that Mrs. Clinton did anything wrong.” One wonders what Mr. Kendall would consider wrong? The IG’S findings will now be sent to Andrew C. Hove, FDIC Vice Chairman, who will decide if there was a conflict of interest that merits agency action against the Rose Law Firm. One can only hope that Mr. Hove has a somewhat more traditional view of right and wrong, perhaps as shared by the people who paid the $2 million that Mrs. Clinton looted from Madison Guaranty.

President Clinton, in an interview (Sept. 23, 1996) on PBS with Jim Lehrer, said that the Republicans are out to get him and the first lady. “Isn’t it obvious?” he responded, when asked. Neither did President Clinton rule out pardoning his friends and associates.

The White House said this new report “sticks to the FDIC’s original conclusion and does not recommend legal action.” But as the Post wrote, “the FDIC made no finding about legal action but it is not the role of that office to do so.”