Reprinted from The Washington Times , 5am -- April 21, 1998
McDougal faces more jail time if she doesn't testify
By Jerry Seper
THE WASHINGTON TIMES
Susan McDougal is expected to be charged with criminal contempt if she refuses Thursday to testify before the Whitewater grand jury on whether President Clinton lied when he denied knowing about an illegal $300,000 loan she received in 1986.
With the current Little Rock, Ark., grand jury scheduled to close down May 7, independent counsel Kenneth W. Starr has upped the stakes for his old nemesis. He has put her in the position of facing up to five years of additional prison time if she fails to testify and ultimately is convicted of criminal contempt.
McDougal's attorney, Mark Geragos, confirmed yesterday that his client has been ordered to testify. He said that if he is unsuccessful in a pending motion to block her scheduled appearance, he expects Mr. Starr will seek a new indictment.
"I fully anticipate that Mr. Starr will seek to indict her on a charge of criminal contempt," he said, adding that his client will not answer any questions posed by prosecutors "as long as Ken Starr is the independent counsel."
Mr. Geragos told The Washington Times he had not received a target letter from prosecutors on a possible obstruction of justice charge that might be lodged against her, but said his client had not yet satisfied the court's September 1996 order to testify before the grand jury and a charge of criminal contempt would be the expected next step. Last month, she completed 18 months in jail on the civil contempt citation.
"This is clearly a vindictive effort on the part of Mr. Starr to punish Susan McDougal," he said.
Mr. Starr's spokeswoman, Deborah Gershman, was not available for comment. But prosecutors are expected to grant McDougal limited immunity in exchange for her testimony and then seek an indictment if she refuses.
McDougal has been intransigent about testifying. In January, associate independent counsel Michael W. Emmick outlined a compromise deal in a letter to McDougal. He stated she could testify on videotape and away from the grand jury. He warned her she risked further prosecution if she rejected the offer.
In his letter, Mr. Emmick said that if McDougal accepted his offer, he would not prosecute her for criminal contempt, obstruction of justice or "any crimes related to her refusal" to testify.
He also said prosecutors would not make a final decision on any perjury charge and would "refer any such decision to an independent third-party prosecutor."
Although McDougal was serving a two-year federal sentence in her conviction in the first Whitewater trial and, in a separate matter, was awaiting trial on embezzlement charges, she rejected the offer.
She had been jailed for contempt after her Sept. 6, 1996, refusal to testify on whether Mr. Clinton knew about the $300,000 loan. She then accused Mr. Starr of trying to force her to falsely incriminate Mr. Clinton in the loan deal.
Mr. Starr denied McDougal's accusation, but described her testimony as essential.
McDougal's testimony was especially important because her ex-husband, James, who also knew about the loan details and was expected to testify, died March 8 in a Texas prison. He had been serving a three-year sentence on his conviction in the first trial.
Part of the proceeds of the loan, which was never repaid, were used by the McDougals to buy property near Little Rock for Whitewater Development Corp., the northern Arkansas real estate venture involving the McDougals and the Clintons.
Mr. Clinton testified under oath in the first trial that he knew nothing of the loan and had never spoken about it with David Hale, who made the loan.
He said he was unaware the money had been used for the Whitewater venture. Corroboration showing Mr. Clinton knew of the loan, but denied it under oath during his testimony, could subject him to a perjury charge.Copyright 1998 News World Communications, Inc.
Reprinted with permission of
The Washington Times.
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