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Day, March 09, 1999

New Susan McDougal trial opens

- By Peggy Harris/Associated Press Writer

LITTLE ROCK, Ark. - Still defiant after 18 months behind bars for refusing to answer questions about President Clinton, Whitewater figure Susan McDougal went on trial Monday on contempt and obstruction charges that could send her back to prison.

As lawyers and a federal judge questioned potential jurors, prosecutors centered on whether any felt animosity toward Kenneth Starr.

"We're hoping the jury will try the case on legal issues, not extraneous matters," deputy prosecutor W. Hickman Ewing said outside court. "We'll be vigilant to have the case tried on what's relevant."

In front of the courthouse where she and two co-defendants were convicted of fraud in 1996, McDougal said she was fearful entering what is expected to be a month-long trial.

"I think it will be an all-out fight and I think it has become a personal vendetta," she said. "It's become more than political."

But Ewing said the only issue was whether Mrs. McDougal refused a judge's direct order to testify to the Whitewater grand jury.

McDougal, 44, is charged with two counts of criminal contempt and one count of obstruction of justice. If convicted, she could serve a sentence determined by U.S. District Judge George Howard Jr. and could face a maximum fine of $750,000.

In September 1996 and April 1998,. McDougal refused to talk to grand jurors investigating Arkansas business deals involving President Clinton and Hillary Rodham Clinton.

McDougal has said she refused to answer questions because she believes the special prosecutor would twist her words to suit his purposes and possibly charge her with perjury if he does not get the testimony he wants.

Howard said last week that he would consider allowing evidence for 'prosecutorial misconduct or outrageous government conduct," specifically whether Starr wanted McDougal to lie about the Clintons.

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. McDougal died in prison a year ago Monday.

Prosecutors were trying to find out whether the president knew about a $300,000 government-backed loan made to McDougal in 1986. Prosecutors say the money was misused. The president has said he knew nothing about the loan.



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PUBLISHED:
-Daily Kent Stater
-Page 2
-03.09.99