Text of the Susan McDougal indictment

(First of three parts)

In the United States District Court
for the Eastern District of Arkansas
Western Division
United States of America
v.
Susan H. McDougal

Indictment

The Grand Jury charges:

COUNT 1
[18 U.S.C. § 401(3)]
[Criminal Contempt] 1. From about May 7, 1996, to the present, a federal grand jury empaneled in the Eastern District of Arkansas (the "Grand Jury") has conducted an investigation to determine whether any individuals or entities committed a violation of any federal criminal law relating in any way to James B. McDougal's, President William Jefferson Clinton's, or Mrs. Hillary Rodham Clinton's relationships with Madison Guaranty Savings & Loan Association ("Madison Guaranty"), Whitewater Development Corporation, or Capital Management Services, Inc., including any federal crimes that arose out of the investigations of the above described matters, such as obstruction of justice and perjury.
2. Defendant SUSAN H. MCDOUGAL was the former wife and business partner of James B. McDougal. From about 1982 to 1987, SUSAN H. MCDOUGAL and James B. McDougal were officers and owners of Madison Guaranty. From about 1979 to 1992, SUSAN H. MCDOUGAL and James B. McDougal were also business partners of William Jefferson Clinton and Hillary Rodham Clinton in the Whitewater Development Corporation.
3. On or about August 20, 1996, SUSAN H. MCDOUGAL was subpoenaed to testify and answer questions before the Grand Jury.
4. On or about September 3, 1996, in the Eastern District of Arkansas, United States District Judge Susan Webber Wright issued an Order granting SUSAN H. MCDOUGAL immunity for any testimony she provided before the Grand Jury, and requiring SUSAN H. MCDOUGAL to testify and answer questions before the Grand Jury. The Order provided in part:
1. That SUSAN H. MCDOUGAL shall provide testimony and other information as to all matters which she may be interrogated before the Grand Jury;
2. That no testimony or other information compelled under this order (or any information directly or indirectly derived from such testimony or other information) may be used against SUSAN H. MCDOUGAL in any criminal case, except a prosecution for perjury, giving a false statement or otherwise failing to comply with this order.
5. On or about September 4, 1996, SUSAN H. MCDOUGAL appeared before the Grand Jury. At that time, SUSAN H. MCDOUGAL knowingly and willfully disobeyed and resisted the lawful order of a court of the United States. More specifically, SUSAN H. MCDOUGAL refused to answer questions or provide testimony and other information as to all matters about which she was interrogated before the Grand Jury, in violation of District Judge Wright's September 3, 1996 Order. After being sworn, instead of answering questions, SUSAN H. MCDOUGAL responded as followed.
Q. [By MR. JAHN, Associate Independent Counsel] For the record, would you state your full name, please, for the court reporter.
A. [By MS. MCDOUGAL] Susan Carol Henley McDougal.
*** Q. Can you tell us, ma'am, where you were born?
A. I'd like to read a statement before we being, if that would be okay.
Q. You can read it at the end of the appearance.
A. I would like to read it before we begin I think the foreman can let me do that, if he will. Will the foreman allow me to do that?
Q. Ma'am, ma'am, ma'am, you will be given ample opportunity --
A. May I ask the foreman if he'll let me read this statement before we begin?
Q. No, ma'am. No, ma'am. You are here to answer questions. You will be given ample opportunity --
A. I'd like to read the statement. The foreman has the right to let me read the statement.
Q. Ma'am, where were you born?
A. [No response.]
Q. Ma'am, where were you born?
A. [No response.]
Q. Where do you reside today?
A. [No response.]
Q. Are you employed?
A. [No response.]
Q. For the record, are you refusing to answer any questions, ma'am?
A. I'd like to read the statement.
Q. Yes, ma'am. And you'll be given an opportunity before your appearance is over, ma'am. But right now, we need to ask you some questions.
A. I need to read it before we begin.
Q. May I see the statement, please?
A. No. I would like to read it.
Q. Then I'm afraid that -- well, if you would, we're going to ask you to step outside, ma'am.
*** DEPUTY GRAND JURY FOREMAN: Ms. McDougal, for the last several minutes, in the absence of special counsel and in the absence of the court reporter, the Grand Jury met to consider what we thought was your request that you be permitted to give a statement that you have in your hand there. We saw our chore as two different questions.
We saw our chore of whether or not you are directed to answer questions from special counsel, and then we saw your question as maybe appealing to our discretion to permit you, outside and completely aside from Judge Wright's order, to give your statement.
In answer to the first question as we saw, we relied heavily on Judge Wright's order, paragraph number 1, which said that "Susan Henley McDougal shall provide testimony and other information as to all matters about which she may be interrogated before the Grand Jury."
A. Yes, sir.
DEPUTY GRAND JURY FOREMAN: And we decided that the order did not give you the right to make a statement.
A. Yes, sir.
DEPUTY GRAND JURY FOREMAN: It required that you answer questions. We proceeded to consider the -- a compromise situation, as we did not want to shut down this Grand Jury proceeding today. And the way we saw that, we could either let you give your statement and run the risk of not getting any other information or we could let you read your statement and, in anticipation that you would not answer any questions, any further questions, we could only have the information that you chose to give us.
A. Yes, sir.
DEPUTY GRAND JURY FOREMAN: We are not here to get biased information.
A. Yes, sir.
DEPUTY GRAND JURY FOREMAN: We want the whole picture. So we had a plan to ask you, is it your intent to give the statement and then, in preclusion of special counsel's or special prosecutor's questions, but we decided we would not even ask you that because you could still shut down the proceedings by backing up on whatever answer you might give us.
So we have decided, and I think it was a unanimous decision, to not give you the right to answer -- to read your statement and that we would insist that the rules be followed that you answer the questions --
A. Yes, sir.
DEPUTY GRAND JURY FOREMAN: --of special counsel. And then if you choose, at the end of the questioning, to read your statement, we would let you do that.
A. I appreciate you giving it so much though. It's very kind of you. I need to read the statement first, and the statement speaks for itself.
DEPUTY GRAND JURY FOREMAN: No. No. No. You're not going to shut down --
A. Yes, sir. I understand.
Q. [by Mr. Jahn] Will you answer questions for us, Mrs. McDougal?
A. I need to read the statement, sir.
Q. Ms. McDougal, I am going to ask you a question. Did you ever discuss your loan from David Hale with William Jefferson Clinton?
A. I need to read the statement, sir.
Q. Ma'am, the question has been posed to you. Will you answer the question?
A. I need to read the statement.
Q. Ma'am, did you ever discuss Lorance Heights with William Jefferson Clinton?
A. Again, my answer would be the same for any questions that you ask me.
Q. Well, one more question. To your knowledge, did William Jefferson Clinton testify truthfully during the course of your trial?
A. My answer would be the same for any questions you ask me.
Q. And you will not answer those questions?
A. I need to read my statement.
MR. JAHN: Okay. Thank you. Mr. Foreman, if you would, we'll notify the judge.
GRAND JURY FOREMAN: We'll be in recess.
MR. JAHN: If you will step outside.
A. Thank you all again for considering it. I appreciate it very much.

CONTINUED, See Part II

This article was published on Friday, May 5, 1998

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