U.S. President Bill Clinton's former business partners in the Whitewater land deal, Jim McDougal and Susan McDougal, and the Governor of Arkansas Jim Guy Tucker, are convicted of fraud.
The Whitewater controversy, Whitewater scandal, "Whitewatergate", or simply Whitewater, was an American political controversy during the 1990s. It began with an investigation into the real estate investments of Bill and Hillary Clinton and their associates, Jim McDougal and Susan McDougal, in the Whitewater Development Corporation. This failed business venture was incorporated in 1979 with the purpose of developing vacation properties on land along the White River near Flippin, Arkansas.
A March 1992 New York Times article published during the 1992 U.S. presidential campaign reported that the Clintons, then governor and first lady of Arkansas, had invested and lost money in the Whitewater Development Corporation. The article stimulated the interest of L. Jean Lewis, a Resolution Trust Corporation investigator who was looking into the failure of Madison Guaranty Savings and Loan, also owned by Jim and Susan McDougal.
Lewis looked for connections between the savings and loan company and the Clintons, and on September 2, 1992, she submitted a criminal referral to the FBI naming Bill and Hillary Clinton as witnesses in the Madison Guaranty case. Little Rock U.S. Attorney Charles A. Banks and the FBI determined that the referral lacked merit, but Lewis continued to pursue the case. From 1992 to 1994, Lewis issued several additional referrals against the Clintons and repeatedly called the U.S. Attorney's Office in Little Rock and the Justice Department regarding the case. Her referrals eventually became public knowledge, and she testified before the Senate Whitewater Committee in 1995.
David Hale, the source of criminal allegations against the Clintons, claimed in November 1993 that Bill Clinton had pressured him into providing an illegal $300,000 loan to Susan McDougal, the Clintons' partner in the Whitewater land deal. The allegations were regarded as questionable because Hale had not mentioned Clinton in reference to this loan during the original FBI investigation of Madison Guaranty in 1989; only after coming under indictment himself in 1993, did Hale make allegations against the Clintons. A U.S. Securities and Exchange Commission investigation resulted in convictions against the McDougals for their role in the Whitewater project. Jim Guy Tucker, Bill Clinton's successor as governor, was convicted of fraud and sentenced to four years of probation for his role in the matter. Susan McDougal served 18 months in prison for contempt of court for refusing to answer questions relating to Whitewater.
Neither Bill Clinton nor Hillary Clinton was ever prosecuted, after three separate inquiries found insufficient evidence linking them with the criminal conduct of others related to the land deal. The matter was handled by the Whitewater Independent Counsel, Republican Kenneth Starr. The last of these inquiries came from the final Independent Counsel, Robert Ray (who replaced Starr) in 2000. Susan McDougal was granted a pardon by President Clinton before he left office.
William Jefferson Clinton (né Blythe III; born August 19, 1946) is an American politician who served as the 42nd president of the United States from 1993 to 2001. He previously served as governor of Arkansas from 1979 to 1981 and again from 1983 to 1992, and as attorney general of Arkansas from 1977 to 1979. A member of the Democratic Party, Clinton became known as a New Democrat, as many of his policies reflected a centrist "Third Way" political philosophy. He is the husband of Hillary Clinton, who was a senator from New York from 2001 to 2009, secretary of state from 2009 to 2013 and the Democratic nominee for president in the 2016 presidential election.
Clinton was born and raised in Arkansas and attended Georgetown University. He received a Rhodes Scholarship to study at University College, Oxford, and he later graduated from Yale Law School. He met Hillary Rodham at Yale; they married in 1975. After graduating from law school, Clinton returned to Arkansas and won election as state attorney general, followed by two non-consecutive terms as Arkansas governor. As governor, he overhauled the state's education system and served as chairman of the National Governors Association. Clinton was elected president in the 1992 presidential election, defeating incumbent Republican president George H. W. Bush and independent businessman Ross Perot. At 46 years old, he became the third-youngest president of the United States.
Clinton presided over the longest period of peacetime economic expansion in American history. He signed into law the North American Free Trade Agreement (NAFTA) and the Violent Crime Control and Law Enforcement Act, but failed to pass his plan for national health care reform. In the 1994 elections, the Republican Party won unified control of Congress for the first time in 40 years, however, Clinton was reelected in the 1996 with a landslide victory. Starting in the mid 1990s, he began an ideological evolution as he became much more conservative in his domestic policy advocating for welfare reform and the State Children's Health Insurance Program, as well as financial deregulation measures. He also appointed Ruth Bader Ginsburg and Stephen Breyer to the U.S. Supreme Court. During the last three years of Clinton's presidency, the Congressional Budget Office reported a budget surplus—the first such surplus since 1969. In foreign policy, Clinton ordered U.S. military intervention in the Bosnian and Kosovo wars, signed the Dayton Peace agreement. He also called for the expansion of NATO in Eastern Europe and many former Warsaw Pact members joined NATO during his presidency. Clinton's foreign policy in the Middle East saw him sign the Iraq Liberation Act which gave aid to groups against Saddam Hussein. He also participated in the Oslo I Accord and Camp David Summit to advance the Israeli–Palestinian peace process, and assisted the Northern Ireland peace process.
Clinton's second term would be dominated by the Monica Lewinsky scandal which began in 1996, when he began a sexual affair with 22-year-old White House intern Monica Lewinsky. In January 1998, news of the sexual relationship made tabloid headlines. The scandal escalated throughout the year, culminating on December 19 when Clinton was impeached by the House of Representatives, becoming the second U.S. president to be impeached after Andrew Johnson. The two impeachment articles that the House passed were centered around Clinton using the powers of the presidency to obstruct the investigation and that he lied under oath. In 1999 Clinton's impeachment trial begin in the Senate. Clinton was acquitted on both charges as the Senate failed to cast 67 votes against him, the conviction threshold.
Clinton left office in 2001 with the highest end-of-term approval rating of any U.S. president since Franklin D. Roosevelt. His presidency has been ranked among the upper tier in historical rankings of U.S. presidents. However, his personal conduct and allegations of sexual assault against him have made him the subject of substantial scrutiny. Since leaving office, he has been involved in public speaking and humanitarian work. He created the Clinton Foundation to address international causes such as the prevention of HIV/AIDS and global warming. In 2009, he was named the United Nations Special Envoy to Haiti. After the 2010 Haiti earthquake, Clinton and George W. Bush formed the Clinton Bush Haiti Fund. He has remained active in Democratic Party politics, campaigning for his wife's 2008 and 2016 presidential campaigns.