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Clinton Advisor Named Unindicted Co-conspirator

[Bruce Lindsey]

LITTLE ROCK, Ark. (AllPolitics, June 19) -- Bruce Lindsey, one of President Bill Clinton's most trusted advisers, will be named by prosecutors as an unindicted co-conspirator in the second Whitewater trial, which began here this week.

Attorney Dan Guthrie, who represents one of two Arkansas bankers on trial, said Whitewater prosecutors have told him Lindsey would be identified in court as conspiring to hide large cash withdrawals by Clinton's 1990 campaign for Arkansas governor (288K WAV sound) .

"We have been informed by (the) independent counsel that Bruce Lindsey is an unindicted co-conspirator in this case with regard to count two of the indictment," Guthrie told The Associated Press.

[Pres. Clinton]

In a press conference on the White House lawn, Lindsey denied any wrongdoing (224K WAV sound).

"I have no idea what Neil Ainley's going to say," Lindsey said, referring to the chief government witness in the case. "In the past, Neil Ainley has said his dealings with me were normal and routine. If he has changed that, I don't know that.

"All I know is that naming someone as an undicted co-conspirator is simply a way to get otherwise inadmissible evidence into the record," Lindsey said.

President Bill Clinton expressed support for his friend. "I'm confident he didn't do anything wrong," Clinton said. "He was thoroughly investigated and not charged, with ample opportunities."

The news still represents another blow to the president, although White House Press Secretary Mike McCurry said it came as no surprise (160K WAV sound).

"We were fully aware that that was likely going to happen," McCurry said. "What is significant is that in many long months of inquiry, he was never indicted."

In this second Whitewater trial here, bankers Herbie Branscum Jr. and Robert M. Hill are accused of misapplying $13,217 in funds from their bank to finance political contributions to Clinton's gubernatorial campaign and to other state and federal candidates.

They are also accused of conspiring to hide from the IRS thousands of dollars in withdrawals by Clinton's campaign.

Lindsey has admitted to one withdrawal -- $30,000 in May 1990 -- but said he never asked the bank to conceal the transaction from regulators. He said he also reported the withdrawal 30 days after the 1990 election. He said it was ludicrous to think he would conspire to hide the transactions and then report them.

McCurry said he knew of no reason that Lindsey's status as deputy counsel at the White House would change.

"He has said under oath that he has done nothing wrong, and we have no reason to doubt that," McCurry said.

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