From: CNN
In: Los Angeles
Posted 7-8-97

Subject: Susan McDougal Dismissal Motion Denied

Susan McDougal's request to dismiss embezzlement charges against her was denied Tuesday.

Superior Court Judge Paul Flynn rejected McDougal's claim that she had not received a fair preliminary hearing and set a pretrial hearing date of August 20. The case is expected to go to trial in late September.

McDougal, convicted in May 1996 of bank fraud in the first Whitewater trial, is accused in an unrelated case of embezzling $150,000 from conductor Zubin Mehta and his wife Nancy while working for them as an assistant.

McDougal's attorney, Mark Geragos, will file papers later this week in federal court to have her removed from Los Angeles Sheriff's custody to a federal facility. Geragos maintains that McDougal is continuing to be held by the county sheriff in a high-security section because of her unwillingness to cooperate with Whitewater prosecutor Kenneth Starr.

The judge has issued several orders to move her to a less harsh environment in federal prison. McDougal is currently serving time behind bars on contempt charges for refusing to testify before Starr's federal grand jury.