From: Lynda Nikula/CNN Producer
In: Washington
Posted 8-15-97

Subject: Susan McDougal May Face Tax Evasion Indictment

A federal grand jury is hearing testimony this week concerning a possible indictment against Whitewater defendant Susan McDougal on federal income tax evasion charges, according to a source close to the case.

McDougal is in a federal detention facility in Los Angeles serving time for contempt in the Whitewater case.

She is also awaiting trial on California state charges that she stole about $150,000 from orchestra conductor Zubin Mehta and his wife Nancy while working as their assistant. McDougal faces three counts of state income tax evasion and seven theft-related charges in the state case.