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January 1, 1998

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Whitewater Partner Jim McDougal Dies In Prison

James McDougal
James McDougal

DALLAS (CNN) -- Jim McDougal, President Bill Clinton's former partner in the Whitewater land deal, died Sunday in federal prison in Texas. He was 57.

McDougal, who was suffering from a heart condition, was convicted of fraud and conspiracy in 1996. He died one minute past noon at John Petersmith Hospital, according to the coroner's office in Tarrant County, Texas. The office would not reveal a cause of death.

After his conviction, McDougal made a deal with Whitewater independent counsel Ken Starr for a reduced sentence in exchange for his cooperation with the investigation.

His death is a fresh blow to Starr's investigation, as McDougal was a key witness to the involvement of Clinton and his wife, Hillary Rodham Clinton, in the Whitewater affair.

In a statement released by the White House, Clinton said: "I am saddened to learn about Jim McDougal's death today. I have good memories of the years we worked together in Arkansas and I extend my condolences to his family."

McDougal began serving his 3 1/2-year sentence last June, when he entered a federal medical center.

McDougal, his ex-wife Susan and the Clintons were investors in the Whitewater real estate venture when Clinton was governor of Arkansas. The deal was underwritten by an Arkansas financial institution owned by McDougal.

The project and McDougal's institution, Madison Guaranty Savings and Loan, both failed, costing taxpayers an estimated $60 million.

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Sunday March 8, 1998

Whitewater Figure James McDougal Dies In Prison
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