Hubbell Pleads Not Guilty To Tax Charges
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Hubbell and his wife Suzanna
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By Bob Franken and Brooks Jackson/CNN
WASHINGTON (AllPolitics, May 8) -- Webster Hubbell, the longtime friend of the Clintons and former Justice Department official who was indicted last week, pleaded not guilty to tax evasion charges Friday, along with his wife, Suzanna, and two tax advisers from Little Rock, Ark.
Hubbell stood before U.S. District Judge James Robertson and said only, "Not guilty, your honor."
Whitewater prosecutors accuse the four of trying to avoid taxes on hundreds of thousands of dollars paid to Hubbell by supporters of President Bill Clinton. Prosecutors also want to know if this was "hush money" to keep Hubbell from saying anything damaging about the Clintons.
John Nields, the Hubbells' defense attorney, said all four defendants would file a motion seeking to dismiss the indictment because it involved matters "not within the scope" of Whitewater Independent Counsel Ken Starr's authority.
The Hubbells admit they owe money for taxes but say they have never tried to hide anything. They say they are only guilty of living beyond their means. They accuse Starr of pressuring them to lie about the Clintons.
Robertson released all the defendants without bail and set the next hearing for June 2, when a trial date is expected to be scheduled.
Hubbell's latest legal woes come 14 months after the former law partner of Hillary Rodham Clinton was released from prison on charges he defrauded the Rose Law Firm, where they both worked.
He pleaded guilty that time but the newer charges, says Hubbell, are bogus.
It will be up to a jury in U.S. District Court in Washington to decide whether the Hubbells deliberately defrauded the Internal Revenue Service or simply made honest mistakes on their tax returns.
The new indictment charges the Hubbells with fraud: hiding assets in checking accounts, hiding income from a book, writing off family trips to Greece and Florida as business expenses. It says they owe $895,000 in federal and state taxes, penalties and interest.
The Associated Press contributed to this report.
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