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 Susan McDougal 'In Shock' After Early Release From Prison (06-25-98)

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McDougal Embezzlement Trial Delayed

WASHINGTON (AllPolitics, July 13) -- A judge in California has delayed the start of Whitewater figure Susan McDougal's embezzlement trial.

McDougal

The former business partner of Bill and Hillary Rodham Clinton was scheduled to go on trial Monday for allegedly embezzling $150,000 from conductor Zubin Mehta.

Mark Geragos, McDougal's lawyer, told the judge he needed more time to examine documents belatedly handed over by the prosecution.

The prosecution countered by arguing that the defense already had the documents and the new materials simply reorganized pre-existing evidence.

The judge ordered the trial postponed until July 24.

McDougal is currently serving 90 days of "detention" at her parents home. In June a federal judge ordered her released from federal custody for medical reasons and reduced her Whitewater prison sentence to time served.

McDougal had been serving a two-year sentence for a 1996 fraud conviction related to loans obtained illegally from the Small Business Administration.

According to her lawyer, McDougal did not attend Monday's hearing because she is receiving treatment for her back problem.

McDougal must also stand trial on criminal contempt and obstruction of justice charges in Arkansas. Whitewater Independent Counsel Ken Starr's Arkansas grand jury indicted Mcdougal in May for refusing to answer their questions about Clinton's possible involvement in Whitewater.

The Associated Press contributed to this report.
In Other News

Monday, July 13, 1998

Another Democratic Fund-Raiser Indicted
A War Of Words Between Congressional GOP, Democrats
McDougal Embezzlement Trial Delayed
HMOs: The Year's Hot Political Issue
Grand Old Flag Getting A Face Lift


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