LOS ANGELES, California (AllPolitics, October 22) -- The defense phase of the Susan McDougal fraud and embezzlement trial continued Thursday, one day after the judge denied her attorney's request for a mistrial on the grounds the prosecution withheld from the defense transcripts of federal grand jury testimony against her.

Susan McDougal

Deputy District Attorney Jeffrey Semow admitted Wednesday that he gained access to secret federal grand jury transcripts "a month or two" ago, but never told the defense because he believed he had no legal obligation to do so.

McDougal's attorney Mark Geragos said, outside the jury's presence, he is convinced that Semow obtained the transcripts through Independent Counsel Ken Starr's office.

"He's done nothing but carry the water of the independent counsel and I'm going to prove it," Geragos said of Semow.

Superior Court Judge Leslie Light rejected the request for a mistrial, saying there was no prosecutorial misconduct, but he ordered the state to turn over the documents to the defense and also to provide him with copies.

McDougal, who served time in prison for contempt in the Whitewater investigation against President Bill Clinton, is now on trial in California on state charges of fraud, income tax evasion and embezzling $150,000 from orchestra conductor Zubin Mehta and his wife Nancy when she was working as their financial adviser.

She is charged with forging checks in Mrs. Mehta's name and using her credit card for personal purchases while working for the couple from 1989 to 1992.

The grand jury testimony transcripts at issue involved an unrelated 1997 federal investigation launched by the U.S. attorney in Los Angeles into possible income tax fraud by McDougal.

The prosecution in the current state case received documents that include transcripts of testimony from McDougal's fiance, Pat Harris, her late former husband Jim McDougal, who served time on a Whitewater conviction, and Monique Graham, an assistant to Susan McDougal when she was working for the Mehtas.

Geragos demanded to know where the prosecution got the transcript. Semow said he got it through the U.S. attorney's office and it had nothing to do with Starr's office.

Starr led the Whitewater investigation of Clinton's Arkansas investment partnership with the McDougals and brought the contempt charges against Susan McDougal for refusing to cooperate with his investigation. McDougal went to jail insisting that Starr was trying to get her to lie about the Clintons' activities.

Judge Light has barred any mention of Starr's investigation during the state trial. But during Wednesday's hearing, the judge acknowledged it might now be unavoidable.

The defense began presenting its case in McDougal's current trial this week with testimony from Harris. The seven-week-old trial was delayed Wednesday by the defense's mistrial motion and arguments. And Light gave McDougal's defense the rest of the day to study the 700 to 1,000 pages of grand jury documents reluctantly handed over by Semow.

Jurors, who have been complaining about the trial's length, were grim as the judge said there would be another delay Wednesday for the hearing. Light said outside their presence that a lengthy delay might result in a mistrial.

Thursday, October 22, 1998

• Judge denies McDougal request for mistrial
• Clinton signs charter school bill
• Doggie diplomacy: Floppy-eared Buddy to the rescue
• IRS wins a round in battle over taxing restaurant tips
• Congress finally adjourns after completing work on budget
• Clinton staffers face legal bills from Lewinsky investigation

Election '98
• Davis leads California governor's race
• Fred Tuttle: One candidate hoping to lose this November
• Polls show dead heat in Illinois governor's race
• Feingold faces tough re-election fight in Wisconsin
• N.Y. Senate race a war of words
• Prostitution becomes issue in Minnesota governor race
• No money, no backing, no worries for perennial candidate
• Race taints California Senate race
• Anger over Lungren's claim in California governor race
• GOP candidate admits to fathering child while separated from wife

ARCHIVES

Search CNN/AllPolitics by           Enter keyword(s)       go    help