YOU WON'T FIND IN THE CLINTON MUSEUM AND LIBRARY
BILL CLINTON AND GEORGE
BUSH are the two most corrupt individuals to have occupied the
White House in modern times. While Bush has clearly proved more
venal and deadly and far more destructive of the American republic,
it is a fair reading of history to say that Clinton was the warm
up band for George Bush, towit:
CLINTON, WITH NO LITTLE
HELP from the Democratic Leadership Council, discredited and
destroyed long standing principles of social democracy that had
guided the party since the New Deal. Instead he offered the public
GOP Lite. As Harry Truman pointed out, given a choice between
a real Republican and someone who talks like one, the public
will favor the real one.
CLINTON NEUTERED PROGRESSIVE
organizations ranging from Americans for Democratic Action to
women's and black groups. Early in his administration they swore
a loyalty that not only blinded them to his faults and corruption
but left their brains devoid of ideas and arguments with which
to take on the conservatives.
CLINTON DRASTICALLY LOWERED
the standards of national politics with the help of a Washington
establishment that rushed to his assistance as each scandal developed.
The result was the Arkanization of the capital under which the
only standard became whether you could get away with it. This
opened the door wider for the even more venal neo-cons and their
candidate, George Bush.
CLINTON WAS NOWHERE NEAR
as good a politician as the Washington media and political establishment
has claimed and the myth has proved to be a destructive fantasy
for the party. Bill Clinton got 43.9% of the vote in 1992, while
Michael Dukakis - purportedly the worst of all candidate - got
45%. True Clinton was up against Ross Perot who got 19% as well
as Bush, but Clinton might well have lost were it not for Perot,
in which case he would have joined Michael Dukakis in the hall
of shame. Clinton won a majority in only two state-like entities:
Arkansas and DC. In only 12 other states was he able to get ever
45%. Dukakis, meanwhile, got over 50% in 11 states and got over
45% in 12 others.
THE DAMAGE DONE TO THE
DEMOCRATIC PARTY by Bill Clinton was the worst experienced under
any incumbent president since Grover Cleveland. Here are some
of the stats:
- GOP seats gained
in House after Clinton became president: 48
- GOP seats gained in Senate after Clinton became president:
- GOP governorships
gained after Clinton became president: 11
- GOP state legislative
seats gained since Clinton became president: 1,254 as of 1998
- State legislatures
taken over by GOP after Clinton became president: 9
- Democrat officeholders
who became Republicans since Clinton became president: 439 as
- Republican officeholders
who became Democrats: 3
CLINTON'S SCANDALS, going
far beyond Monica Lewinski, were a major liability for Al Gore
in 2000, far more so than Ralph Nader. According to the 2000
- 60% of voters disapproved
of Clinton as a person
- 59% - including some
who approved of him - disliked him
- 68% said he would go
down in the history books for his scandals rather than for his
- 44% thought the Clinton
scandals were important or somewhat important. In contrast, only
28% thought Bush's drunk driving arrest was important or somewhat
- 15% of those who had
voted for Clinton in 1996 voted for Bush in 2000.
CLINTON LAID THE FOUNDATION
for the excesses of the war on terror in a number of ways:
- He conducted a deadly
and lawless raid on the Waco compound including the use of the
military in civilian law enforcement.
- In the wake of Oklahoma
City, the Clinton administration proposed restricting habeas
corpus and increasing wiretaps.
- As Doug Bandow reported
in the National Review, Clinton "essentially sought to eliminate
the requirement of a warrant for searches from the Fourth Amendment.
The president claimed to possess 'inherent authority to conduct
warrantless searches for foreign intelligence purposes.' The
administration required public-housing residents to sign away
their constitutional right that authorities procure a warrant
to search their dwellings and personal property. The Justice
Department backed warrantless (indeed, suspicionless) drug tests
for high-school athletes. The administration requested greater
FBI authority to conduct "roving wiretaps," without
a court order.
- "The administration
was tougher than its predecessor on drugs. Marijuana arrests
were up 50 percent over Bush-41 . . . When asked about the criticism
that sellers of crack were being punished far more severely than
those who peddled cocaine, the president responded that penalties
for the latter - which already ensured that minor drug dealers
spend more time in jail than do many armed robbers, rapists,
and murderers - should be raised. . .
- "The Clinton-Gore
administration advanced additional thuggish policies and proposals
- curfews for kids, random drug tests for welfare recipients
and kids seeking drivers licenses, attacks on the requirement
of a jury trial,. . . attempts to gain court sanction for uncompensated
property takings, prosecutions implicating the double-jeopardy
clause, pretentious claims of federal criminal jurisdiction,
infringements of the Second Amendment right to possess a firearm,
FINALLY THERE IS A REASONABLE
hypothesis that Clinton may have contributed - along with Bush
- to creating conditions favorable for the September 11 attacks.
These are things for historians to argue about but they should
at least be on the table:
- Clinton at the end of
his term declared the Mid East peace negotiations a failure.
Combined with Bush's indifference to the matter these signs from
America may have signaled that there was no longer any progress
to be made through diplomacy.
- While the official report
declared the downing of TWA 800 to be the result of a plane malfunction,
other investigators think there is a likelihood that it was a
terrorist attack. This is a theory but, so by the government's
own admission, is its own conclusion. What is stunning about
this is that, having reached its conclusion, the government did
not set about a massive retrofitting of airplane fuel tanks but
rather instituted massive change in passenger screening at airports.
In other words, the official conclusion and official response
were completely at odds. If TWA 800 was, in fact, a terrorist
attack, what effect did its cover up have on September 11?
- The only president ever
impeached on grounds of personal malfeasance
- Most number of convictions
and guilty pleas by friends and associates**
- Most number of cabinet
officials to come under criminal investigation
- Most number of witnesses
to flee country or refuse to testify
- Most number of witnesses
to die suddenly
- First president sued
for sexual harassment.
- First president accused
- First first lady to
come under criminal investigation
- Largest criminal plea
agreement in an illegal campaign contribution case
- First president to establish
a legal defense fund.
- Greatest amount of illegal
- Greatest amount of illegal
campaign contributions from abroad
** According to our
best information, 40 government officials were indicted or convicted
in the wake of Watergate. A reader computes that there was a
total of 31 Reagan era convictions, including 14 because of Iran-Contra
and 16 in the Department of Housing & Urban Development scandal.
47 individuals and businesses associated with the Clinton machine
were convicted of or pleaded guilty to crimes with 33 of these
occurring during the Clinton administration itself.
- Number of Starr-Ray
investigation convictions or guilty pleas (including one governor,
one associate attorney general and two Clinton business partners):
- Number of Clinton cabinet
members who came under criminal investigation: 5
- Number of Reagan cabinet
members who came under criminal investigation: 4
- Number of top officials
jailed in the Teapot Dome Scandal: 3
- Number of individuals
and businesses associated with the Clinton machine who have been
convicted of or pleaded guilty to crimes: 47
- Number of these convictions
during Clinton's presidency: 33
- Number of indictments/misdemeanor
- Number of congressional
witnesses who have pleaded the Fifth Amendment, fled the country
to avoid testifying, or (in the case of foreign witnesses) refused
to be interviewed: 122
- Guilty pleas and convictions
obtained by Donald Smaltz in cases involving charges of bribery
and fraud against former Agriculture
Secretary Mike Espy and associated individuals and businesses:
- Acquitted or overturned
cases (including Espy): 6
- Fines and penalties
assessed: $11.5 million
- Amount Tyson Food paid
in fines and court costs: $6 million
CLINTON MACHINE CRIMES
FOR WHICH CONVICTIONS WERE OBTAINED
Drug trafficking (3),
racketeering, extortion, bribery (4), tax evasion, kickbacks,
embezzlement (2), fraud (12), conspiracy (5), fraudulent loans,
illegal gifts (1), illegal campaign contributions (5), money
laundering (6), perjury, obstruction of justice.
OTHER MATTERS INVESTIGATED
BY SPECIAL PROSECUTORS
AND CONGRESS, OR REPORTED IN THE MEDIA
Bank and mail fraud, violations
of campaign finance laws, illegal foreign campaign funding, improper
exports of sensitive technology, physical violence and threats
of violence, solicitation of perjury, intimidation of witnesses,
bribery of witnesses, attempted intimidation of prosecutors,
perjury before congressional committees, lying in statements
to federal investigators and regulatory officials, flight of
witnesses, obstruction of justice, bribery of cabinet members,
real estate fraud, tax fraud, drug trafficking, failure to investigate
drug trafficking, bribery of state officials, use of state police
for personal purposes, exchange of promotions or benefits for
sexual favors, using state police to provide false court testimony,
laundering of drug money through a state agency, false reports
by medical examiners and others investigating suspicious deaths,
the firing of the RTC and FBI director when these agencies were
investigating Clinton and his associates, failure to conduct
autopsies in suspicious deaths, providing jobs in return for
silence by witnesses, drug abuse, improper acquisition and use
of 900 FBI files, improper futures trading, murder, sexual abuse
of employees, false testimony before a federal judge, shredding
of documents, withholding and concealment of subpoenaed documents,
fabricated charges against (and improper firing of) White House
employees, inviting drug traffickers, foreign agents and participants
in organized crime to the White House.
Number of times that Clinton
figures who testified in court or before Congress said that they
didn't remember, didn't know, or something similar.
Bill Kennedy 116
Harold Ickes 148
Ricki Seidman 160
Bruce Lindsey 161
Bill Burton 191
Mark Gearan 221
Mack McLarty 233
Neil Egglseston 250
Hillary Clinton 250
John Podesta 264
Jennifer O'Connor 343
Dwight Holton 348
Patsy Thomasson 420
Jeff Eller 697
THE REAL CLINTON story
is a fascinating one of a mobbed-up politician from a drug-infested
southern state in the control of the Dixie Mafia, a far more
deadly institution than its New York counterpart. Little of this
came through because the media immediately created a mythological
Bill and Hillary saga that overwhelmed the facts. What follows
are excerpts from our timeline of interesting and little known
events prior to Clinton taking office as president. It gives
a sense of the real story that voters were denied:
When Bill Clinton is 7,
his family moves from Hope, Arkansas, to the long-time mob resort
of Hot Springs, AR. Here Al Capone is said to have had permanent
rights to suite 443 of the Arlington Hotel. Clinton's stepfather
is a gun-brandishing alcoholic who loses his Buick franchise
through mismanagement and his own pilfering. He physically abuses
his family, including the young Bill. His mother is a heavy gambler
with mob ties. According to FBI and local police officials, his
Uncle Raymond -- to whom young Bill turns for wisdom and support
-- is a colorful car dealer, slot machine owner and gambling
operator, who thrives (except when his house is firebombed) on
the fault line of criminality.
Virginia Kelly, Clinton's
mother: "Hot Springs was so different. We had wide-open
gambling, for one thing, and it was so wide open that it never
occurred to me that it was illegal - it really didn't - until
it came to a vote about whether we were going to legalize gambling
or not. I never was so shocked."
A federal investigation
concludes that Hot Springs has the largest illegal gambling operations
in the United States.
Clinton goes to Georgetown
University where he finds a mentor in Professor Carroll Quigley.
Quigley writes: "That the two political parties should represent
opposed ideals and policies. . . is a foolish idea. Instead,
the two parties should be almost identical . . .The policies
that are vital and necessary for America are no longer subjects
of significant disagreement, but are disputable only in detail,
procedure, priority, or method."
Bill Clinton, according
to several agency sources interviewed by biographer Roger Morris,
works as a CIA informer while briefly and erratically a Rhodes
Scholar in England. Although without visible means of support,
he travels around Europe and the Soviet Union, staying at the
ritziest hotel in Moscow. During this period the US government
is using well educated assets such as Clinton as part of Operation
Chaos, a major attempt to break student resistance to the war
and the draft. According to former White House FBI agent Gary
Aldrich Clinton is told by Oxford officials that he is no longer
After becoming involved
in politics, Wellesley graduate Hillary Rodham orders her senior
thesis sealed from public view.
27 year old Clinton, only
months out of Yale Law School, is back in Arkansas eager to run
for Congress. Roger Morris writes later, "A relative unknown,
he faces an imposing field of rivals in the Democratic primary,
and beyond, in the general election, a powerful Republican incumbent.
. . It begins with a quiet meeting at his mother's house in Hot
Springs. Around the kitchen table, as Virginia Clinton will describe
the scene, avid young Billy meets with two of his most crucial
early backers -- uncle Raymond G. Clinton, a prosperous local
Buick dealer, and family friend and wealthy businessman Gabe
Crawford. As they talk, Mr. Crawford offers the candidate unlimited
use of his private plane, and uncle Raymond not only provides
several houses around the district to serve as campaign headquarters,
but will secure a $10,000 loan to Bill from the First National
Bank of Hot Springs - an amount then equal to the yearly income
of many Arkansas families. . .
No mere businessman with
a spare plane, Gabe Crawford presided over a backroom bookie
operation that was one of Hot Springs' most lucrative criminal
enterprises. [And the] inimitable uncle Raymond - who had also
played a pivotal behind-the-scenes role in keeping young Bill
out of the Vietnam draft - was far more than an auto dealer.
In the nationally prominent fount of vice and corruption that
was Hot Springs from the 1920s to the 1980s (its barely concealed
casinos generated more income than Las Vegas well into the 1960s),
the uncle's Buick agency and other businesses and real estate
were widely thought to be facades for illegal gambling, drug
money laundering and other ventures, in which Raymond was a partner.
He was a minion of the organized crime overlord who controlled
the American Middle South for decades, New Orleans boss Carlos
Marcello or "Mafia Kingfish" as his biographer John
Davis called him.
Two Indonesian billionaires
come to Arkansas. Mochtar Riady and Liem Sioe Liong are close
to Suharto. Riady is looking for an American bank to buy. Finds
Jackson Stephens with whom he forms Stephens Finance. Stephens
will broker the arrival of BCCI to this country and steer BCCI's
founder, Hassan Abedi, to Bert Lance.
Apparently because of
pressure from Indonesia, Riady withdraws his bid to buy Lance's
30% share of the National Bank of Georgia. Instead, a BCCI front
man buys the shares and Abedi moves to secretly take over Financial
General - later First American Bankshares -- later the subject
of the only BCCI-connected scandal to be prosecuted in the US.
Clinton is elected governor.
The Clintons and McDougals buy land in the Ozarks for $203,000
with mostly borrowed funds. The Clintons get 50% interest with
no cash down. The 203 acre plot, known as Whitewater, is fifty
miles from the nearest grocery store. The Washington Post will
report later that some purchasers of lots, many of them retirees,
"put up houses or cabins, others slept in vans or tents,
hoping to be able to live off the land." More than half
of the purchasers will lose their plots thanks to the sleazy
form of financing used.
Two months after commencing
the Whitewater scam, Hillary Clinton invests $1,000 in cattle
futures. Within a few days she has a $5,000 profit. Before bailing
out she earns nearly $100,000 on her investment. Many years later,
several economists will calculate that the chances of earning
such returns legally were one in 250 million.
Bill Clinton's mother
hangs out at the race track with mobsters and other local figures,
including Dan Lasater who breeds race horses in Kentucky and
Florida and has a box at the track next to hers. Mrs. Clinton
introduces Lasater to Roger Clinton.
Roger Clinton develops
a four-gram a day cocaine habit, getting his stuff from New York
and Medellin suppliers, based (as one middleman will later testify)
on "who his brother was." Sharlene Wilson is one of
his dealers. Dan Lasater will give Roger work and loan him $8,000
to pay off a drug debt.
Sharlene Wilson will testify
in a 1990 federal drug probe that she began selling cocaine to
Roger Clinton as early as this year. She will also tell reporters
that she sold two grams of cocaine to Clinton's brother at the
Little Rock nightclub Le Bistro, then witnessed Bill Clinton
consume the drug. "I watched Bill Clinton lean up against
a brick wall," Wilson reveals to the London Telegraph's
Ambrose Evans-Pritchard in 1995. "He was so messed up that
night, he slid down the wall into a garbage can and just sat
there like a complete idiot." Drug prosecutor Jean Duffey
will say that she has no doubt that Wilson was telling the truth.
Arkansas becomes a major
center of gun-running, drugs and money laundering. The IRS warns
other law enforcement agencies of the state's "enticing
climate." According to Clinton biographer Roger Morris,
operatives go into banks with duffel bags full of cash, which
bank officers then distribute to tellers in sums under $10,000
so they don't have to report the transaction.
Sharlene Wilson, according
to investigative reporter Ambrose Evans-Pritchard, flies cocaine
from Mena to a pickup point in Texas. Other drugs, she and others
say, are stuffed into chickens for shipping around the country.
Wilson also serves as "the lady with the snow" at "toga
parties" attended, she reports, by Bill Clinton.
Investor's Business Daily
would later write, "Sally Perdue, a former Miss Arkansas
and Little Rock talk show host who said she had an affair with
then-Gov. Clinton in 1983, told the London Sunday Telegraph that
he once came over to her house with a bag full of cocaine. "He
had all the equipment laid out, like a real pro."
In the 1990s, Genifer
Flowers tells Sean Hannity's WABC talk radio show: "Bill
clearly let me know that he did cocaine. And I know people that
knew he did cocaine. He did tell me that when he would use a
substantial amount of cocaine that his head would itch so badly
that he would become self conscious at parties where he was doing
this. Because all he wanted to do while people were talking to
him is stand around and scratch his head. ...."
Two Arkansas state troopers
will swear under oath that they have seen Clinton "under
the influence" of drugs when he was governor.
Hillary Clinton makes
a $44,000 profit on a $2,000 investment in a cellular phone franchise
deal that involves taking advantage of the FCC's preference for
locals, minorities and women. The franchise is almost immediately
flipped to the cellular giant, McCaw.
A drug pilot brings a
Cessna 210 full of cocaine into eastern Arkansas where he is
met by his pick-up: a state trooper in a marked police car. "Arkansas,"
the pilot will recall years later, "was a very good place
to load and unload."
According to his wife,
security operative Jerry Parks delivers large sums of money from
Mena airport to Vince Foster at a K-Mart parking lot. Mrs. Parks
discovers this when she opens her car trunk one day and finds
so much cash that she has to sit on the trunk to close it again.
She asks her husband whether he is dealing drugs, and he allegedly
explains that Foster paid him $1,000 for each trip he took to
Parks said he didn't "know
what they were doing, and he didn't care to know. He told me
to forget what I'd seen.". . . .Later Ambrose Evans-Pritchard
will write, "Foster was using him as a kind of operative
to collect sensitive information on things and do sensitive jobs.
Some of this appears to have been done on behalf of Hillary Clinton.
. . Foster told him that Hillary wanted it done. Now, my understanding
. . . is that she wanted to know how vulnerable he would be in
a presidential race on the question of -- how shall I put it?
-- his appetites."
In 1993, on the night
before Vince Foster's death, Parks' wife claims she hears a heated
conversation between her husband and Foster in which Parks says,
"You can't give Hillary those files, they've got my name
all over them." Parks will be gunned down two months after
Foster's death in his car outside of Little Rock. Parks is shot
through the rear window of his car and shot three more times,
thru the side window, with a 9mm pistol.
Parks was running American
Contract Services, the business which supplied bodyguards for
Clinton during his presidential campaign and the following transition.
Bill Clinton still owed him $81,000. Parks had collected detailed
data on Clinton's sexual escapades, including pictures and dates.
Mrs. Pariks claims federal agents subsequently removed files
Bill Clinton loses re-election
as governor. He will win two years later. Larry Nichols will
tell the George Putman Show in 1998 that he had met with Clinton
and Jackson Stephen's brother Witt and that Witt had told Clinton
that the Stephens were ready to back him for another run at the
governorship but that he had to "dry out on the white stuff."
There are reports that
following his loss, Clinton ended up in the hospital for a drug
overdose. Journalist R. Emmett Tyrrell later asked emergency
room workers at the University of Arkansas Medical Center if
they could confirm the incident. He didn't get a flat "no"
from the hospital staff. One nurse said, "I can't talk about
that." Another said she feared for her life if she spoke
of the matter. Newsmax will report: "Dr. Sam Houston, a
respected Little Rock physician and once a doctor for Hillary's
cantankerous father, Hugh Rodham, says it is well known in Little
Rock medical circles that Clinton was brought to a Little Rock
hospital for emergency treatment for an apparent cocaine overdose.
According to Houston, who told us he spoke to someone intimately
familiar with the details of what happened that night, Clinton
arrived at the hospital with the aid of a state trooper. Hillary
Clinton had been notified by phone and had instructed the hospital
staff that Clinton's personal physician would be arriving soon.
When Mrs. Clinton arrived, she told both of the resident physicians
on duty that night that they would never practice medicine in
the United States if word leaked out about Clinton's drug problem.
Reportedly, she pinned one of the doctors up against the wall,
both hands pressed against his shoulders, as she gave her dire
According to Jim McDougal's
later account, he and Henry Hamilton, "developed a system
to pass money to Clinton," then governor of Arkansas. "I
considered it just another way of helping to take care of Bill.
A contractor agreed to pad my monthly construction bill by $2,000.
The contractor put the figure on his invoice as a cost for gravel
or culvert work. After I paid the full amount ... the contractor
reimbursed me the $2,000. I turned the money over to Henry to
give to Clinton. Once, after I handed Henry his latest consignment
of 20 hundred-dollar bills to relay to the governor's office,
he turned the bills over and over in one hand, like a magician.
Henry grinned. `You know,' he said, `Caesar had his Brutus, Charles
the First had Cromwell. Clinton could profit from these examples
if he crosses us.'"
Hillary Clinton writes
Jim McDougal: "If Reaganomics works at all, Whitewater could
become the Western Hemisphere's Mecca."
Major drug trafficker
Barry Seal, under pressure from the Louisiana cops, relocates
his operations to Mena, Arkansas. Seal is importing as much as
1,000 pounds of cocaine a month from Colombia according to Arkansas
law enforcement officials. He will claim to have made more than
$50 million out of his operations. As an informant Seal testified
that in 1980-81, before moving his operation to Arkansas, he
made approximately 60 trips to Central America and brought back
18,000 kilograms. According to the Telegraph's Ambrose Evans-Pritchard,
"Larry Patterson, an Arkansas state trooper, testified under
oath that there were 'large quantities of drugs being flown into
the Mena airport, large quantities of money, large quantities
of guns.' The subject was discussed repeatedly in Clinton's presence
by state troopers working on his security detail, he alleged.
Patterson said the governor 'had very little comment to make;
he was just listening to what was being said.'"
Mena state police investigator
Russell Welch will later describe the airport, pointing to one
hanger he says is owned by a man who "doesn't exist in history
back past a safe house in Baltimore in 1972." Another is
owned by someone who "smuggled heroin through Laos back
in the seventies." Still another is "owned by a guy
who just went bankrupt. So what's he do? Flies to Europe for
more money." Welch points to a half dozen Fokker aircraft
parked on an apron, noting that "the DEA's been tracking
those planes back and forth to Columbia for a while now."
A DEA report uncovered
by Ambrose Evans-Pritchard will cite an informant claiming that
a famous Arkansas figure and backer of Clinton "smuggles
cocaine from Colombia, South America, inside race horses to Hot
IRS agent William Duncan
and an Arkansas State Police investigator take their evidence
concerning drug trafficking in Mena to US Attorney Asa Hutchinson.
They ask for 20 witnesses to be subpoenaed before the grand jury.
Hutchinson chooses only three. According to reporter Mara Leveritt,
"The three appeared before the grand jury, but afterwards,
two of them also expressed surprise at how their questioning
was handled. One, a secretary at Rich Mountain Aviation, had
given Duncan sworn statements about money laundering at the company,
transcripts of which Duncan had provided to Hutchinson. But when
the woman left the jury room, she complained that Hutchinson
had asked her nothing about the crime or the sworn statements
she'd given to Duncan. As Duncan later testified, 'She basically
said that she was allowed to give her name, address, position,
and not much else.' The other angry witness was a banker who
had, in Duncan's words, 'provided a significant amount of evidence
relating to the money-laundering operation.' According to Duncan,
he, too, emerged from the jury room complaining 'that he was
not allowed to provide the evidence that he wanted to provide
to the grand jury.'"
Financial General changes
its name to First American and Clark Clifford is appointed chairman.
BCCI fronts begin acquiring controlling interest in banks and
other American financial institutions. In Arkansas, Jim McDougal
purchases Madison Guaranty Savings & Loan.
According to a later account
in the Tampa Tribune, planes flying drugs into Mena in coolers
marked "medical supplies" are met by several people
close to then-Governor Bill Clinton.
Stevens and Riady buy
a banking firm and change its name to Worthern Bank with Riady's
28-year-old son James as president. Other Worthen co-owners will
eventually include BCCI investor Abdullah Taha Bakhish.
Foreshadowing future Wall
Street interest in Clinton, Goldman Sachs, Payne Webber, Salomon
Brothers and Merrill Lynch all show up as financial backers of
the governor. Also on the list: future king-maker Pam Harriman.
But Bill Clinton's funders include not only some of the biggest
corporate names ever to show an interest in the tiny state of
Arkansas but some of the most questionable. A former US Attorney
will later tell Roger Morris, "That was the election when
the mob really came into Arkansas politics. . . It wasn't just
Bill Clinton and it went beyond our old Dixie Mafia. . . This
was eastern and west coast crime money that noticed the possibilities
just like the legitimate corporations did."
Dan Lasater buys a ski
resort in New Mexico for $20 million and uses Clinton's name
(with permission) to promote it. Later, a US Customs investigative
report will note that the resort is being used for drug operations
and money laundering. Lasater also flies to Belize with his aide
Patsy Thomasson to buy a 24,000 acre ranch. Among those present
at the negotiations is the US Ambassador. The deal falls through
because of the opposition of the Belize government.
A private contractor for
Arkansas' prison system stops selling prisoners' blood to a Canadian
broker and elsewhere overseas after admitting the blood might
be contaminated with the AIDS virus or hepatitis. Sales of prisoners'
blood in US are already forbidden.
Tens of thousands of dollars
in mysterious checks begin moving through Whitewater's account
at Madison Guaranty. Investigators will later suspect that McDougal
was operating a check-kiting scheme to drain money from the S&L
Hot Springs police record
Roger Clinton during a cocaine transaction. Roger says, "Got
to get some for my brother. He's got a nose like a vacuum cleaner."
Roger is arrested while working at menial jobs for Arkansas "bond
daddy" Dan Lasater.
Barry Seal estimates that
he has earned between $60 and $100 million smuggling cocaine
into the US, but with the feds closing in on him, Barry Seal
flies from Mena to Washington in his private Lear Jet to meet
with two members of Vice President George Bush's drug task force.
Following the meeting, Seal rolls over for the DEA, becoming
an informant. He collects information on leaders of the Medellin
cartel while still dealing in drugs himself. The deal will be
kept secret from investigators working in Louisiana and Arkansas.
According to reporter Mara Leveritt, "By Seal's own account,
his gross income in the year and a half after he became an informant
- while he was based at Mena and while Asa Hutchinson was the
federal prosecutor in Fort Smith, 82 miles away - was three-quarters
of a million dollars. Seal reported that $575,000 of that income
had been derived from a single cocaine shipment, which the DEA
had allowed him to keep. Pressed further, he testified that,
since going to work for the DEA, he had imported 1,500 pounds
of cocaine into the U.S. Supposed informant Seal will fly repeatedly
to Colombia, Guatemala, and Panama, where he meets with Jorge
Ochoa, Fabio Ochoa, Pablo Escobar, and Carlos Lehder - leaders
of the cartel that at the time controlled an estimated 80 percent
of the cocaine entering the United States."
Ronald Reagan wants to
send the National Guard to Honduras to help in the war against
the Contras. Massachusetts Governor Michael Dukakis goes to the
Supreme Court in a futile effort to stop it but Clinton is happy
to oblige, even sending his own security chief, Buddy Young,
along to keep an eye on things. Winding up its tour, the Arkansas
Guard declares large quantities of its weapons "excess"
and leaves them behind for the Contras.
Clinton bodyguard, state
trooper LD Brown, applies for a CIA opening. Clinton gives him
help on his application essay including making it more Reaganesque
on the topic of the Nicaragua. According to Brown, he meets a
CIA recruiter in Dallas whom he later identities as former member
of Vice President Bush's staff. On the recruiter's instruction,
he meets with notorious drug dealer Barry Seal in a Little Rock
restaurant. Joins Seal in flight to Honduras with a purported
shipment of M16s and a return load of duffel bags. Brown gets
$2,500 in small bills for the flight. Brown, concerned about
the mission, consults with Clinton who says, "Oh, you can
handle it, don't sweat it." On second flight, Brown finds
cocaine in a duffel bag and again he seeks Clinton's counsel.
Clinton says to the conservative Brown, "Your buddy, Bush,
knows about it" and of the cocaine, "that's Lasater's
Arkansas state pension
funds -- deposited in Worthen by Governor Bill Clinton -- suddenly
lose 15% of their value because of the failure of high risk,
short-term investments and the brokerage firm that bought them.
The $52 million loss is covered by a Worthen check written by
Jack Stephens in the middle of the night, an insurance policy,
and the subsequent purchase over the next few months of 40% of
the bank by Mochtar Riady. Clinton and Worthen escape a major
Mochtar and James Riady
engineer the takeover of the First National Bank of Mena in a
town of 5,000 with few major assets beyond a Contra supply base
plus drug running and money-laundering operations.
Terry Reed is asked to
take part in Operation Donation, under which planes and boats
needed by the Contras "disappear," allowing owners
to claim insurance. Reed has been a Contra operative and CIA
asset working with Felix Rodriguez, the Contra link to the CIA
and then-Vice President Bush's office. Reed later claims he refused,
but that his plane was removed while he was away.
Park on Meter, a parking
meter manufacturer in Russellville, Arkansas, receives the first
industrial development loan from the Arkansas Development Finance
Authority in 1985. Some suspect that POM is doing a lot more
than making parking meters -- specifically that it has secret
federal contracts to make components of chemical and biological
weapons and devices to carry them on C-130s for the Contras.
The company later denies the Contra connection although it will
admit having secret military contracts. Web Hubbell is the company's
lawyer. Right next to POM, on land previously owned by it, is
an Army reserve chemical warfare company.
An independent investigator
will later find evidence of an electronic transfer of $50 million
from the Arkansas Development Financial Authority to a bank in
the Cayman Islands. Grand Cayman has a population of 18,000,
570 commercial banks, one bank regulator and a bank secrecy law.
It is a favorite destination spot for laundered drug money.
Asa Hutchinson leaves
the US Attorney's office to make an unsuccessful bid for US Senate.
According to police sources, Hutchinson had been aware of what
was happening at Mena and the investigation into it, but did
nothing. Hutchinson is replaced by Mike Fitzhugh who is reluctant
to let investigators Russell Welch of the state police and William
Duncan of the IRS present evidence of money-laundry to a grand
will describe the Arkansas of this period as a "major point
for the transshipment of drugs" and "perilously close
to becoming a 'narco-republic' -- a sort of mini-Columbia within
the borders of the United States." There is "an epidemic
of cocaine, contaminating the political establishment from top
to bottom," with parties "at which cocaine would be
served like hors d'oeuvres and sex was rampant." Clinton
attends some of these events.
On January 17, the U.
S. Attorney for the Western District drops a money laundering
and narcotics-conspiracy charges against associates of drug smuggler
Barry Seal over the protests of investigators Russell Welch of
the state police and Bill Duncan of the Internal Revenue.
Seal is scheduled to testify
at the trial of Jorge Ochoa Vasques. But on February 19, shortly
before the trial is to begin, Seal is murdered in Baton Rouge
gangland style by three Colombian hitmen armed with machine guns
who attack while he seated behind the wheel of his white Cadillac
in Baton Rouge, La. The Colombians, connected with the Medellin
drug cartel, are tried and convicted. Upon hearing of Seal's
murder, one DEA agent says, "There was a contract out on
him, and everyone knew it. He was to have been a crucial witness
in the biggest case in DEA history."
Eight months after the
murder, Seal's cargo plane is shot down over Nicaragua. It is
carrying ammunition and other supplies for the Contras from Mena.
One crew member, Eugene Hasenfus, survives.
The attorney general of
Louisiana tells US Attorney General Ed Meese that drug trafficker
Barry Seal has smuggled drugs into the US worth $3-$5 billion.
Two boys, Kevin Ives and
Don Henry, are killed in Saline County and left on a railroad
track to be run over by a train. The medical examiner will initially
rule the deaths accidental, saying that the boys were unconscious
and in a deep sleep due to marijuana. The finding will be punctured
by dogged investigators whose efforts are repeatedly blocked
by law enforcement officials. Ultimately, the bodies will be
exhumed and another autopsy will be performed, which finds that
Henry had been stabbed in the back and Ives beaten with a rifle
butt. Although no one will ever be charged, the trail will lead
into the penumbra of the Dixie Mafia and the Arkansas political
machine. Some believe the boys died because they accidentally
intercepted a drug drop, but information obtained by the Progressive
Review suggests the drop may have dispensed not drugs but cash,
gold and platinum -- part of a series of sorties through which
those working with US intelligence were being reimbursed. According
to one version, the boys were blamed in order to cover up the
theft of the drop by persons within the Dixie Mafia and Arkansas
political machine. Ives' mother will later charge that high state
and federal officials participated in a cover-up: "I firmly
believe my son and Don Henry were killed because they witnessed
a drug drop by an airplane connected to the Mena drug smuggling
Prosecutor Jean Duffey
will later tell a talk show host in answer to whether law enforcement
people were involved in the train death murders: "I believe
the law enforcement agents were connected to some very high political
people because they have never been brought to justice and I
don't think they ever will be. I think they are protected to
avoid exposing the connection. . . There have been several murders
of potential witnesses. Anyone who could have solved this murder
many years ago has been systematically eliminated."
Nine persons reportedly
having information on the Ives-Henry murders will end up dead
Charles Black, a prosecutor
for Polk County, which includes Mena, meets with Governor Clinton
and asks for assistance in a probe of illegal activities. "His
response," Mr. Black will tell CBS News later, "was
that he would get a man on it and get back to me. I never heard
Following pressure from then-Arkansas Rep. Bill Alexander, the
General Accounting Office opens a probe in April 1988; within
four months, the inquiry is shut down by the National Security
Council, according to a later report by Micah Morrison of the
Wall Street Journal. Several congressional subcommittee inquiries
sputter and stop.
What will later be known
as the Vast Right Wing Conspiracy begins on the left as a group
of progressive students at the University of Arkansas form the
Arkansas Committee to look into Mena, drugs, money laundering,
and Arkansas politics.
Drug distributor Dan Lasater
is pardoned by Governor Clinton after serving just six months
in jail and four in a halfway house on minor charges. One law
enforcement official will describe the investigation into Lasater's
operations as "either a high dive or extremely unprofessional.
Take your pick." The alleged reason for the pardon: so Lasater
can get a hunting license. Lasater returns to his 7,400 acre
ranch in Saline County.
An IRS memorandum reveals
that even at this late date "the CIA still has ongoing operations
out of the Mena, AR airport."
Arkansas State Police
investigator Russell Welch, who has been working with IRS investigator
Bill Duncan on drug running and money laundering at Mena, develops
pneumonia-like symptoms. The Washington Weekly described the
incident in 1996: "On the weekend of September 21, 1991,
Arkansas State Police Investigator Russell Welch met with IRS
Investigator Bill Duncan to write a report on their investigation
of Mena drug smuggling and money laundering and send it to Iran-Contra
prosecutor Lawrence Walsh.. Returning to Mena on Sunday, Welch
told his wife that he didn't feel too well. He thought he had
gotten the flu . . . In Fort Smith a team of doctors were waiting.
Dr. Calleton had called them twice while Welch was in transport
and they had been in contact with the CDC. Later the doctor would
tell Welch's wife that he was on the edge of death. He would
not have made it through the night had he not been in the hospital.
He was having fever seizures by now. A couple of days after Welch
had been admitted to St. Edwards Mercy Hospital, his doctor was
wheeling him to one of the labs for testing when she asked him
if he was doing anything at work that was particularly dangerous.
He told her that he had been a cop for about 15 years and that
danger was probably inherent with the job description. She told
Welch that they believed he had anthrax. She said the anthrax
was the military kind that is used as an agent of biological
warfare and that it was induced. Somebody had deliberately infected
him. She added that they had many more tests to run but they
had already started treating him for anthrax."
While in Washington, D.C.,
where he holds a permit to carry a gun, IRS agent and Mena drug
investigator Bill Duncan is arrested for weapons possession (his
service revolver), roughed up and handcuffed to a pipe in the
basement of a DC police station. After the incident he is taken
off of the Mena investigation. Later, when he is asked to falsify
testimony for a Federal Grand Jury, he refuses and is fired on
State Attorney General
Winston Bryant and Arkansas Rep. Bill Alexander send two boxes
of Mena files to special prosecutor Lawrence Walsh. Bryant says
the boxes contain "credible evidence of gunrunning, illegal
drug smuggling, money laundering and the governmental cover-up
and possibly a criminal conspiracy in connection with the Mena
Airport." Seventeen months later, Walsh writes Bryant a
letter saying, without explanation, that he had closed his investigation.
Says Alexander later, "The feds dropped the ball and covered
it up. I have never seen a whitewash job like this case."
Dan Harmon becomes the
new prosecuting attorney in the district responsible for the
train deaths investigation. Harmon's drug investigator Jean Duffey
is discredited, threatened and ultimately has to flee Arkansas.
The day Clinton announces
his candidacy for the White House, Meredith Oakley sizes him
up in the Arkansas Democrat Gazette: "His word is dirt.
Not a statesman is he, but a common, run-of-the-mill, dime-a-dozen
politician. A mere opportunist. A man whose word is fallow ground
not because it is unwanted but because it is barren, bereft of
the clean-smelling goodness that nurtures wholesome things. Those
of us who cling to the precepts of another age, a time in which
a man's word was his bond, and, morally, bailing out was not
an option, cannot join the madding crowd in celebrating what
is for some Bill Clinton's finest hour. We cannot rejoice in
The Federal Reserve begins
an investigation of BCCI's alleged control of First American
Bank. A few months later BCCI itself is shut down in what would
be revealed as the world's biggest bank scandal ever. Bill Clinton
announces for president. Among his targets: "S&L crooks
and self-serving CEOs."
The Worthen Bank gives
Clinton a $3.5 million line of credit allowing the cash-strapped
candidate to finish the primaries. Stephens Inc. employees give
Clinton more than $100,000 for his presidential campaign.
Little Rock Worldwide
Travel provides Clinton with $1 million in deferred billing for
his campaign trips. Clinton aide David Watkins boasts to a travel
magazine, "Were it not for World Wide Travel here, the Arkansas
governor may never have been in contention for the highest office
in the land." In fact, without the Worthen and Worldwide
largess, it is unlikely that the cash-strapped candidate could
have survived through the later primaries.
A massive "bimbo"
patrol is established to threaten, buy, or otherwise disarm scores
of women who have had sexual encounters with Clinton. The campaign
uses private investigators in an extensive operation that will
be joked about at the time but later will be seen as a form of
blackmail as well as psychological and physical intimidation.
Money magazine reports
that Clinton annually receives about $1.4 million in admissions
tickets to the state-regulated Oaklawn racetrack which he hands
out to campaign contributors and others.
A survey of campaign reporters
finds that by February, 90% favor Clinton for president.
During the New Hampshire
primary Clinton flies back to Little Rock to preside over the
execution of Ricky Ray Rector. The prisoner was so brain damaged
that he saved his pie to eat later.
Arkansas Governor Jim
Guy Tucker comes to Washington to see his old boss sworn in,
leaving his state under the control of the president pro tem
of the senate, Little Rock dentist Jerry Jewell. Jewell uses
his power as acting governor to issue a number of pardons, one
of them for a convicted drug dealer, Tommy McIntosh. According
to the Washington Times, many in the state "say it was a
political payoff, offered in exchange for dirty tricks Mr. McIntosh
played on Clinton political opponents during the presidential
campaign." It seems that the elder McIntosh had worked for
Clinton in his last state campaign and, according to McIntosh
in a 1991 lawsuit, had agreed not only to pay him $25,000 but
to help him market his recipe for sweet potato pie and to pardon
Webster Hubbell's name
surfaces as a potential nominee for deputy attorney general but
he tells friends he does not want that job or, reports Time,
"to take any other position that involves Senate confirmation
-- perhaps to avoid fishing expeditions into the law firm's confidential
And years later, this
from a real expert: The New York Daily News quotes John Gotti
as saying that Clinton got away with things a Mafia boss would
never have gotten away with. In a conversation with his brother
Peter, he is particularly struck with Clinton's taped conversation
with Gennifer Flowers: "He's telling her, 'Why would you
want to bring this out? If anybody investigates, you lie.' "
Said Gotti, "If he had an Italian last name, they would've