SUSAN SCHMIDT, WASH POST, 1998 - Independent counsel Kenneth W. Starr yesterday secured a new federal indictment of Webster L. Hubbell, alleging that the former top Justice Department official lied to Congress and federal banking regulators to conceal work that he, Hillary Rodham Clinton and their law firm did in the mid-1980s for a rogue savings and loan.
The 15-count indictment alleges that Hubbell
covered up the Rose Law Firm's involvement in a phony multimillion-dollar
land deal that caused losses big enough to bankrupt Madison Guaranty
S&L, the thrift owned by the late James B. McDougal, the
Clintons' Whitewater business partner. Hillary Clinton's legal
work for Madison in the mid-1980s is referred to throughout the
indictment but she is accused of no wrongdoing. . .
Hubbell pleaded guilty in 1994 to charges
lodged by the independent counsel that he bilked Rose Law Firm
clients and partners. . .
While Hillary Clinton's name is not mentioned
in the indictment, her actions are described, albeit obliquely.
She is mentioned some 35 times throughout the indictment, but
only as Rose's "1985-86 billing partner" for the Madison
account. The document describes some of her work on Madison's
ill-fated Castle Grande project, an 1,100-acre industrial and
trailer park development south of Little Rock.
Some of the loans that the accountants
were blamed for allowing Madison to make were Castle Grande transactions
that Hillary Clinton and Hubbell worked on for his father-in-law,
Seth Ward. The indictment charges that Hubbell falsely told regulators
and Congress he did no work on Castle Grande matters and was
not aware of what work Rose did for Madison.