Whitewater controversy Whitewater controversy The Whitewater controversy, Whitewater scandal, or simply Whitewater, was an American political controversy of the 1990s. It began with an investigation into the real estate investments of Bill and Hillary Clinton and their associates, Jim McDougal and Susan McDougal, in the Whitewater Development Corporation. This failed business venture was incorporated in 1979 with the purpose of developing vacation properties on land along the White River near Flippin, Arkansas. A March 1992 "New York Times" article published during the 1992 U.S. presidential campaign reported that the Clintons, then governor and first lady of Arkansas, had invested and lost money
Stephen Smith (Whitewater) Stephen Smith (Whitewater) Stephen A. Smith (born May 15, 1949) is a University of Arkansas communications professor who was a top gubernatorial aide to Bill Clinton in Arkansas, helping the governor run his office. He is an internationally known First Amendment scholar and author of numerous books. Smith became part of Ken Starr's investigation during the Whitewater scandal; he remained loyal to Clinton. Smith confessed to getting a phony loan from David Hale's company, saying it was to go for a "disadvantaged" political consulting firm Smith operated in the 1980s. The $65,000 loan in fact was for an overdue bank