Whitewater controversy and results of the Whitewater investigations turned the public against the Office of the Independent Counsel; even Kenneth Starr was opposed to it. The Independent Counsel law was allowed to expire in 1999. 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
David Hale (Whitewater) pleaded guilty to trying to bribe Hale. David Hale (Whitewater) David Hale is a former Arkansas municipal judge and former Arkansas banker. He alleged the charges that resulted in the Whitewater scandal trials. He worked with Jim McDougal on $3 million in loans from a lending company he ran. He pleaded guilty and went to jail for conspiring to defraud the Small Business Administration in looting the funds from a dummy business that he had established. He was sentenced to two years and four months in prison for fraud unrelated to the Whitewater deal. As part of his guilty plea