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
Whitewater controversy him to provide an illegal $300,000 loan to Susan McDougal, the partner of the Clintons in the Whitewater deal. Hale's defense strategy, as proposed by attorney Randy Coleman, was to present himself as the victim of high-powered politicians who forced him to give away all of the money. This self-caricature was undermined by testimony from November 1989, wherein FBI agents investigating the failure of Madison Guaranty had questioned Hale about his dealings with Jim and Susan McDougal, including the $300,000 loan. According to the agents' official memorandum of that interview, Hale described in some detail his dealings with Jim Guy