September 23, 1993

During the Whitewater scandal, a federal grand jury indicted David Hale, a municipal judge who ran a small-business lending company called Capital Management Services. In July, Paula Casey, the new U.S. attorney in Little Rock appointed by President Bill Clinton, had obtained a federal search warrant for Hale’s Little Rock offices. The next day, FBI agents raided the offices. Hale had advanced $2.04 million to thirteen dummy corporations that he controlled. Hale’s business also had extensive transactions in the 1980s with James and Susan McDougal, Jim Guy Tucker, and several prominent Republican officials. After his indictment, Hale alleged that Clinton had a secret interest in one of his illegal loans and had pressured him to make it, although no records ever supported this.

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