James McDougal’s Plea to Remain Free Is Denied

LITTLE ROCK, Ark. —  A federal judge on Monday denied a request by James B. McDougal, President Clinton’s former Whitewater partner, to remain free while he appeals convictions on fraud and conspiracy charges.

Whitewater prosecutors had agreed not to oppose McDougal’s request, but U.S. District Judge George Howard turned it down, saying he was not convinced the appeal would result in a reversal of the convictions or a new trial.

“The motion for bond pending appeal has been denied,” Howard said in his ruling. McDougal must now report to prison to begin serving his three-year sentence on June 16.

The decision came on the same day that attorneys for Susan McDougal, McDougal’s ex-wife, said they would file a motion seeking her release from a contempt citation for which she has been jailed since September 1996.

Susan McDougal was imprisoned for refusing to testify before the Whitewater grand jury led by independent counsel Kenneth W. Starr. Her lawyer, Michael Kennedy, said she will not change her mind and therefore the citation should be lifted.

James McDougal was convicted last year on 18 counts of fraud and conspiracy but escaped a heavier sentence because he began cooperating with Starr.

He has reportedly corroborated allegations that Clinton pressured an Arkansas banker to extend an illegal $300,000 loan to Susan McDougal in 1986 when Clinton was Arkansas governor.

Prosecutors allege about $50,000 of the proceeds of that loan were funneled into the failing Whitewater real estate venture in which the McDougals were partners of Bill and Hillary Rodham Clinton.

The president denies playing any part in the loan.

James McDougal also has been questioned by prosecutors investigating whether Mrs. Clinton was involved in a fraudulent land transaction on a real estate venture known as Castle Grande. She also denies any wrongdoing.