Time: Wed Jul 09 16:00:12 1997
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Date: Wed, 09 Jul 1997 15:56:33 -0700
To: (Recipient list suppressed)
From: Paul Andrew Mitchell [address in tool bar]
Subject: SLS: Starr said preparing to indict Hubbell (fwd)

>Reports say prosecutor hopes to enlist former aide in probe
>Associated Press (http://www.msnbc.com/news/84216.asp)
>    WASHINGTON - Whitewater prosecutor Kenneth Starr has 
>decided to seek a tax evasion indictment against Webster Hubbell, 
>according to USA Today and Fox News Channel.
>    The newspaper says in Thursday's editions that Starr 
>hopes to pressure Hubbell into cooperating fully with the investigation 
>into the business and political affairs of President Clinton and his 
>wife, Hillary.
>    Clinton has described Hubbell as his best friend. 
>Hubbell and Hillary Clinton were partners in the Rose Law Firm in Little 
>Rock, Ark.
>    The decision to pursue the indictment was made at a 
>staff meeting in Little Rock last week, the newspaper said.
>    Fox reported Wednesday that Starr will file the charges 
>against Hubbell by the end of the summer.
>    A source close to Hubbell told The Associated Press on 
>Wednesday that he had not received a letter saying that he was a target 
>of the investigation nor had he been informed that he was about to 
>    Starr's spokeswoman, Deborah Gershman, declined comment.
>    Hubbell resigned as the No. 3 official at the Justice 
>Department in March 1994 amid questions about his billing practices at 
>the Rose Law Firm in Little Rock, where he had worked with Mrs. Clinton 
>before coming to Washington in Clinton's first term.
>    In a plea bargain with Starr, Hubbell in December 1994 
>pleaded guilty to tax evasion and mail fraud charges in connection with 
>bilking clients, including the federal government, of $400,000. He later 
>was sentenced to 21 months in prison and was released in February this 
>    Whitewater prosecutors have expressed displeasure with 
>the degree of Hubbell's cooperation after the deal was struck.
>    They have been investigating a series of payments, 
>reportedly totaling $400,000 or more, from Clinton's friends to Hubbell 
>made between March 1994 and December 1994 and whether they were designed 
>to discourage his cooperation with the Whitewater investigation.
>    The White House and Hubbell have denied the payments, 
>including a $49,500 lobbying contract from the Los Angeles Department of 
>Airports, were intended to buy Hubbell's silence.
>    An audit released June 23 by Los Angeles Controller Rick 
>Tuttle concluded that Hubbell overcharged the city and should be 
>targeted for possible criminal prosecution.
>    The Department of Airports severed Hubbell's six-month 
>contract after his 1994 conviction but paid him half of the $49,500 fee.
>    Tuttle said Hubbell billed the city for 80 hours, but 
>worked only about seven, and even that work was of questionable value. 
>Hubbell provided "nowhere near the services he represented to the city," 
>Tuttle said at a news conference.
>    Tuttle recommended that city officials try to recoup the 
>money and that federal officials investigate whether Hubbell should be 
>prosecuted on charges of mail fraud, wire fraud and filing a false claim 
>with the city.
>    According to Tuttle's report, then-mayoral adviser Kim 
>Wardlaw testified that she discussed the hiring of Hubbell with Alan 
>Arkatov, a former prominent Democratic campaign consultant.
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>Charles L Hamilton  (chasm@insync.net)  Houston, TX
>-> Send "subscribe   snetnews " to majordomo@world.std.com
>->  Posted by: chasm@insync.net (Schuetzen)

Paul Andrew Mitchell                 : Counselor at Law, federal witness
B.A., Political Science, UCLA;  M.S., Public Administration, U.C. Irvine

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