Arkansas Governor, McDougal Face Possible RTC Fraud Claims

Federal regulators are investigating possible fraud claims against Arkansas Gov. Jim Guy Tucker and James B. McDougal, President Clinton’s partner in the Whitewater land venture, court records show.

The Resolution Trust Corp., the government’s savings and loan cleanup agency, is pursuing civil claims aimed at recovering taxpayers’ losses from the failure of Madison Guaranty Savings & Loan in Little Rock, Ark., which was owned by McDougal.

The investigation is separate from a criminal probe being conducted by the special prosecutor in the Whitewater affair, which also is focusing in part on Tucker and McDougal.

The documents filed last week in U.S. District Court here state the RTC “is conducting an investigation to determine . . . whether to pursue possible claims involving McDougal and Tucker and others, including claims for fraud and intentional misconduct.”

At issue, according to the records, is “the improper use of Madison funds for the benefit of various individuals, including Tucker.”

The court records, first reported by the Arkansas Democrat-Gazette, are the most detailed yet on the RTC’s civil investigation. The agency filed them in an effort to obtain records and testimony from Tucker and McDougal.

Both men are fighting subpoenas ordering them to provide information to the RTC. The agency last week asked a federal judge to order them to comply.

McDougal has invoked his Fifth Amendment right against self-incrimination as a reason for not complying, the records say. Tucker has cited other legal arguments in his fight to oppose the subpoenas.