The End of Whitewater?

WASHINGTON, D.C.: As the Whitewater prosecution team wraps up its investigation, special prosecutor Kenneth Starr appears close to making a decision on whether to seek an indictment against Hillary Clinton. The key to the investigation may be what lawyers close to the case say is "new and important" testimony that is potentially damaging to Mrs. Clinton from former Clinton business partner and failed S&L head James McDougal. According to lawyers, Starr and his key investigators have been meeting this week in Washington and Little Rock to assess evidence gathered over the three-year probe. Their blueprint: a 300-page memo that analyzes the mountain of information gathered over the course of the investigation, most of which details material involving the First Lady, according to lawyers who spoke to the Associated Press on condition of anonymity. Of particular interest to prosecutors is what role, if any, the Clintons had in securing a fraudulent $300,000 loan for McDougal's wife Susan. Starr's investigation is also expected to touch on the subpoenaed billing records of work Mrs. Clinton did for the Rose law firm, which disappeared during the 1992 campaign only to reappear last year in the First Familys living quarters. McDougal's story, if it checks out, supposedly will shed light on these issues. The problem for prosecutors is that testimony from a man with a history of mental illness who is looking to plead down his conviction on 18 felony charges may prove less than convincing to a jury.