Conspiracy Nation -- Vol. 3 Num. 62

("Quid coniuratio est?")

MURDER, BANK FRAUD, DRUGS, AND SEX
By Nicholas A. Guarino

[...continued...]

** For a change of pace, here's an incident that's non- violent -- but does include the President himself.

Little Rock attorney Cliff Jackson, an acquaintance of Bill's from his Oxford days, was approached in July, 1993, by Larry Patterson and Roger Perry, two former members of Bill's Arkansas security detail. They wanted to discuss blowing the whistle on his sex escapades. (Other troopers backed up their stories.)

As told to New American magazine, Jackson was discussing their stories on the phone in August with another attorney, Lynn Davis (not related to [L.J. Davis]), when...

...he became suspicious that the phone had been tapped. He suggested to Davis that they meet in a nearby restaurant. "The whole time we were there, this suspicious-looking guy kept his eye on us," Jackson recalls. "After we left, we were followed by this dark Suburban with darkened windows and a Texas license plate." Davis noted the vehicle's license plate number and ran a check on it; no such license number was listed.

You've heard of unlisted phone numbers? Welcome to the phantom surveillance world of unlisted license plates!

Just a few days later, the troopers received phone calls from both Clinton and Buddy Young, former head of Gov. Clinton's security detail. You can hear the borderline tone of Young's calls in this sample from his tense call to Roger Perry, as he reported it:

I represent the President of the United States. Why do you want to destroy him over this? ... This is not a threat, but I wanted you to know that your own actions could bring about dire consequences.

Clinton's calls were no big secret, either. For instance, journalist Gwen Ifill noted in the New York Times,

It turns out that some of the calls that were overworking the White House switchboard operators [in the fall of '93] were going not to Capitol Hill but to Arkansas state troopers [to discuss] potentially embarrassing charges about his marital infidelity.

The troopers related that Bill asked about the pending allegations and offered them plush jobs. I think what he wanted most was the kind of loyal silence and amnesia he gets from people like Buddy Young, whom he appointed to a $93,000- a-year FEMA job (not a bad promotion for a cop).

Indeed, there was a lot to be silent about. In addition to numerous one-night ladies, Bill had long-term affairs with six. One was a real bell-ringer: The Los Angeles Times sifted through thousands of pages of state phone bills and found 59 calls to her, including eleven on July 16, 1989. On one government trip, he talked to her from his hotel room from 1:23 a.m. to 2:57 a.m., then was back on the phone with her at 7:45 that morning.

Bill's fallback defense is always that, as he claimed on National Public Radio, "The only relevant questions are questions of whether I abused my office, and the answer is no."

Well. What do you say?

** By far the unluckiest guy in Arkansas is lawyer Gary Johnson, 53, who was peacefully living at Quapaw Towers in Little Rock when Gennifer Flowers moved in next door to him.

Now, Clinton denied on 60 Minutes that he ever visited Gennifer. But Gary had a home security system that included a video camera pointed at his door. Unfortunately, it also covered Gennifer's door, and after awhile he had several nice visits on tape, showing Bill letting himself in with his own key.

Either Bill finally noticed the camera, or the grapevine told Bill's aides about it, because on June 26, 1992, three weeks before the Democratic nomination, Gary got a loud knock at the door. It was three husky, short-haired state troopers, and they slugged him as they barged in, demanding the tape.

Gary promptly gave it to them, but they continued punching him, breaking both his elbows, perforating his bladder, rupturing his spleen so badly that doctors had to remove it, beating him unconscious, and leaving him to die.

Now, here's a good question for you: Do you think Bill Clinton actually picked up a phone and initiated this attack?

And here's a better question: What difference does it make?

For obvious reasons of liberal loyalty, no one in the major media wants to stick his neck out and be the first to do a major piece that pins all these murders and attacks on the President of the United States.

But sooner or later, the dam will break. The weight and scope of the crimes are just too massive. Even if only half these incidents turn out to be accidents or true suicides, Bill will find it impossible to wiggle out of being implicated in the rest. When some indicted hit man or functionary sees the evidence piling up against him, he will sing like a sparrow to save his own tail feathers...

                   How to Make $2 Million
            Developing a God-Forsaken Tract of Land
             Without Selling One Square Foot of It

When the media folk told you about Whitewater, they left out a few amusing details.

So in a spirit of altruistic service and public education, I'm going to let you in on the secrets of how to pull off a land scam. Pay attention, because you've never heard this before.

1. Real estate developing is more fun when you can borrow all your capital without having to pay it back... or even sell any land. So to get started, you need two friends: one an appraiser, one a banker.
2. Next, you find some dirt-cheap dirt. Anywhere in the boondocks will do. In the Whitewater case, it was 230 acres of land along the White River for about $90,000. (Some housing tract! It was fifty miles to the nearest grocery store.)
3. Then you get your appraiser friend to do a bloated appraisal. Hey, what are friends for? Let's say he pegs it at $150,000.
4. You go to the bank and get the usual 80% loan. [CN -- e.g., 80% of $150,000 with the land as collateral] You now have $120,000, so you pay off the land [($90,000)], and you still have $30,000 in your pocket. You're on a roll.
5. You pay $5,000 to subdivide it and bulldoze in a few roads. (Or if you know the ropes, you get the state to do it, as Bill did to get a $150,000, two-mile access road.)
6. Voila! You now are the proud owner of a partly-developed luxury estate community. So you call up your appraiser friend again, and he re-evaluates it at a cool $400,000.
7. You hustle back to the bank [run by your friend McDougal] and get a new 80% loan based on the new value. (Nothing out of line so far. An 80% loan is standard, right?)
8. You draw up plans for some fine houses (which will never be built.)
9. You get a new appraisal.
10. You get a new loan.
11. You make two or three phony homesite sales to friends. You shuffle the funds around among your shell corporations and bounce it back to your friends -- plus a little extra for their help.
12. You get a new appraisal.
13. You get a new loan.
14. You do a "land flip," selling the whole thing to Company X for $800,000, which sells it to Company Y for a million, which sells it back to you for $1.25 million. (All these companies are your friends.) And yes, this kind of thing did happen in Whitewater and Madison. In fact, Whitewater figures David Hale and Dean Paul once flipped Castle Grande back and forth from $200,000 to $825,000 in one day!
15. You get a new appraisal.
16. You get a new loan.
17. Finally, your development corporation declares bankruptcy, and the bank has to eat your loans because the money is all gone, and since the record-keeping is so poor, nobody knows where it went.

But weep not for the bankers. You pay them nicely -- perhaps a third of the $2 to $3 million you skim off. Weep for the taxpayer who bails out their banks.

Which is to say, in the case of Whitewater, weep for yourself.

-+- Does This Actually Work? -+-

Whitewater was just the first of a series, like a pilot for a sitcom.

Using Whitewater as a prop, Bill and his partner Jim McDougal milked -- by my rough estimate -- several million dollars from the SBA [Small Business Administration] and at least five or six banks and S&Ls, starting with the Bank of Kingston.

But their later ventures, bringing in Steve Smith and now-Gov. Jim Guy Tucker, did even better. Campobello started with about $150,000 in property and squeezed over $4 million in loans from banks in about two years. Castle Grande began with $75,000 worth of swamp land and cleared over $3 million. It never built anything. The only human artifacts on it today are a few old refrigerators and mattresses.

Why do I have information you haven't seen before? Because my firm had $10 million in Madison Guaranty S&L, and I was thinking of buying the Bank of Kingston. (I was already worth millions by that time.) When I saw Kingston's financial statement, however, I ran like a scalded cat.

And Madison was worse. You didn't have to be a Philadelphia CPA to spot their money laundering, dead real estate liabilities proudly listed as assets, huge amounts of 24-hour deposits from brokers, and $17 million in insider loans. It was a nightmare.

Whitewater Development Corp. had at least an appearance of sincerity. It even had TV commercials, starring Jim's [McDougal's] striking young wife, Susan, in hot pants, riding a horse. Another one showed her behind the wheel of Bill's restored '67 Mustang.

But after Whitewater, the deals began dropping their frills like a hooker in a hurry to get things over with. The RTC criminal referral that Bill suppressed during his presidential campaign cites such later corporations as Tucker-Smith-McDougal, Smith- Tucker-McDougal, and Smith-McDougal. Catchy, eh? If it were me, I would have called them Son of Whitewater, Whitewatergate, and Whitewater & Ponzi, L.P.

[...to be continued...]

I encourage distribution of "Conspiracy Nation."

Brian Francis Redman bigxc@prairienet.org "The Big C"

Coming to you from Illinois -- "The Land of Skolnick"