March 26, 1996 in Nation/World

Whitewater Figure Sentenced, Fined

Compiled From Wire Services

A former small-time banker who claims President Clinton pressured him to make an illegal $300,000 loan was sentenced Monday to more than two years in prison and ordered to repay the government $2.04 million.

David Hale, whose allegations launched the Whitewater investigation, also was given three years’ probation and fined $10,000.

Hale pleaded guilty to lying to the Small Business Administration to obtain millions in matching funds that he then used to make loans to enrich himself and his friends.

After he was charged, Hale sought to strike a deal with prosecutors and claimed that Clinton, as governor, pressured him in 1986 to loan $300,000 to Susan McDougal, one of Clinton’s partners in the Whitewater land development.

Hale’s claims led to the appointment of a special Whitewater prosecutor.

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