Hale Guilty of Lying About Firm
Friday, March 26, 1999; Page A04
LITTLE ROCK, March 25 –– Whitewater figure David Hale was found guilty today of putting $150,000 into his insurance company's bank account to show it was financially stable -- then withdrawing the money days later.
Hale was convicted of lying to the state Insurance Department about the financial health of the National Savings Life Insurance Co. Jurors recommended a sentence of 21 days in jail. With good behavior, that could mean 3 1/2 days in jail. Hale could have been sentenced to eight years.
Hale pleaded guilty in the Whitewater case to two felonies and served 21 months of a 28-month sentence. He was a key witness against then-Gov. Jim Guy Tucker and James B. and Susan McDougal at their 1996 fraud trial. All three were convicted.
The McDougals were business partners with President Clinton and Hillary Rodham Clinton in the Whitewater land development. Hale had once claimed that Clinton pressured him to make an illegal loan. Clinton denied the allegation.
In the insurance case, Hale testified that business dealings surrounding the operation of his burial insurance company were proper. But he acknowledged a long history of lying about his business operations.
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