UNIVERSITY DAILY KANSAN
Wednesdav. March 1. 1995
9A
Whitewater indictment names Clinton banker
The Associated Press
WASHINGTON — A grand jury investigating the Whitewater affair yesterday indicted the former president of an Arkansas bank that loaned money to Bill Clinton's 1990 gubernatorial campaign.
Independent counsel Kenneth Starr's office announced the five felony charges against Neal T. Ainley, former president of Perry County Bank. The charges were brought by the grand jury in Little Rock, Ark.
The indictment accuses Ainley of misleading the government about certain transactions at the bank.
Starr's office said the charges against Ainley included:
—One count of conspiracy to defraud the federal government regarding the reporting of currency transactions, which carries a maximum penalty of five years in prison and a $250,000 fine upon conviction.
—Two counts of causing a bank to fail to file a currency transaction report. Each count carries a maximum of five years in prison and $250,000 in fines.
One count of making false
—One count of making false statements to a federal department or agency, which carries a maximum of five years imprisonment and $250,000 in fines.
entries in bank records, which carries a maximum 20 years in prison and $1 million in fines.
Ainley was president of Perry County Bank from June 1989 through March 1994. A man at his home who answered his telephone yesterday hung up the phone.
Ainley is the fifth person to face charges in the investigation of Arkansas business dealings known as Whitewater, the Clinton's real estate venture. The other four have pleaded guilty to charges under agreements with Whitewater prosecutors.
Among them was Webster Hubbell, the former No. 3 Justice Department official and friend of the Clintons who pleaded guilty late last year to bilking his former law firm and clients out of money.
In addition to the Clinton's personal financial dealings, Whitewater prosecutors have been investigating how Bill Clinton financed his political career, including his 1990 campaign for governor. The trea
News reports have said investigators were focusing on the relationship between that campaign and the small Perry County Bank, which was run by Herby Branscum Jr., a longtime political associate of Clinton's.
The New York Times reported last summer that prosecutors were tracing $50,000 in cash that the bank provided to the campaign and trying to determine why the bank did not report all the cash transfers to the Internal Revenue Service under a law that requires the reporting of cash transactions of more than $10,000.
The bank lent $180,000 to the Clintons, who then lent it to the campaign. Banks commonly lend to candidates personally, rather than to their rewards, which are sometimes viewed as less creditworthy.
Lindsey has said that cash withdrawals were made in support of the campaign's getout-the-vote efforts. He said the campaign was mindful of its obligations under the law and attempted to comply fully.
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