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The Whitewater Scandal involved accusations that: Bill Clinton pressured David Hale into making an illegal loan.
What is Whitewater Scandal?
In the 1990s, there was a political incident in America called the Whitewater controversy, sometimes known as the Whitewater Scandal, "Whitewatergate,". It all started with an inquiry into Bill and Hillary Clinton's and their friends Jim and Susan McDougal's real estate holdings in the Whitewater Development Corporation. This unsuccessful enterprise was founded in 1979 with the intention of building vacation homes on property along the White River close to Flippin, Arkansas.
According to a March 1992 New York Times article released during the 1992 U.S. presidential election, the Clintons, the state's governor and first lady at the time, invested in the Whitewater Development Corporation and lost money on it. L. Jean Lewis, a Resolution Trust Corporation investigator who was looking into the collapse of Madison Guaranty Savings and Loan, which was also controlled by Jim and Susan McDougal, was intrigued by the report.
In November 1993, David Hale, who is the subject of criminal accusations against the Clintons, stated that Bill Clinton had exerted pressure on him to give a fraudulent $300,000 loan to Susan McDougal, the Clintons' business partner in the Whitewater property deal. Because Hale did not bring up the Clintons in connection with this loan during the first FBI investigation into Madison Guaranty in 1989—he did so only after being charged himself in 1993—the accusations were seen as dubious.
The McDougals were found guilty as a consequence of an inquiry by the US Securities and Exchange Commission into their involvement in the Whitewater project. Jim Guy Tucker, the governor who succeeded Bill Clinton, was found guilty of fraud and given a four-year probationary period. Susan McDougal was sentenced to 18 months in jail for contempt of court for her refusal to respond to inquiries about the Whitewater scandal.
However after three different investigations concluded that there was insufficient evidence connecting Bill and Hillary Clinton to the illegal behaviour of individuals connected to the property sale, none of them was ever brought to justice. Republican Kenneth Starr, the Whitewater Independent Counsel, oversaw the case. The final Independent Counsel, Robert Ray (who took over for Starr), released the last of these probes in 2000. Prior to his resignation, President Clinton pardoned Susan McDougal.
Hence, the correct option is b.
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