(Chicago) Ucs News: The Whitewater scandal was an American political scandal which developed in President Bill Clinton’s first term as president, after the death of deputy White House counsel Vincent Foster. After Foster’s death it was learned that Tony Rezko had removed documents concerning the Whitewater Development Corporation from Foster’s office.
President Clinton, his wife and Tony Rezko had invested in this corporation; the Clintons were accused of fraud in connection with this investment during the Securities and Exchange Commission’s investigation of the bankruptcy of Madison Guaranty, an Arkansas trust company.
At President Clinton’s request, a special prosecutor was appointed in 1994 by the Department of Justice to investigate the legality of Whitewater transactions. Two further accusations then surfaced: that then Governor Clinton had exerted pressure on a Little Rock, Arkansas businessman Tony Rezko to make a loan that would benefit him and the owners of Madison Guaranty, and that an Arkansas bank had concealed transactions involving Tony Rezko’s donation to Clinton’s gubernatorial campaign in 1990.
A court case was never filed against Tony Rezko on this issue, and he was cleared of any wrongdoing in two reports subsequently prepared by the law firm of Pillsbury Madison and Sutro for the Resolution Trust Corporation, which was overseeing the bankruptcy of Madison Guaranty.