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Susan McDougal, a former Whitewater business partner of President Bill Clinton, was sentenced to two years in prison for loan fraud in a case her attorney denounced as politically motivated. District Judge George Howard Jr rejected McDougal's claim that she was only following orders of her ex- husband, James McDougal, with whom she owned the now-defunct Madison Guaranty Savings and Loan.

The McDougals were partners of Mr Clinton from 1978 to 1992 in the failed land development known as Whitewater. Mrs McDougal was convicted of misusing a $300,000 (pounds 200,000) loan obtained in the name of her Master Marketing advertising company from a lender backed by the Small Business Administration and operated by Mr Clinton's chief accuser in the Whitewater affair, David Hale. AP- Little Rock