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
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.