The Death Of Vincent Foster

Foster's concerns about Whitewater

The Washington Times
July 15, 1995

New Papers Show Foster Feared IRS Would Audit Whitewater

By Jerry Seper and Gretchen Lacharite

The Clinton administration, bowing to congressional pressure, has 
released additional Whitewater documents found in Vincent W. Foster 
Jr.'s office, including a note showing he was worried about a possible 
Internal Revenue Service audit of the Whitewater project involving 
President and Mrs. Clinton. 
. . . . Meanwile, Metropolitan Police and the FBI continued their 
investigation into Tuesday night's burglary of notes from the car of a 
White House lawyer who was preparing for hearings in both the Whitewater 
and Waco affairs.
. . . . Associate White House Counsel Cheryl D. Mills told investigators 
someone broke into her car Tuesday shortly after 11 p.m. while it was 
parked in the 2200 block of H Street NW, smashing a passenger-side 
window and taking a blue gym bag containing her handwritten notes and 
correspondence between the White House and Congress.
. . . . Ms. Mills told police she was in the area to conduct personal 
. . . . According to law-enforcement officials, the papers -- said to be 
copies of original notes already turned over to the various Whitewater 
and Waco committees --included information on the White House's handling 
of Mr. Foster's office papers on the night his body was found in a rural 
Virginia park, and documents on raids by the Bureau of Alcohol, Tobacco 
and Firearms and the FBI on the Branch Davidian compound in Waco, Texas, 
in 1993.
. . . . White House spokesman Michael McCurry predicted the burglary 
would become fodder to "all the conspiracy nuts who are doing all the 
stuff on Whitewater," noting that Ms. Mills' purse, wallet, portable 
telephone and other personal items also were stolen.
. . . . "Someone threw a rock through the window and took some stuff out 
of her car, including some stuff she had brought home from work," Mr. 
McCurry said. "She had some documents that she had been working on at 
the time. They are replaceable documents. She lost some of her own notes 
and work material that had gone with that, but it is not a catastrophic 
. . . . Metropolitan Police, assisted by FBI agents and uniformed U.S. 
Secret Service officers, searched a four-block area around the burglary 
site in an unsuccessful attempt to locate the missing documents.
. . . . Witnesses told police the suspected burglar was a black male 
about 19 years old, 5-foot10, with closely cropped hair. He was wearing 
a baggy, white T-shirt and white shorts.
. . . . Ms. Mills, who was questioned by Senate Whitewater investigators 
this week over the loss of the notes, was not available for comment 
yesterday. She also testified before the grand jury in March about a 
White House meeting she attended after Mr. Foster's suicide.
. . . . The Foster note outlining his concern about a possible audit was 
released by the White House on Thursday after administration officials 
said on Sunday that all the Whitewater documents had been turned over to 
Senate investigators.
. . . . Senate staffers complained, and the new records were released, 
described as having been listed as Clinton tax records and not included 
in the original 72-page Whitewater packet.
. . . . According to notes found in Mr. Foster's West Wing office, the 
deputy counsel -- who also served as the Clintons' personal attorney -- 
was concerned that an IRS audit would begin if Mr. and Mrs. Clinton, his 
longtime friends, declared losses on the venture, known as Whitewater 
Development Corp.
. . . . In a handwritten note, the former law partner of Mrs. Clinton's 
said declaring a loss on the couple's 1992 tax returns for the sale of 
their share of the Whitewater venture to partner James B. McDougal could 
result in a "can of worms you shouldn't open."
. . . . He also noted it was not possible for the Clintons to 
substantiate claims they made during the campaign -- and after -- that 
they had lost thousands of dollars on the venture because, he said, the 
loss calculations "included some items for which there were no canceled" 
. . . . The Whitewater project, a 203-acre development along the White 
River in northern Arkansas, and Madison Guaranty Savings and Loan 
Association, owned by Mr. McDougal, are key targets in an ongoing 
investigation by independent counsel Kenneth W. Starr. He is looking 
into accusations that money was illegally diverted from Madison to 
Whitewater, and that other funds were improperly routed to Mr.

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