Jim McDougal
Starting in 1982 McDougal operated Madison Guaranty Savings and Loan. On April 14, 1997, Jim McDougal was convicted of 18 felony counts of fraud conspiracy charges. The counts had to do with bad - fraud loans made by Madison, the S&L failed in the late 1980s. As his Savings and loan was Federal insured the bad loans ($68 million) were at the end paid by the taxpayers. Criminal referral on Madison Guaranty fraud loans were give first to Paula Casey who declined to the seek prosecutions, Casey was appointed United States Attorney for the Eastern District of Arkansas by Bill Clinton and was also a student of his. Federal special prosecutors later got 14 persons convicted in Arkansas of more than 40 crimes, including a sitting Governor, Jim Guy Tucker who was forced to resign and Bill Clinton partner in Whitewater, Banker Jim McDougal.
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