- The Washington Times - Monday, June 19, 2000

For the record, in an 8-to-1 decision the Supreme Court voided Hubbell's misdemeanor guilty plea to tax-evasion charges, determining that Whitewater prosecutors improperly based their tax allegations on information gleaned from 13,120 pages of financial documents Hubbell submitted to them under a grant of limited immunity. But that ruling had no effect on the felony plea Hubbell also made last June. In that case, he admitted that over a five-year period he lied to federal bank regulators about legal work he and Hillary Rodham Clinton had done for a fraudulent real estate project which contributed to the collapse of Madison Guaranty, which cost taxpayers more than $60 million.
Appointed chief justice of the Arkansas Supreme Court and associate attorney general of the U.S. Justice Department, Hubbell resigned in disgrace in March 1994 from the No. 3 position at Justice with Whitewater prosecutors hot on his trail. In December 1994, Hubbell pleaded guilty to a felony, admitting that he had effectively embezzled $400,000 from the Rose firm and more than a dozen clients, including Madison, by submitting false billings used to finance personal expenditures. Like Al Capone, Hubbell neglected to pay taxes on his ill-gotten loot, and he pleaded guilty to a felony charge of tax evasion as well.
Hubbell spent 17 months in prison and promised to pay his back taxes and penalties as well as make restitution to the Rose firm. It didn't quite work out that way, however. Based on the financial documents Hubbell had submitted under a grant of limited immunity, prosecutors discovered that Hubbell and his wife earned more than $1 million from 1994 through 1997. But they managed to pay less than $30,000 against their tax obligations of $894,000, including taxes and penalties due on the embezzled funds and hundreds of thousands of dollars in tax payments due from his "consulting" work. During the same four-year period, however, according to an April 1998 indictment for tax evasion, the Hubbells did manage to spend $750,000 on clothes, personal accessories, domestic help, private school tuition for their children, etc. And there was the amended tax return for 1994 that added $77,000 in income after their tax records were subpoenaed.
It was Hubbell's June 1999 guilty plea to tax evasion that the Supreme Court overturned, leaving three felony convictions on his rap sheet and, so far, the taxpayer holding the bag.

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