Article: FIRST WHITEWATER TRIAL BEGINS CLINTON'S FORMER BUSINESS PARTNERS ACCUSED OF FRAUD.(News/National/International)

Byline: Kieran Murray Reuter

LITTLE ROCK, Ark. -- The first trial in the Whitewater investigation opened Monday with prosecutors alleging that former business partners of President Clinton conspired to win a string of fraudulent real estate loans when he was governor of Arkansas.

In his opening argument, prosecutor Ray Jahn described an elaborate scheme based on deceptions and ``outright lies'' by prominent Arkansas figures to obtain interlocking federal government-backed loans that financed ambitious real estate ventures in the mid-1980s.

Among the accused is James McDougal, who was a partner of then-Gov. Clinton and his wife, Hillary Rodham ...

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