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Salon Magazine Exclusive: Justice Department Considers Investigating David Hale

SAN FRANCISCO, CA, MARCH 27, 1998 | The FBI has recommended to the Justice Department that it investigate allegations that key Whitewater witness David Hale received cash payments that originated from a foundation funded by conservative multimillionaire and fierce Clinton critic Richard Mellon Scaife, Salon Magazine has learned.

Salon Magazine first reported the allegations about Hale on March 17.

Justice Department sources said that among those involved in the decision to initiate a formal investigation are Deputy Attorney General Eric Holder, Jr.; Lee Radek, chief of the department's public integrity section; and P.K. Holmes III, the U.S. attorney for the western district of Arkansas.

Sources said the FBI had recommended to the Justice Department that several witnesses be interviewed in the coming days, and that a financial analyst be assigned to review the trail of funds that might have been provided to Hale.

"There are some jurisdictional questions to work out," said an official. "And then we are going to decide how to proceed."

Click here for the complete story.

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