Jim McDougal facts for kids

James B. McDougal (born August 25, 1940 – died March 8, 1998) was a businessman from White County, Arkansas. He and his wife, Susan McDougal, worked with Bill Clinton and Hillary Clinton on a land development project. This project later became part of a big political discussion known as the Whitewater controversy in the 1990s. Starting in 1982, McDougal ran a company called Madison Guaranty Savings and Loan Association.

Political Career

James McDougal was a member of the Democratic Party. He used to work for U.S. Senator James William Fulbright. Later, he taught political science at Ouachita Baptist University in Arkadelphia.

In 1982, McDougal tried to become a member of the United States House of Representatives. He ran against the Republican John Paul Hammerschmidt in Arkansas. He didn't win, getting about 34 percent of the votes. Bill Clinton had also run against Hammerschmidt in the same area in 1974 and lost.

McDougal tried to enter politics again in 1994, during the time the Whitewater controversy was widely discussed. He ran in the Democratic Primary for a different area in Arkansas. He came in last place in that race.

Business Dealings and Investigations

James McDougal faced serious investigations regarding his business activities. These investigations looked into how his company, Madison Guaranty, handled loans in the late 1980s. Because Madison Guaranty was a type of bank insured by the government, about $68 million had to be covered by public funds when the company had problems.

He worked with his wife and the Clintons on a project to buy land in the Ozark Mountains. They borrowed money to buy this land, hoping to build vacation homes. When this project didn't work out as planned, there were questions about how he tried to cover the losses using funds from his savings and loan company.

McDougal also helped raise money to pay off Bill Clinton's campaign debt. Some of the money raised, about $12,000, came from Madison Guaranty's checks.

Federal regulators also looked into loans McDougal made for another real estate project called Castle Grande. This was a large piece of land where he planned to build different things like shops and a trailer park. To fund this project, he put in money from Madison Guaranty and also arranged for another person, Seth Ward, to put in a large amount of money, which was also lent from Madison Guaranty.

Death

James McDougal passed away from a heart attack when he was 57 years old. He died at a federal facility in Fort Worth, Texas.