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Caught in tide of a scandal: August 29, 1999 Lancaster, Pa. Sunday News

Starr Drops Steele Case Starr made the decision after suffering embarrassing defeats ... /Reuters - May 26, 1999

Mistrial Declared in Steele Case Second Straight Trial
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By Pete Yost / AP

"I think it's time to celebrate", Ms. Steele said outside the courtroom. "It's time to start my life again."

The Nation editors call for Starr's removal.


Online Journal

Political Site of the Day Award

On January 7, Ken Starr indicted our sister, Julie Hiatt Steele, for allegedly obstructing the Paula Jones' lawsuit and his investigation by telling President Clinton's lawyer, the FBI, and the grand jury that Kathleen Willey asked her to lie about the President. Julie told the lawyer, the FBI and the grand jury that she originally had agreed to lie to a reporter for Willey but, realizing her mistake, she retracted the Willey story before the reporter printed it in August 1997.

Julie & Nancy Lugue, esq. Julie Hiatt Steele, right, with her lawyer Nancy Luque after the ruling.
credit: The Associated Press
Julie is accused of obstructing justice and making false statements when she denied that Kathleen Willey told her Clinton made a pass at Willey in 1993. But stranger than the fact of the indictment of this bit player, say lawyers with no dog in the fight, is that it's based in part on Steele's telling her allegedly false version to the press, specifically Newsweek and the National Enquirer--and in 1997, before Starr had even begun this phase of his probe. Lawyers for Steele, who denies the charges, are considering a First Amendment challenge. Steele's attorney, Nancy Luque, blasted the indictment as "a transparent attempt to unfairly influence the pending impeachment proceeding." Perhaps so. The day after, House managers met to consider Willey as a witness. Julie Hiatt Steele Affidavit,"Jones v. Clinton"

Judge Hilton declared a mistrial in the case against Julie Hiatt Steele after the jury became hopelessly deadlocked.

The indictment charges Steele with three counts of obstruction of justice and one count of false statements. The false statements charge refers to both an affidavit Steele gave Paula Jones' lawyers and subsequent testimony before two federal grand juries. After being vilified by Ms. Willey on "Sixty Minutes" in March of last year, Julie defended herself in the press. Starr's indictment says that was obstruction of justice too.

Steele's trial was the only criminal case to grow out of the independent counsel investigation of the presidentŐs relationship with Monica Lewinsky. The trial was the second setback in less than a month for Starr, who was unable to convict Whitewater figure Susan McDougal in a case in Little Rock, Ark.


Special Message to Washington Restaurateur's


Photo of Julie Hiatt SteeleSince she was indicted, Julie has received many kind offers of support from help with legal research, to assistance with the trial, to financial contributions. These welcome contributions made one think we should set up a legal defense fund so that "David" can fight "Goliath" -  a prosecutor with unlimited funds [our money too] , with all of her might. As many of you may know, my sister is a single mother with a small child, who lost her job after Ms. Willey's story appeared in the press.


"When Kenneth Starr's Whitewater investigation ended in a lame plea bargain last week, it was with an air of unreality that we remembered what Mr. Starr had put this country through. ... What drove Kenneth Starr? Many tried to puzzle out this bland figure as he carried on his crusade. As good an answer as any, I think, emerges from Bob Woodward's new book, "Shadow." When Mr. Starr announced in February 1997 that he was quitting as independent counsel to go to Pepperdine University, his Republican friends savaged him. He changed his mind -- and from then on was determined to prove his mettle by getting President Clinton.
Back to a Republican System
by Anthony Lewis, New York Times, July 6, 1999

"How can this be in America?" Julie Hiatt Steele asked. "It's not the country I thought I lived in. . . . She has been threatened by Starr's prosecutors and shouted at by F.B.I. agents. She, her daughter, her brother and her former lawyer have been called before a grand jury. Her tax returns, bank records, credit report and telephone records have been subpoenaed."
"Is this America" by Anthony Lewis, New York Times, November 3, 1998

"On the day that the Senate began its trial of President Clinton, Kenneth Starr had a grand jury indict Julie Hiatt Steele. She is a remote, peripheral figure in the Starr campaign against the President, and a single mother without resources. Yet the independent counsel, unaccountable and obsessed, has set out to grind her to dust."
"The Knock on the Door" by Anthony Lewis, New York Times, January 12, 1999


 

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