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1985- The Rose Law Firm

In April 1985, McDougal holds fundraiser for Governor Clinton at offices of Madison Guaranty. The event raises an estimated $35,000. Questions are later raised about whether the source of some individual contributions was, in fact, other Madison accounts.

According to McDougal, the Governor jogs by Madison’s office and asks that some of the S&L’s legal work be given to his wife, Hillary. The Rose Law Firm is later placed on a $2,000/month retainer.

In October, 1985, Jim McDougal, through Madison Guaranty’s real estate subsidiary, Madison Financial, and friend Seth Ward purchase the Castle Grande property for $1.75 million. Madison Financial puts up $600,000, its legal limit, and Ward pays $1.15 million, borrowed on a non-recourse loan from Madison Guaranty.