SUSAN MCDOUGAL ON TRIAL
				The Clinton Scandal Nov. 23, 1998 (Embezzlement Acquittal) Nov. 24 1998 Update March 8, 1999 (Jury Selection - Federal Trial) March 10 Update March 11 Update Discuss the Case March 16 Update March 18 Update March 22 Update March 23 Update March 24 Update March 25 Update March 30 Update April 1 Update April 2 Update April 5 Update (Morning) April 5 Update (Afternoon) April 7 Update (Morning)

LITTLE ROCK, Ark. (Court TV) — Supporting Susan McDougal's frequent allegations that Kenneth Starr used unfair tactics to settle an alleged vendetta against the Clintons, Julie Hiatt Steele told jurors Friday that Whitewater prosecutors indicted her after she refused to lie about the president.

McDougal is on trial for criminal contempt and obstruction of justice because she refused to be questioned by Starr's investigators about the Whitewater scandal. The defense claims McDougal refused to cooperate with Starr because she refused to lie for the Independent Counsel and be part of an alleged political scheme to bring down the president. McDougal says she was afraid Starr would charge her with perjury if she did not say what he wanted.

When Steele took the stand, she supported McDougal's portrayal of Starr. She claimed she was charged with obstruction of justice and making false statements after she refused to corroborate her former friend Kathleen Willey's accusations against President Clinton. Willey has accused Clinton of making sexual advances toward her in 1993, which he has denied under oath.

Steele, who faces trial May 3 in Virginia for obstruction of justice, could have refused to testify. But she told reporters after her testimony concluded that she wanted to show solidarity with McDougal and tell people that she has been prosecuted for her refusal to support a lie.

"I came here today because Susan and I have both been relentlessly pursued by the office of the independent counsel," Steele said. "The people need to know this and that it could happen to anybody."

In court, Steele testified that she had initially lied and supported Willey's story once to a Newsweek reporter but insisted she felt "horribly guilty." Vowing not to lie anymore, Steele said the Newsweek confession was a lie, and Willey never confided in her about an alleged sexual advance made by Clinton. She said her former friend had asked her to lie to Newsweek.

After changing her story and testifying before two federal grand juries, Steele said she was invited to a meeting with Starr's prosecutors last November to clarify her testimony. However, Steele said, the real intention of the meeting was to pressure her into supporting Willey.

"I believed I was to support Kathleen Willey's version of the story," Steele said. "I couldn't do it ... I left the meeting in tears. I didn't know anything."

During cross-examination, prosecutor Julie Myers asked Steele whether she had told her story to The National Enquirer and Time magazine. Steele denied selling her story but admitted selling a picture of President Clinton and Willey because she needed the money for her son's special school needs. Steele said that she could have saved $500,000 in legal bills if she had continued lying for Willey.

Steele also said several members of her family, and her friends and neighbors were questioned by Starr's attorneys. Despite Steele's testimony, prosecutors say they have evidence proving that Willey confided in her about Clinton in 1993 and that friends of Steele says she shared that story with them. Testimony in McDougal's trial resumes Monday.

Court TV's Bryan Robinson and The Associated Press contributed to this report.

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