Judicial Watch contends the loans to Senator Hilary Clinton's brother were a payoff for the Clinton administration's pardon of the debtors on a 1982 bank fraud conviction.

Rodham has been barred from accessing his bank account while a Virginia-based bankruptcy trustee demands that he has a right to $107,000 of those funds.

The bankruptcy trustee contended in court documents to obtain the seizure of funds, that a carnival company, which failed in 2002 and has since filed bankruptcy in the U.S. Bankruptcy Court for the Eastern District of Virginia, loaned the money to Rodham.

At issue is that in May 2000, United Shows, the carnival company, owned by Edgar Gregory Jr. and his wife Vonna, loaned the $107,000 to Rodham, who never repaid the debt.

Judicial Watch began investigating six years ago -- this is the organization that has had a bug up its hind end about the Clintons, which can be attributed to the huge contributions it receives from Clinton haters. JW contends the loans were a payoff for the Clinton administration's pardon of the Gregory's on a 1982 bank fraud conviction.

With United Shows in bankruptcy, the bankruptcy trustee seized Rodham's bank account, which contains $142,000. Even though the amount frozen exceeds the questioned amount by $30,000 neither the bankruptcy trustee nor the court are willing to release those funds. Rodham's attorney is appealing the action and a hearing is scheduled for next month.

Rodham's attorney contends that the statute of limitations expired on collecting the unpaid debt. The bankruptcy trustee counters that doesn't matter in bankruptcy law.

FAIR USE NOTICE: This section may contain copyrighted material the use of which has not always been specifically granted by the copyright owner. This material is being made available in an effort to advance understanding of political, human rights, economic, scientific, and social justice issues, etc. It is believed this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the U.S. Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material in this section is distributed without profit. For more information go to: http://www.law.cornell.edu/uscode/17/107.html.

If you wish to use copyrighted material from this section for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner."