J. T. Lundy, former Calumet Farm president.

J. T. Lundy, former Calumet Farm president.

Associated Press

Lundy-Clinton Deal Investigated

Roger Clinton, half-brother to former President Bill Clinton, is being investigated by a House of Representatives committee for allegedly being paid to help J.T. Lundy, former president of Calumet Farm, get clemency, according to the Los Angeles Times.

Lundy is one of five men who may have paid Roger Clinton to use his White House connections to help them receive pardons or a grant of executive clemency. None of the five individuals ultimately received breaks in their sentences.

Lundy was sentenced to 4 1/2 years in prison on conspiracy, bribery, and fraud charges concerning his dealings with a Houston bank. Lundy and Gary Matthews, Calumet's chief financial officer, were found guilty of paying First City Bancorporation a $1.1 million bribe in exchange for $65 million in unsecured loans in the late 1980s and early 1990s. Lundy ran the famed Lexington horse nursery into the ground under a heap of debt.

According to prosecutors, Lundy and Matthews also offered Frank Cihak, the bank's vice chairman, two mares and breeding rights to Alydar, Calumet's famed stallion. Alydar, who was insured for $35 million, broke his leg under mysterious circumstances in 1990, and was subsequently destroyed. A former Calumet groom, on duty the night Alydar was hurt, was convicted of lying to a grand jury investigating the stallion's death, and served a 10-month sentence for perjury.

According to The New York Times, John Drinkwater, who is married to Lundy's ex-wife, said Lundy gave Roger Clinton a job on his horse farm after Clinton completed a jail term for cocaine distribution. Lundy allegedly asked Clinton for help after his bank fraud conviction. Drinkwater said that Lundy was quite upset when the help did not materialize.

The House Government Reform Committee is expected to finish its investigation this summer.