July 10, 2000   

      The story of Kathleen Willey is indelibly etched into
America's consciousness;  her trembling voice, telling "60 Minute's" Ed Bradley about the President groping her inside
the Oval Office was such an important revelation that it may yet land Clinton an indictment after he leaves office.  Only "60
Minutes" never tested Willey's credibility;  had they done their homework, they may never have put Willey on the air.  The
Office of Independent Counsel, however, did do their homework;  what is being revealed now is while they continue to hold Willey up as a paragon of truth and virtue, they have long been aware that she not only has wild discrepancies in her testimony under oath, but also that she may be committing bankruptcy fraud in Virginia. 
      Kathleen Willey quietly filed for bankruptcy in Virginia's Chesterfield County Courthouse April 14, 2000.  She reports that all she owns is her household furnishings, her three year old car, and her wedding ring, and that she is forced to live in a $450.00 a month rental which is controlled by her children.
      But Kathleen Willey's home isn't the typical one bedroom $450 rental in the Richmond, Virginina suburb of Powhatan;  instead, she lives in a large home on wooded acreage, one described by a Richmond style writer as a beautifully appointed showplace, something out of the pages of Southern Living magazine. 
      That's not the only unusual circumstance surrounding the Willey bankruptcy.    On August 24, 1994, Kathleen disclaimed all interest in her late husband's million dollar life insurance policy, giving her share of the award to her children, and now "borrows" several thousand dollars each month from her children which she never repays.   
      But it turns out that Ed Willey's life insurance policy paid off a $160,000 trust deed on Willey's residence, a fact which apparently has been obfuscated to create the appearance of the home being over leveraged so her largest creditors, brother/sister Anthony Lanasa and Josie Abbott, could not attach the equity.  Further, through a shell game of legal maneuvers, the Willey children went from being borrowers on that note, to becoming lenders on that note. 
      Confusing_  Intentionally so.
      This story begins before the country even knew Bill Clinton's name.  On August 15, 1991, Richmond architect H. Louis Salomonsky loaned $160,000 to Planning and Zoning, Inc., a Virginia corporation Ed Willey had formed.  The promise to pay was signed by Planning and Zoning's President, Shannon Willey, Ed and Kathleen's daughter,  and endorsed by Ed and Kathleen Willey.  The loan was well secured by three separate pieces of collateral:  Ed's life insurance policy, a third trust deed on Ed and Kathleen's home, and a 25% interest in Lucks Lane Association, a general partnership which owned 11 acres of land in Chesterfield County, Virginia.
      Ed Willey made his living as a condemnation attorney, and when the city of Richmond condemned a piece of property on the James River owned by Anthony Lanasa and his sister Josie Abbott so the city could construct a floodwall, Ed Willey's job as their attorney was to negotiate a fair settlement, then hold the funds in a trust account to disperse to Lanasa and Abbott.  The sum the court awarded to Lanasa and Abbott was $274,000. 
Only Lanasa and Abbott never received the funds, because Ed Willey took the money himself to repay his and Kathleen's back taxes.  (Ed and Kathleen Willey lived a lavish lifestyle, and keeping up with Kathleen's spending habits put constant pressure on Ed, who according to court records, would routinely receive calls from his bank that Kathleen had overdrawn her account:  $4,900 one month, $8,500 the next, $16,000 the month after that.)
      Lanasa and Abbott took Willey to court over the matter in May 1993;  according to Abbott, just days before the judge's decision was due, Ed began the shell game by  shifting the title of the condo they owned in Vail, Colorado, from the family's name to Planning and Zoning, Inc., the corporation "controlled" by his children. 
      The battle over the Lanasa's funds escalated over the next six months, until one fateful November 1993 day when Lanasa's attorney, Watson Marshall, warned Willey he'd seek Willey's disbarment were the money not returned to his clients.  Willey