Posted on 05/12/2005 6:51:49 AM PDT by Extremely Extreme Extremist
LOS ANGELES (AP) A former aide to Sen. Hillary Clinton's campaign panicked when costs for a star-studded Hollywood fundraiser soared past $1 million, then lied to the government to conceal it, prosecutors said.
It was David Rosen's job to raise money for Clinton's 2000 election campaign and to keep track of how much was spent, prosecutor Peter Zeidenberg said in opening statements Wednesday.
But ``you will hear no evidence that Hillary Clinton was involved in any way shape or form,'' Zeidenberg told jurors. ``In fact, it's just the opposite. The evidence will show that David Rosen was trying to keep this evidence from the campaign.''
Clinton, elected to the Senate from New York in 2000, has not been charged in the case against her former finance director, and she was not expected to testify. Rosen's defense attorney, Paul Sandler, was to deliver his opening statements Thursday.
Rosen pleaded not guilty to three counts of making false statements to the Federal Election Commission. If convicted, he faces up to 15 years in prison and a $750,000 fine.
Zeidenberg, of the Justice Department's public integrity division, said Rosen deliberately caused campaign finance reports to be filed with the FEC that claimed there were ``in-kind'' contributions of $400,000 to put on the gala, when he knew that those contributions exceeded $1.1 million.
``How are you going to react when you see that you have OK'd $5,000 for Patti LaBelle's hairdresser, or $10,000 worth of Paul Anka CDs given away on a single night?'' Zeidenberg said. ``David Rosen knew that people would be extremely alarmed and upset at those kinds of expenses.''
The fundraiser, held at a 112-acre estate, attracted such stars as Cher, Diana Ross, John Travolta, Brad Pitt and Jennifer Aniston. The gala was catered by celebrity chef Wolfgang Puck, Zeidenberg said.
Prosecutors told jurors that Clinton faced a wealthy challenger and needed money for advertising at the time. Under federal election rules, her campaign would have benefited by underreporting the event's cost. The more money spent on a gala, even if funded through in-kind contributions, the less money a campaign can spend on the election itself.
Zeidenberg said Rosen also knew the campaign had been told to hold down fundraising costs.
The gala was underwritten by Peter Paul, who pleaded guilty in March to unrelated charges of securities fraud. Paul has told the FBI he gave hundreds of thousands of dollars to Clinton's campaign that were not reported.
The event was co-organized by Aaron Tonken, now serving a 63-month prison sentence for unrelated charges of defrauding charities of hundreds of thousands of dollars.
In documents filed before the trial, Rosen's lawyers said their defense would be that Tonken and Paul concealed information from him about the event's costs. But the prosecutor said Rosen was in charge.
``This event was his responsibility from start to finish,'' said Zeidenberg. ``He was involved in every key decision that was made, everything from the design of the invitations to the selection of the venue, to who was sitting next to whom.''
Not sure if this article was part of your ongoing thread or not.....
How Clintonesque - always at the center of the storm and never aware of what was going on around them. The worst criminals in the political history of these pigs is the lickspittle press. Extinction will be good for them: http://halloween.wizard.org/images/no-evil-skels2.jpg
Can someone help me reach Paul Chavez?
Good. I called the AP and got his phone number. He needs to get the right info if he is going to do honest reporting. Is there a FReeper in Los Angeles who can hand deliver something to him at the trial?
These people are going to be dragged kicking and screaming into covering this.
Is Ron Paul on the defense's list of witnesses? His testimony would be priceless as he would open the doors on the lies that Hillary has gotten away with in regard to this money laundering scheme!
LOS ANGELES, May 12 -- The federal trial of Sen. Hillary Rodham Clinton's former national finance director started its second day with a defense lawyer arguing that David F. Rosen was never told the true costs of a star-studded Hollywood fundraising gala for Clinton's 2000 Senate campaign.
It ended Thursday with a prosecution witness who described himself as a "dear friend" of former president Bill Clinton -- and who was testifying as part of a plea deal in his own unrelated criminal case -- and who told the courtroom that Rosen knew weeks ahead of time that the party would cost more than it would take in.
Rosen, 40, a Chicago consultant, is accused of intentionally underreporting the cost of the party, which featured a long list of Hollywood royalty. He faces as many as five years in prison on each of three charges relating to falsifying documents, and a $250,000 fine.
The event, held on the eve of the 2000 Democratic National Convention in Los Angeles, cost more than $1 million, not the $400,000 that was reported to the Federal Election Commission.
The mention of Hollywood adds tabloid appeal to the case, but it is being watched because of the possible repercussions for the New York senator. On Tuesday, a prosecutor stressed that there was "no evidence that Hillary Clinton was involved in this in any way, shape or form."
Prosecutors argue that Rosen concealed the true costs of the event because he knew that the campaign would be outraged and he could get fired.
Defense lawyer Paul Sandler said Rosen was a seasoned pro and never worried about getting fired. The party's two main sponsors, Peter Paul and Aaron Tonkin, who were underwriting the event as part of Stan Lee Media, a short-lived Internet venture with "Spider-Man" creator Stan Lee, never told Rosen what the party ultimately cost, Sandler said. "David Rosen's responsibility was not to be Sherlock Holmes," he said.
Paul and Tonkin are at the center of the case against Rosen. But neither is expected to testify. Both have criminal histories that the judge refused to allow the defense to bring up in court. But the day's key prosecution witness, James Levin, opened the door for limited discussion of Paul's criminal past when he mentioned an interview Paul gave ABC's "20/20" program. Judge A. Howard Matz said the defense could now question Levin about what he knew. Levin testified that after the broadcast, he and Rosen "felt very relieved" because Paul did not look credible and the program noted "he was fighting extradition" in South America.
The defense opened its cross-examination by pointing out that Levin agreed to testify against Rosen in exchange for consideration in a case where he faces five to 20 years in prison on fraud, bribery and other charges in connection with a business he owned in Chicago. Wasn't it his hope, Sandler asked, that he would receive a lighter sentence in exchange for testifying against Rosen? "I agreed to cooperate fully and tell the absolute truth," Levin said.
Levin had earlier testified that he met the Clintons in 1997 at a birthday party for Hillary Clinton, where he was a guest. He struck up what he called a personal and professional relationship with Bill Clinton, who asked him to become a Democratic Party fundraiser.
Levin also testified that the then-president had asked him to vet Peter Paul to see whether he was credible to organize the gala. Levin said he flew to Stan Lee Media, met the comic book legend, went to Paul's estate, met his wife, and reported back to Clinton that the party would work.
Levin said he never told Clinton the gala's costs were out of control because he had promised him the party would raise $1 million. He said he worried that if the campaign found out the truth, it would ruin his relationship with the Clintons. So when Rosen told him that "the cost of this event will never be the cost of this event," Levin said, he agreed it was a good idea.
His cross-examination is expected to continue when the trial resumes in U.S. District Court on Tuesday.
The prosecution's first two witnesses were an FEC press officer and the former treasurer of a joint fundraising committee that included the Clinton campaign, who testified on the technical aspects of campaign finance law.
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