Lawsuit: Clinton scheme cost donor millions (Peter Paul's amended complaint)

world net daily ^ | 8-25-06 | Moore

[doug from upland]

Lawsuit: Clinton scheme cost donor millions Peter Paul's amended complaint seeks damages for loss of internet company

-------------------------------------------------------------------------------- Posted: August 25, 2006 1:00 a.m. Eastern

© 2006 WorldNetDaily.com

A $2 million Hollywood bash that honored President Bill Clinton and raised buckets of money for Hillary Clinton's Senate campaign in 2000 was bankrolled by business mogul Peter Franklin Paul, and he says that was because Bill Clinton told him he'd work with Paul's company once he left the White House.

But that plan failed when, Paul alleges, the former president's agent diverted a key investment away from Paul's company and it failed in the dot-com meltdown several years ago. Now his lawsuit against Clinton and others for allegedly conspiring to destroy his $200 million Internet business is moving forward, with a motion to file a second amended complaint.

A hearing on that motion, submitted to the court today, is scheduled Sept. 25, officials with the United States Justice Foundation told WorldNetDaily.

Paul alleges after he donated $1.9 million of cash and in-kind contributions for Mrs. Clinton's Senate campaign, Bill Clinton's agent used proprietary information obtained from Paul to convince Paul's Japanese partner to incorporate Venture Soft USA with him, not invest another $5 million with Paul.

"Underlying this complaint is the damage that was done to my business and to me as a businessman, because I allowed Clinton access to a proprietary relationship that I had with my Japanese partner," Paul told WND.

"Rather than being disgruntled contributor, I am an injured businessman whose entire interest was to employ an ex-president as a rainmaker for my company," Paul told WND. "I had no interest in the politics."

It's the latest incarnation of a series of allegations Paul has maintained following the 2000 election. He said he made huge contributions to Hillary Clinton's campaign after he was told by Clinton's representative that Clinton had agreed to a plan to work with Paul after he left the White House.

Paul told WND that he was assured personally by Clinton on three occasions that the plan to have Clinton work with Paul's company was fine.

The amended document lists as defendants William Jefferson Clinton, Hillary Rodham Clinton, Hillary Rodham Clinton for U.S. Senate Committee, Inc., New York Senate 2000, David Rosen, Gary Smith, Clinton spokesman James Levin, and Aaron Tonken, although an earlier ruling dismissed Hillary Clinton.

The lawsuit seeks damages in excess of the $1.9 million plus punitive damages, which could be $30 million for his lost company, according to the filing prepared by Colette Wilson and Gary G. Kreep, of the USJF.

The Clintons' longtime attorney David Kendall has in the past told WND he would not comment on the case. He stopped commenting to the media last December when the senator's campaign was fined for filing false reports, which had hidden Paul's contributions.

Paul said he was just trying to create a 21st Century Disney-style entertainment company based on the Internet, using the "most successful communicator to young people through superheroes," Spiderman creator Stan Lee.

His plan, he said, was to reach an agreement with Bill Clinton so that following his departure from the White House he would do work as a "rainmaker" with the new company to raise its profile. A rainmaker is a leader who attracts investors, establishes banking relationships and draws partners.

To that goal, he said, he was willing to reach out to the Clintons by donating huge sums to Hillary Clinton's Senate campaign as a "prelude" to the commitment he believes he was given from the Clintons. Paul says he was guided by DNC chairman Ed Rendell on how to approach Clinton and became Hillary Clinton's largest campaign donor on Rendell's advice and Clinton's requests.

Then, however, a Clinton associate, Jim Levin, allegedly used proprietary information about a potential Japanese investor obtained from Paul and instead persuaded that investor to incorporate with Clinton's agent, leaving Paul's company without a needed cash infusion during the dot-com meltdown of the early 2000s, he says.

"They used all the trappings of the White House to sabotage my plans," Paul told WND. He says the White House allowed Oto to have pictures taken in the Oval Office, then delivered those photos to Oto in Japan.

Some related issues were discussed during an earlier complaint brought by Judicial Watch in the U.S. Senate, where officials said the election concerns were without substantive merit. Paul's civil complaint so far has survived challenges to dismiss up through the state Supreme Court and is set for trial next March.

Paul has been critical of the Judicial Watch filing, saying it failed to identify the significant issue of fraud in connection with the loss of a public company, and instead made it appear to be a political dispute.

Paul said the updated complaint, now being handled by USJF, focuses on the financial damage he suffered, and the roles played by Rendell and the Clintons.

The action alleges Paul, whose past includes convictions for cocaine possession and "liberating $8.7 million from Fidel Castro" in a black market coffee transaction, money later used for counterinsurgency activities in Venezuela and Colombia, began working with the then-77-year-old Stan Lee, creator of Spider Man, the Incredible Hulk and other characters, to build an international media company.

Paul noted that the convictions did not prevent him from working on a subsequent projects with U.S. Supreme Court Justice Warren Burger and President Reagan, nor did it prevent him from obtaining the clearances to sit next to Bill Clinton at various fundraisers.

"Plaintiff achieved substantial success, and, after two mergers in 1999, Stan Lee Entertainment, Inc., became Stan Lee Media … a publicly traded company with a market capitalization of approximately $350 million," a copy of the complaint said.

Then Paul was contacted by a former employee, Aaron Tonken, who had begun working for the Democratic National Committee, about establishing a relationship with Clinton through sponsoring a fund-raising event, and Paul "conceived of a plan to expedite his goals for Stan Lee Media and (another company) Mondo English by hiring CLINTON, at Plaintiff's sole expense, to serve as an honorary board member and 'rainmaker' for the two companies when CLINTON left office in January 2001."

Toward that goal, he says he first contributed $30,000, then more, and eventually a total of almost $2 million after being told he had a commitment from Clinton for a year's worth of work in return for $10 million in Stan Lee Media stock, $5 million in cash and $1 million for the Clinton Presidential Library, plus underwriting "The Hollywood Gala Salute to President William Jefferson Clinton."

"On or about July 13, 2000, CLINTON, through LEVIN as his agent, informed Plaintiff that his proposal had been accepted," the lawsuit says.

However, the lawsuit alleges that was a sham to induce Paul to commit more money to Hillary Clinton's campaign, and eventually Levin was introduced by Paul to his Japanese business partner, Tendo Oto, founder of Venture Soft Co., Ltd.

Oto had indicated to Paul a willingness to invest $5 million in Stan Lee Media, but the lawsuit alleges that did not come, and eventually Paul discovered Levin "set up a U.S. subsidiary of Venture Soft called Venture Soft USA, Inc., on Oto's behalf."

The result of the lack of financing eventually forced the Stan Lee Media share price from $6 to $1, and "the company was forced to cease operations on December 19, 2000," Paul said.

Even Chelsea Clinton was used to further the deceit, Paul alleges.

During a brunch at Barbra Streisand's home, Chelsea Clinton "sought out Plaintiff, his wife, their guests, Oto and his translator, and LEVIN to relate her excitement about what Plaintiff as doing for her parents."

And she discussed her father's enthusiasm for working with Stan Lee Media.

However, the result of the machinations, Paul alleges, meant that Stan Lee Media failed, and Clinton did not then need to follow through on his "commitment" to work with the company.

This filing is just the latest in several years' worth of work on the claims. Last January, the FEC issued a $35,000 fine to a joint fund-raising committee that included Clinton's campaign, New York Senate 2000, for failing to report accurately $721,895 in contributions from Paul.

But the Senate Ethics complaint pursued by Judicial Watch did not produce any results for Paul. Judicial Watch president Tom Fitton called the determination a "free pass" for Hillary Clinton.

And a year earlier, Clinton's former top fundraising aide, David Rosen, was acquitted for filing false campaign reports that later were charged by the FEC to treasurer Andrew Grossman, Rosen's boss, who accepted responsibility in a conciliation agreement. Paul said that established his contention that he personally gave the money to Sen. Clinton's campaign, and his contributions intentionally were hidden from the public and the FEC.

Paul also has documented his allegations in a declaration about the situation.

He also noted that Sen. Clinton did not deny the allegations in his civil suit declaration but, instead, only swore she had no recollection of certain conversations.

The USJF has appealed Hillary Clinton's dismissal as a defendant in the case.

As WND has reported, Bill and Hillary Clinton head a list of potential witnesses in the suit that includes Muhammad Ali, Brad Pitt, Barbra Streisand, James Brolin, Cher and Whoopi Goldberg.

[doug from upland]

Ping

[battlegearboat]

Hard Cheese, Paul.

Next time wear a flea collar.

[Always Right]

I can't see how it is legal for campaign contributions to be linked to emplyment of a husband. The court will not enforce illegal contracts.

[doug from upland]

Paul told WND that he was assured personally by Clinton on three occasions that the plan to have Clinton work with Paul's company was fine.

Here is one of those occasions. After Howard Wolfson had publicly vowed never to take any money from Peter, here is Bill meeting with Aaron Tonken and Peter in the backbround in late September. Clinton stepped off AF-1 in Los Angeles, and Peter was the first one to greet him. Clinton assured him that everything was fine with their deal.

Ask youself this question. If Hillary is having her official spokesman deny taking any money from Paul because of his past felony record, if they are essentially condemning this bad guy whom they barely know, how can it possibly be explained that Bill meets him as he steps of AF-1 in late September? You don't just get to show up at the airport and have access to the president.

[DustyMoment]

When you lie down with mutts, you should expect to get flea bitten.

Next time, back a horse with a better pedigree.

[doug from upland]

The president is not allowed to make such a contract while he is president. They had a gentleman's agreement. Peter was induced to spend all of the money because he was told Bill would come to work for the company. Rendell and others made promises to induce Peter to spend the money.

Peter did not spend money because he liked Hillary Clinton. It was a business deal. This is a guy who was a Reagan Republican and a big anti-Castro fighter as a young international attorney in Miami.

But it goes well beyond that. Jim Levin, Bill Clinton's "eyes and ears" to check out the legitimacy of Peter's company, acted as Clinton's agent. Levin gained proprietary information in SLM offices and used that proprietary information to make his deal for himself and Bill with Peter's Japanese partner. Oto had promised an additional $5 million to SLM. The deal with Levin, on Clinton's behalf, was recorded in Illinois within two weeks of the November election. When Oto's money did not go to SLM as promised, SLM's stock failed. Clinton essentially interfered with Paul's partner, the infusion of the necessary cash, and caused the company to go down. That is the heart of what was done here.

[TexasCajun]

I know you are on top of this thing.

What is your impression of Peter Paul?

Is he just another shady character in Slick's cast of shady characters?

Each using the other to their benefit and to line their pockets.

At least P.P. doesn't seem to have done anything illegal that he could get him jail time like so many other of Slick's friends and aquaintanences.

Slick just cost him millions and stole his business.

I've seen documentaries of one snake eating another snake.

[doug from upland]

When you lie down with mutts, you should expect to get flea bitten.

Next time, back a horse with a better pedigree.

---

So, your attitude is tough luck for Paul, and you really don't care that he may be the one roadblock that can keep Hillary from the presidency?

[doug from upland]

Peter Paul and the Reagans at the Reagan Welcome Home Dinner Paul Produced in Beverly Hills on January 4, 1989. Reagan's support of Paul's projects, and the support of Reagan's Kitchen Cabinet in California, reestablished Paul as a mover in the Entertainment Industry

[doug from upland]

President Lech Walesa confers with Paul at a reception Paul produced as President of American Friends of Lech Walesa during Walesa's first official visit to the US as the newly elected President of Poland, 1991.

[doug from upland]

President Jerry Ford worked with Paul in support of his efforts to make California the leading state in the three year Bicentennial of the US Constitution and Bill of Rights

[doug from upland]

Paul with Chief Justice Burger Appointed by Reagan to Chair National Bicentennial Commission

[doug from upland]

Bob Hope Thanks Paul for The Memories After Dedication of Monument in His Honor

[doug from upland]

Paul Discussing American Spirit Foundation Business with President Reagan

[doug from upland]

Peter does have serious legal issues. He did time in the late 1970s for a covert operation that relieved Fidel Castro of $8.7 million. Unfortunately, Carter was the president. Instead of a Medal of Freedom, he got a jail sentence.

When Clinton's actions caused the stock to collapse, Peter was buying small amounts of stock at the end of the day above the bid price (I think that's what it's called) in an effort to keep up the price of the stock and save the company. That was against the law, and he made a deal to plead guilty. He is still facing some possible additional jail time. His stock broker, the expert in such matters, who should have told him what he was doing was a violation of the law, will not do jail time.

[DustyMoment]

Not exactly. My attitude is that Paul, apparently a Hillary supporter, is reaping his reward from Hillary - the way she "rewards" a lot of people who try to help her win the WH. At least he hasn't committed Arkancide yet.

I think Hillary will keep herself from the presidency due to any number of factors ranging from personal, to professional, to her high sleaze factor and her carpet bagging history. She is growing as unpalatable to Dems as she is to conservatives.

If Peter Paul wants to dump his money down a rat hole (Hillary) that's certainly his business, but I don't think being stung by her should be either a surprise or the grounds for special treatment.

[doug from upland]

As many businessman do, Peter put politics aside for business. Peter was trying to build a global company with Stan Lee, the creator of superheroes. Clinton would have been able to raise huge sums of money is Asia and Europe by speaking for the company. The stockholders of his company would have reaped huge rewards. As much as we loathe Clinton, if you have a responsibility to stockholders, you put their economic interests first.

Peter and I have spoken virtually every day for over a year and a half. I flew to North Carolina last year and met him and his family. He readily admits his flaws and owns up to things he has done in his life. The Clintons contributed to ruining his company and doing unimaginable damage to his family. He is an ally in our fight against Hillary.

[doug from upland]

Hillary thanks you for contributing your thoughts on this thread.

[doug from upland]

For those who have not paid attention, Peter was not a Hillary supporter. The only way, however, to get a former president to make money for your stockholders was to support her campaign. That was the price. As a businessman, he paid the price. He spent his own money to do it, not the company's.