Fraud Lawsuit Targets Hillary

August 22, 2005

As Hillary Clinton positions herself for a presidential run, a former fund-raiser is moving ahead with a lawsuit claiming the New York senator orchestrated the largest campaign-finance fraud ever by an American political campaign.

In an interview with WorldNetDaily, Los Angeles millionaire lawyer and businessman Peter Franklin Paul asserted Clinton failed to declare to the Federal Election Commission more than $2 million in contributions â€“ a massive omission he believes prevented her 2000 senatorial campaign from going bankrupt in the crucial final weeks.

Paul has filed a civil suit charging Sen. Clinton and her husband, former President Clinton, with fraud, coercion and conspiracy. California courts so far have denied the Clintons’ motions to dismiss, and Paul expects the case to proceed at the beginning of the year, just as Hillary Clinton prepares to defend her Senate seat.

“This public servant, who is sworn to uphold the Constitution, is the biggest violator of the fundamental principles and statutes relating to fair elections and honest government,” Paul told WND. “She needs to be dealt with in a way that will show this country and elected officials in Washington that everybody is accountable to the rule of law.”

Paul, who co-founded the Stan Lee Media company with the Marvel Comics creator, said several of his key allegations were corroborated during the recent trial of David Rosen, the former national finance director of Sen. Clinton’s 2000 Senate campaign.

Rosen was acquitted of making false statements to the federal government, but the trial established that Paul contributed more than $1.2 million of his personal funds to Clinton’s campaign in an attempt to persuade President Clinton to become a spokesman for his businesses when he left office.

“No one denied major fraud had been committed; they just didn’t think Rosen could be culpable alone,” Paul said.

Paul points to evidence in the trial showing the FEC statements were false, and he believes Hillary Clinton, herself, ultimately was responsible.

The civil suit, he says, is the only way to compel testimony from Sen. Clinton.

WND spoke with a secretary for Sen. Clinton’s attorney, David Kendall, but Kendall did not reply to a request for comment on Paul’s allegations.

Paul, supported by the public-interest law firm, U.S. Justice Foundation, or USJF, also alleges Bill Clinton reneged on a $17 million deal to work for his Internet companies.

USJF director Gary Kreep said his group is gearing up an effort to continue supporting the ongoing civil litigation that began in 2003 when Paul was represented by Judicial Watch.

The costs are enormous, Paul says, characterizing the case as one citizen going up against the biggest and most powerful law firms in Washington in a multi-million-dollar undertaking.

After examining Paul’s case, Kreep said he was convinced the effort is worthwhile.

“It’s very clear there’s a fund-raising scam here,” he said.

Referring to Paul’s $1.2 million contribution, Kreep told WND, “The law is clear. They must report it, and if they don’t report it, they must return it. The Clintons think they are above the law.”

USJF has set up a website on Paul’s case, The Hillary Clinton Accountability Project. Paul also is producing a documentary using five hours of home videos that show him with the Clintons and is preparing a book co-written by Insight magazine editor Paul Rodriguez, who wrote several investigative stories on the finance scandal.

Gala event

The civil suit’s charges arise from the largest fund-raising event during Sen. Clinton’s campaign â€“ an Aug. 12, 2000, Hollywood Gala Salute to President Clinton, which featured performances by Cher, Diana Ross, Toni Braxton, Patti LaBelle, Melissa Etheridge, Sugar Ray and Michael Bolton.

Paul says the event cost close to $2 million. The government acknowledges it cost more than $1.2 million to host and raised $1 million in “hard money” contributions.

In addition, he claims, the fair-market value of the entertainment he provided amounted to another $1 million in contributions.

But the campaign reported $366,000. If the full amount had been reported, the campaign, according to the law, would have been forced to turn over $800,000 in badly needed hard money during the final weeks of the campaign, Paul says.

He charges Hillary Clinton not only knew of the actions taken by her finance director, she directed those actions and others in violation of federal campaign statutes and regulations.

“There are two incontrovertible facts,” Paul said. “She has to amend the fraudulent FEC returns, and she has to refund illegal contributions that resulted because of those false returns. And no one is holding her accountable. Not the Justice Department, not the Senate Ethics Committee, not the FEC, not the IRS, nobody.”

Paul says that by 2001, then-Attorney General John Ashcroft and then-head of the Criminal Division Michael Chertoff were aware of Hillary Clinton’s role in “inducing me to become her largest contributor and hiding that through deceptive statements to the Washington Post, FEC, IRS, the Senate and through false reports.”

A spokesman for Sen. Clinton told the Washington Post in stories published Aug. 15 and 17, 2001, that Paul had nothing to do with the Hollywood fund-raiser and that she hardly knew him. Clinton also has noted that she returned a contribution from Paul of $2,000.

But Paul points out that immediately after the Washington Post articles were published, Sen. Clinton, President Clinton and their daughter Chelsea Clinton wrote him personal notes of thanks for his fund-raising work and then two days later asked him for another $100,000.

Also, Sen. Clinton’s spokesman, Howard Wolfson, is on record saying the event cost more than $1 million, Paul argues, even though the initial report was $366,000.
Source: WND

Posted by HillaryTruth · Filed Under Scandals

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Against Hillary Clinton Where the facts are - Hillary Clinton News

Fraud Lawsuit Targets Hillary

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