Text 7145, 89 rader
Skriven 2005-01-07 21:55:00 av Jeff Binkley (1:226/600)
Ärende: Hillary
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http://www.wnbc.com/politics/4063107/detail.html

Hillary Clinton's Former Campaign Finance Director Indicted

POSTED: 4:53 pm EST January 7, 2005
UPDATED: 9:03 pm EST January 7, 2005

WASHINGTON -- Sen. Hillary Rodham Clinton's former finance director has 
been indicted on charges of filing fictitious reports that misstated 
contributions for a Hollywood fund-raising gala for the senator, the 
Justice Department said Friday.


The indictment, rare for a political campaign, was unsealed in Los 
Angeles charging David Rosen with four counts of filing false reports 
with the Federal Election Commission. The charges focus on an Aug. 12, 
2000, dinner and concert supported by more than $1.1 million in "in-kind 
contributions" -- goods and services provided for free or below cost. 
The event was estimated to cost more than $1.2 million.

The FBI previously said in court papers that it had evidence the former 
first lady's campaign deliberately understated its fund-raising costs so 
it would have more money to spend on her campaign. 

While the event allegedly cost more than $1.2 million, the indictment 
said, Rosen reported contributions of about $400,000, knowing the figure 
to be false.

The indictment charged that he provided some documents to an FEC 
compliance officer but withheld the true costs of the event and provided 
false documents to substantiate the lower figure.

In one instance, Rosen obtained and delivered a fraudulent invoice 
stating the cost of a concert associated with the gala was $200,000 when 
he know that figure was false, according to the indictment. The actual 
cost of the concert was more than $600,000.

Each of the four counts of making a false statement carries a maximum 
penalty of up to five years in prison and up to $250,000 in fines upon 
conviction.

Rosen's attorney, Paul Mark Sandler, did not return a call asking for 
comment. Mrs. Clinton's lawyer on campaign finance matters, David 
Kendall, said, "The Senate Campaign Committee has fully cooperated with 
the investigation. Mr. Rosen worked hard for the campaign, and we trust 
that when all the facts are in, he will be cleared."

The businessman who hosted the event, Peter Paul, has told federal 
authorities that it cost more than $1 million and that he had been 
surprised when he saw that most of the contributions were not reported.

The money from the fund-raiser went to Mrs. Clinton's successful 
campaign for a Senate seat from New York, the Democrats' national Senate 
campaign organization and a state Democratic Party committee.

The joint fund raising made the rules more complicated because the gala 
raised both "hard money" -- funds given to candidates subject to federal 
limits -- and "soft money" that was unregulated and unlimited under the 
former campaign finance law.

Underreporting the cost of the event allowed the committee to spend less 
of the coveted hard money, contributions that unlike soft money could be 
used to cover Clinton's campaigning costs.

Federal law governing such joint fund-raisers was designed to prevent 
joint committees from circumventing restrictions on the contributions 
given directly to candidates.

Most allegations of campaign finance irregularities are handled 
administratively through the FEC, although the Justice Department has 
investigated such matters in the past.

During former President Clinton's administration, a Justice Department 
campaign finance task force charged more than two dozen individuals and 
two corporations with fund-raising abuses from the 1996 election cycle. 
Many of the charges involved Democratic fund raising.

In addition to his Clinton effort, Rosen has raised money for several 
other high-profile Democratic candidates, including former presidential 
hopeful Wesley Clark. Most recently, he was named to the fund-raising 
team of Donnie Fowler, a candidate for the Democratic National Committee 
chairmanship.

"I'm sorry that that happened to David, but I don't think it's going to 
stop or slow down the campaign for chair," Fowler said in a telephone 
interview Friday.

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