Sen. Hillary Clinton’s 2000 Senate campaign is the subject of an ongoing investigation into possible fund-raising violations.

According to Fox News, Clinton’s chief fund-raiser, David Rosen, is the target of a criminal probe and currently is before a grand jury.

The FBI says Rosen has been named by indicted businessman Peter Paul, who alleges Clinton and her husband, former President Bill Clinton, defrauded him in connection with a Hollywood fund-raiser, most of which he says he financially underwrote.

Sen. Hillary Clinton, D-N.Y.

The gala took place in August 2000 on the eve of the Democratic National Convention in Los Angeles. Billed as a tribute to outgoing President Clinton, the event also brought in much-needed cash for Hillary’s campaign. Prosecutors say Paul was looking for a pardon from President Clinton at the time.

Lawyers for the senator and her aide say Clinton and Rosen did nothing wrong.

“New York Senate 2000 properly reported all donations in 2000,” Clinton attorney David Kendell said, according to Fox.

“From my review of all the facts, I am convinced that Mr. Rosen has done nothing improper. To the contrary, he has done everything right,” Paul Mark Sandler, Rosen’s attorney, is quoted as saying.

A 2002 FBI affidavit unsealed this summer says the Clinton campaign understated the amount it spent on the Hollywood event to make cash available for “federal campaign activities.”

“The event’s costs exceeded $1 million, but the required forms filed by New York Senate 2000 … months after the event incorrectly disclosed that the cost of the event was only $523,000,” the affidavit reads. “It appears that the true cost of the event was deliberately understated in order to increase the amount of funds available to New York Senate 2000 for federal campaign activities.”

Fox reports Paul said in an interview recorded by the FBI in 2001 that Rosen worked in Paul’s office for one month putting together the Hollywood party. According to Paul, Rosen watched him write checks totaling about $1.5 million to pay for the gala.

As WorldNetDaily reported, last spring the Federal Elections Commission was conducting an investigation into the fund-raiser, and, according to the Los Angeles Times, a federal grand jury in Los Angeles had been examining evidence of wrongdoing by a number of people in connection with the activities of Aaron Tonken, the fund-raising guru who staged the Hollywood event.

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