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Hillary receives demand to admit campaign fraud

Posted By -NO AUTHOR- On 10/19/2006 @ 1:00 am In Front Page | Comments Disabled


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Peter Paul and Sen. Hillary Clinton (Courtesy Hillcap.org)

Business mogul Peter Franklin Paul, who claims he was Hillary Clinton’s largest contributor to her 2000 campaign, had a demand-letter hand-delivered to the New York Democrat’s Senate chambers yesterday, insisting she admit to voters acceptance of an illegal contribution of more than $1 million and the falsifying of statements to the Federal Election Commission.

Paul says he contributed to the senator’s campaign in exchange for former President Clinton’s personal promotion of a media company after leaving office. The businessman claims he was directed by the Clintons and Democratic operatives to foot the bill for a lavish Hollywood gala and fund-raiser prior to the 2000 election that eventually cost about $2 million.

But a warm, growing friendship with the Clintons suddenly went cold, Paul says, when just after the Aug. 12, 2000, event a Washington Post article mentioned Paul’s felony convictions in the 1970s. In stories by the paper Aug. 15 and 17, Sen. Clinton distanced herself from Paul, claiming he made no contribution to the gala. The senator contended she returned Paul’s only contribution – a $2,000 check – and vowed not to accept any money from him.

“The real objective of the letter,” said Paul, “is to finally get her to admit to voters that she deceived them in 2000 and she continues to deceive them.”

Paul also has delivered a letter to his former business partner, Spider Man creator Stan Lee, demanding he notify Sen. Clinton that she must correct a statement filed with the Federal Election Committee that falsely attributes a $225,000 donation to Lee instead of Paul.

In January, responding to a complaint by Paul, 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 accurately report $721,895 in contributions from Paul.

In May 2005, Clinton’s former top fund-raising aide, David Rosen, was acquitted for filing false campaign reports that later were charged by the FEC to treasurer Andrew Grossman, who accepted responsibility in a conciliation agreement. Paul points out the trial established his contention that he personally gave more than $1.2 million to Sen. Clinton’s campaign, and his contributions intentionally were hidden from the public and the FEC.

Paul wants Sen. Clinton to refund the contribution, claiming it was illegal under FEC regulations. The senator’s direction of those funds, Paul asserts, violated section 441 of the FEC code, which says,
“Expenditures made by any person in cooperation, consultation or concert with, or at the request or suggestion of a candidate or their agents shall be considered to be a contribution to such candidate,” and, therefore, subject to limits.

Paul argues that while joint campaign committees, such as New York Senate 2000, have helped candidates get around the $2,000 limit on contributions directly to their campaigns, the FEC regulation considers any donation specifically requested by a candidate to be the same as a direct contribution.

FEC spokeswoman Michelle Ryan told WND the agency could not comment on the case.

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Page from program for Hollywood gala

Paul had the delivery of the letter to Sen. Clinton videotaped for inclusion in a documentary he is putting together on his complaint against the Clintons.

Meanwhile, as WND has reported, Paul is proceeding with a civil fraud suit claiming Bill Clinton destroyed his entertainment company, Stan Lee Media, to get out of a $17 million deal in which the former president promised to promote the firm in exchange for Paul’s massive contributions to Sen. Clinton’s 2000 campaign.

Los Angeles Superior Court Judge Aurelio Munoz ruled last month the discovery process – which likely would require the former president and his wife Sen. Hillary Clinton to testify under oath – cannot proceed until a related appeal is resolved. Regardless of the outcome of the appeal, Sen. Clinton will be deposed as a material witness in preparation for a trial scheduled to begin March 27, 2007.

A copy of Paul’s demand letter to Clinton also was delivered to the office of Sen. George Voinovich, R-Ohio. Voinovich is chairman of the Senate Ethics Committee, which rejected a complaint against Sen. Clinton filed by the D.C. watchdog Judicial Watch earlier this year.

Paul previously was represented by Judicial Watch, but his suit is being handled by Southern California-based U.S. Justice Foundation, which has established a website in support of the case.





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