Peter Paul says this photo shows him, and his wife, Andrea, celebrating his business deal with President Clinton (Courtesy Hillcap.org)

A judge in Los Angeles yesterday allowed Hollywood mogul Peter F. Paul to begin taking sworn testimony in his $17 million fraud suit against former President Bill Clinton, but a technicality delayed establishment of a trial date.

California Superior Court Judge Aurelio N. Munoz ruled Paul's legal team can begin seeking depositions from a host of big names – including Bill, Hillary and Chelsea Clinton – that allegedly were witnesses to an effort by the Clintons and top Democratic leaders to extract millions of dollars from Paul in illegal donations and then cover it up.

Munoz is expected to set the trial date at an April 25 hearing. He said yesterday in court he could not set the date, because defendant Jim Levin, an aide to President Clinton, must be served notice again. Levin did not respond to the original complaint, and Paul's legal counsel at the time – the Washington watchdog Judicial Watch – did not file a notice of default to verify that fact before filing an amended complaint.

The complaint says Bill Clinton promised to promote Paul's Internet entertainment company, Stan Lee Media, in exchange for stock, cash options and massive contributions to his wife's 2000 Senate campaign. Paul contends he was directed by the Clintons and Democratic Party leaders to produce, pay for and then join them in lying about footing the bill for an August 2000 Hollywood gala and fundraiser.

Paul attorney Colette Wilson told WND she has 30 days to service notice to Levin, and he will have 30 days to respond.

 

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Levin is a key figure in the case, Wilson said, because he helped conceive the Hollywood event then contacted Paul to underwrite the costs. Paul claims Levin later was directed by President Clinton to sabotage Stan Lee Media by convincing Paul's Japanese partner – in violation of a confidentiality agreement – to incorporate a new company instead of investing another $5 million with Paul. The loss of that badly needed capital ultimately caused Stan Lee Media to fold, Paul maintains.

Wilson said she had a brief discussion yesterday with Hillary Clinton's lawyer, David Kendall, outside the courtroom and came away with the impression Kendall was not going to make it easy for Paul's team to depose the senator.

Paul said he is working on securing one of the country's top lawyers to lead the discovery process.

Kendall, who was traveling back to Washington yesterday, has not replied to a request for comment. Los Angeles-based Clinton co-counsel Jan Norman also did not reply.

Sen. Clinton was dismissed from the case as a defendant, but Munoz already has made it clear he won't accept any attempts to block Sen. Clinton from serving as a material witness.

In court April 7, 2006, a Paul attorney told Munoz he "anticipated opposition to taking the deposition of Senator Clinton. I assume we'll be back to court on motions of that."

The judge replied: "Well, any opposition is probably going to be dead on arrival, if that will – if you understand what I'm saying, Mr. Kendall."

Paul claims former Vice President Al Gore, former Democratic Party chairman Ed Rendell and Clinton presidential campaign chairman Terry McAuliffe also are among the people who can confirm Paul engaged in a deal with the president.

Paul contends his case will expose "the institutional culture of corruption embraced by the Clinton leadership of the Democratic Party," which seeks to attain "unaccountable power for the Clintons at the expense of the rule of law and respect for the constitutional processes of government."

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Previous stories:

Clintons' next: Trial for fraud

'Conservative MoveOn.org' targets Hillary case

Hillary's alleged abuse of 1st Amendment appealed

Hollywood helps 'uncensored' anti-Hillary film

Court upholds Hillary's dismissal from fraud case

Judge confronted with Hillary 'smoking-gun' video

Group to 'Truth Boat' Hillary

Court set to review Hillary 'smoking gun' video

Hillary calls claim of felony 'fantasy'

Full Hillary 'smoking gun' video released

'Smoking gun' Hillary tape filed in court

'Smoking gun' tape of Hillary previewed

'Smoking gun' tape indicts Hillary

Court brief alleges crime by Hillary

Hillary receives demand to admit campaign fraud

Clinton fraud case delayed

Clinton lawyer Kendall accused of filing false statement

Lawsuit: Clinton scheme cost donor millions

New Senate complaint prepared against Hillary

Hillary's dismissal in fraud suit appealed

Clintons top all-star cast of fraud-case witnesses

Trial set in civil suit against Bill Clinton

Top donor seeks to expose 'Hillary's Chappaquiddick'

FEC fines Hillary fund-raising group

Fraud lawsuit targets Hillary

Did Bill Clinton know of gala's financial fraud?

Hillary's ex-staffer pleads not guilty

How Hillary's money man was nailed for L.A. gala

Hillary's finance chief indicted for L.A. gala

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