Peter Paul and Sen. Hillary Clinton (photo:

A committee that helped fund Sen. Hillary Clinton’s 2000 Senate campaign has been fined for filing three false reports to the Federal Elections Commission regarding a Hollywood gala that feted her husband, former President Bill Clinton.

In a “Conciliation Agreement” with the FEC, New York 2000 and its treasurer Andrew Grossman agreed to pay a civil fine of $35,000 and amend false reports to reflect failure to report a $721,000 donation by Los Angeles millionaire lawyer and businessman Peter Franklin Paul.

As WorldNetDaily reported, Paul has filed a civil suit against the Clintons in which he claims the New York senator orchestrated the largest campaign-finance fraud ever by an American political campaign.

California courts have denied the Clintons’ motions to dismiss, and the case is about to enter the discovery phase.

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

Paul argues Sen. Clinton knew about the false reports but refused to correct the record, allowing Grossman to file a third false report in response to an inquiry by the FEC.

Last year, Sen. Clinton’s former finance director, David Rosen, was acquitted of criminal charges related to the reports, 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 Paul’s businesses after leaving office.

Paul says he was notified by the FEC on Dec. 29 that it had concluded its four-and-a-half-year investigation into his complaint that Sen. Clinton had filed false reports and tried to hide his identity as her largest contributor.

The FEC found there was “probable cause” to believe New York Senate 2000 and Andrew Grossman, in his official capacity as treasurer, violated the federal election code.

New York Senate 2000 was a joint committee established by Sen. Clinton’s campaign, the Democratic Senatorial Campaign Committee and the New York Democratic Party to fund events for which donations in excess of the $2,000-per-person limit could be made.

Marc Elias, attorney for the joint committee, said in a statement the agreement “makes clear that there was no violation of federal election law by the Hillary Rodham Clinton for Senate Committee in connection with the 2000 Hollywood fund-raiser.

But Paul insists Sen. Clinton is criminally liable based on Title 18 of the U.S. code, for aiding and abetting, conspiring, colluding with Grossman’s filing of materially false statements to the FEC and the IRS and then obstructing the federal investigation that led to the indictment and prosecution of Rosen.

He expects the discovery phase of his civil suit to reveal Sen. Clinton’s guilt.

“The testimony under oath by the multitude of witnesses to Hillary’s misconduct will challenge Hillary and Bill to tell the truth in their own depositions or face the prospect of new perjury charges even more serious than those that emanated from Paula Jones’ deposition of Bill,” Paul said in a post on his weblog.

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

The civil suit’s charges arise from the largest fund-raising event during Sen. Clinton’s campaign – 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 Sen. 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.

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