Clintons to face fraud trial

Peter Paul and President Clinton (Courtesy Hillcap.org)

While Hillary Clinton battles Barack Obama on the campaign trail, a judge in Los Angeles is quietly preparing to set a trial date in a $17 million fraud suit that aims to expose an alleged culture of widespread corruption by the Clintons and the Democratic Party.

At the conclusion of a hearing tomorrow morning before California Superior Court Judge Aurelio N. Munoz, lawyers for Hollywood mogul Peter F. Paul will begin seeking sworn testimony from all three Clintons – Bill, Hillary and Chelsea – along with top Democratic Party leaders and A-list celebrities, including Barbra Streisand, John Travolta, Brad Pitt and Cher.

Paul's team hopes for a trial in October. The Clintons' longtime lawyer David Kendall, who will attend the hearing, has declined comment on the suit.

The Clintons have tried to dismiss the case, but the California Supreme Court, in 2004, upheld a lower-court decision to deny the motion.

Bill Clinton, according to the complaint, 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 a Hollywood gala and fundraiser.

The Clintons' legal counsel has denied the former president made any deal with Paul. But Paul attorney Colette Wilson told WND there are witnesses who say it was common knowledge at Stan Lee Media that Bill Clinton was preparing to be a rainmaker for the company after he left office.

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 the deal.

Hillary Clinton with Peter and Andrea Paul (Courtesy Hillcap.org)

Paul claims Rendell directed various illegal contributions to the DNC and Hillary Clinton's campaign and failed to report to the Federal Election Commission more than $100,000 given for a Hollywood event for Gore's campaign and the Democratic National Committee in 2000. McAuliffe, Paul says, counseled him in two separate meetings to become a major donor to Hillary Clinton to pave the way to hire her husband. Paul asserts top Clinton adviser Harold Ickes also directed him to give money to the Senate campaign but hid that fact in "perjured testimony" during the trial of campaign finance director David Rosen.

Rosen was acquitted in 2005 for filing false campaign reports that later were charged by the FEC to treasurer Andrew Grossman, who accepted responsibility in a conciliation agreement that fined the campaign 35,000. Paul points out the Rosen trial established his contention that he personally gave more than $1.2 million to Clinton's campaign and that his contributions intentionally were hidden from the public and the Federal Election Commission.

Rosen, accused of concealing Paul's in-kind contribution of more than $1 million, was acquitted, but Paul contends the Clinton staffer was a scapegoat. Paul points out chief Clinton spokesman Howard Wolfson told the Washington Post he was aware of the donation, yet he never was called as a witness in the Rosen trial.

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."

The complaint asserts Clinton has filed four false reports to the FEC of Paul's donations in an attempt to distance herself from him after a Washington Post story days after the August 2000 fundraiser reported his past felony convictions. Clinton then returned a check for $2,000, insisting it was the only money she had taken from Paul. But one month later, she demanded another $100,000, to be hidden in a state committee using untraceable securities.

"Why wouldn't that cause someone to inquire?" Paul asked. "Especially since it was days after she said she wouldn't take any more money from me."

Paul has the support of a new grass-roots political action group that is helping garner the assistance of one of the nation's top lawyers

Republican activist Rod Martin says his group plans to highlight Paul's case as it launches an organization based on the business model of the left-wing MoveOn.org but rooted in the principles and political philosophy of former President Reagan.

Martin's group also is assisting in Paul's complaint to the FEC asserting that unless the agency sets aside the conciliation agreement and rescinds immunity granted the senator, it will "have aided and abetted in the commission" of a felony.

Paul's case is the subject of a video documentary largely comprised of intimate "home movies" of Hillary Clinton and her Hollywood supporters captured by Paul during the period.

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