Ex-Aide to Hillary Clinton on Trial

Sen. Hillary Rodham Clinton had nothing to do with a scheme to conceal hundreds of thousands of dollars in political contributions that were used to put on a star-studded fundraiser in Los Angeles for her 2000 Senate campaign, a federal prosecutor said Wednesday.

If anything, said Justice Department lawyer Peter Zeidenberg, the New York Democrat was a victim of her campaign finance director’s reckless ways.

“You will hear no evidence that Hillary Clinton was involved in any way, shape or form,” Zeidenberg said in opening remarks in Los Angeles to a U.S. District Court jury selected to hear a criminal case against her former finance director, David Rosen.

“Whatever your feelings about Hillary Clinton -- good, bad or indifferent -- they should have nothing to do with how you decide this case,” he added.

Rosen, 40, a Chicago political consultant, is charged with three counts of making false statements to the Federal Election Commission about the underwriting of an Aug. 12, 2000, fundraiser in Brentwood that coincided with the Democratic National Convention in Los Angeles. Along with Hillary and former President Bill Clinton, the guest list included Cher, Brad Pitt, Jennifer Aniston and Diana Ross.

Rosen’s defense lawyer is scheduled to make an opening statement this morning. In court documents, the defense has contended that Rosen was duped by two con men who offered to bankroll the event.

Zeidenberg, a prosecutor with the Justice Department’s public integrity section, argued that it was Rosen who deliberately caused the Clinton campaign to file reports showing that in-kind contributions toward the event totaled $400,000, although he knew they exceeded $1.1 million.

The funds came from Peter Paul, described by the government lawyer as a “wealthy and eager” West Coast contributor. At the time, Paul was associated with “Spider-Man” creator Stan Lee in developing an Internet-related business.

Paul has said he gave money for the event in hopes of convincing the former president to help promote the Internet venture. Paul also had a criminal past, it was later disclosed, and has since pleaded guilty to bilking investors in that company.

With just weeks to spare before the convention, the prosecutor said, Rosen moved into Paul’s Encino offices and oversaw planning for the fundraiser.

“He was involved in every key decision from the design of the menus to who sat next to whom,” Zeidenberg said.

But the costs quickly spiraled out of control. Many celebrities invited to attend demanded to be flown in private jets, resulting in transportation costs exceeding $90,000, Zeidenberg said. More than $50,000 was spent on building a stage, $90,000 went for invitations, $50,000 for CDs given away as party favors and $35,000 was earmarked for monogrammed director’s chairs that guests took home.

Rosen, himself, lived well, the prosecutor added, chalking up more than $13,000 in bills while staying at posh Los Angeles hotels.

As the costs mounted, Zeidenberg said, Rosen panicked and feared he would be fired, especially since his last fund-raising effort was a flop. His solution, according to the prosecutor, was to understate the underwriting costs.

Zeidenberg said it was important for Rosen to do so because a provision in the federal election law states that the more money a campaign receives in in-kind contributions, the less so-called hard money it can spend directly to defeat an opponent.

He said Rosen told a confidante that if challenged, he would blame Paul and Paul’s protege, Aaron Tonken, who also took part in arranging the event. Tonken, a former Hollywood fundraiser, pleaded guilty in December 2003 to two counts of fraud in connection with other charity galas.

After the fundraiser, Paul filed a lawsuit against the Clintons in Los Angeles County Superior Court, accusing them of pulling their support from his Internet enterprise after they learned of his criminal past. Paul’s lawsuit was prepared by an attorney for Judicial Watch, a conservative watchdog group that has harshly criticized the Clintons for years.

Tom Fitton, president of Judicial Watch, attended the Rosen trial Wednesday and said he does not believe the federal prosecutor’s argument that Hillary Clinton was unaware of the underreporting of contributions.

“That’s not correct. We say she did know,” Fitton said. “The prosecutors just don’t want to get into a fight with the Hillary Rodham Clinton fans. It’s a very political decision.”

Times staff writer Eric Malnic contributed to this report.