Sunday, April 18, 2004
Authorities are looking for testimony from witnesses about the political gala.
LOS ANGELES TIMES
The Federal Election Commission is investigating a Hollywood gala that raised more than $1 million for Hillary Rodham Clinton's 2000 Senate campaign, according to people familiar with the probe.
The FEC investigation, launched several weeks ago, comes atop a U.S. Justice Department inquiry that has focused in recent months on the event and former Clinton finance executive David Rosen.
In addition, documents reviewed by the Los Angeles Times indicate that a federal grand jury in Los Angeles has been examining evidence of wrongdoing by a number of people in connection with the activities of Aaron Tonken, the fund-raising impresario behind the event.
The scope of the grand jury inquiry and the identity of its targets remained unclear. The Justice Department is thought to be focusing on whether anyone made false statements about how contributions were collected and disbursed.
Tonken, who in December pleaded guilty to two fraud counts in connection with his high-profile charity galas, has been cooperating with federal authorities while awaiting sentencing, according to people familiar with his case.
Seeking testimony
Since last month, FEC investigators have been seeking testimony from a number of witnesses with knowledge of the August 2000 political gala.
Held on the eve of the Democratic National Convention, in Los Angeles, the event at the estate of radio mogul Ken Roberts was billed as a tribute to outgoing President Clinton. But the gala simultaneously gave a much-needed cash infusion to then-first lady's successful Senate campaign.
Internet entrepreneur Peter Paul -- who paid for the event and is awaiting trial on federal charges of business-related fraud -- unsuccessfully asked the commission nearly three years ago to investigate the Clinton campaign for reportedly underreporting his contribution. At the time, Paul was in a Brazilian jail, awaiting extradition to the United States. He is being held without bail in Long Island, N.Y.
Paul is among those asked recently to cooperate with the election commission probe, according to people with knowledge of the situation.
Event's estimated cost
The event he helped underwrite has been estimated to have cost as much as $2 million, including expenses associated with a roster of star entertainers. They included Cher, Sugar Ray and Diana Ross. Earlier this year, Paul sued the Clintons and others in Los Angeles Superior Court for defrauding him in connection with the fund-raiser.
David Kendall, who represents the Clintons in the suit, said he plans later this month to seek a dismissal of the suit. Kendall declined to discuss the Justice Department probe, and referred questions about the election commission action to another attorney, who did not return calls.
An attorney for ex-finance chief Rosen did not respond to a request to comment. Based in Chicago, Rosen is a longtime political money consultant who recently worked on retired Gen. Wesley K. Clark's failed presidential campaign.
The election commission is an independent agency that monitors compliance with federal campaign laws. Typically, the agency conducts its inquiries in secret. It prefers to reach settlement with candidates or campaign officials found to have violated rather than to proceed with court action.
A commission spokesman declined to comment on the investigation; a spokesman for the U.S. attorney's office in Los Angeles could not be reached to comment.
Last week, at a creditors' meeting in Tonken's Chapter 7 bankruptcy case, armed guards provided unusually tight security. Tonken's attorney, Philip Dapeer, said his client "has been personally threatened."
Refused to answer
During Thursday's meeting, Tonken refused several dozen times to answer questions, invoking his right against self-incrimination.
Still, the day's testimony brought a number of revelations. Tonken, for instance, said he had landed a book contract subsequent to filing bankruptcy earlier this year and was negotiating to sell film rights through his publisher, Thomas Nelson Publishers. The book's working title is "King of Cons: Exposing the Dirty Rotten Scandals of the Washington Elite and Hollywood Celebrities."