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Monday, May 16, 2005

International

International

Funds trial affects Hillary's hopes

Paul Harris

Case provides ammunition to the New York Senator's conservative critics

Senator Hillary Clinton

NEW YORK: It all sounds horribly familiar. Financial skulduggery, calls for a Senate investigation and the whiff of a sex scandal caught on tape. And all of it whirling around the Clinton name.

A court case involving the fundraising activities of Senator Hillary Clinton's former campaign finance chief threatens to put a time-bomb under the former First Lady's presidential ambitions.

Murky world

The case in which David Rosen (40), is denying three charges of making false statements to the Federal Election Commission has opened the lid on an allegedly murky world of Democratic fundraising, FBI wiretapping and salacious gossip about prostitutes for senior figures in the party. Ms. Clinton, prosecutors stress, is not personally involved in the trial, which began last week in Los Angeles district court, but the case is threatening to derail her preparations for a bid for the White House in three years' time. Even if Mr. Rosen is cleared, the case is likely to provide ammunition for her conservative critics. Problems began at a glamorous fundraising event in 2000 when Ms. Hillary Clinton was campaigning for her Senate seat in New York. Billed as a lavish and star-studded farewell by Hollywood to outgoing President Bill Clinton, the party at a Beverly Hills mansion was attended by such star names as Cher, Brad Pitt and Diana Ross.

Lavish event

The event's organiser, entrepreneur Peter Paul, is believed to have spent more than $1.2 million on it. But Mr. Rosen told the commission it cost $400,000, which means that at least $800,000 could have gone illegally into Ms. Hillary's campaign coffers.

This, if it is proved, would be a serious breach of America's strict campaign finance laws. Mr. Rosen faces a maximum jail sentence of 15 years and up to $250,000 in fines if he is found guilty.

Even though there has been no suggestion that Ms. Clinton knew about the alleged crimes, her name has already dominated the proceedings. Potential jurors were questioned about their feelings toward the Senator.

One of her friends, James Levin, told the court the charges were part of a smear campaign. "I thought, and I still think, they were politically motivated," he said. The case has highlighted a growing network of Republicans and other conservatives who are gearing up to attack Ms. Hillary Clinton's nascent 2008 campaign. —

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