Wednesday, October 06, 2004

Feds Squeeze Hillary's ex-Moneyman

From New York Daily News -

WASHINGTON - The Justice Department wants to flip a former fund-raiser for Hillary Clinton to rat out her 2000 Senate campaign for allegedly violating election law, it was reported yesterday.
FBI documents allege that dot-com entrepreneur Peter Paul - an ex-partner of "Spider-Man" creator Stan Lee - illegally pumped $366,000 of his own cash into a Hollywood bash for Clinton in 2000, but falsely claimed it was company money.

Federal prosecutors hope Paul, a three-time felon facing stock fraud charges in New York, will squawk under oath about his claim that Clinton's campaign reported the party cost only $523,000, when the true bill was double that. Understating the cost would have left the campaign more cash to spend on the election, FBI papers obtained by The Associated Press said.

Clinton's lawyer David Kendall said the campaign "properly reported all donations."

A prosecutor alleges Paul paid for the event in a failed bid to bribe former President Bill Clinton to pardon him for his felony convictions. Paul is "desperate" to get a plea deal, said a Clinton source.


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