Hillary Clinton Campaign Acknowledges Violation

Hillary Clinton's 2000 Senate campaign committee likely violated the law when it underreported $1 million-plus in campaign contributions from Hollywood mogul Peter Paul, according to a four-year investigation by the Federal Election Commission.

The FEC found "there was probable cause to believe New York Senate 2000 and Andrew Grossman, in his official capacity as [the campaign's] treasurer, violated 2 U.S.S Sec 434(b) of the Federal Election Campaign Act of 1971 and 11 C.F.R. Sec 102(c)(8)(i)(A)."

"On December 13, 2005, a conciliation agreement signed by Andrew Grossman was accepted by the Commission," the FEC said.

Under the agreement worked out with the campaign, "New York Senate 2000" will pay a $35,000 fine and amend its public reports to show that Paul's share of production costs for a gala Aug. 13, 2000 Clinton fundraiser were understated by $721,895.

The FEC agreement represents a significant victory for Mr. Paul, who - beginning in June 2001 - has repeatedly alleged that Mrs. Clinton and top officials with her campaign deliberately underreported his contribution to her Senate bid, which was the biggest of its kind in U.S. political history.
Mrs. Clinton's campaign finance director, David Rosen, was acquitted last year on charges that he knowingly filed false reports with the FEC related to Paul's Hollywood event. But this latest agreement suggests that other campaign officials may be responsible for the same kind of violation.

In a message posted Thursday to his blog, peterfpaul.com, the one-time Hillary supporter urged the authorities to follow up on the FEC findings.

"Now that Hillary's treasurer admitted to making the false FEC reports that David Rosen was indicted and tried for, will the Justice Department act?," Mr. Paul wrote. "Will Hillary's role as a co-conspirator, colluder and aider and abettor be reviewed by the Office of Public Integrity and the Senate Ethics Committee, along with her role in misleading the federal investigation that led to Rosen's indictment rather than Grossman's?"

Meanwhile, campaign officials staunchly maintain that Mrs. Clinton was not involved in any illegality.

"This agreement makes clear that there was no violation of federal election law by the Hillary Rodham Clinton for Senate Committee in connection with the August 13, 2000 event," campaign lawyer Marc Elias told the New York Sun.