- The Washington Times - Friday, May 27, 2005

LOS ANGELES (AP) — The former national finance director for Hillary Rodham Clinton’s Senate campaign was acquitted yesterday of lying to the government about a lavish 2000 Hollywood fundraising gala.

David Rosen was charged with two counts of making false statements to the Federal Election Commission about the cost of the star-studded gala, which attracted such celebrities as Cher, Melissa Ethridge, Toni Braxton, Diana Ross, Brad Pitt and Jennifer Aniston.

The jury deliberated about six hours before reaching its verdict.

“It was hard for me to hold back tears. My whole family is crying, and my attorney is crying. It was the happiest moment, next to my marriage, in my life,” Mr. Rosen said.

Mrs. Clinton was not charged, but Republicans closely monitored the trial, hoping fallout from it might damage the New York Democrat’s 2006 re-election bid and scuttle any hopes for a possible presidential campaign in 2008.

Prosecutors said Mr. Rosen, 38, panicked over the mounting costs for the fundraiser and lied to conceal its true cost from both the Clinton campaign and the government. They said Mrs. Clinton was unaware of any wrongdoing.

Prosecutors said he filed a federal campaign finance report to claim “in-kind” contributions of about $400,000, when he knew that actual contributions for the event exceeded $1.1 million.

It is not illegal for campaigns to accept in-kind contributions, such as the use of cars, hotel rooms and sound systems, but election law requires such items be reported so the public knows who is helping a candidate.

Prosecutors say Mr. Rosen was trying to duck federal financing rules so Mrs. Clinton’s campaign would have more money to spend on her 2000 Senate race against Rick Lazio.

“We have said from the beginning that, when all the evidence is in, David would be vindicated,” said David Kendall, lawyer for the former first lady. “That has come to pass, and Senator Clinton is very happy for David and his family.”

The fundraiser took place at a tony, 112-acre estate, and Assistant U.S. Attorney Peter Zeidenberg told jurors it cost $90,000 just to get the celebrities and their entourages there. Mr. Zeidenberg said organizers spent $35,000 more to provide attendees with souvenir director’s chairs from the event and another $50,000 to produce CDs that were included in the gift bags.

Mr. Rosen testified that he mistakenly thought some in-kind contributions, including the Porsche he used while in Los Angeles to organize the event, were simply gifts.

“If I executed poor judgment in that decision, I made a mistake, but I certainly didn’t intend to hide anything,” he testified.

Mr. Rosen also said he was mainly involved in raising money for the event and left the actual organizing to others.

The event was bankrolled by Peter F. Paul, a three-time felon who pleaded guilty in March to separate securities fraud charges.

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