Man in Clinton fund-raiser probe pleads guilty to unrelated charges
By FRANK ELTMAN
Associated Press Writer
March 8, 2005, 6:09 PM EST
NEW YORK -- A businessman involved in the investigation of alleged fund-raising violations during Hillary Rodham Clinton's 2000 Senate campaign pleaded guilty Tuesday to unrelated charges, prosecutors said.
Peter F. Paul, 56, of Asheville, N.C., admitted committing securities fraud in an appearance before U.S. District Judge Leonard D. Wexler in Central Islip, on Long Island.
The charge stemmed from Paul's role in manipulating the price of Stan Lee Media common stock, including transactions in which Paul secretly borrowed money using the stock as collateral, and profiting unlawfully from such manipulations.
The scheme led to investor losses of approximately $25 million, U.S. Attorney Roslynn Mauskopf said in a statement.
Paul was a co-founder of Stan Lee Media Inc., an Internet-based production and marketing company located in Encino, Calif.
Lee, who played a key role in the creation of such Marvel Comics characters as Spider-Man, the Incredible Hulk and X-Men, was not implicated in the investigation and is not suspected of any wrongdoing, the prosecutor said.
As part of the plea agreement, Paul faces up to 10 years in prison, a fine of $5 million and restitution, Mauskopf said.
Paul's attorney, Joseph Conway, said, "In Mr. Paul's zeal to build a multinational conglomerate with Stan Lee, he violated the securities laws and he pleaded guilty and took full responsibility for those actions in court."
Three of Paul's co-defendants have previously pleaded guilty, prosecutors said.
In 2000, Paul was the host for a Hollywood fund-raising event for Clinton that is being investigated by the Department of Justice.
Clinton's former finance director, David Rosen, pleaded innocent in January to charges of filing fictitious reports with the Federal Election Commission that misstated contributions for the Hollywood gala.
While the event allegedly cost more than $1.2 million, the indictment said, Rosen reported contributions of about $400,000, knowing the figure to be false.
Clinton's lawyer on campaign finance matters, David Kendall, had no comment on Tuesday. He has said previously, "The Senate Campaign Committee has fully cooperated with the investigation. Mr. Rosen worked hard for the campaign, and we trust that when all the facts are in, he will be cleared."
Paul has told federal authorities that the fund-raiser cost more than $1 million and that he had been surprised when he saw that most of the contributions were not reported.
Conway added that the two cases are "two separate and distinct matters. Mr. Paul entered a plea agreement, not a cooperation agreement."
On the Rosen case, Conway said, "If the government needs him as a witness ... he is prepared to cooperate." |
