VIA HAND DELIVERY
May 6, 2005
The Honorable George V. Voinovich, Chairman
The Honorable Tim Johnson, Vice Chairman
The Honorable Pat Roberts
The Honorable Daniel Akaka
The Honorable Craig Thomas
The Honorable Mark Pryor
UNITED STATES SENATE SELECT
COMMITTEE ON ETHICS
220 Hart Senate Office Building
Complaint Against Senator Hillary Rodham Clinton of
Judicial Watch, Inc. respectfully submits this sworn complaint against Sen. Hillary Rodham Clinton pursuant to Rule 2 of the Rules of the Select Committee on Ethics, S. Res. 388, 88th Cong., 2d Sess. (1964), as subsequently amended.
It is well-established that the Senate may discipline a
Member for misconduct. Senate Ethics
Manual, 2003 ed., at 13 (citing S. Rep. 2508, 83d Cong., 2d Sess. 20, 2
(1954). Members may be disciplined for
any misconduct that reflects unfavorably on the Senate as a whole, regardless
of whether it relates directly to the Member’s official duties.
[R]eceive complaints and investigate allegations of improper conduct which may reflect upon the Senate, violations of law, violations of the Senate Code of Official Conduct, and violations of rules and regulations of the Senate, relating to the conduct of individuals in the performance of their duties as Members of the Senate, or as officers or employees of the Senate, and to make appropriate findings of fact and conclusions with respect thereto.
Watch, Inc. respectfully submits that Sen. Clinton should be investigated and
disciplined for violating federal campaign finance reporting laws in connection
It cannot be denied that this is a very serious
matter. David F. Rosen, the Director of
Finance for Sen. Clinton’s 2000 election campaign, is under indictment for
causing false reports to be submitted to the Federal Election Commission
(“FEC”) in connection with the
Yet it also is clear from the sworn statements of Mr. Peter F. Paul, the underwriter and executive producer of the August 12, 2000 fundraiser, and the public statements of Mr. Aaron Tonken, who produced the August 12, 2000 event, that none of the monies expended by Mr. Paul were reported to the FEC and the true cost of the event was significantly under reported.1
The facts of the matter are as follows:
Mr. Paul has testified by sworn declaration that, in early July of 2000, he was induced by Sen. Clinton, Mr. Rosen, and Mr. Tonken, among others, to underwrite and serve as executive producer of a major fundraising event for Sen. Clinton’s 2000 campaign. See Affidavit of Peter F. Paul (“PFP Aff.”), attached as Exhibit 2, at para. 2 and First Amended Complaint, attached thereto, at paras. 33-46.2
The event, which became known as the “Hollywood Gala
Salute to President William Jefferson Clinton,” was held at the estate of Mr.
Ken Roberts in
Mr. Paul has documented making payments totaling
$1,011,188.10 for expenses associated with the Hollywood Tribute. See Aff. of PFP at para. 3. He has also documented transferring $207,000
in cash and $336,250 in stock to Mr. Tonken, which he has testified was used to pay for additional expenses
associated with the event.
Mr. Paul also has testified that, in addition to paying
the expenses associated with the
In total, Mr. Paul
has testified that he believes he paid in excess of $1.9 million to produce and
Mr. Paul’s testimony and other information demonstrate that, at all relevant times, Sen. Clinton and her campaign knew and understood that Mr. Paul was spending well over $1 million, not including substantial amounts of Mr. Paul’s own time and resources, on the Hollywood Tribute:
• Mr. Paul
has testified that, during the course of negotiations with
• Mr. Paul has testified that Sen. Clinton and her campaign knew he was spending well over $1 million on the August 12, 2001 fundraiser, and, in the weeks leading up to the event, Sen. Clinton and President Clinton made at least three telephone calls to Mr. Paul to thank him for his generous financial support and to encourage him to continue. See PFP Aff. at para 2 and First Amended Complaint at para. 66.
• Mr. Paul has testified that, at a
brunch at the home of Barbara Streisand and James Brolin on the day after the
• Mr. Paul has testified that, on the
• Mr. Tonken has stated that, shortly before the November 2000 election, he personally told Sen. Clinton about the monies spent on her behalf for various campaign events:
I’d spent odd moments along with [Sen. Clinton] before, primarily in the evening at the White House. But this was my first real shot to talk to her with no one else around, and what I wanted was to let her know how much I admired her, how much I was behind her, and most important, what I had already done for her. It was, quite by accident, the moment of truth.
I didn’t know how you earned someone’s trust and friendship except by giving them money and gifts and doing extravagant favors for them. I liked Hillary Clinton so much and wanted so badly for her to be my friend. So I did the only thing I understood: I told her about virtually every penny I’d ever spent on her behalf. I let her know what I was doing and had done for each event of hers. I spoke about the money and what a pleasure and honor it was to spend it on her candidacy for the U.S. Senate. See Exhibit 3 at 365 (emphasis added).
Sen. Clinton was elected to the U.S. Senate on November 7, 2000. Mr. Paul has testified that, after the election, he repeatedly attempted to contact Mr. Rosen to review the expenses he incurred in underwriting and serving as the executive producer of August 12, 2000 fundraiser, but Mr. Rosen would never meet with him. See PFP Aff. at para. 2 and First Amended Complaint at paras. 98 and 106. Mr. Paul has also testified that, in late February 2001, he reviewed Sen. Clinton’s campaign filings on the FEC’s website and discovered that none of his expenses had been reported. See PFP Aff. at para. 2 and First Amended Complaint at para. 106.
The only report of any possible involvement by Mr. Paul in the August 12, 2000 event is a January 31, 2001 report of a $366,564.69 payment received by New York Senate 2000 from Stan Lee Media, Inc., a company founded by Mr. Paul and Spider-Man creator Stan Lee. This report is clearly false, as Mr. Paul, not Stan Lee Media, Inc., underwrote the event. See PFP Aff. at para. 12 and Exhibit UU.
In addition, an affidavit of FBI Special Agent David C. Smith, who interviewed Stan Lee Media, Inc.’s accountant, Junko Kobayashi, in August 2001, confirms that Stan Lee Media, Inc. did not pay any of the expenses associated with the Hollywood Tribute, and SA Smith has concluded that the true cost of the August 12, 2000 was deliberately understated. See Affidavit of David C. Smith, attached as Exhibit 5, at paras.8 and 9.
In June 2001, Mr. Paul filed suit against Sen. Clinton, her campaign, New York Senate 2000 and others, challenging their failure to report his expenditures for the August 12, 2000 fundraiser, among other legal claims. Sen. Clinton, her campaign, and New York Senate 2000 were served with copies of Mr. Paul’s complaint in early July 2001. See Summonses and Complaint in Paul v. Clinton, et al., Case No. BC252654 (Los Angeles Co. Sup. Ct.), attached as Exhibit 6. In July 2001, Mr. Paul also wrote to Sen. Clinton in July 2001 and challenged her failure to report his expenditure for the August 12, 2000 fundraiser to the FEC. See July 16, 2001 Letter from Peter F. Paul to Hillary Rodham Clinton, attached as Exhibit 7.
Even after Mr. Paul filed suit against Sen. Clinton, her campaign, and New York Senate 2000, and even after Mr. Paul wrote to Sen. Clinton in July 2001 and challenged her failure to report his expenditures for the August 12, 2000 fundraiser to the FEC, neither Sen. Clinton, her campaign, nor New York Senate 2000 took any remedial action. To the contrary, Sen. Clinton, her campaign, and New York Senate 2000 continued to hide Mr. Paul’s involvement in the fundraiser and to underreport the true cost of the event. On July 30, 2001, approximately two weeks after Sen. Clinton, her campaign, and New York Senate 2000 were served with Mr. Paul’s complaint and approximately two weeks after Mr. Paul wrote to Sen. Clinton about the failure to report his expenditures to the FEC, New York Senate 2000 amended its October 2000 Quarterly Report and responded to a request from the FEC for more information about the event (referred to as Event 39 in New York Senate 2000’s FEC reports), but made no effort to correct the glaring omission of any of Mr. Paul’s expenditures on the event. See July 30, 2001 Letter from Andrew Grossman, Treasurer of New York Senate 2000 to Colleen Manning of the FEC, attached as Exhibit 8.
Sen. Clinton, her campaign, and New York Senate 2000 have failed to comply with federal campaign finance laws and requirements, and Sen. Clinton has engaged in conduct that reflects unfavorably on the Senate as a whole. The Senate has the independent authority and its own interest, if not an obligation, to investigate and punish Members’ misconduct. The interests the Senate seeks to vindicate through its inquiry and investigation processes clearly are separate from the interest of federal prosecutors. This is especially the case here because the Secretary of the Senate serves as the custodian of Senate candidates’ campaign finance reports and the submission of false campaign finance reports thus works a fraud upon the Senate. Accordingly, Judicial Watch, Inc. respectfully requests that the U.S. Senate Select Committee on Ethics conduct a thorough investigation into the matters set forth herein and take all appropriate disciplinary action against Sen. Clinton.
JUDICIAL WATCH, INC.
DISTRICT OF COLUMBIA )
CITY OF WASHINGTON )
Subscribed and sworn before me this _____ day of May, 2005 by Thomas Fitton.
Christopher J. Farrell
cc: Senator Hillary Rodham Clinton
Robert L. Walker, Esq., Chief Counsel and Staff Director
1 In March 2005, Mr. Paul pled guilty
to one count of stock manipulation after being indicted on various federal
2 Mr. Paul has been engaged in
litigation with Sen. Clinton and others regarding