Planner: Costs Of Fund-Raiser Hid By Ex-Clinton Aide

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The New York Sun

LOS ANGELES – One planner of a fund-raising gala for Senator Clinton’s 2000 campaign testified yesterday that Mrs. Clinton’s national finance director ordered that tens of thousands of dollars in event expenses be deleted from budgets sent to Washington for use in preparing campaign finance reports.


The testimony came at the federal trial of the finance chief, David Rosen, who was charged with causing false reports to be filed with the Federal Election Commission. Mr. Rosen, 38, has pleaded not guilty.


“I was instructed to take certain expenses off,” the event planner, Bretta Nock, said from the witness stand.


“Who instructed you to take certain expenses off?” the lead prosecutor, Peter Zeidenberg, asked.


“David Rosen,” Ms. Nock replied.


Among the costs removed from the budget report after the August 12, 2000, event were $40,000 for printing invitations and a “tribute book” distributed to guests, $6,000 for “design elements,” and about $2,000 for “table decor,” according to a government-produced summary shown to the jury yesterday. In some cases, items that originally had dollar figures attached were later designated “in-kind” gifts, with no amount listed.


Asked about Mr. Rosen’s explanation for the changes, Ms. Nock said, “Simply the overall figure needed to project a lower cost, so hence items were adjusted accordingly.”


Ms. Nock said she could not recall the specific items Mr. Rosen told her to delete. She said she did not refuse the request.


“I didn’t question him or the New York Senate 2000 in terms of adjusting the budget. It was to their liking,” Ms. Nock said.


A spokesman for Mrs. Clinton had no comment on yesterday’s developments.


In most of the budget updates, $200,000 was listed as the fee for a company, Black Ink Productions, that was involved in staging the concert portion of the fund-raiser, which included Cher, Michael Bolton, and other performers. The owner of the production firm testified earlier this week that he was paid approximately $600,000.


Ms. Nock said she “initially” thought the $200,000 figure might be correct, but after the event, she concluded that the number “seemed low.”


At one point yesterday, Ms. Nock testified that Mr. Rosen asked her to obtain an invoice to support the $200,000 figure. However, on cross-examination, she acknowledged that she was not sure whether the request came from Mr. Rosen or a campaign staffer in Washington.


The government alleges that the fund-raiser actually cost $1.1 million or more, although only about $400,000 of that was reported to the Federal Election Commission. Ms. Nock testified she spoke by phone with Mr. Rosen soon after FBI agents raided the offices of his Chicago political consulting firm, the Competence Group, in January 2003.


“I recall in that conversation something came up about ‘we’ not knowing about the costs. I responded there was no ‘we.’ This was you. This wasn’t about me,” Ms. Nock said.


The jury also learned during defense questioning of Ms. Nock that the chief organizer of the gala, Aaron Tonken, is in prison after admitting to fraud in connection with other charity events he ran. The defense is arguing that Tonken and the businessman who bankrolled the gala, Peter Paul – also a felon – kept the event’s costs from Mr. Rosen.


Prosecutors said yesterday they may conclude their case as early as today.


A talent booker also in court yesterday, Blossette Kitson, testified that during the weeks before the gala, the escalating costs of the event were discussed frequently at the Encino, Calif., offices where Mr. Rosen, Paul, and Tonken were working.


Ms. Kitson said the performers drove up the expenses by requesting private planes and backstage luxuries.


“It was a major problem with the celebrities. They were demanding quite a lot,” she said.


Ms. Kitson said she tried to negotiate permission to waive some of the standard contract riders. She said some stars include provisions like “their puppy needs Evian water and not tap water.”


A travel agent testified that about $31,000 was spent to charter a Gulfstream G4 jet for Cher, and about $25,000 to charter a smaller jet for Muhammad Ali.


Several exhibits introduced during the trial were made public yesterday on the order of Judge Howard Matz. One is Mr. Rosen’s employment contract with Mrs. Clinton’s campaign. The letter stipulated that Mr. Rosen’s title was to be “national fundraising director” and that he was to be paid $105,000 a year.


The New York Sun

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