Rosen Trial Zeroes In on Gala Costs

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The New York Sun

LOS ANGELES – While the judge in the trial of a former top fund-raiser for Senator Clinton has vowed not to allow the case to dwell on President Clinton and his wife, the Clintons loomed over the proceedings yesterday – literally, on a 6-foot-tall video screen.


The Clintons, who are not expected to testify as witnesses at the trial of Mrs. Clinton’s former finance chief, David Rosen, appeared repeatedly in a video prosecutors played of the August 12, 2000, fund-raising gala at the heart of the case.


Mr. Rosen, 40, stands accused of causing false reports to be filed with the Federal Election Commission that understated the costs of the fund-raising concert by more than half a million dollars. He has pleaded not guilty.


Prosecutors spent much of the day yesterday trying to convince the jury that the preparations for the show were so complex and intense that Mr. Rosen must have realized the costs were far greater than the roughly $400,000 he reported.


Jurors were also treated to glimpses of the celebrities and performers at the event. On the DVD, the Clintons and their daughter, Chelsea, could be seen mingling with Brad Pitt, Jennifer Aniston, Jimmy Smits, and other notables. Patti LaBelle, Paul Anka, Toni Braxton, and Whoopi Goldberg were also seen onstage, toasting the then-first family. At one point, the courtroom was filled with the musical stylings of President Clinton’s half-brother, Roger. The showstopper was Cher’s energetic rendition of “If I Could Turn Back Time,” a prospect that must hold some appeal for Mr. Rosen and others caught in the legal morass.


Prosecutor Daniel Schwager played the video as he questioned one of the top producers of the event, Allan Baumrucker. When staging, scenery, or lighting trusses could be seen, Mr. Schwager stopped the DVD and asked Mr. Baumrucker about how much those elements of the show cost.


Mr. Baumrucker, a production manager for award shows like the Emmys and Grammys, said that in the six days leading up to the fund-raiser for Mrs. Clinton, more than 100 people were involved in transforming the 112-acre private ranch in the Brentwood hills into a 1,000-seat concert venue. He said the budget for his company alone – excluding most of the talent-related expenses – was $575,000, well above the amount reported to federal campaign finance officials for the entire evening.


Among the costs detailed by Mr. Baumrucker: more than $10,000 to rent three truck-size generators, nearly $18,000 for a “video wall,” and about $35,000 to pay the full orchestra that backed up most of the singers.


Mr. Baumrucker said that about 10 days after the event, he received a call from an assistant to one of the main promoters of the fund-raiser, Aaron Tonken. The aide, Bretta Nock, asked for “an invoice in the amount of $200,000 to cover lost receipts,” Mr. Baumrucker said.


Mr. Baumrucker told the court that the request made him “very uncomfortable.” He testified that the $200,000 figure did not correspond to any particular expense incurred by him or his company.


The production manager said he deliberately ignored Ms. Nock’s request for about three weeks, but eventually provided an invoice for $200,000. Prosecutors contend that Mr. Rosen caused the false $200,000 invoice to be sent to Washington, D.C., where it was incorporated in filings with the Federal Election Commission.


On cross-examination, Mr. Baumrucker said he never discussed the expenses with Mr. Rosen.


Before the jury was brought in yesterday morning, the prosecution made a surprise announcement that it did not plan to use one of the most widely discussed pieces of evidence gathered in the case: an audiotape that a New Orleans political consultant, Raymond Reggie, secretly recorded while dining with Mr. Rosen at a Chicago steakhouse in 2002. At the time, Reggie, who is Senator Kennedy’s brother-in-law, was working as an FBI informant. Reggie recently pleaded guilty to two bank fraud charges in Louisiana and is expected to take the witness stand here today.


“The government does not intend to introduce the tape or elicit any testimony from the witness about that conversation,” the lead prosecutor, Peter Zeidenberg, told Judge A. Howard Matz.


Mr. Zeidenberg did not explain why the tape is being omitted from the government’s case. The prosecutor also asked the judge to prohibit the defense from discussing the recording in front of the jury. Mr. Zeidenberg said Mr. Rosen’s statements on the tape are hearsay.


According to excerpts of the tape mentioned in an FBI affidavit, Mr. Rosen acknowledged to Reggie that the concert may have cost $1 million or more. However, in the excerpts, Mr. Rosen did not admit to a deliberate effort to understate the costs.


Earlier yesterday, defense attorneys played another video for the jury: a glitzy 2001 segment from ABC’s “20/20,” which featured the businessman who bankrolled the fund-raising concert, Peter Paul. Jurors learned that a few days after the August 2000 fundraiser, the Washington Post reported that Paul had a record of felony convictions on fraud and drug charges. The story also noted that Paul wanted a pardon for his convictions and that he flew to Brazil as his company, Stan Lee Media, collapsed.


A deputy to Mr. Rosen during the 2000 campaign, Christopher Fickes, testified that Mr. Rosen taught him to keep fund-raising expenses in check, even when they were being borne by outside parties.


Like other prosecution witnesses, Mr. Fickes said the concern was that large in-kind gifts could upset a complicated ratio between “hard” and “soft” donations, reducing the amount sent directly to Mrs. Clinton’s campaign. However, he said he never heard Mr. Rosen suggest that expenses be underreported.


The New York Sun

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