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Friday, May 13, 2005 6:27 p.m. EDT

Clinton Crony to Plead Guilty

A close personal friend of Bill Clinton is expected to plead guilty to charges that he defrauded the Chicago public school system, according to Crain's Chicago Business, which reported the development on its Web site Friday.

Jim Levin, who once owned the Chicago strip club Thee Dollhouse, acknowledged Thursday during testimony delivered at the trial of Hillary Clinton's finance director David Rosen that he had struck a deal with prosecutors within the last two weeks.

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  Levin, however, did not offer details.

But according to Crain's, Chicago school officials have alleged that companies controlled by Levin over-billed schools for snow plowing services.

The allegations include charges that the Clinton friend, along with four minority subcontractors, accepted money for work they did not perform.

In 2000, then-President Clinton identified Mr. Levin as his personal friend, explaining at a New Jersey fund-raiser: "He wasn't particularly political before I became president [but] we got to be very close."

After running a Chicago strip club in the 1990s, Levin became an executive for Tru-Link Fence Company. Like Rosen, he helped raise funds for Mrs. Clinton's 2000 Senate campaign.

U.S. Attorney Patrick Fitzgerald declined to confirm the Clinton crony's plea, with a spokesman saying only, "There’s nothing that’s a matter of public record.”

But Levin himself confirmed that he had some sort of agreement with the feds, telling a lawyer for Rosen who questioned his veracity on Thursday, "If I do not tell the truth, there is no deal. I'm here to tell the truth."

The Chicago businessman spent at least two nights at the White House during the Clintons' last year in office, after pledging to donate $1 million to Clinton's presidential library.

As part of a plea deal with federal prosecutors, Levin has turned state's evidence against Rosen. The one-time strip bar proprietor testified Thursday that Rosen had confided to him that he intended to cover up the costs of an August 2000 gala fund-raiser for Mrs. Clinton.

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