"He wasn't particularly political before I became president," Mr. Clinton said in 2000, speaking of Levin to a New Jersey fund-raiser. "[But] we got to be very close," he added.

The former topless club owner agreed to cooperate in Rosen's prosecution only a few weeks ago as part of his own plea bargain to end a bribery/conspiracy case against him, according to the New York Post.

On Thursday, Levin offered damaging testimony that Rosen knew that the costs of an August 2000 gala fund-raiser for Mrs. Clinton were spiraling out of control - and had already decided to lie about them.

"The cost of this event will never be the cost of this event," Levin quoted Rosen as telling him.

Levin's account contradicts claims from the former first couple, who have said through their scandal lawyer, David Kendall, that Rosen is innocent.

According to Hollywood mogul Peter Paul, who bankrolled the August 2000 fund-raiser, and Aaron Tonken, who rounded up the celebrities for the tribute to the first couple, it was Levin who persuaded Mr. Clinton that the gala was a good idea.

Paul has also alleged that the former strip club owner supplied Mr. Clinton with "female companionship" inside the White House.

In his book "King of Cons," Tonken says it was top Hillary aide Kelly Craighead who actually introduced him to Levin.

During a meeting in Chicago in July 2000, Tonken said, "Kelly brought over a tall, good-looking guy around fifty. ... His name was Jim Levin. Was I up for drinks?" Levin wanted to know.

"We went outside and the valet brought around a top-of-the-line, two-door Mercedes," Tonken explained. "As [Levin] was getting into the driver's side, I said something like, 'This is a beautiful car.'

"At that Kelly turned to me and said with a smile, 'It won't be around long. He gets his cars repossessed every few months.'"

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