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Tuesday, May 24, 2005 10:47 a.m. EDT

Prosecutors Struggle to Avoid Implicating Hillary

The prosecution rested yesterday in the trial of Hillary Clinton's former finance director David Rosen, without calling several key witnesses in the case - a move that some say was a bid to avoid implicating the former first lady.

"They're the elephants in the room," an attorney familiar with the trial told the New York Sun. "The jury may ask: 'Where were they?' That's the risk," he added, requesting not to be identified.

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  Among those not called to testify is Peter Paul, the man whose allegations spurred an FBI probe four years ago into a Hollywood gala fundraiser for Mrs. Clinton's 2000 Senate campaign. Mr. Paul underwrote the bulk of the event's $1.2 million cost, a figure Mr. Rosen allegedly underreported to federal regulators by $800,000.

While prosecutors have bluntly stated that Mrs. Clinton had nothing to do with allegations against Rosen, Mr. Paul charges in a separate civil lawsuit that both Sen. Clinton and her husband committed a variety of crimes in connection with the same fundraiser.

Among the causes of action Paul cites against the former first couple:

  • Fraud and Deceit - Against Defendants Hillary Rodham Clinton, Hillary Rodham Clinton for U.S. Senate Committee, Inc., and David Rosen

  • Civil Conspiracy - Against Defendants Hillary Rodham Clinton, Hillary Rodham Clinton for U.S. Senate Committee, Inc., and David Rosen

  • Negligent Misrepresentation - Against Defendants Hillary Rodham Clinton, Hillary Rodham Clinton for U.S. Senate Committee, Inc., and David Rosen

  • Fraud and Deceit - Against Defendants William Jefferson Clinton and James Levin

  • Negligent Misrepresentation - Against Defendants William Jefferson Clinton and James Levin

    The same lawsuit makes repeated claims that Mrs. Clinton was aware of the expenses for the Aug. 2000 fundraiser covered by Mr. Paul:

    "At all relevant times, the President, Mrs. Clinton, Rosen, [James] Levin and [Aaron] Tonken knew and understood that [Mr. Paul] was spending well over $1 million, not including substantial amounts of his time and resources, on the Hollywood Tribute. In the weeks leading up to the Hollywood Tribute, President Clinton and Mrs. Clinton made at least three telephone calls to [Mr. Paul] to thank him for his generous financial support and to encourage him to continue."

    Paul's lawsuit has survived several legal challenges by the Clintons' legal team.

    But legal experts say that because of his past convictions for cocaine possession and stock manipulation, prosecutors don't want to call Mr. Paul to the stand in the Rosen trial - instead relying on other witnesses to make their case.

    Mr. Paul, on the other hand, says he is anxious to testify - and urges that Mrs. Clinton be called to the witness stand as well.

    "The testimony shows she was involved," he told the New York Sun. "Without question, Hillary is the key witness."

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