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Saturday, May 28, 2005 10:48 a.m. EDT

Peter Paul: Rosen Acquittal Doesn't Clear Hillary

New York Sen. Hillary Clinton's chief accuser Peter Paul said Saturday that yesterday's acquittal of her former campaign finance chairman, David Rosen, doesn't mean she's in the clear.

"This is by no means an exoneration of Hillary's campaign," Paul told NewsMax. "In fact. it's an indictment of her campaign."

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  Calling Rosen a sacrificial lamb who was set up to take the fall for higher-ups, Paul said, "The jurors clearly didn't believe that he filed these false FEC reports on his own."

Paul's allegations about expenses he covered for an August 2000 gala fundraiser for Mrs. Clinton spurred a four-year investigation that resulted in Rosen's indictment on four counts of underreporting costs to federal regulators.

U.S. District Judge A. Howard Matz dismissed one count before Rosen's trial started earlier this month. On Wednesday, Matz tossed out a second count, which - Paul told NewsMax - was based a false report filed by the campaign's treasurer, Andrew Grossman.

"When the judge dismissed that count of Rosen's indictment, that was a signal to the jury that he wasn't responsible," Paul explained.

"In fact, it wasn't Rosen's responsibility, which one of the jurors made clear, to ensure that the accounting was accurate," he said. "And if Rosen wasn't responsible for the third one, there was no reason for the jury to think he was responsible for the first two."

Even with the not-guilty verdict, Paul said Rosen's trial would bolster his case in a civil lawsuit he has filed against the Clintons, noting that testimony at the trial backed his claim that Hillary was involved in planning the August 12 event and had knowledge of its costs.

"The testimony showed she was absolutely responsible for the hiring of the biggest vendor of the event, Gary Smith, who admitted he received more than $600,000 for his fees," he said.

"This vindicates my civil suit," Paul said. "It gives me corroboration of all the major allegations in the civil suit. The civil suit is more important now than ever as the only way to get Hillary under oath."

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