Fund-raiser for Clinton in court

LOS ANGELES -- The former national finance director for Sen. Hillary Rodham Clinton testified Wednesday that he may have used bad judgment when he failed to report that a campaign donor paid his $10,000 Beverly Hills hotel bill and let him use a Porsche.

But David Rosen said he never tried to hide anything.

Rosen is charged with making false statements to the Federal Election Commission, which oversees campaign contributions.

The defense rested after he testified, and jurors were to begin deliberations today.

Federal prosecutors allege Rosen deliberately lied to regulators by claiming that "in-kind" contributions for a lavish Hollywood fundraiser he helped organize totaled $401,000. They say Rosen knew the contributions were worth more than $1.1 million, but he claims he relied on other people to document the costs.

Prosecutors say Rose was trying to duck federal financing rules so Clinton's campaign would have more money to spend on her 2000 U.S. Senate race, but they have said the New York Democrat was unaware of any wrongdoing.

The hotel cost and use of the Porsche were provided by Aaron Tonken, another organizer of the fundraiser who is now serving a 63-month prison sentence on separate charges of defrauding charities of hundreds of thousands of dollars.

Rosen, 38, testified that he thought the use of the Porsche was a personal gift.

"I didn't think there was any campaign expense," he said. "If I executed poor judgment in that decision, I made a mistake but I certainly didn't intend to hide anything."

The August 2000 dinner and concert, held at a 112-acre Brentwood estate, attracted celebrities including John Travolta, Diana Ross and Muhammad Ali.

Prosecutors said Rosen should have known that he needed to report things such as the cost of office space, expensive hotels and the use of the Porsche. They said he knew -- or should have known -- that the event, with its professional light and sound system, 30,000 invitations, and performers including Cher, Melissa Etheridge and Toni Braxton, cost far more than $400,000.

"This man was not a babe in the woods," prosecutor Peter Zeidenberg said during his closing. "He's an expert finance director."

Rosen said he relied on an outside group run by Tonken and Peter Paul that was organizing the event to calculate and document the costs. The figures were then reported to the federal government, he said.

Paul, a three-time convicted felon, pleaded guilty in March to securities fraud in a separate case.

Under cross-examination by Zeidenberg, Rosen was asked repeatedly if he had known or looked into details of the gala's expenses. Rosen said he had not and thought many items were simply included in larger categories.

Rosen's attorney noted in his closing that at least two of the government's witnesses had received plea deals and alleged they lied on the stand. He lauded his client for testifying and urged jurors to believe Rosen.

"He looked you in the eyes," attorney Paul Sandler said. "You can tell when people lie."

Each of the two counts against Rosen carries a maximum five-year prison sentence and a $250,000 fine.