Monday, March 07, 2005

Peter Paul to enter guilty plea tomorrow

The New York Sun reports that Stan Lee Media founder Peter Paul is expected to enter a guilty plea tomorrow on one felony count of stock manipulation.

Paul was indicted in 2001 on stock fraud and conspiracy charges following the collapse of the publicly trade company. Prosecutors claim he operated a "pump and dump" scheme to artificially inflate the price of company stock while secretly selling his own shares.

The newspaper suggests the plea could clear the way for Paul to testify at the trial of David Rosen, the national finance director of Sen. Hillary Clinton's 2000 campaign. Rosen was charged with
four felony counts of causing false statements to be submitted to the Federal Election Commission.

Paul also is suing President Clinton and Sen. Clinton for fraud, alleging he made donations of about $2 million to the Senate campaign as part of a larger effort to get the president to join the board of Stan Lee Media after leaving office. The lawsuit claims the Clintons failed to report Paul's donations, and broke promises they made about the president's plans to work for the company.