Peter Paul

Peter Franklin Paul is a lawyer who co-founded Stan Lee Media with Spider Man creator Stan Lee and is a convicted felon. In 2000, he became central to a campaign fund-raising scandal involving Senator Hillary Clinton.

The Cuban Coffee Fraud
In late 1977 a scheme was hatched by a German coffee broker, Karl Fessler, to use a phantom shipment of coffee to defraud the Cuban government. The scheme involved persuading the Cuban government to buy 3,000 tonnes of Columbian coffee sight unseen at a price lower than the prevailing world market price. In late October 1978 the deal was finalised. "Companies were set up in the Caribbean and an aging freighter of Panamanian registry was bought for $700,000. The culprits proceeded to pay off anybody who might hinder the swindle. The Justice Department estimates that hundreds of thousands of dollars were paid out," Time reported. While the plan was to sink the empty freighter en route to Havana, the team assigned to scuttle the boat were prevented from boarding the ship by a port official in Santa Domingo. Despite this, the gang managed to persuade the Cuban broker to authorise the payment of $8.7 million without seeing the goods. After protests from the Cuban government, U.S. and Canadian law enforcement agencies pursued both the participants and sought to recover the funds.

Paul had become involved with Fessler and, the Miami Herald later reported, the two had "enlisted the help of an American woman, a Haitian, two former Miami firemen, a Dutchman and others".

At the same time that the coffee scam was being planned, the U.S. Drug Enforcement Administration was taping the phone calls of several of the conspirators as part of a drugs related investigation. Before the coffee scam was finalised, Paul himself, the Miami Herald reported, "was picked up after he handed an informant a garment bag containing 15 pounds of cocaine." In the court proceedings, which happened before the coffee scam was implemented, it was revealed that the government agencies knew of the coffee plans but took no action. Paul later claimed that both the cocaine and coffee deals were "part of a government operation I was involved in that I can't really talk about" and that they were aimed at exposing a communist spy in the U.S. government. Despite these claims, Paul was arrested after the Cuban government agents discovered the scam. He was charged with fraud and pleaded guilty in U.S. court. He was sentenced to eight years on the cocaine charges and three years to be served concurrently for the Cuban coffee scam.

Violation of parole in 1983 and year as a fugitive
After serving three years of his sentence Paul was paroled but on condition that he not leave the U.S. Despite this, in December 1983, he traveled to Canada "using a dead man's passport". When crossing back into Vermont, a Customs official demanded more identification. "Paul walked to his rented Lincoln and raced away, leaving behind his female companion," the Miami Herald reports. A year later he was caught and then charged with passport offenses. Paul attributed the charges to an unspecified government group he was working with having a dispute with another government agency. He served a further 20 months in prison.

Selling the Bicentennial (1987 - 1993)
In 1987 Paul was the executive vice president of the California Bicentennial Foundation for the U.S. Constitution. The Los Angeles Times commented on some of the gimmicks used by the Bicentennial Commission. "But any celebration with a Disney-designed mascot can't fail, right? We'll see. The California bicentennial has Bisontennial Ben, a grinning little critter who is a combination American bison and Benjamin Franklin. The caricatures include one of Ben in a spacesuit holding an American flag, presumably standing on the moon."

Paul told the Los Anegeles Times that "If you had a reenactment of 39 sweaty old men arguing in Philadelphia, how many of our children would be interested? But put them in space suits and the kids will really go for it."

"We're using the same people who sell soap to sell understanding of the Constitution," Paul explained.

A few years later, The New York Times reported that Paul was the President of the non-profit American Spirit Foundation, which was formed in May 1989. The foundation was linked to the American Spirit Corporation, though the nature of the relationship was unclear. The Securities and Exchange Commission filing of the corporation stated that it paid Paul's salary and the foundation's office space. Paul on the other hand told New York Times reporter Diana B. Henriques that the company was one of the foundation's "sponsors" and "the exclusive supplier" of bronze plaques that the foundation used in one of its projects. A January 1990 media release announcing the takeover of the Hamilton James Venture Fund Inc., a Nevada corporation, by Wellington Group I described the corporation as "the marketing arm of the American Spirit Foundation."

"The plaque project calls for the foundation to enlist donors whose tax-deductible contributions - $6,000 per Constitution - will be used to place these bronze replicas in schools and other public locations. Then the foundation will buy the plaques from the corporation for $4,000 per set, or about $2,300 more than the plaques cost the company to produce. Proceeds from plaque sales are envisioned as the company's chief source of revenue," Henriques reported. In June 1990, the corporation suggested that the marketing of the bronze replicas of the constitution would be aimed at "more than 300,000 schools nationwide" which "should result in first year's annual revenue to the corporation exceeding $4 million." There is little subsequent mention of the corporation or the foundation other than a Washington Post report that "by 1993, the group [the corporation] was out of money".

Related SourceWatch Resources

 * Hillary Clinton Accountability Project
 * Hillary Rodham Clinton
 * United States Justice Foundation

Websites

 * Hillary Clinton Accountability Project, HillCap.org.
 * Paul v. Hillary Clinton Blog, PeterfPaul.com.

1979

 * "The Cuban coffee caper", TIME Magazine, February 12, 1979.

1987

 * "Most Unconstitutional: Editorial", Los Angeles Times, September 2, 1987,
 * "We The People: The Selling of the Bicentennial," ABA Journal, September 1, 1987
 * "Selling the Constitution," Los Angeles Times, September 1, 1987, Metro p.4

1990

 * Diana B. Henriques, "Wall Street: The dubious profits in patriotism", New York Times, July 22, 1990, p. A15.

1999

 * "Stan Lee Media debuts as public company, stock up 41 percent", Bloomberg News, August 16, 1999.

2000

 * Lloyd Grove, "Hillary Returns Bucks to Ex-Felon", Washington Post, August 17, 2000

2001

 * "Stan Lee Holder Peter Paul Flees to South America, According to Cohort's Affidavit", Inside.com, March 5, 2001.
 * Anthony York, "Peter Paul and Chelsea. The Stan Lee fraud case gets weirder: Litigation-happy Larry Klayman now wants to depose ... Chelsea?," Salon, June 22, 2001.
 * Bill Fancher, "Judicial Watch Takes Clintons To Court -- Again," Agape Press, June 26, 2001.
 * Robert Novak, "Hillary's Fundraiser," Townhall.com, June 28, 2001.
 * "Hillary Accuser Takes Charges to Bush Justice Officials, ABC News," NewsMax, July 9, 2001.
 * "Stock Fraud Suspect Peter F. Paul Arrested in Brazil," CBS Market Watch (posted at Free Republic) August 4, 2001.
 * Anthony Faiola, "U.S. fugitive tied to Clintons caught in Brazil", Washington Post, August 4, 2001, p. A12.
 * John Dorschener, "Caught Up With Comics and The Clintons", The Miami Herald, October 21, 2001. (Available for purchase via the Miami Herald website here.)
 * Press Release: "Clinton Donor Sues FEC to Force Action Against Hillary Clinton Campaign Finance Fraud. Peter Paul Gave $2 Million to Hillary Clinton Senate Campaign - Yet She Never Reported It to FEC. FEC Has Taken No Action Despite Check Copies and Other Documents Showing Clinton Campaign Fraud," Judicial Watch, December 10, 2001.

2002

 * Michael Dean, "Who Killed Stan Lee Media? Peter Paul Tells His Side of the Story," The Comics Journal, 2002.
 * Rick Veitch, "Peter Paul Back in the News," comicon.com, April 29, 2002.
 * Paul M. Rodriguez, "Paul Takes the Fall?," Insight Magazine, September 18, 2002.
 * "Court upholds dismissal of fugitive's lawsuit against Clintons", Metropolitan News-Enterprise, December 12, 2002.

2003

 * Byron York, "Klayman vs. Chertoff. The head of Judicial Watch tries to stop a Bush judicial nominee," National Review, June 3, 2003. Discusses connection of Judicial Watch's Larry Klayman with Paul.
 * "Money, Politics and the Undoing of Stan Lee Media; A fund-raiser for Hillary Clinton triggered events that contributed to the Web firm's collapse. In the fallout, several may face prison terms", Los Angeles Times, July 20, 2003, p.C1
 * John Dorschner, "Lawyer extradited back to U.S. from Brazil for Fraud Charges" Miami Herald, September 30, 2003. ("Peter Paul, a one-time attorney who participated in one of the biggest cons in Miami history, has been extradited to the United States from Brazil.")
 * "SEC joins probe of Stan Lee Media; Sources say investigators in Los Angeles are conducting interviews and reviewing records", Los Angeles Times, October 2, 2003, p. C1.
 * "Peter Paul Sues Bill and Hillary Clinton for Fraud, Conspiracy, Unjust Enrichment," Judicial Watch, October 16, 2003.
 * Paul M. Rodriguez, "Clintons' Fall Guy May Turn the Tables," Insight Magazine, October 28, 2003. Also see "Evidence of SLM/Clinton Connection," Insight Magazine, October 16, 2003.
 * John O. Edwards, "Peter Paul Promises Blockbuster Hillary Revelations," NewsMax.com, September 29, 2003.
 * "Justice Draws Near for Bill and Hillary. At Long Last Peter Paul to Have His Day in Court!," Judicial Watch, December 2003.

2004

 * "Comics exec focuses on 'Spider-Man 2' as former partner prepares for trial", USA Today, May 12, 2004, p. B01.
 * "Clintons ask court to dismiss fraud suit", San Francisco Chronicle, August 7, 2004, p.B3
 * SEC Litigation Release No. LR-18828, August 11, 2004.
 * Paul M. Rodriguez, Investigative Report: "Another Clinton Scandal Coming?," Insight Magazine, August 13, 2004. Includes comprehensive overview of the Paul-Clinton case.
 * Paul M. Rodriguez, "'Mainstream' press catches up on Clinton-Peter Paul story," Insight Magazine, October 5, 2004.
 * "U.S. Probes Clinton Senate Campaign," Associated Press, October 6, 2004.
 * Larry Margasak, "US is said to intensify probe of senator's fund-raising. FBI claims proof of improper acts," Boston Globe, October 6, 2004.
 * "The saga continues," Pittsburgh Tribune-Review, October 10, 2004.
 * Michelle Malkin, "Who is Peter Paul?," michellemalkin.com, October 11, 2004.
 * "Court allows suit against Clintons", San Francisco Chronicle, P. B 2, October 21, 2004.
 * James D. Hudnall, "Peter Paul Update," Hud's Blog-O-Rama, December 14, 2004. Includes subscription-required New York Sun article.

2005

 * Press Release: "Hillary Clinton Finance Chairman Indicted With Help From Judicial Watch Client. Peter Paul’s Cooperation With Justice Department Leads To Charges Against Rosen," Judicial Watch, January 7, 2005.
 * "How Hillary's money man was nailed for L.A. gala. Judicial Watch client blew whistle on Rosen," WorldNewsDaily, January 8, 2005.
 * Terry Krepel, "The ConWeb's New Favorite Convicted Felon," ConWebWatch, January 21, 2005.
 * Josh Gerstein, "Plea Could Impact Case Involving Backer of Clinton. Peter Paul could be a key witness," New York Sun, March 7, 2005.
 * United States Attorney's Office, "Peter Paul, co-founder of Stan Lee Media, Inc., pleads guilty to securities fraud; Fraud scheme caused $25 million in losses to investors and financial institutions", press release, March 8, 2005.
 * Carl Limbacher, "Clinton Accuser Peter Paul Cleared to Testify," NewsMax.com, March 9, 2005.
 * Ian Urbina, "Battling the Clintons, and Each Other," New York Times, March 15, 2005.
 * Carl Limbacher, "Peter Paul: Hillary Still a Target," NewsMax.com, April 24, 2005.
 * Terry Krepel, "Dances With Felons. Why is NewsMax relying on convicted criminals to dish dirt on Hillary Clinton?," ConWebWatch, April 27, 2005.
 * Doug from Upland, "DFU's Excellent Adventure with Peter Paul," Free Republic, April 28, 2005.
 * Doug from Upland, "Peter Paul and Hillary: No. 1 – Peter Paul to Make Big Announcement on Hannity Show" (Update, #92) (phone conversation with Peter Paul), ''Free Republic, May 2, 2005.
 * 'Doug from Upland, "Peter Paul and Hillary: No. 2 - Sorry, Alan Colmes, You Will Not Stop hillcap.org or the Truth," Free Republic, May 3, 2005.
 * Doug from Upland, "Peter Paul to Appear on Radio Show with Tony Snow, Sean Hannity" (phone conversation with Peter Paul, Free Republic, May 3, 2005.
 * Raymond Hernandez, "Anti-Clinton Group Joins With Former Clinton Donor", New York Times, May 3, 2005.
 * "Witness: Fundraiser Knew Party's Cost", Washington Post, May 13, 2005, p.A10
 * "Stan Lee Media co-founder settles SEC charges", The Hollywood Reporter, July 22, 2005.
 * "Final Judgment Against Stan Lee Media Co-Founder P. Paul", Litigation Release No. LR-19308, July 21, 2005.
 * Art MooreFraud lawsuit targets Hillary,"WorldNetDaily, August 22, 2005
 * April Witt, "House Of Cards: What do Cher, a Hollywood con man, a political rising star and an audacious felon have in common? Together they gave Bill and Hillary Clinton a night they'll never forget -- no matter how hard they may try", Washington Post, October 9, 2005; Page W10.
 * Paul Rodriguez,"AIM Report: The Scandal that Could Sink Hillary" "Accuracy in Media", November 22, 2005.
 * MUR 5225 "In the Matter of New York Senate 2000 and Andrew Grossman, in his official capacity as treasurer, Conciliation Agreement", December 19, 2005.

2006

 * "Sen. Clinton fundraising group fined over Hollywood gala", Associated Press (CNN), January 5, 2006.
 * "Clinton fundraisers are fined $35,000; Group underreported event in 2000", The Washington Post, January 6, 2006, p. A05.
 * "FEC fines Hillary fund-raising group", WorldNetDaily, January 5, 2006.
 * Dick Morris,"Oops, She Did it Again", New York Post, January 12, 2006.

2007

 * Josh Gerstein, "Former Donor To Clinton Sues Judicial Watch", New York Sun, February 8, 2007.