Reggie recording key as feds launch case

Saturday, May 07, 2005

By Martha Carr and Gordon Russell

Staff writers

The rules for the joint fund-raiser were complex because the gala raised both "hard" money, or money given to candidates and subject to federal limits, and "soft" money, or money that flowed to advocacy groups and organizations and that was unregulated and unlimited under the federal campaign finance laws at that time. The "hard" money went to the Clinton campaign, whereas the "soft" money went to the state and national committees.

In such joint events, both costs and contributions have to be allocated according to a formula. Underreporting the cost of the gala would have allowed the Clinton campaign to spend less of its money on the event, ultimately leaving the campaign more "hard" money for ads, fliers and the like.

According to the tape, Rosen was acutely aware of these distinctions.

"With an in-kind, and then based on how you raise the money, whether it was 100 percent hard, or 30 percent hard, or 60 percent hard, you have to pay that percentage out of the in-kind," he told Reggie. "So we would have to move hard to soft.

"We gotta get rid of the hard. And that woulda hurt us."

An inside peek

Reggie first met Rosen when he signed on as a fund-raiser and media strategist for Hillary Clinton's Senate bid. Rosen was Clinton's national finance director, and Reggie, with his ties to the Kennedy family, was a powerhouse fund-raiser for the Clintons in Louisiana. After their months spent together separating wealthy Democrats from their hard-earned cash, Rosen was likely not surprised that Reggie would call to catch up with him during a stop in Chicago.

During their chat, the familiarity between the two is clear as they trade war stories and exchange gossip about the rich, powerful and politically connected.

In that way, apart from shedding light on the Hollywood gala controversy, Rosen and Reggie's conversation -- over Beringer wine, a New York strip and a "Cajun ribeye," followed by a gigantic scoop of vanilla ice cream -- offers a salacious peek into the fast-paced nexus of money and politics.

The chitchat ranges from speculation that a wealthy Clinton donor was using cocaine to lusty remarks by Rosen about the donor's young daughter. Rosen does not hesitate to disparage President Clinton, noting that he began calling regularly -- once a week -- after Rosen went to work for Hillary Clinton. "Go screw yourself , Mr. President," Rosen says, pretending to pick up one such call.

The salaciousness reaches its pinnacle with Rosen's rambling anecdote about a fat cat Clinton donor who said after a night of partying that he sent prostitutes to the hotel rooms of two top Clinton loyalists.

"So the next day, (one of the loyalists) calls (the donor) from the golf course with Clinton," Rosen told Reggie. "Clinton gets on the phone, he goes, I just wanna tell you something. . . . The day I'm outta office, I'm going out with you."

A lawyer for one of the Clinton insiders named on the tape denied the substance of the story. Kendall, Clinton's lawyer, declined to comment on the anecdote...

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