Not Guilty Verdict for Fundraiser

David Rosen, who served as Clinton's national finance director, embraced his lawyer and smiled broadly as U.S. District Judge A. Howard Matz announced the jury's verdict after a three-week trial.

"I'm relieved this ordeal is over," Rosen said afterward. "This has been going on for five years. I now have closure in my life."

Although Clinton was not charged in the case, her political foes had seized on it, anticipating incriminating disclosures that might affect her possible 2008 presidential run. But their expectations were dashed on opening day when a Justice Department prosecutor told jurors that Clinton was not involved in any wrongdoing.

Jennifer Duffy, an independent analyst with the nonpartisan Cook Political Report, said that even if Rosen had been convicted, there would have been no political fallout for Clinton.

"Events of five years ago, that she was not personally involved in and has worked to distance herself from -- it's hard to make that stick to her," Duffy said. "You'd have to spend a lot of time making the case work, and it's probably not worth the effort."

In Washington, Clinton's lawyer, David Kendall, said: "We have said from the beginning that when all the evidence is in, David would be vindicated. That has come to pass, and Sen. Clinton is very happy for David and his family."

The case against Rosen revolved around an event attended by President Clinton, the first lady and Hollywood stars at a Mandeville Canyon estate before the Democratic National Convention in Los Angeles.

The gala, which raised $1 million for Clinton's Senate campaign and the New York State Democratic Party, featured a $25,000-a-couple dinner and a $1,000-a-person concert with performances by Cher, Diana Ross, Michael Bolton and others.

Sponsoring the fundraiser was Peter Paul, a twice-convicted felon and businessman, then employed as chief executive of Stan Lee Media, a publicly traded Internet venture that he founded with Spider-Man creator Stan Lee.

According to prosecutors, Paul volunteered to underwrite $500,000 of the gala's costs in hopes of currying favor with President Clinton. But expenses quickly rocketed out of control, forcing Paul to spend more than $1.1 million.