Karl Pleads Not Guilty in Campaign Funding Case

Newport Beach video entrepreneur Stuart Karl Jr. pleaded not guilty Monday to a 12-count federal indictment accusing him of funneling nearly $200,000 in illegal contributions to former presidential candidate Gary Hart and several congressional candidates.

Karl walked briskly past reporters who gathered outside the federal courthouse in Santa Ana and refused to discuss the case.

“He is not saying anything to anybody,� said John Vardeman, one of three attorneys who accompanied Karl.

Karl is accused of asking employees to contribute up to $1,000 each--the maximum under the federal law--to various candidates, with the promise that they would be reimbursed. Federal authorities said Karl reimbursed them in cash.

The 12-count indictment was handed down by a federal grand jury in Los Angeles two weeks ago. Federal authorities said the indictment followed testimony before the grand jury by 13 of Karl’s former employees, who said they were reimbursed in cash for contributions made in their names to Hart and others.

U.S. Commissioner Ronald W. Rose set an Aug. 23 trial date for Karl before U.S. District Judge Alicemarie Stotler in Santa Ana.

Karl posted $25,000 in bail that had been agreed on by his attorneys and the U.S. attorney’s office.

Federal officials say the grand jury investigation is continuing to determine whether anyone in the Hart camp may have helped set up the scheme. But U.S. Atty. Robert C. Bonner said after Karl’s indictment that there is no evidence yet that anyone in the Hart campaign knew of the allegedly illegal contributions.

Karl made a fortune in the video market after producing Jane Fonda’s physical fitness tapes.