Clintons to Return $850,000 in Hsu FundsPosted at 7:25 PM ET on Sep 10, 2007
--John Solomon
http://blog.washingtonpost.com/the-trail/2007/09/10/clintons_to_return_850000_in_h.htmlSen. Hillary Clinton's presidential campaign dramatically severed all ties to disgraced fundraiser Norman Hsu, announcing Monday night it will return more than $850,000 he raised from some 260 donors.
Clinton's campaign, one of several Democratic committees that Hsu raised money for or donated to, also has decided to increase its screening of major fund-raisers, requiring them to submit to the extraordinary additional step of a criminal background check, campaign aides said.
Hsu, an apparel businesman, fell from grace earlier this month after it was revealed he was a fugitive in a 15-year-old criminal case in California. On Monday, the Los Angeles Times reported he also is under investigation in connection with recent business dealings.
Clinton's campaign decided more than a week ago to return some $23,000 Hsu personally donated to her various campaigns. After learning of a Los Angeles Times report that the FBI was investigating Hsu, Clinton on Monday personally ordered her campaign to return all the money he has raised, a senior aide said.
"Mr. Hsu donated to numerous charities and more than two dozen candidates and committees," Clinton spokesman Howard Wolfson said. "Despite conducting a thorough review of public records, our campaign like others were unaware of Mr. Hsu's decade-plus old warrant.
"To help ensure agsint this type of situation in the future, our campaign will also institute vigorous additional vetting procedures on our bundlers, including criminal background checks," Wolfson added. "In any instances where a source of a bundler's income is in question, the campaign will take affirmative steps to verify its origin."
The dramatic return of all Hsu-raised donations was aimed at ending a controversy that awakened comparisons to Bill Clinton's 1990s fund-raising scandal and renewed scrutiny of others major fund-raisers and donors inside Sen. Clinton's presidential campaign.
Sen. Clinton "simply didn't want to have to keep answering questions about a bundler whose background is now clearly in question," a senior adviser said, speaking only on condition of anonymity.
The move also is likely to increase the pressure on other Democratic candidates to give back not only the money Hsu donated but also the money he raised.
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