A New Precedent For Campaign Cash

(AP)  In returning $850,000 to donors associated with a disgraced fundraiser, Sen. Hillary Rodham Clinton sets a significant new standard for how campaigns should respond in the face of potential scandal.

Clinton's decision also underscores the price - financial and political - that her campaign is paying for failing to spot trouble with the fundraiser, Norman Hsu, even after receiving a warning. The campaign announced it would now conduct background checks on its fundraisers, an extraordinary and potentially time consuming step.

By returning the money, Clinton also puts pressure on presidential rivals and other politicians with rainmakers who have dubious pasts or who have employed questionable fundraising tactics, including the campaigns of Barack Obama and John Edwards.

Hsu, a Hong Kong native who appeared suddenly in the New York political scene about four years ago, is under guard in a Colorado hospital after failing to show up for a bail hearing last week in California. He had been wanted as a fugitive for skipping sentencing on a 1991 grand theft case to which he had pleaded no contest.

In the past two weeks, news reports raised questions about his fundraising practices and revealed his fugitive status. Law enforcement authorities said the FBI is now investigating whether Hsu paid donors to contribute to politicians. His lawyer has said Hsu did not break the law and that donors he solicited contributed their own money.

Despite his high-profile political activity, California authorities were apparently unaware of his whereabouts. And despite his abrupt entry into the circle of political money "bundlers" during the 2004 election, politicians did not inquire about his past.

"There were a few people who were scratching their heads, that he was being so generous," said John Catsimatidis, a New York businessman and longtime Clinton money man. "But he was a pleasant guy and nobody thought anything of it."

The Los Angeles Times reported Tuesday that an Irvine, Calif., businessman cautioned the Clinton campaign in June that he suspected Hsu was running an investment scam. The newspaper said the campaign's former finance director for Western states, Samantha Wolf, denied the claim and pronounced Hsu "completely legit."

Asked Tuesday what the campaign did in response to the warning, Clinton spokesman Howard Wolfson said: "It prompted another search of publicly available information which did not reveal the decade-plus old warrant."

Caught flat-footed by the Hsu revelations, the Clinton camp said it will now take extra steps to examine their fundraisers, including conducting criminal background checks.

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[secundus2]

Sen. Clinton deserves praise for her action.

Now let candidates of both parties return money given or raised by George Soros. The media found it easy to go after the Asian-American Hsu, but never mention that Soros has been convicted (2002) of insider trading in the takeover of the French bank Societe Generale.

Why is Soros'' money not tainted by his conviction, if Hsu''s money was dirtied by his failure to appear? Soros has "lawyered up" to avoid the consequences of his conviction by repeated appeals, but the verdict is there for any of his political beneficiaries to see. Of course, they prefer not to see this particular evidence of corruption, because they want Soros'' money.

[oldpuppymax]

Just noticed the header at the top of the comment column. As the content is not "CBS News stuff", they are unable to vouch for it. Well, although CBS finds it impossible to vouch for the opinions of its reading/viewing audience, I''ll certainly vouch for CBS. I''ll recognize their use of phony documents in an attempt to influence the outcome of a presidential election. I''ll recognize the aid and comfort CBS has provided for this nations enemies during the war in Iraq, while having portrayed members of the American Armed Forces as murderers, terrorists and torturers. And I''ll recognize the ceaseless shilling, misrepresenting, distorting, pandering and lying. The spiking of any news item potentially detrimental or embarrassing to a fellow traveler on the left. And I''ll certainly recognize the extraordinary contempt in which CBS holds each of its viewers, believing them to be too stupid to recognize bias so palpable that it leaps from the television screen. Keep up the good work, CBS. One day you might be looking UP at the ratings of MSNBC!

[oldpuppymax]

Once again the Clintons are involved in criminal campaign contribution activities and CBS falls all over itself cheering her noble decision to (ostensibly) return the money. Let me guess--you won''t check to make sure that the money actually gets back to the supposed donors, will you! And the California mailman who donated 250,000 on a 45,000 yearly salary--will you keep in touch to make certain he gets his quarter of a million dollar check? BWAAHHAAAHHAAHHAAA