February 11, 2009 4:15 PM
- Text
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.
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.
- 1
- 2
- Next Page »
Popular Now in Politics
- CPAC: Will Sarah Palin spring a surprise?
- Sarah Palin revs up CPAC faithful
- Mitt Romney wins Maine GOP caucuses
- CPAC: Anti-Obama beats pro-Romney
- Ann Coulter riles up the CPAC crowd
- Romney takes on hecklers at Maine town hall
- Romney on Obama: I will "knock him on his heels"
- Mitt Romney wins CPAC straw poll
- Gov. Jindal prepping for national stage
- Occupy protestors kicked out of CPAC
- Immigration speaker sparks controversy at CPAC
- Santorum infers straw poll-rigging at CPAC
- What Does 'GOP' Stand For?
- Health Care Bill: What's In It?
- Timothy Dolan: Birth control tweak a "first step"
- After uproar, Obama tweaks birth control rule
- Santorum: Women could bring "emotions" to combat
Latest CBS News Headlines
on Facebook Most Discussed Stories
on CBS News
- NY Fashion Week a high-low mix like never before
- Obstacles remain for Greek bailout deal
- Bahrain police fire tear gas at protesters
- On Valentine's day, a museum for broken hearts
on Facebook Most Discussed Stories
on CBS News






