It sure took long enough -- will other Democrat candidates and organizations follow suit?

Sen. Hillary Rodham Clinton's presidential campaign said Monday it will return $850,000 in donations raised by Democratic fundraiser Norman Hsu, who is under federal investigation for allegedly violating election laws.

Clinton, D-N.Y., previously had planned only to give to charity $23,000 she received from Hsu for her presidential and senatorial campaigns and to her political action committee, HillPac.

The FBI is investigating whether Hsu paid so-called straw donors to send campaign contributions to Clinton and other candidates, a law enforcement official said Monday.

"In light of recent events and allegations that Mr. Norman Hsu engaged in an illegal investment scheme, we have decided out of an abundance of caution to return the money he raised for our campaign," Clinton spokesman Howard Wolfson said in a statement Monday night. "An estimated 260 donors this week will receive refunds totaling approximately $850,000 from the campaign."

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In addition to the $260,000 he contributed to federal candidates, Hsu also contributed at least $330,000 to state Democratic candidates and state party committees and ballot initiatives during the 2004 and 2006 election cycles. Among the state officials who received money were New York Gov. Eliot Spitzer and New York Attorney General Andrew Cuomo. Both have said they would divest their campaigns of the donations.

Additionally, last week Pennsylvania Gov. Ed Rendell said he would donate nearly $40,000 in contributions, and Rep. Mark Udall, D-Colo., said he had donated a $1,000 contribution to a charity that helps soldiers.

It is all well and good to get rid of the direct Hsu money -- but will they get rid of the bundled cash, in light of the clear evidence that Hsu was illegally reimbursing donors to direct more cash to his chosen candidates?

Posted by: Greg at 09:58 PM | No Comments | Add Comment
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