Thursday, August 30, 2007
Clinton says she'll be more vigilant about donors
By Marcella Bombardieri, Globe Staff
Hillary Clinton said today that her presidential campaign will be more careful about vetting donors after discovering that a major fund-raiser is wanted by California authorities in connection with a fraud case.
In some of her first public comments about the controversy swirling around fund-raiser Norman Hsu, Clinton also said the campaign would return any of the contributions that Hsu raised from other donors if they turned out to be tainted.
"We have a vetting process," Clinton said in a telephone interview with the Globe. "It didn't work on this one instance apparently for any of us. There were many, many people receiving his contributions, but nobody knew there was an issue."
"Obviously, we will increase our vigilance," she added.
Clinton's campaign said Wednesday that it would give to charity $23,000 it received from Hsu and look at other money he donated. The $23,000 included contributions to Clinton's presidential campaign, her US Senate re-election, and her political action committee, the campaign said. He had been scheduled to host a major fund-raiser next month.
Clinton acted after the Los Angeles Times reported Wednesday that Hsu faced an arrest warrant in connection with a 1991 fraud case, and after the Wall Street Journal reported Tuesday reported that a San Francisco family's contribution patterns closely tracked Hsu's, suggesting that he directed their donations.
Other Democrats, including US Senators Edward M. Kennedy and John F. Kerry of Massachusetts, are also donating to charity money from Hsu or returning the donations. Federal Election Commission records show that Hsu has donated $260,000 to Democratic Party groups and federal candidates since 2004.
Hsu said Wednesday that he was unaware of the arrest warrant, but said he would stop raising money for candidates until his legal case is resolved.
Democrats faced a fund-raising scandal involving illegal contributions from Asian businesspeople when then-President Bill Clinton and Vice President Al Gore were running for reelection in 1996.
Asked if Hsu could revive those controversies, Hillary Clinton said no.
"The fact that this surprised everyone and has gone back a number of years suggests we all have to be vigilant," she said.
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