Yet nine months into her campaign, Mrs. Clinton is grappling with exactly the situation she feared — giving up nearly $900,000 that had been donated or raised by Norman Hsu, a one-time fugitive and one of her top fund-raisers, whose actions raise serious questions about how well the campaign vetted its donors. As a result, Mrs. Clinton now finds herself linked to a convicted criminal who brought in tens of thousands of dollars from potentially tainted sources.
The Hsu case has revived ugly memories for voters about the Democratic fund-raising scandals when Bill Clinton was president, the senator’s campaign advisers acknowledge, a time when both Clintons were often photographed with people whose money later turned out to be dirty, including Johnny Chung and Charlie Trie. Mrs. Clinton is running on her White House experience in the 1990s, and any attention cast on past fund-raising controversies could threaten her image with voters.
Even some of her own major donors are aghast that, given the Clintons’ past problems with fund-raising, Mrs. Clinton’s vetting process did not uncover Mr. Hsu’s criminal history. Even though Mr. Hsu had previously donated to other politicians and charities without his past surfacing, these donors say, the Clinton operation had been widely considered one of the best-run in recent campaigns — until now.
“People have often said about the Clintons, they don’t care who they hang out with as long as the people can be helpful to them,” said one of Mrs. Clinton’s major fund-raisers. “The larger point in all of this is that the Clintons are the ultimate pragmatists in who they hang out with; if you can be useful to them, they will find a way to make it work.”
Advisers say Mrs. Clinton is not so much furious about the scandal, as she is worried about containing the political damage.
To that end, Clinton campaign aides refused yesterday to release the names of the 260 donors whom Mr. Hsu recruited to the campaign, preferring to wait until they finish their own research on the individuals. Mrs. Clinton and her advisers are concerned that rival campaigns or the news media will dig into the background of each donor, and they want to be prepared if some of the donors end up having money funneled to them from Mr. Hsu or have shady backgrounds.
The campaign is refunding $850,000 to these donors, viewing the money as tainted. Yet the campaign is also risking another public relations mess by saying that it would take back the money if it clearly came from the donor’s bank account, not from Mr. Hsu or another source. The risk is that Mrs. Clinton will appear to want more cash no matter whether it was once colored by a disgraced donor.
More at:
http://www.nytimes.com/2007/09/12/us/politics/12clinton.html?hp