Hillary to Repay $850K From Hsu

FBI probes contributions from 'straw donors'
By Peter Fearon,  Newser Staff
Posted Sep 11, 2007 6:10 AM CDT
Norman Hsu prepares to surrender as he arrives at a San Mateo County Superior Court in Redwood City, Calif., Friday, Aug. 31, 2007. Hsu, a top Democratic fundraiser wanted as a fugitive in California,...   (Associated Press)
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(Newser) – Hillary Clinton's campaign will return $850,000 raised by Democratic fundraiser Norman Hsu, a fugitive from a 1991 fraud conviction who turned himself in and then skipped out on a Bay Area court hearing last week. Clinton had planned to give $23,000 from Hsu to charity, but has since decided to return all funds raised by Hsu from 260 donors.

FBI officials are investigating whether Hsu paid "straw donors" to contribute to Clinton. The amount identified by the campaign would make Hsu one of Clinton's top fundraisers. "We have decided out of an abundance of caution to return the money he raised for our campaign," said a Clinton spokesman. Hsu remains hospitalized in Colorado.