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TUESDAY, NOVEMBER 24, 2009
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Hillary to Repay $850K From Hsu

FBI probes contributions from 'straw donors'

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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.

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, turned himself in Friday to face a grand theft charge. After reports surfaced this week of...
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)
Norman Hsu, center, leaves a San Mateo County jail with Jason Booth, left, and attorney Somnath Raj Chatterjee, right, in Redwood City, Calif., Friday, Aug. 31, 2007.  Hsu, a top Democratic fundraiser wanted as a fugitive in California, turned himself in Friday to face a grand theft charge. After reports...
Norman Hsu, center, leaves a San Mateo County jail with Jason Booth, left, and attorney Somnath Raj Chatterjee, right, in Redwood City, Calif., Friday, Aug. 31, 2007. Hsu, a top Democratic fundraiser...   (Associated Press)
Democratic Presidential hopeful Sen. Hillary Clinton,D-NY, speaks during a Democratic primary debate hosted by Univision at the Bank Atlantic Center in Coral Gables, Fla. Sunday Sept. 9, 2007. The debate focused on issues that are of interest to the Hispanic community. (AP Photo/Alan Diaz)
Democratic Presidential hopeful Sen. Hillary Clinton,D-NY, speaks during a Democratic primary debate hosted by Univision at the Bank Atlantic Center in Coral Gables, Fla. Sunday Sept. 9, 2007. The debate...   (Associated Press)
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