Washington – Democratic presidential candidate Hillary Rodham Clinton will give to charity the $23,000 in donations she has received from a fundraiser who is wanted in California for failing to appear for sentencing on a 1991 grand-theft charge.
The decision came Wednesday as other Democrats began distancing themselves from Norman Hsu, whose legal encounters and links to other Democratic donors have drawn public scrutiny in the past two days.
Al Franken, a Senate candidate in Minnesota, Reps. Michael Honda and Doris Matsui of California, and Rep. Joe Sestak of Pennsylvania said they would divest their campaigns of Hsu’s donations.
Hsu is a fundraiser for Clinton and is described as a devoted fan of the presidential candidate and New York senator. He had planned to co-host a money event for Clinton on Sept. 30. In a statement Wednesday, Hsu said he believed he had resolved his legal issues, but said he would halt his work raising political money.
Clinton campaign spokesman Phil Singer said the $23,000 would be given to charity, but the campaign did not plan to return any money Hsu raised from other donors.
Franken’s campaign received $2,300 from Hsu, Matsui has received $6,100 since 2004 and Sestak and Honda each received $1,000 for their re-elections.
Federal Election Commission records show Hsu has donated $260,000 to Democratic Party groups and federal candidates since 2004. Although a fundraiser for Clinton, he also donated to Sen. Barack Obama’s Senate campaign in 2004 and to Obama’s political action committee.
In 1991, Hsu pleaded no contest to a felony count of grand theft but failed to appear in court for sentencing, according to Ronald Smetana, the California deputy attorney general who prosecuted the case. Smetana said there is an outstanding warrant. A clerk at the San Mateo County courthouse said it was issued in 1992.
Smetana said Hsu collected about $1 million from investors by falsely claiming he had a contract to import latex gloves.
Smetana said he had assumed Hsu, a Hong Kong native, had fled the country. Hsu, however, resurfaced in New York, where he has been connected to several clothing-related businesses, according to campaign finance records, which list his occupation variously as an apparel consultant, clothing designer, retailer or company president.
In a statement Wednesday, Hsu said: “I believe I properly resolved all of the legal issues. … Therefore, I was surprised to learn that there appears to be an outstanding warrant – as demonstrated by the fact that I have and do live a public life.”
The Los Angeles Times contributed to this report.
Udall will cede funds
Rep. Mark Udall, D-Colo., who is running for the U.S. Senate in 2008, received a $1,000 contribution from Hsu in June. Mike Melanson, Udall’s campaign manager, said the campaign will donate that amount to the Colorado National Guard Foundation.
