Clinton Hints Donors May Give Again

Norman Hsu prepares to surrender as he arrives at a San Mateo County Superior Court in Redwood City, Calif., in this Friday, Aug. 31, 2007 file photo. Hsu was a wanted man again after he failed to show up for a court date Wednesday, Sept. 5, 2007 and a judge issued a new warrant for his arrest. Hsu, whose criminal past has roiled the campaigns of top presidential candidates, was scheduled to ask a judge to cut in half the $2 million bail he posted last week when he turned himself in after spending 15 years on the lam from a felony theft conviction. (AP Photo/Paul Sakuma, file) (Paul Sakuma - AP)

WASHINGTON -- Sen. Hillary Rodham Clinton, whose campaign is returning $850,000 in contributions linked to disgraced fundraiser Norman Hsu, indicated Wednesday that donors who contributed that money could donate to her presidential campaign once again.

"We're not asking that that be done," she said in a teleconference with reporters. "But I believe that the vast majority of those 200-plus donors are perfectly capable of making up their own minds about what they will or won't do going forward."

Clinton's remarks were her first public comments on the affect Hsu's unraveling fortunes have had on her presidential campaign. Hsu was a leading money "bundler" for Clinton, earning the title of HillRaiser for his fundraising activities.

"It was very difficult for us to make any decision other than returning the contributions that were in any way connected to him and that is what we decided to do," she said.

Clinton's campaign said this week that any donors whose money was returned could donate once again if they confirm to the campaign that the contributions are from their own personal funds.

Hsu, unknown in political circles until about four years ago, was booked into the Mesa County jail in Colorado on Wednesday evening after leaving a hospital where he has been since failing to show up for a bail hearing last week in California. He had been wanted as a fugitive for missing his sentencing on a 1991 grand theft case to which he had pleaded no contest.

Hsu was booked on an outstanding warrant charge from California, sheriff's officials said. A hearing was scheduled for Thursday afternoon.

In the past two weeks, news reports raised questions about his fundraising practices and divulged his fugitive status. Law enforcement authorities said the FBI is now investigating whether Hsu paid donors to contribute to politicians. His lawyer has said Hsu did not break the law and that donors he solicited contributed their own money.

In New York City, prosecutors also are investigating whether Hsu stole millions of dollars from an investment fund. A spokeswoman for the Manhattan District Attorney said Wednesday that lawyers for the fund, Source Financing Investors, referred the matter to her office last week.

Clinton talked to reporters to promote a fundraiser later Wednesday at the home of Weldon Latham, national co-chairman for Clinton's campaign and a senior partner at Davis Wright & Tremaine. The fundraiser was designed to feature Clinton's support in minority communities, particularly among blacks.

"I have a long-standing set of relationships in the African-American community that are very important to me," she said. "I want to do everything I can as president to have an administration that reflects the great diversity of our country."

Clinton and her husband, former President Clinton, were expected to join 300 supporters at Latham's suburban Washington home. The event was expected to raise at least $500,000.