FBI looks into disgraced donor's business

Who knows how deep in the Democrat party this corruption will ultimately go but one things for sure, this time the Hsu's on the other foot.

Investigators study the legitimacy of an investment pool operated by Hsu, a Democratic fundraiser, who was arrested last week.

WASHINGTON — The FBI has begun examining a murky business venture run by disgraced Democratic fundraiser Norman Hsu that paid out hefty profits over the last several years to investors, some of whom were pressed to make contributions to Hillary Rodham Clinton and other political candidates.

Sources told The Times on Sunday that a number of participants and their associates in Southern California and elsewhere had been in contact with the FBI about an investment pool operated by Hsu.

One associate, Irvine businessman Jack Cassidy, said he had tried to warn authorities and the Clinton campaign as early as June that he feared Hsu was running an illicit enterprise, but had gotten no response.

Clinton campaign spokesman Howard Wolfson declined to respond to Cassidy's claim, saying only that the campaign had conducted a background check of Hsu, who has emerged in the last three years as one of the Democratic Party's biggest fundraisers.

Update:Clinton to Return $850,000 Raised by Hsu

Sen. Hillary Rodham Clinton's presidential campaign said Monday it will return $850,000 in donations raised by Democratic fundraiser Norman Hsu, who is under federal investigation for violating election laws.

Clinton, D-N.Y., previously had planned only to give to charity $23,000 she received from Hsu for her presidential and senatorial campaigns and to her political action committee, HillPac.

The FBI is investigating whether Hsu paid so-called straw donors to send campaign contributions to Clinton and other candidates, a law enforcement official said Monday.