Spitzer Joins Clinton in Shedding Fugitive Donor's Cash

By JACOB GERSHMAN, Staff Reporter of the Sun
August 31, 2007

Governor Spitzer is returning more than $60,000 in contributions that he received from a top national Democratic donor who was recently exposed as a fugitive from justice, a spokeswoman for the governor said yesterday.

"He is returning his money and took steps this morning to do so immediately after reading stories," a spokeswoman for Mr. Spitzer, Christine Anderson, said yesterday.

Mr. Spitzer is the latest prominent Democrat to return money from Norman Hsu, who is wanted in California for failing to show up for sentencing on charges that he defrauded investors in 1991. Mrs. Clinton's campaign said Wednesday that she would turn over to charity $23,000 she received from Hsu.

Attorney General Cuomo is giving more than $50,100 he received from Hsu to charity, an aide to Mr. Cuomo said yesterday. Mr. Cuomo also received thousands of dollars in donations from members of the Paw family from Daly City, Calif. The family's political giving, which tracks closely to Hsu's donations, has also come under scrutiny.

Hsu widely spread his money around New York politics. Taking advantage of the higher statewide campaign contribution limits, he gave the largest amounts to Messrs. Cuomo and Spitzer. The speaker of the City Council, Christine Quinn, Council Member John Liu, City Comptroller William Thompson, and Rep. Anthony Weiner are also returning money donated by Hsu, who gave almost $200,000 to New York politicians, according to the Daily News.

Among national politicians who were beneficiaries of Hsu, Senators Kerry and Kennedy of Massachusetts and Senators Boxer and Feinstein of California have also said they are giving away Hsu's money, the Associated Press reported.

Mr. Hsu, an apparel executive from Hong Kong who lives in Manhattan, has given hundreds of thousands of dollars to Democratic politicians since 2003. His status as a fugitive was first reported on Tuesday by several national newspapers.

"We were all very surprised by this news. We have a procedure that we follow, and upon verifying it, we returned his money. And we will continue to analyze all contributions and take action that is warranted," Mrs. Clinton said at a press conference yesterday morning at Mr. Spitzer's New York City headquarters, where the two talked about roadblocks facing the governor's plan to extend health care coverage to more children.