Clinton To Return $850K Raised by Hsu

WASHINGTON — Senator Clinton's presidential campaign said yesterday it will return $850,000 in donations raised by Democratic fund-raiser Norman Hsu.

Mrs. Clinton, a Democrat of New York, previously had planned only to give to charity $23,000 she received from Mr. Hsu for her presidential and senatorial campaigns and to her political action committee, HillPac. The FBI is investigating whether Mr. Hsu paid so-called straw donors to send contributions to Mrs. Clinton and other candidates, a law enforcement official said yesterday.

"In light of recent events and allegations that Mr. Norman Hsu engaged in an illegal investment scheme, we have decided out of an abundance of caution to return the money he raised," a spokesman, Howard Wolfson, said.