Wednesday, September 12, 2007

Team Clinton can't explain ignoring warnings on Hsu

This thing has legs and my sense is we have only scratched the surface.

WASHINGTON - Hillary Clinton's campaign couldn't explain yesterday why it blew off warnings about felon-turned-fund-raiser Norman Hsu - and the Daily News learned FBI agents are collecting e-mail evidence in the widening scandal.

Clinton was forced Monday to give back a whopping $850,000 raised by convicted scam artist Hsu after learning his investment ventures were being probed by the FBI as a potential Ponzi scheme.

She earlier gave to charity $23,000 Hsu donated himself after reports revealed he fled sentencing for a $1 million scam in California in 1992.

Yesterday, the campaign insisted it did all it should to vet Hsu after California businessman Jack Cassidy warned in June that Hsu's investment operation was fishy. Cassidy e-mailed his tips to the California Democratic Party, which forwarded them to the Clinton campaign.

"They knew [about Hsu], and they knew back in June," a source told The News.


Wapo reports it's deja vu all over again: For Clintons, An Unwelcome Echo

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