Commenter ivb calls our attention to this intriguing story by Brody Mullins in today’s Wall Street Journal:
One of the biggest sources of political donations to Hillary Rodham Clinton is a tiny, lime-green bungalow that lies under the flight path from San Francisco International Airport.
Six members of the Paw family, each listing the house at 41 Shelbourne Ave. as their residence, have donated a combined $45,000 to the Democratic senator from New York since 2005, for her presidential campaign, her Senate re-election last year and her political action committee. In all, the six Paws have donated a total of $200,000 to Democratic candidates since 2005, election records show.
That total ranks the house with residences in Greenwich, Conn., and Manhattan’s Upper East Side among the top addresses to donate to the Democratic presidential front-runner over the past two years, according to an analysis by The Wall Street Journal of donations listed with the Federal Election Commission.It isn’t obvious how the Paw family is able to afford such political largess. Records show they own a gift shop and live in a 1,280-square-foot house that they recently refinanced for $270,000. William Paw, the 64-year-old head of the household, is a mail carrier with the U.S. Postal Service who earns about $49,000 a year, according to a union representative. Alice Paw, also 64, is a homemaker. The couple’s grown children have jobs ranging from account manager at a software company to “attendance liaison” at a local public high school. One is listed on campaign records as an executive at a mutual fund.
The Paws’ political donations closely track donations made by Norman Hsu, a wealthy New York businessman in the apparel industry who once listed the Paw home as his address, according to public records. Mr. Hsu is one of the top fund-raisers for Mrs. Clinton’s presidential campaign. He has hosted or co-hosted some of her most prominent money-raising events.
The Journal notes:
Kent Cooper, a former disclosure official with the Federal Election Commission, said the two-year pattern of donations justifies a probe of possible violations of campaign-finance law, which forbid one person from reimbursing another to make contributions.
“There are red lights all over this one,” Mr. Cooper said.
There is no public record or indication Mr. Hsu reimbursed the Paw family for their political contributions.
For the 2008 election, individuals can donate a maximum of $4,600 per candidate — $2,300 for a primary election and $2,300 for a general election — and a total of $108,200 per election to all federal candidates and national political parties.
In the wake of a 2002 law that set those limits, federal and state regulators and law-enforcement officials said they have seen a spike recently in the number of cases of individuals and companies illegally reimbursing others for campaign donations. Those cases don’t necessarily implicate the candidates, who sometimes don’t even appear to be aware of such payments executed on their behalf.
The 2002 law also raised penalties for infractions and included the prospect of prison sentences for offenders for the first time. That increased incentives for the FEC and federal prosecutors to investigate and prosecute infractions. Since the law was enacted, the FEC has collected millions of dollars in fines for illegal donations, including its largest-ever penalty, a $3.8 million levy against Freddie Mac last year.
BIPARTISAN UPDATE: Newt gives back $50,000 to a charity that wasn’t supposed to be getting mixed up in politics.
ANOTHER UPDATE: Commenter P_Luk is furious enough with me to hit the Caps Lock button, and asks: DO YOU THINK THAT HILLARY CLINTON KNOWS ABOUT THIS? IF NOT, WHY IS IT NEWSWORTHY?
I would be exceedingly surprised if she did, and the story itself points out that this is a growing problem that does not necessarily implicate the candidates themselves. Let’s repeat:
In the wake of a 2002 law that set those limits, federal and state regulators and law-enforcement officials said they have seen a spike recently in the number of cases of individuals and companies illegally reimbursing others for campaign donations. Those cases don’t necessarily implicate the candidates, who sometimes don’t even appear to be aware of such payments executed on their behalf.
What makes it of interest is that it is evidence of yet more abuse of a broken campaign finance system, a subject that we have written about often.
WEDNESDAY UPDATE: In the Los Angeles Times today, Chuck Neubauer and Robin Fields tell us more about Hsu:
For the last 15 years, California authorities have been trying to figure out what happened to a businessman named Norman Hsu, who pleaded no contest to grand theft, agreed to serve up to three years in prison and then seemed to vanish.
“He is a fugitive,” Ronald Smetana, who handled the case for the state attorney general, said in an interview. “Do you know where he is?”
Hsu, it seems, has been hiding in plain sight, at least for the last three years.
Since 2004, one Norman Hsu has been carving out a prominent place of honor among Democratic fundraisers. He has funneled hundreds of thousands of dollars in campaign contributions into party coffers, much of it earmarked for presidential hopeful Sen. Hillary Rodham Clinton of New York.
In addition to making his own contributions, Hsu has honed the practice of assembling packets of checks from contributors who bear little resemblance to the usual Democratic deep pockets: A self-described apparel executive with a variety of business interests, Hsu has focused on delivering hefty contributions from citizens who live modest lives and are neophytes in the world of campaign giving.