Aides to Clinton and others say Hsu never asked for favors. But, like many donors, he would have his photo snapped with prominent people. A vanity wall lined with pictures of senators and governors can impress potential business partners, particularly those not be savvy enough to know that politicians regularly pose for such pictures.
"I recall him as a regular face at Democratic candidate fundraising events," said John Emerson, one of Clinton's major Southern California backers. "He strikes me as one of those guys who likes to be in the room, likes to be the guy who is there and has taken a picture with a candidate."
Although Hsu was particularly active on Clinton's behalf, she was hardly the only candidate who received Hsu's contributions. After making his first federal campaign donation in September 2003, Hsu generated more than $1 million for Democratic politicians.
Clinton communications director Howard Wolfson said Friday that Clinton, like all candidates, relied on publicly available information to vet major donors. The system did not detect details about Hsu's past. "There is a series of steps to examining donations when they come in, and obviously, in the case of Mr. Hsu, these did not uncover this decade-plus-old warrant," Wolfson said.
Because Hsu had been giving to other candidates, Democratic recipients assumed he was a reputable source of money.
In most instances, a donor's background is well-known. But if the person is not known to the campaign, that person will be vetted.
All major campaigns employ researchers who investigate their opponents, and pick over their candidates' donors, particularly those who are raising six-figure sums. Some campaigns retain consulting firms specifically to vet donors.
One consultant said some campaigns ask donors for permission to run background checks because political opponents almost certainly will investigate the sources of their foes' campaign money.
Another problem was the pattern of donations made by Hsu and his friends, particularly those from a family that lives in a modest home in Daly City, a working-class town south of San Francisco.
Members of the family have given more than $200,000 to politicians in recent years, often on or about the same days that Hsu gave money. Federal law prohibits donors from reimbursing others who give at their behest.
Clinton and Sen. Barack Obama (D-Ill.) each received money from the Daly City clan. After the proximity of the donations became the focus of news accounts, Obama and Clinton sent letters to the family seeking assurance that the donations came from their own bank accounts.
"There is a concern, though nothing is proven, that there is some potential reimbursement of campaign contributions," said Richard L. Hasen, a Loyola Law School professor and election law expert. "Anytime you have an entire family or group of employees of apparently modest means making large contributions . . . it raises a red flag."
At an appearance in New York this week, Clinton vowed that her campaign would "continue to analyze all contributions and take action if that's warranted."
dan.morain@latimes.com
