Noting weeks-old news stories that Hsu allegedly "engaged in an illegal investment scheme," Clinton campaign spokesman Howard Wolfson announced Thursday evening that "out of an abundance of caution," all money raised by Hsu for the campaign would be returned to the approximately 260 individuals from whom Hsu reportedly raised the funds.
Questions had been raised in the last few days about many big contributions from Hsu's contributors, which appeared incommensurate with the modest incomes of the individuals and families who gave them. Both Hsu and the Clinton campaign had denied any wrongdoing.
Hsu, was wanted by California law enforcement for 15 years, until he turned himself in 10 days ago. Hsu posted bail, and failed to turn up to a Sept. 5 hearing. He was captured last Thursday after spending several hours reportedly trapped in the bunk of his Amtrak sleeper berth.
In his statement, Wolfson also announced that the Clinton campaign plans to "institute vigorous additional vetting procedures on our bundlers, including criminal background checks."
When news of Hsu's questionable activities broke in late August, Clinton's campaign re-gifted to charity $23,000 it had received directly from the wealthy Chinese-American fundraiser and cancelled a fundraiser he was slated to host. Several other politicians who received funds from Hsu have made similar donations.