Reporting on the charges filed against former Democratic fundraiser Norman Hsu, who has been “accused of violating campaign finance laws,” anchor Kim Posey stated on the September 20 broadcast of KDVR Fox 31's News at Nine O'Clock that "[t]he former campaign kingpin is also charged with being the brains behind a $60 million scheme." The segment further noted that Hsu was “tracked ... down last month when he made a big donation to [Sen.] Hillary Clinton's [D-NY] campaign,” but it failed to report that Clinton's campaign was “the first to return [the] money” donated by Hsu, according to a September 11 National Public Radio report.
From the September 20 broadcast of KDVR Fox 31's News at Nine O'Clock:
POSEY: Federal prosecutors have unsealed the charges against former Democratic fundraiser Norman Hsu. He's accused of violating campaign finance laws by making donations under other people's names. The former campaign kingpin is also charged with being the brains behind a $60 million scheme.
MICHAEL J. GARCIA (U.S. Attorney): There were no legitimate business operations by Hsu's companies. Like all Ponzi schemes, Hsu's eventually collapsed, leaving investors holding millions of dollars in bad checks.
POSEY: Hsu had a warrant out for his arrest since he skipped a court appearance in 1991. Officials finally tracked him down last month when he made a big donation to Hillary Clinton's campaign.
Fox 31 omitted the fact that while Hsu “has contributed or raised money for some two dozen candidates” and “Democrats have been ridding themselves of money that he donated,” Clinton was “the first to return [the] money,” as NPR reported. Moreover, as the Associated Press reported on September 20, “there was no evidence” that any Democratic campaign -- including Clinton's -- was “aware of the [Hsu] scheme or acted criminally,” according to U.S. Attorney Michael Garcia. The AP further reported that "[t]he Clinton campaign has been cooperating with the investigation, he [Garcia] said, and Clinton has already announced that she would give back $850,000 raised by Hsu."