National Legal and Policy Center

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McLean, Virginia 22101

FOR IMMEDIATE RELEASE: CONTACT: Dan Rene
February 19, 1997 703-847-3088

Democratic Fundraiser Hsia Indicted

Group Demands DNC Return Hsia's Contributions


WASHINGTON, D.C. -- The Democratic National Committee and nine Members of Congress have failed to return tainted contributions from Democratic fundraiser Maria Hsia. In order to maintain the highest level of ethics and integrity in government, the National Legal and Policy Center today demanded that the DNC and the nine Members return all dirty money from Hsia.

"There is no excuse for keeping this tainted money," said NLPC President Peter Flaherty. "The slightest appearance of corruption is unacceptable, and the DNC should return these tainted contributions immediately."

Hsia was indicted yesterday on six counts including the illegal routing of $55,000 from a California Buddhist Temple to the DNC. The indictment resulted from Attorney General Janet Reno's investigation into campaign finance abuses in the 1996 elections.

In addition to the $55,000 raised at the Buddhist Temple, DNC has accepted $8,500 in direct contributions from Hsia according to the Federal Election Commission. The Democratic Senatorial Campaign Committee has also accepted $15,000 from Hsia.

"It's an outrage that Hsia subverted election laws. And, it's an outrage that the DNC has kept Hsia's contributions," added Flaherty.

NLPC issued a report on September 3, 1997 that identified Members of Congress who failed to return contributions from questionable contributors associated with the DNC fundraising scandals. Sen. Carl Levin (D-IA), Sen. Tom Harkin (D-IA) and Rep. Patrick Kennedy (D-RI), were among the nine not returning Hsia's contributions.

NLPC President Peter Flaherty stated, "If the Democratic Minority Leader Tom Daschle can return contributions from Hsia, why can't the DNC and Carl Levin?"

Sen. Tom Daschle (D-SD) and Rep. Nancy Pelosi (D-CA) have already returned contributions for Hsia. The complete NLPC report (or sections on individual recipients) are available by request at 703-847-3088.

NLPC is a nonprofit, nonpartisan foundation promoting ethics and accountability in government. NLPC was a plaintiff in the lawsuit which succeeded in opening the records of Hillary Rodham Clinton's Health Care Task Force. NLPC's Organized Labor Accountability Project is investigating and exposing corruption in the Teamsters, Laborers' International Union of North America, AFL-CIO and others. NLPC's Legal Services Accountability Project has called attention to hundreds of abuses in the federal legal services program.

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NOTE: For interviews to facilitate coverage, contact Dan Rene at 703-847-3088 or drene@nlpc.org