Charities benefit as Democrats run from felon’s funds

Democrats have been writing out checks to charity after it was revealed that one of their major donors had been on the lam for 15 years for a felony theft conviction.

Count Sen. Harry Reid of Nevada among the party leaders who have divested contributions from apparel maker Norman Hsu.

The Searchlight Leadership Fund, Reid's political action committee, reported a $2,000 contribution from Hsu on May 17.

A week ago, Reid rejected the money, writing a $2,000 check to the Committee to Aid Abused Women, a Reno-based organization, his spokesman said. The money was disgorged "as soon as we found out" about Hsu, spokesman Jon Summers said.

In 1991, Hsu pleaded no contest to a grand theft felony count in California, acknowledging he defrauded people of $1 million in an investment scam. He didn't show for his sentencing and was believed to have fled to Hong Kong.

Several years later, he resurfaced in New York, and in recent years became known as a prolific political fundraiser. He has raised more than $1 million for Democratic candidates and initiatives and was a top fundraiser for Sen. Hillary Clinton, D-N.Y.

He turned himself in Aug. 31 at the San Mateo County Superior Court. He subsequently disappeared again, but was arrested Thursday in Colorado.

Clinton and fellow presidential candidate Barack Obama said they plan to donate Hsu's contributions to charity. Others reportedly writing checks include Pennsylvania Gov. Ed Rendell, New York Gov. Eliot Spitzer, California Reps. Mike Honda and Doris Matsui, and Sens. John Kerry and Edward Kennedy of Massachusetts.

Rep. Patrick Kennedy, D-R.I., said he plans to keep $6,600 in Hsu donations because there was no indication they were illegal, his chief of staff told The Associated Press.

REPUBLICANS KEEP CRAIG MONEY

Regarding political contributions from disgraced figures, the National Republican Senatorial Committee apparently has decided to keep the $35,000 that Sen. Larry Craig, R-Idaho, had given between 2004 and 2006.

The Republican organization headed by Sen. John Ensign, R-Nev., said last week it was looking into whether to divest the funds after Craig pleaded guilty to a sex-related charge in Minneapolis this summer.

But NRSC spokeswoman Rebecca Fisher said in an e-mail on Thursday that the matter "is not under active consideration."

ENSIGN ABSENT FROM WELCOME

At least 34 of 49 Republicans attended last week's welcome-back ceremony for Sen. Tim Johnson, D-S.D., but Sen. John Ensign, R-Nev., wasn't among them.

"Senator Ensign wishes he could have been there, but unfortunately his schedule didn't permit it," Ensign spokesman Tory Mazzola said.

He did not say what Ensign was doing at the time, but other aides said it was not an intended snub.

Johnson, 60, returned to the Senate on Wednesday after nearly dying last December from an aneurysm that required brain surgery.

His speech still slurred, Johnson rose from his motorized wheelchair and said his mind is sharp.

Ensign, who is chairman of the National Republican Senatorial Committee, will direct efforts to unseat Johnson if he seeks re-election in 2008, which appears likely.

When Ensign announced in August he was recruiting candidates for the South Dakota race, Johnson spokeswoman Julianne Fisher blasted his comments as "a classless attack by a desperate chairman."

Ensign retorted that Fisher's comments and other critical remarks by former Senate Majority Leader Tom Daschle, D-S.D., were "ridiculous."

Chris Cillizza, a political pundit for the Washington Post, agreed Fisher's statement was "incredibly overheated," but added "we don't envy Ensign's task in this race."

COMPETITION FOR BERKLEY

Greg Nance, a 48-year-old member of the Nevada State Board of Education, announced Friday that he will run in the Republican primary for the District 1 congressional seat held by Democratic Rep. Shelley Berkley.

An ordained minister at the Ambassadors for Christ Church, Nance said his campaign will center on bringing prayer to public schools.

"Why should the minority be able to rule over the majority on such an important issue?" Nance said.

The general election for the congressional seat will be held in November 2008.

"Announcing now gives me plenty of time to gain support," Nance said.

Stephens Washington Bureau writer Tony Batt and Review-Journal writer Paul Harasim contributed to this report.