Corzine to give up funds from Kushner (big Dim donor hired prostitutes to obstruct justice)

Star-Ledger ^ | DAVID KINNEY | Saturday, July 17, 2004

[Liz]

Pledge to yield $113,000 is largest from a politician

U.S. Sen. Jon Corzine and a national Democratic fund-raising committee he runs are giving up $113,000 in campaign contributions received over the years from real estate developer Charles Kushner, party officials said yesterday.

Kushner was arrested Tuesday by federal agents on charges of obstructing a federal investigation into his finances and campaign contributions. Prosecutors accuse him of hiring prostitutes to have sex with two government witnesses, and say he sent a secretly recorded videotape of an encounter between a prostitute and one of the witnesses -- identified by sources as Kushner's brother-in-law -- to the witness's wife.

Two weeks ago, Kushner paid the fourth-largest fine ever levied by the Federal Election Commission, $508,900, to settle allegations that he made $500,000 in political donations from 1997 to 2000 in the names of various business partners without their knowledge.

State and national politicians are now grappling with how to deal with contributions, both legal and illegal, from someone who has contributed or directed at least $5.7 million to political candidates and parties since 1989.

FEC rules require that the $500,000 in improper donations be refunded or handed over to the U.S. Treasury.

--SNIP--

Corzine (D-N.J.), who received $50,000 in improper Kushner donations and $88,000 in all from the developer, is the first politician to give up the entire contribution. "We're going to take the most conservative approach and return all the money," said Corzine spokesman David Wald yesterday. He said he did not yet know whether the funds would be refunded or donated to charity.

Meanwhile, the Democratic Senatorial Campaign Committee, a fund-raising arm through which Corzine is raising money for U.S. Senate candidates, said it would refund $25,000 Kushner contributed in 2003, even though the donation was not deemed improper by the FEC. Kushner has given the DSCC $1.1 million since 1989. The committee is giving back only the check he wrote during the current election cycle, spokeswoman Cara Morris said. "The DSCC reviews all of our donations both for lawfulness and appropriateness, and so we're returning that donation," Morris said.

--SNIP--

Kushner was Gov. James E. McGreevey's biggest benefactor. In recent years, the developer gave or directed $1.2 million to political committees connected to the governor -- to his campaign; to the Committee for Working Families, a federal PAC McGreevey established before the 2001 election; and to the Democratic State Committee.

McGreevey's campaign account and the state committee have no plans to return any donations, party officials said. Kushner has not contributed to them for two years, they said. Kushner's contributions to the Committee for Working Families cannot be refunded because the PAC is now defunct, attorney Angelo Genova said.

--SNIP--

U.S. Sen. Charles Schumer (D-N.Y.), who has accepted $92,000 from the developer over the years, this week gave $4,000 in Kushner donations to charity.

U.S. Sen. Hillary Clinton (D-N.Y.), who has received $157,000 from Kushner and his companies, will give up the $2,000 check she received this election cycle if he is convicted, spokeswoman Jennifer Hanley said.

Spokesmen for other leading recipients of Kushner's contributions, including the Democratic National Committee ($1.93 million); and U.S. Sen. Frank Lautenberg (D-N.J.) ($231,000) did not return calls for comment.

David Kinney covers politics. He can be reached at dkinney@starledger.com or (609) 989-0273.

[Liz]

She's gonna hang onto the crook's $2K no matter what.

[Coleus]

Corzine can well afford it.

Let's see the other NJ democrats give the money back, I bet they don't. It's already a campaign issue from what I've read where the republican challengers of democrats running for congress are requesting they give the money back.

Rumor has it the Corzine will be running for governor in 05 and that Menendez or Andrews will run for Senate in Corzine's place.

[Carry_Okie]

U.S. Sen. Hillary Clinton (D-N.Y.), who has received $157,000 from Kushner and his companies, will give up the $2,000 check she received this election cycle if he is convicted, spokeswoman Jennifer Hanley said.

Magnanimous in her ignominy.

[MarkL]

I've always wanted to know why the people who bribed "The Torch" are in jail, but that ba***rd is still out on the streets.

It's always seemed to me that the law should be much harder on the bribed politician than the one doing the bribing.

Then again, the pols are the ones who make the laws, aren't they...

Mark