Obama Campaign Returning Ponzi Money

After this morning's exclusive report in the Washington Free Beacon, the Obama campaign told Politico that it will return tens of thousands of dollars in donations from a contributor under investigation by the SEC for running a Ponzi scheme. Reports Byron Tau:

The Obama campaign will return the donations of an accused Ponzi schemer who is facing an SEC investigation, a campaign official confirms.

"With 1.8 million donors thus far, we constantly review those contributions for issues. In this particular case, we will be refunding the contributions and have placed the funds in escrow until a trusteeship or other appropriate place to return these funds is established given the interests of the investors," a campaign official told POLITICO. …

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It's not the first donation that the campaign has returned. Obama bundler and former N.J. Gov. Jon Corzine is facing an investigation into the collapse of his investment firm MF Global. In February, the campaign had to remove bundler Ron Klein for lobbying because of a self-imposed pledge against accepting lobbyist donations. And the New York Times reported earlier this year that one of Obama's top bundlers had ties to a Mexican fugitive whose family was seeking a criminal pardon.