Hillary Clinton Fundraisers Indicted for Reimbursing Campaign Contributors

One of Hillary Clinton’s top fundraisers for her presidential campaign was indicted with a second man for improperly reimbursing $186,600 to donors, the U.S. Justice Department said.

Yesterday’s indictment, which covers Clinton’s 2006 Senate and 2008 presidential runs, charges William P. Danielczyk Jr., chairman of McLean, Virginia-based Galen Capital Group LLC, and Eugene R. Biagi, Galen’s secretary and treasurer, with reimbursing donors, sometimes with corporate funds, who gave to the campaigns of the current U.S. secretary of state.

Danielczyk raised more than $100,000 for Clinton’s unsuccessful bid to be the Democratic presidential nominee, according to Public Citizen, a Washington-based advocacy group.

Danielczyk, 49, and Biagi, 76, both of Oakton, Virginia, were each charged with conspiracy, illegally reimbursing contributions -- including some with company funds -- and obstructing justice. They are scheduled to appear Feb. 18 in federal court in Alexandria, Virginia.

The two men and other employees of Galen Capital gave $52,300 to the two Clinton campaigns, according to the Center for Responsive Politics, a Washington-based research group. While the indictment includes only initials of the reimbursed donors, some match the names of the contributors in the center’s listings.

Another Clinton fundraiser, Hassan Nemazee, admitted defrauding banks of $292 million and was sentenced to 12 years in prison. Democratic fundraiser Norman Hsu received more than 24 years in prison for campaign finance violations and defrauding investors of more than $20 million.

A phone number for Galen Capital was disconnected. Danielczyk’s home telephone number is unlisted, and no one answered Biagi’s home telephone.

The case is U.S. v. Danielczyk, 1:11-cr-00085, U.S. District Court, Eastern District of Virginia (Alexandria).

To contact the reporter on this story: Jonathan D. Salant in Washington at jsalant@bloomberg.net.

To contact the editor responsible for this story: John Pickering at jpickering@bloomberg.netl; Mark Silva at msilva34@bloomberg.net.

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