Corruption Charges

The lead article in today’s New York Times, “Liu Fundraiser Facing Charges over Donations,” shows that political corruption goes beyond the big stories coming out of Washington and can extend all the way down to cities and local organizations.

The story about John Liu, the New York City comptroller, describes the practice of using “straw donors,” fictitious names or stand-ins to circumvent the city’s campaign finance limits of $4,950 per person. Using straw donors also involves a misuse of the city’s generous matching program of $6 for every dollar contributed.

The person arrested, Xing Wu Pan, was accused of fraud, and a specific fundraiser attended by the candidate’s treasurer included the straw donors mentioned. The nature of Mr. Liu’s relationship with Mr. Pan is still being investigated.

It seems inevitable that more misdeeds will be found as the investigation is just beginning, and usually these situations are widespread through a campaign instead of being just one isolated incident. Certainly, any future political ambition of Mr. Liu can be ruled out for the foreseeable future.

Once again, an agent of the Federal Bureau of Investigation, posing as a businessman, blew open the case. With the movie J. Edgar, about Hoover and the FBI, just coming out, it is a testament to the effectiveness of the organization.