THIS DOESN’T BODE WELL for Homeland Security in a future Hillary Clinton administration:

Before the announcement, new evidence surfaced that the Clinton camp had dismissed allegations about Hsu made by a Southern California businessman. In an e-mail obtained by The Times, a Clinton campaign staffer told a California Democratic Party official in June that the businessman’s concerns were unwarranted.

“I can tell you with 100 certainty that Norman Hsu is NOT involved in a ponzi scheme,” wrote Samantha Wolf, who was a campaign finance director for the Western states.”He is COMPLETELY legit.”

In fact, Hsu was a fugitive wanted on a 15-year-old bench warrant stemming from an early 1990s investment fraud case.

Oops. Meanwhile, the Wall Street Journal’s subscription-only “Political Diary” says that the real story is the Clinton Campaign’s continued refusal to name Hsu’s bundled contributors: “Yesterday, Team Clinton announced they were returning $850,000 to 260 donors linked to Hsu, although the Washington Post reported that they continue to refuse to identify the donors involved. . . . If the Hsu caper is an indication of how Team Clinton’s conducts oversight of its activities, I have no doubt the Federal Election Commision will eventually show interest in its activities. But, as Team Clinton well knows, by that time the 2008 election will be over.”