In charity and politics, Clinton donors overlap

Building a foundation
In June 1999, as the Clinton administration wound down, Mrs. Clinton told friends gathered in the White House solarium that wealthy donors had offered to establish a foundation for her. But she was set on running for the Senate in New York. That same month, Mr. Clinton and his chief fund-raiser met for dinner with 40 executives at La Grenouille, a French restaurant in Manhattan. The president had a vision for a charitable foundation that would tackle problems domestic and foreign, several former aides who helped establish the foundation said.

But first, Mr. Clinton had to raise money for his presidential library, which would ultimately cost $165 million. He found a ready pool of library donors in people and companies with matters before the government, many of them loyal Democratic contributors.

On October 6, 1999, the charitable arm of the Anheuser-Busch Companies gave $200,000, the first of five payments over five years totaling $1 million, according to records filed by the company’s foundation. Less than a month earlier, the company, the country’s leading beer maker, had scored a major victory when the Clinton administration’s Federal Trade Commission dropped a bid to regulate beer, wine and liquor advertising that critics said was aimed at under-age drinkers.

Francine I. Katz, a company spokeswoman, said the donation was unrelated to any government action and that its foundation had contributed more than $360 million to a wide array of organizations, including the Bush, Truman and Johnson presidential libraries.

William A. Brandt Jr., a bankruptcy lawyer in Chicago and prolific Democratic fund-raiser, pledged $1 million in May 1999. At the time, the Justice Department was investigating Mr. Brandt’s testimony to Congress about a $10,000 per couple fund-raiser he had held for the president’s 1996 re-election campaign. At issue was whether he had lied when he denied promoting it as an explicit opportunity to lobby a top bankruptcy official at the event.

In August 1999, the Justice Department determined that “prosecution is not warranted.” Mr. Brandt, who is now a Hillraiser, did not respond to several phone and e-mail messages.

Bernard L. Schwartz, another major Democratic contributor who was then chief executive of Loral Space and Communications, gave $250,000 and pledged $750,000 more in 2000. At the time, investigators were trying to determine if Loral had improperly provided satellite technology to China. Under the Bush administration, Loral agreed to pay a civil fine of $14 million to settle the case. Mr. Schwartz, who is now also a Hillraiser, said that his donations were unconnected to Loral’s troubles and added that he had contributed to other presidential libraries.

Family donors
Toward the end of the Clinton administration, Dr. Richard Machado Gonzalez and his lawyer, Miguel D. Lausell, both major Democratic donors in the 1996 presidential election, were pushing the president to increase Medicare reimbursements to hospitals in Puerto Rico, like the one owned by Dr. Machado. Mr. Lausell pledged $1 million to the library in 1999, eight months before Mr. Clinton proposed increasing Medicare payments to Puerto Rico for the second time in his administration. Dr. Machado gave the foundation $100,000 about six months later.

In the interim, the president appointed Mr. Lausell to the board of the Overseas Private Investment Corporation, which helps American companies with foreign projects.

Jeffrey Farrow, who coordinated issues involving Puerto Rico for the president, said the administration felt Medicare unfairly penalized Puerto Rico by paying a lower rate there than in the 50 states. Although Congress rejected the proposed increase, Mr. Farrow said “they didn’t have to contribute the way they did in order to get our attention.”

Both men are supporters of Mrs. Clinton, and Mr. Lausell serves as a senior adviser on Latino affairs. Dr. Machado did not return calls seeking comment, and efforts to reach Mr. Lausell through the campaign were not successful.

A fledgling telecommunications company, NextWave Wireless, was battling the Federal Communications Commission when library fund-raisers tapped its chief executive and a major investor. NextWave had promised to pay $4.74 billion for cellphone licenses, but when it declared bankruptcy before completing its payments, the F.C.C. threatened to put the licenses up for public auction, which would have ruined NextWave.

Over three consecutive days in December 1999, with a decision imminent, the library logged a $100,000 pledge from NextWave’s chief executive, Allen Salmasi, and a $100,000 contribution plus a $1 million pledge from Bay Harbour Management, a major investor in NextWave.

The agency ultimately repossessed NextWave’s licenses, prompting a court battle that the company won. Bay Harbour’s co-owner, Douglas Teitelbaum, who declined to comment, never fulfilled his promise to contribute the additional $1 million. Mr. Salmasi did not respond to an e-mail message or to calls to a company spokesman.

Mr. Clinton also found support for his library among some people who figured in the Democratic fund-raising controversies dating to the 1996 elections that involved White House sleepovers, coffees for big donors and money funneled from the Chinese government.

Among them was Farhad Azima, an Iranian-born aviation executive whose involvement in the Iran-contra scandal — one of his companies flew military equipment to Iran in the 1980s — prompted the Democratic National Committee to return a $143,000 donation in 1997. The party later accepted the money. Mr. Azima pledged $1 million to the library.

Another $1 million pledge came from Eric and Patricia Hotung. Mr. Hotung is a Hong Kong businessman who in 1997 was granted a meeting with Mr. Clinton’s national security adviser after Mr. Hotung’s wife, Patricia, an American, offered $100,000 to the Democrats.

Nine of the original library donors received presidential appointments to organizations like the President’s Committee on the Arts and Humanities and the United States Holocaust Memorial Council. In his final days in office, Mr. Clinton appointed two of the donors, the businessmen Mark S. Weiner and Vinod Gupta, to the board of the John F. Kennedy Center for the Performing Arts.

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