Clinton Donors Accused of Obstruction

ALEXANDRIA, Va. (CN) - Federal prosecutors say two Virginia businessmen reimbursed $186,600 in donations to Hillary Clinton's Senate and presidential campaigns using corporate money. The 7-count criminal indictment accuses William Danielczyk and Eugene Biagi of conspiracy, obstructing justice, causing false statements and other charges.

Danielczyk's assistant April Spittle allegedly helped the men. She pleaded guilty this month to one federal count of making reimbursed contributions to the 2008 presidential campaign.

Danielczyk co-hosted two fund raisers in 2006 and 2007 to support Clinton's campaigns. Danielczyk and Biagi allegedly sent 32 donors backdated letters or checks that referred to their campaign contributions as "consulting fees."

The backdated letters and checks allegedly caused the candidate to submit a false report to the Federal Elections Commission about the source of some campaign funding.

Campaign finance records show that at the time of the donations, Danielczyk was chairman of the merchant banking firm Galen Capital Group LLC, and Biagi was a consultant for the firm.

If convicted, Danielczyk and Biagi face maximum penalties of 5 years in prison for conspiracy, 10 years for reimbursing contributions and contributing corporate funds, and 20 years for obstruction of justice.

Each count of making a false statement has a maximum penalty of 5 years in prison, and a $250,000 fine, except the reimbursing contribution counts, which can carry a fine of up to 10 times the amount of the contributions.

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