Hillary Clinton Campaign Press Release - Clinton Campaign Calls on Obama to Shut Down PAC

On Face the Nation, Clinton aide urges Obama campaign to close fund

The Clinton campaign today called on Senator Barack Obama to shut down a PAC his campaign has admitted using to direct money into the states slated to hold the first nominating contests.

Appearing on Face the Nation this morning, Clinton communications director Howard Wolfson asked Senator Obama's top strategist, David Axelrod, if the Obama campaign would close the PAC:

"There's a lot that voters don't know about Barack Obama. And one thing they don't know – we found out this week – is that he has been using and operating a so-called leadership PAC, in apparent contravention of campaign finance laws, taking in money from lobbyists despite the fact he said he doesn't take money from lobbyists, taking in money from lobbyists and giving money out to candidates in New Hampshire and Iowa to support his presidential campaign. Senator Clinton does not have such a PAC. Others have shut theirs down. I would call on call on David; David, will you shut down Senator Obama's slush fund?"

[Watch Video] of Wolfson here: http://www.youtube.com/watch?v=PM1Mx7WMdes

After initially denying any involvement with the PAC called Hopefund, the Obama campaign has now conceded that it encouraged the PAC to give political donations to officials in early states. The acknowledgement raises questions about whether the PAC has been used as a slush fund to benefit the Obama campaign.

FEC laws bar a candidate's campaign from using the candidate's leadership PAC to benefit his or her campaign. Senator Obama's PAC has given 68 percent of its contributions to those in states that are scheduled to hold nominating contests on February 5th or earlier.

According to its most recent FEC filing, Hopefund still has about $100,000 in the bank that his campaign – in apparent contravention of federal election laws – could funnel to early states.

On the campaign trail, Senator Obama tells voters he rejects money from federal lobbyists and corporate political action committees. But the Hopefund money he is distributing in early states includes over $120,000 from federal PACs and over $30,000 from registered federal lobbyist including Lockheed Martin, Wal-Mart and Citibank.

Senator Clinton's leadership PAC – HillPAC – was made dormant when she announced she would seek the Democratic nomination last January.