ABSTRACT
Phase I — Situation You are the chairman of the Democratic National Committee (DNC). During the 1996 presidential campaign, you had to return a large contribution that was solicited by John Huang, a senior party finance official who was suspended after reports that he had been involved in questionable fundraising. The committee had said the contributions of $325,000 initially appeared to have come from Yogesh K. Gandhi, a great-grandnephew of Mohandas K. Gandhi. The donation was made during a fundraising event in May 1996 in a Washington hotel at which he and an associate, a Japanese spiritual leader named Hogen Fukunaga, gave President Clinton a peace award. A few months later, Gandhi told a court in California that he had no assets or bank accounts in the United States. Party officials admitted that his court testimony had raised questions in their minds about the true source of the contribution and prompted them to return the money to Gandhi. The refund was the largest of several that the Democratic Party had to make in its fundraising process for the 1996 presidential campaign in support of President Clinton’s race (Labaton, 1996).
