Donor Pleads Not Guilty to Illegal DNC Contributions

Thai businesswoman Pauline Kanchanalak, a central figure in the Justice Department’s campaign finance investigation, pleaded not guilty Wednesday to charges that she illegally channeled $679,000 in campaign contributions to the Democratic National Committee and various party candidates.

Kanchanalak, 47, left the United States for her native Thailand in January 1997, when her ties to major DNC donors were coming under scrutiny; her lawyer said she was “terrified” to be facing so much attention. She voluntarily returned to Washington from Bangkok on Tuesday so she could answer the charges contained in a 24-count indictment returned July 13.

At the request of federal prosecutors, who said they feared Kanchanalak might flee the country, U.S. District Judge Paul L. Friedman ordered Wednesday that she post a $250,000 bond, surrender her passport and remain in the United States until her trial. Kanchanalak left the courthouse without comment.

Her sister-in-law, Duangnet Kronenberg, 41, of McLean, Va., was also charged in the indictment. Kronenberg pleaded not guilty last week and is free on personal recognizance.

Kanchanalak and Kronenberg are accused of conspiracy, making false statements and other charges stemming from dozens of donations made from 1992 through 1996. Prosecutors said Kanchanalak, who is not a U.S. citizen or permanent resident, was barred from making federal campaign contributions. She and Kronenberg also are accused of making illegal contributions on behalf of foreign businesses in which they had an interest. According to prosecutors, they hoped the money would gain them access to President Clinton and others.

Kanchanalak rose to become a member of the DNC’s finance board of directors and attended a series of major events, including Clinton’s 50th birthday gala and a White House coffee in which she introduced Clinton to three other Thai business leaders.