The charity founded by Hillary and Bill Clinton may have broken federal law by channelling money towards a company part-owned by their close friends, it was alleged last night.

The claim threatened to distract Mrs Clinton’s presidential campaign, which is already fighting the widespread perception that the former secretary of state is untrustworthy.

The allegations involve Energy Pioneer Solutions, a company that aimed to make money by insulating homes and allowing customers to pay through their utility bills.

According to The Wall Street Journal, the Clinton Global Initiative lined up $2 million in funding for the venture.

That may have been illegal, since the CGI is part of the Clinton Foundation, which is registered in the US as a tax-exempt charitable organisation.

The Internal Revenue…