Federal Charges Against Hillary Fundraiser
Norman Hsu's life just got a lot more complicated. Earlier today, federal prosecutors in New York announced that the filing of criminal charges against Hsu, who still has yet to serve a three-year term for fraud first imposed in 1992:
Hsu was charged with orchestrating a $60 million "Ponzi Scheme" and engaging in widespread campaign finance violations. ...Hsu has been a key Democratic Party fundraiser in recent years, donating large amounts including to the campaign of Sen. Hillary Clinton.
Federal authorities investigated Hsu's business dealings as prominent Democrats have been scrambling to return his campaign donations. Clinton has said she will return $850,000 the convicted scam artist had helped raise for her presidential campaign.
Hsu is in custody on an outstanding fraud warrant in California. Reports surfaced this summer raising questions if Hsu was illegally funneling money into campaigns through third parties.
The complaint shows that the feds mean business. They have constructed a case that purports the theft of "tens of millions of dollars" in what may be the biggest private con exposed in the US. As Joel Rosenman has already revealed, the con game relied on investor greed and lack of any diligence in convincing people that they could gain large returns over a short term by participating in loans. The initial investments showed a large return, and only after Hsu set the hook did he abscond with the big investments.
The payoff? $60 million. That makes his $2 million in political contributions look like chump change -- or perhaps insurance.
After all, where did Hsu send his political money? He supported Attorneys General in New York and California, where he had built financial bases. Hsu stuffed former AG Eliot Spitzer's coffers when Spitzer ran for Governor of New York. He became a Hillraiser, pouring contributions through all sorts of people of modest means. The complaint also specifically alleges that Hsu pressured his victims to donate large amounts of money in order to remain in what turned out to be a Ponzi scheme, meaning he was able to launder his fraudulent profits through them to Democratic candidates and organizations.
Victim-1 is almost certainly Joel Rosenman, who has already acknowledged giving Hsu $40 million. It turns out that Hsu gave him $40 million in post-dated checks -- but the account only had $83,000 left in it. Victim-3 has yet to come forward, but apparently has lost $20 million in the bridge-loan scheme. All victims got pressured into political donations directed to Hsu's favored candidates and organizations.
Don't forget that Norman Hsu has $6 million in his checking account as of his latest capture. We know where at least some of the money went.
With a federal prosecution looming on the horizon, one that could put him in prison for life, it will be interesting to see whether Hsu starts singing. Someone staked him for his initial confidence games, and for some purpose. Will Hsu crack?
Posted by Ed Morrissey on September 20, 2007 3:14 PM | Comments (26) | TrackBacks (2)
Comments (26)
Posted by GarandFan | September 20, 2007 4:07 PM
Were I Hzu, I'd stay out of any parks in Washington. He's already on the books as "suicidal".
Posted by E9 RET | September 20, 2007 4:10 PM
How do we know donations are returned? Did the Paw family get a refund?
Is he going to survive? If he does he's gotta be one of the only (THE only?) shady donors to be in a position where he can't flee.
Ugly, it's gonna get REAL ugly.
Posted by John Wilson | September 20, 2007 4:13 PM
With so many charges coming from so many directions, what deal could he possibly cut? His only real hope is to get bail and flee again, IMHO.
Posted by Anna Puna | September 20, 2007 4:27 PM
Dang.... a whole hsu of trouble with a capital T in Rivercity.
Hsu himself should be treated as if he has Ebola while the money he funneled/bundled should be considered radioactive by anyone who received it.
Anyone who sticks around him now or keeps the money, is a fool or Hsu has blackmail on them.
Posted by MajorO | September 20, 2007 5:14 PM
But wait!! I thought that the ULTIMATE campaign scandal was Jack Abramoff and the Republicans????
This does NOT fit the narrative!!
Now that the Hsu is on the other foot, I don't see the same caterwauling from our esteem-ed MSM.
Posted by RD | September 20, 2007 5:16 PM
IMO, Hsu was buying himself protection with his political donations. Who wants Hsu Hsinging? He should blow up that picture of him and Hillary together to bigger'n life and hang it in his cell. Then keep those Chinese mafia away from him.
Posted by RD | September 20, 2007 5:25 PM
The questions are 'what did Hillary know?" and when did she kow it?"
Posted by mrlynn | September 20, 2007 5:30 PM
My bet's still on the Chinese, though Hsu may have been suckering them, too.
How far will the Bush administration push this, and how soon? As far as it goes, and before November, 2008, one hopes.
/Mr Lynn
Posted by FedUp | September 20, 2007 5:32 PM
Can't we bring charges against Hillary??? Like... for breathing or sumpin...
Posted by Bob Mc | September 20, 2007 6:38 PM
Just for fun, run on over to CNN. Do a search for "Norman Hsu" and count the # of stories published by CNN.
Then search for OJ, Abramhoff, or hell, Imadinnerjacket.
The last time a I counted CNN-Hsu stories (Tuesday?), the count was 4. 4 shall be the count..ah ah ah!
Posted by Carol Herman | September 20, 2007 6:56 PM
I give ya odds he ends up in a mental institution.
Won't be "fit" to stand trial.
Oh. And, heavily sedated.
Did I leave anything out?
Posted by RKV | September 20, 2007 7:38 PM
I'd love to see our current AG and former governor Jerry Brown dressed in an orange jumpsuit and on the way to the Federal pokey! The smoking gun to this may be bail being set for Hsu in California, as one of Jerry's kids (Deputy AG) made the arguments that allowed Hsu's bail and subsequent flight.
Posted by Hugh Beaumont | September 20, 2007 8:41 PM
Queen Hill is due for another "Pretty In Pink" news conference.
Posted by daytrader | September 20, 2007 9:53 PM
Captain
The complaint only alledges a couple of cases where he reimbursed the donors, the rest are those he pressured to donate by threatening to cut them out of his Ponzi scam.
Ditto above
Contradicts what you claimed in the prior quote unless you are trying to say they all were paid by Hsu to do the deed. But the first quote says otherwise.
Even the complaint states that Hsu was using the donations to gather status with politicians and power insiders not for political gain (he by all accounts asked for no political favors) but more so to enhance his image to make his Ponzi schemes easier to sell.
Plus at the news conference today by the prosecutors said that the investigation had been ongoing since last year.
The earliest mention in all the news and blog coverage of the Hsu affair otherwise only dates back to June when Jack Cassidy sent his emails warning about potential issues with Hsu.
So this raises the question of just what, when and why was the investigation started.
Posted by theblacksheepwasright | September 20, 2007 9:58 PM
Another big Dem donor also just bit the big one.. William Lerach.. class action attorney based in San Diego use to hold big fundraisers at his Rancho Santa Fe abode... Babs Boxer was regular..
Where was the press here?
and tonight one of his former partners was indicted on kickbacks Milberg..
Posted by daytrader | September 20, 2007 10:05 PM
Another tidbit from the news conference today was that the Clinton campaign was cooperating with the investigation.
Now we need to know, just when did Hillary get advised of the investigation.
Did she still take money like a sting operation?
Lots of questions here and more reason for Hillary to release all the names of the donors she is refunding.
It's only a delay game by here now, because when they show up as refunds in the FEC contribution data base at the next reporting period it will be available for anyone when that report is released.
Posted by Trochilus | September 20, 2007 10:15 PM
Back in the summer of 1967, George Romney, the then-Governor of Michigan, was the leading Republican candidate for the Presidency, at least among moderate Republicans. Then, in mid-August, he made a statement that ruined his chances. He said that he had been "brainwashed" on the VietNam War, and he shifted his prior support to to opposition to the war. Romney announced for the nomination that November, but by February, he was out.
The point is, that his support was completely undermined by the fact that he admitted he had been bamboozled. People simply concluded that a President should be someone who cannot be so easily "taken in."
As quoted in the Wikipedia posting about Romney, the Republican Congressman from Vermont, Robert Stafford
At what point does Hillary Clinton begin to come in for some very heavy criticism for the fact that she too has been "bamboozled" on a few very important occasions.
She firmly voted for the resolution authorizing military action in Iraq, and she vigorously defended her action at the time, and for more than a year thereafter. Yet now, she has taken a 180 degree change, and even refused to vote for a statement condemning MoveOn.org's characterization of General Petraeus as a man who has betrayed his country! Personally, I happen to believe that she is completely disingenuous in her current views. But even if you take her at her word (with a very generous willing suspension of disbelief) she comes across as a person who was easily fooled.
And just as telling, is her appearance of utter incompetence when it came to allowing a convicted swindler, Norman Hsu, to so completely compromise the financing side of her campaign.
Make no mistake, she has knowingly allowed several highly questionable characters in as her bundling financiers -- men like Robert Torricelli, the former Senator from New Jersey, who had to withdraw in disgrace a few years when even his fellow Senators roundly condemned his unethical actions!
Here is a person who claims to be the most "experienced," candidate, and yet, she has never run a damn thing in her life -- except a bizare and still-born effort to radically upend this nations entire healthcare system.
So, on those three very significant items, she came up "0" for three. Goose-egg!
At what point do the American people begin to give her performances to date the gimlet eye, and turn elsewhere for leadership?
Posted by daytrader | September 20, 2007 10:16 PM
My current list of problematic Clinton donors
San Singh Chatwal (Hampshire hotels and Bombay Palace)
Abdul Rehman Jinnah (on FBI most wanted list)
Tendo Oto
Peter Paul (partner of Stan Lee of Spiderman fame)
Raul Martinez (ex mayor of Miami)
Oscar Wyatt (oil for food)
William Danielczyk
William Lerach (Milberg-Weiss)
Posted by daytrader | September 20, 2007 10:23 PM
As of 11:22 PM EST 20 Sept the Hillary campaign website still lists Norman Hsu in her list of HillRaisers.
Posted by La Mano | September 20, 2007 11:18 PM
Hope he doesn't get 'Fostered'.
Posted by brooklyn - hnav | September 20, 2007 11:19 PM
It really smells...
but this is the same old Clinton song and dance.
* here is more from the mighty Gateway Pundit:
"Mullah Moolah - Iranian Regime Sympathizers Bring In Bundles for Hillary"
Posted by Gregory | September 21, 2007 2:10 AM
We can see the narrative developing here. He wasn't a Democrat fundraiser, he was just a con man. These Dems are going to be portrayed a victims. Some (allegedly) smart people gave him money and some (allegedly) smart politicans took his money and these people don't like being made to look dumb. Hsu will be cast as a fraudster and his role as a fundster will be downplayed. It's a Ponzi scheme, not a fundraising scandal. And none to soon as ABC News is sitting on the story until they can find a way to do it without mentioning the word Democrat.
Posted by burt | September 21, 2007 6:57 AM
NO doubt look for DNC hit team at ABC,namely Charles Gibson , Mario Cuomo's son, George Step, and Brian Ross will develop the new party line which is the DNC and Queen Hilary were the real victums here. The new line will be those evil political contributions and why haven't those evil Republicans and George BUsh done something about this problem just like Katrina !
ABC , CBS, NBC, CNN, MS"DNC " are divisions of the Clinton/ George Soros corporation for a socialist America !
Posted by The Welshman | September 21, 2007 2:55 PM
Wouldn't the cash in Hsu's checking account be forfeit under the RICO statutes?
What about the campaign contributions and RICO? If ever there was a case designed for RICO this is it.
I'm surprised the Feds haven't seized every dollar Hsu stole.
Posted by Papa Ray | September 21, 2007 7:35 PM
Jeez, now I'm confused.
At first guess, I was positive the Chinese were behind this, then I got to thinking, maybe the Mullahs, then my old hatred of the real devil in this world came forth.
SOROS
Keep digging....
Papa Ray
West Texas
USA
Posted by Rosetta | September 23, 2007 2:52 PM
BEFORE NORMAN HSU (AND ALL THE OTHERS), THERE WAS THE PEACE DIVIDEND: HOW THE CLINTONS GOT AND USED THAT.
Set the Wayback Machine for 1991, on a warm afternoon at San Jose State University, Bill Clinton, running against George H.W. Bush and H. Ross Perot, tells California educators the "Peace Dividend," should be used to beat swords into plowshares.
In order to plunder the "dividend," Bill Clinton sets up a college. In 1993 Clinton appoints Congressman Leon Panetta, OMB Director and Panetta puts Fort Ord on the block. At Panetta's behest, Congress passes the Pryor Amendment. That is, Fort Ord without use restrictions; the amendment even appropriates money for legal defenses. Les Aspen, slated to head the campus, passes away unexpectedly. Clinton appoints Panetta chief of staff in 1994. And, The Presidential Search Committee picks Vermont's Peter P. Smith. Currently, former Arkansas Governor David H. Pryor (D) serves as Dean of the Clinton School of Public Service, Little Rock, Arkansas.
Ushered through the California Legislature, as a San Jose State, Salinas, extension campus (with help from newly appointed CSU Chancellor Barry Munoz), the politicos co-opt the proposed extension on Fort Ord, and christen it their own personal residential campus, CSU Monterey Bay. Bill Clinton dedicates CSU-MB, Labor Day 1995. Leon Panetta also knows the Clintons "20-year plan." Columnist George F. Will opined that plain English did not seem to be a spoken dialect at the Clinton College. As it turns out, Arabic was. First order of business: acquire and train Middle Eastern flight-students.
November 2001, Bill Clinton speaking at Georgetown University says, “Here in the United States, we were founded as a nation that practiced slavery, and slaves quite frequently were killed even though they were innocent.” “This country once looked the other way when a significant number of Native Americans were dispossessed and killed.” Clinton went back centuries to regale Georgetown students with Crusader atrocities against Moslems, "we are still paying for it."
At CSU-MB’s dedication, when Bill Clinton called the nonprofit sector “a political gold mine,” few knew the politicos had already purchased several large tracts of military housing from the DOD, for $1-dollar. That, nonprofits use “foundations” to funnel profits wherever they desire. Nothing is greedier than a California landlord; Fort Ord’s new owners are no exception. They ruthlessly misrepresent the campus and pocket untold millions of dollars in student rents, etc. As the years progress, the politicos perpetrate every education scam imaginable.
Bill Clinton concluded his Georgetown speech, by saying that the issue revolves around “the nature of truth.” Maybe so, but that’s a straw man: an argument set up to be defeated. As early as 1993, the Clintons began siphoning off the so called “Peace Dividend” to elect Hillary Clinton president of the United States, and create the progressive paradigm best suited to return Bill Clinton to the White House, a wartime co-president. Truth is, nobody games the system like the Clintons: http://theseedsof9-11.com