Hsu to Waive Extradition

September 13, 2007 4:43 PM

Anna Schecter and Avni Patel Report:

Disgraced Democratic fundraiser Norman Hsu will waive extradition and return to California as soon as transportation is arranged by the authorities, his lawyer said today.

Hsu was wanted by California law enforcement for 15 years until he turned himself in earlier this month. Hsu posted bail but failed to turn up to a Sept. 5 hearing. He was captured last Thursday in Colorado after spending several hours reportedly trapped in the bunk of his Amtrak sleeper berth.

Before he skipped the court hearing and boarded the train bound for Chicago, he typed out a suicide note and sent copies to several acquaintances and charitable organizations, the Wall Street Journal reported today.

The one-page note, signed by Hsu, "very explicitly said he intended to commit suicide," one of the recipients reportedly said in an account corroborated by others, including law enforcement officials.

Hsu was released yesterday from St. Mary's Hospital in Grand Junction, Colo., and transferred to the Mesa County Jail pending extradition to California.

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Hsu, an apparently wealthy apparel magnate, had pleaded no contest in 1992 for what authorities have called a Ponzi-like fraud scheme involving latex gloves that cost investors more than $1 million, but never showed for his sentencing hearing at the time.

The old 1992 criminal case is pending and will be handled by the courts in due course, his lawyer said. 

Hsu's legal woes may be expanding with new inquiries into his business dealings with a New York-based investment fund. A spokeswoman for New York District Attorney Robert Morgenthau said that their office is investigating whether Hsu "misappropriated" $40 million investments from Source Financing Investors, an investment fund run by Joel Rosenman, one of the creators of the 1969 Woodstock rock festival. The Wall Street Journal reported yesterday that an attorney for Source Financing Investors had contacted the district attorney's office after checks from one of Hsu's company bounced due to insufficient funds.

Since 2004, Hsu has contributed more than $250,000 to Democratic candidates and raised hundreds of thousands more from other donors, according to public records.

Hsu reportedly raised well over $1 million for Hillary Clinton's 2008 presidential campaign by eliciting donations from others and giving generously from his own pockets. Questions have been raised in the last few days about many big contributions from Hsu's contributors, which appeared incommensurate with the modest incomes of the individuals and families who gave them.

While suspicious, no evidence has surfaced that any donations are illegal, and both Hsu and the Clinton campaign have denied wrongdoing. Clinton's presidential campaign said it donated $23,000 to charity, the same amount that Hsu had personally given her.

Her campaign will refund $850,000 in donations connected to Hsu.

Other candidates, including Sens. Barack Obama, D-Ill., and Joseph Biden, D-Del., have agreed to forward Hsu's contributions to charity as well. Rep. Patrick Kennedy, D-R.I., however, said he plans to keep $6,600 he received from Hsu because the donation was not illegal, his aide said.

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September 13, 2007 in Norman Hsu, Clinton Fundraiser | Permalink | User Comments (5)

Clinton to Return Hsu-Linked Cash

September 10, 2007 8:23 PM

From The Blotter:

Hillary Clinton's presidential campaign will refund $850,000 in donations connected to disgraced fundraiser, felon and would-be escape artist Norman Hsu.

Noting weeks-old news stories that Hsu allegedly "engaged in an illegal investment scheme," Clinton campaign spokesman Howard Wolfson announced Thursday evening that "out of an abundance of caution," all money raised by Hsu for the campaign would be returned to the approximately 260 individuals from whom Hsu reportedly raised the funds.

Questions had been raised in the last few days about many big contributions from Hsu's contributors, which appeared incommensurate with the modest incomes of the individuals and families who gave them.  Both Hsu and the Clinton campaign had denied any wrongdoing.

Hsu, was wanted by California law enforcement for 15 years, until he turned himself in 10 days ago. Hsu posted bail, and failed to turn up to a Sept. 5 hearing. He was captured last Thursday after spending several hours reportedly trapped in the bunk of his Amtrak sleeper berth.

In his statement, Wolfson also announced that the Clinton campaign plans to "institute vigorous additional vetting procedures on our bundlers, including criminal background checks."

When news of Hsu's questionable activities broke in late August, Clinton's campaign re-gifted to charity $23,000 it had received directly from the wealthy Chinese-American fundraiser and cancelled a fundraiser he was slated to host.  Several other politicians who received funds from Hsu have made similar donations.

September 10, 2007 in Norman Hsu, Clinton Fundraiser | Permalink | User Comments (45)

Who Is Hsu? Captured Fundraiser Didn't Vote

September 07, 2007 12:25 PM

Justin Rood Reports:

Mysterious Democratic fundraiser Norman Hsu is in custody again, after a brief return to a fugitive lifestyle he maintained for 15 years. But new questions are cropping up about his past.

The latest puzzle: Despite funneling hundreds of thousands of dollars into Democratic coffers, Norman Hsu is not a member of the Democratic party. In fact, records appear to reflect he isn't even registered to vote.

Hsu's name does not appear on voter rolls in either California, where Hsu lived in the 1980s and early 1990s, or in New York, where he lived more recently, according to documents and state officials.

After news accounts last month exposed the criminal past of the tireless fundraiser, who had donated and raised hundreds of thousands of dollars for Hillary Clinton and a host of other Democratic candidates, Hsu turned himself in -- only to skip out on $2 million bail.

He was nabbed by the FBI in Colorado last night and is being held in federal custody. Officials say he will be returned to California for sentencing.

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Hsu, reportedly a naturalized U.S. citizen, would have been eligible to vote, say experts, even after his 1992 conviction on a fraud-related felony charge.

While California and New York state laws bar imprisoned and paroled felons from voting, Hsu was never sentenced for his 1992 felony conviction. Hsu skipped out on his sentencing hearing, returning to court only last week -- before skipping out again.

For those 15 years, "he was in a gray area," said Ryan King, a policy analyst with the nonprofit Sentencing Project, which studies state and federal incarceration policies. According to the laws, "he was eligible to vote until the moment he's sentenced to prison or parole."

Strange details abound in Hsu's biography. Before his trial, Hsu was the victim of a kidnapping reportedly tied to a Chinese gang in the San Francisco bay area. After dodging his 1992 hearing, Hsu is believed to have returned to his native Hong Kong for several years.

Details of his businesses remain sketchy. Upon investigation, many of his recent business addresses appear to be little more than mail drops, despite the thousands of dollars those companies reportedly helped generate for Hsu that bankrolled his donations.

Many donations Hsu harvested for his Democratic politician friends came from people who, like himself, were not registered to vote. Some political finance experts have noted the families did not appear wealthy enough to afford the big-money checks they reportedly wrote to Clinton and others.

Hsu's spokesman did not respond to a request for comment from the Blotter on ABCNews.com. Hsu and the donors have denied wrongdoing and say the donations were all legal. Clinton's campaign said it has donated to charity the money it received directly from Hsu. Many other campaigns have followed suit.

Now in custody, Hsu is being held without bail and facing years behind bars. Once he's sentenced to prison, California will take away his right to the ballot which he apparently never exercised.

In perhaps an ironic twist, the state won't take away his right to make political donations, Ryan said. State law does not prohibit felons from contributing to political campaigns, leaving Hsu free to continue funneling thousands of dollars to candidates and groups of his choice.

"If a candidate wants to accept it, that's a different story," Ryan noted.

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September 7, 2007 in Norman Hsu, Clinton Fundraiser | Permalink | User Comments (43)

Dem Fundraiser on the Lam -- Again

September 05, 2007 1:52 PM

Justin Rood Reports:

Less than a week after turning himself in for a years-old arrest warrant, major Democratic fundraiser Norman Hsu failed to appear for a bail hearing today, and a judge issued a new warrant for his arrest.

Since 2004, Hsu has contributed more than $250,000 to Democratic candidates and raised hundreds of thousands more from other donors, according to public records.

At the hearing, Hsu's lawyer, James Brosnahan, said he did not know where his client was.

Last week, Hsu turned himself in and posted a $2 million bail.

Hsu, an apparently wealthy apparel magnate, had pleaded no contest in 1992 for what authorities have called a Ponzi-like fraud scheme involving latex gloves that cost investors more than $1 million, but never showed for his sentencing hearing at the time.

By failing to show up for today's hearing, he will forfeit the $2 million. If he is caught, he will be held without bail, according to the court record.

Hsu, whose criminal past came to light last week as attention focused on his prodigious fundraising efforts for Democrats, was supposed to turn in his passport at today's hearing.

Brosnahan told the court he had sent a law clerk to New York to retrieve Hsu's passport, but it could not be found. Brosnahan did not immediately respond to a request for comment.  It is not known where Hsu is or if he has his passport with him.

Hsu reportedly raised well over $1 million for Hillary Clinton's 2008 presidential campaign by eliciting donations from others and giving generously from his own pockets. Questions have been raised in the last few days about many big contributions from Hsu's contributors, which appeared incommensurate with the modest incomes of the individuals and families who gave them.

While suspicious, no evidence has surfaced that any donations are illegal, and both Hsu and the Clinton campaign have denied wrongdoing. Last week, Clinton's presidential campaign canceled a fundraiser Hsu was slated to host, and said it would donate $23,000 to charity, the same amount that Hsu had personally given her.

Other candidates, including Sens. Barack Obama, D-Ill., and Joseph Biden, D-Del., have agreed to forward Hsu's contributions to charity as well. Rep. Patrick Kennedy, D-R.I., however, said he plans to keep $6,600 he received from Hsu because the donation was not illegal, his aide said.

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September 5, 2007 in Norman Hsu, Clinton Fundraiser | Permalink | User Comments (20)

Dem Fundraiser Turns Himself In

August 31, 2007 2:09 PM

Justin Rood Reports:

Disgraced Democratic party fundraiser Norman Hsu is out of jail tonight, after surrendering to authorities for a 15-year-old arrest warrant.

After being led away in handcuffs this morning, Hsu posted the $2 million bail set by California Superior Court Judge H. James Ellis and was released.

Hsu, an apparently wealthy apparel magnate, had pleaded no contest in 1992 for what authorities have called a Ponzi-like fraud scheme involving latex gloves that cost investors more than $1 million.

But after entering his plea, Hsu failed to appear for sentencing. At the time, he reportedly faced up to three years in prison. When Hsu didn't show, a warrant was issued for his arrest.

Until news of his criminal past broke two days ago, Hsu was a major donor and fundraiser for Sen. Hillary Clinton, D-N.Y.'s presidential bid. He has also donated to the presidential campaigns of Democratic Sens. Barack Obama, Ill., and Joseph Biden, Del.

Hsu reportedly raised well over $1 million for Clinton's 2008 presidential campaign, by eliciting donations from others and giving generously from his own pockets. Questions have been raised in the last few days about many big contributions from Hsu's contributors, which appeared incommensurate with the modest incomes of the individuals and families who gave them. (Photo of Norman Hsu with Sen. Hillary Clinton, D-N.Y., courtesy of Stephen Schwartz.)

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While suspicious, no evidence has surfaced that any donations are illegal. Both Hsu and the Clinton campaign have denied wrongdoing. Clinton's presidential campaign confirmed an upcoming fundraiser Hsu was slated to host has been cancelled. The campaign recently said it would donate $23,000 to charity, the same amount that Hsu had personally given her.

Hsu is described as warm and generous, but an air of mystery surrounds him and his wealth. He was reportedly the alleged victim of a 1990 kidnapping by Chinese gang members in San Francisco, possibly over a debt. After his arrest and alleged kidnapping, Hsu returned to Hong Kong for several years, returning to the United States in 1996, according to his attorney.

Since 2004, Hsu has raised hundreds of thousands of dollars for Democratic candidates and committees, and personally donated nearly a quarter million dollars. He has reportedly hosted several fundraisers, including pricey birthday parties for at least two congressmen.

On Thursday, Obama's campaign said he would give to charity the $2,000 Hsu contributed to his 2004 Senate campaign and the $5,000 Hsu gave to his political action committee, Hopefund. Hsu's $43,700 in donations to the Democratic Senatorial Campaign Committee and $2,500 to the Democratic Congressional Campaign Committee also will go to charity, both groups announced Thursday.

Associated Press writer Paul Elias contributed to this report.

This post has been updated.

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August 31, 2007 in Norman Hsu, Clinton Fundraiser | Permalink | User Comments (31)