Justice Department Opens Investigation Of Hsu

Captain's Quarter ^ | 9/1/07

[LdSentinal]

The Department of Justice has opened an investigation into the fundraising activities of Norman Hsu, the man who put over a million dollars into Democratic coffers while remaining a fugitive con man. They want to find out whether more than just coincidence linked heavy donation activity between Hsu and at least two households of more modest means -- and the answers could prove very embarrassing for top Democrats:

The U.S. Justice Department is investigating possible campaign-finance violations by top Democratic fundraiser Norman Hsu, according to people familiar with the probe. On Friday, Mr. Hsu surrendered to California officials on an unrelated grand-theft charge dating to the early 1990s.

Mr. Hsu, who, until earlier this week was one of the biggest fundraisers for Democratic presidential frontrunner Hillary Rodham Clinton, was booked at the San Mateo County jail, where he was handcuffed and later released on $2 million bail. Wearing a black suit and white shirt, Mr. Hsu rushed to a waiting black Chevy Suburban outside the jail lobby Friday afternoon without answering any questions from reporters.

Mrs. Clinton's campaign declined to comment yesterday. The New York senator, along with other Democrats, has said she would turn over donations received from Mr. Hsu to charity.

But Mr. Hsu's legal woes are a political blow to the many prominent Democrats who accepted his funds, in particular Mrs. Clinton. While there is no sign any of them were aware of Mr. Hsu's actions and prior record, they could be embarrassed by the probe of his fundraising.

It may prove more than just embarrassing. No one can determine where Hsu got his money -- and that's just the cash he personally donated. If the Justice probe shows that he used other people as fronts to move money illegally to Democratic candidates, that will deepen the mystery of the source of Hsu's funds even further.

According to the Wall Street Journal, Hsu fled to China after his fraud conviction. Records show him working for a Hong Kong exporter for the two years after jumping bail. If Hsu turns out to have gotten his funds from international sources hostile to the US, giving the money to charity will do little to restore reputations.

Even just for using fronts like the Paw family, Hsu faces some stiff prison time. In 2002, Congress made such activities criminal, and Hsu could get 5 years and a $250,000 fine on each count. That's federal prison time, where parole doesn't exist and good behavior gets at best a 15% reduction in time served.

If the DoJ finds a foreign source for those funds, Hsu's sentencing will take a back seat to the sentence of the American people on those who took his money without checking him out. This could get very ugly for the Democrats.

UPDATE: You have to give credit to the LA Times. They haven't let up on this case. In today's edition, they demonstrate how easy it would have been to discover the con man behind the shower of cash:

Clinton and her aides said there was little they could have done to protect themselves, but fundraising experts from both parties pointed to warning signs that should have given aides pause. ...

The most obvious red flag: A check of a commonly used database produces a 1990 San Francisco Chronicle news story detailing how Norman Hsu had been kidnapped by gang members in the San Mateo County suburb of Foster City. A second widely used database discloses that Norman Yuan Yuen Hsu of Foster City had a bankruptcy in 1990.

Having established that he lived in San Mateo County, a check of the San Mateo County Superior Court's website reveals that Norman Yuan Yuen Hsu had a criminal case.

The LAT quotes "aides to Clinton" as saying that Hsu never asked any favors and just liked having his picture taken with politicians. Uh, riiiiiiiiiight. And he committed the latex-glove fraud because he likes shaking hands with doctors. I suspect the FBI may have more information on whether Hsu asked for a favor or two every hundred thousand dollars by the time they complete their investigation.

UPDATE II: Gateway Pundit noticed that Hsu's name came up in the 1996 campaign finance scandal involving Charlie Trie and connections to China. It's tangential -- Hsu's name comes up in relation to a donation made to "Friends of Norman Hsu" by Sioeng San Wong. Even tangential, it connects the two scandals, and it could explain the FBI's interest in the case. Good work by Gateway Pundit in digging this one out.

UPDATE III: Commenter Lucky Bogey says GP wasn't the first to make the connection. Check the comments for the links.

Posted by Ed Morrissey on September 1, 2007 7:29 AM

[STARWISE]

http://www.politico.com/blogs/bensmith/0807/Two_Hsus.html

[Lurker]

I don't see where it is clear that we have 2 Hsus.

One right and one left, or in this case two left Hsus.

(Sorry Nathan, couldn't help myself.)

L

[GitmoSailor]

Will the judges be Clinton appointed?????.....

[STARWISE]

Now even MORE confusing ... as this NORMAN HSU *is* the NY businessman and obvious mega donor .. and NOT the school board member ... and saying the fugitive Hsu was the President of the Chinese-American Association ... argh!!

“Norman Hsu
From SourceWatch

Norman Hsu is a “wealthy New York businessman in the apparel industry”,[1] former president of the Chinese-American Association,[2] and a “major Democratic Party fundraiser”.

Hsu has been described as a “Democratic megadonor and clothing company mogul”[3] and an “apparel magnate with a fat Rolodex”.[4]”

http://www.sourcewatch.org/index.php?title=Norman_Hsu

~~~~~

Which Hsu is which?

[Rockitz]

Surprisingly, the LA Times is doing exactly opposite.

Not really. I think they're pulling for Obama along with the local Hollywood types.

[malia]

How long will it be before they find a Republican that received a donation from Hsu!!? Which I have no doubt they will find R’s who recd. money. When it is announced who recd. money it will be a dropped issue. It has to be this way, has to follow this pattern, after all it has worked for .. how many years have the clintons been around... ?

Impossible to believe that the clinton’s group (bill & hillary) did not cover this base!

And no!, I will not give credit to the LA X’s. This fugitive been hanging around far too long.

You can’t tell me they can catch a Republican Senator in a public bathroom, yet can’t find a big time Democrate money fugitive, crook, cheater, voter fraud, lying, all ready wanted, escaped on $2 million bail going back to early 90’s, showing up again as a Democrate donor again in late 90’s,(remember he is already a fugitive), also friend of Trie who is FOB/H in California. Now this same illegal crook is caught again donating to our politics. Well, at least he was arrested, again, but oopsy daisy Hsu is out of jail using his $2 million dollors to buy his out of jail card ........... again!

And the Democrats are concerned about the Iraqi Govt.!!!

[Rockitz]

Hey, that’s my tagline.

[AnAmericanMother]

. . . . if the Hsu fits . . . .

[evad]

Yes, Yes, Yes

[tobyhill]

“and the answers could prove very embarrassing for top Democrats:”

oh, ok! Like the media will cover this with as much vigor as a toe-tapping queer?

[umgud]

The dims never look a gift-horse in the mouth.

[PROTESTBYPROXY]

This is why Al Gonzalez resigned. Probably Craig too.

[NewHampshireDuo]

They’ll find that Hsu gave $50.00 to some republican and rule that this isn’t a case of democrat corruption after all.

Yeah. I'm just waiting for something like: "Hsu knew? Su-nu-nu."

[doug from upland]

I'll look at it.

Skip to comments.

DFU SONG: Norman (yes, Norman Hsu, the big Hillary donor who has disappeared)
DFU News of the Day in Song ^ | Aug. 2007 | Lyrics, Doug from Upland

Posted on 08/29/2007 9:18:19 AM PDT by doug from upland

MIDI - NORMAN

No one seems to know where he is at...this funder of, Democrats
Within the party, an aristocrat
So where is Norman?

Hsu raised lots of bucks for Hillary...from a 3-year sentence he would flee
If this was about the GOP
Pelosi would be holding hearings

Norman Hsu-u-u-u-u-u-u-u...where are you-u-u-u-u-u-u
Are you...with Al Gore's nuns

Some of you might know about Peter Paul...the largest donor of all
The Clintons had caused SLM to fall
And she's still lying

Hsu raised lots of bucks for Hillary...from a 3-year sentence he would flee
If this was about the GOP
Pelosi would be holding hearings

Norman Hsu-u-u-u-u-u-u-u...where are you-u-u-u-u-u-u
Are you...with Al Gore's nuns

[Arthur McGowan]

Haven’t heard or seen anything in the Old Media yet about dougfromupland’s Youtube video of Hillary on the phone with Peter Paul, Stan Lee, and two of her flunkies, discussing an illegal $1.6 Million campaign contribution.

[Wil H]

Fluctuation!

Fluck to you American Democrats, too!....

[Rockitz]

If this is the same Justice Department that got Special Counsel Fitzgerald to prosecute the “Valerie Plame Leak Case,” this story will go straight into the deepest darkest black hole in the universe.

[doug from upland]

I don’t know about the judges, but the Clintons have moles in the government everywhere.

[Spunky]

"While there is no sign any of them were aware of Mr. Hsu's actions and prior record,....."

[COBOL2Java]

Norman looks like a man just waiting for his Arkancide.