SF: UPDATE: HSU IN HOSPITAL, LAWYER SAYS HE WAS UNDER ENORMOUS STRAIN (Scared of Hillary?)

A lawyer for fugitive Democratic Party fundraiser Norman Hsu said today that Hsu has been under "enormous and perhaps unbearable" strain in the past week and that Hsu's attorneys are relieved he is being cared for in a Colorado hospital.

James Brosnahan, a San Francisco lawyer, said the criminal case pending against Hsu in San Mateo County Superior Court "will be handled in its proper course."

Brosnahan said, "The strain he has been under during the last week has been enormous, and perhaps, unbearable. We will be getting him the best medical care available."

Hsu, 56, was arrested by the FBI at St. Mary's Hospital in Grand Junction, Colo., at 7 p.m. Thursday on a federal charge of unlawful interstate flight to avoid prosecution.

Hospital spokeswoman Kim Williams said Hsu is in "fair condition" but said she could not disclose the nature of his illness or say when he will be released.

Hsu had been taken to the hospital from an Amtrak train, according to Grand Junction police spokeswoman Linda Bowman.

Federal prosecutors in San Francisco filed the flight charge Thursday at the request of the California Attorney General's Office after Hsu failed to appear in San Mateo County Superior Court on Wednesday for proceedings on a 15-year-old grand theft conviction in an investment fraud case.

FBI spokesman Joseph Schadler said today that proceedings to transfer Hsu to California will begin after he leaves the hospital and said he expected Hsu to remain at the hospital at least through today.

Schadler said he expects the federal charge to be dropped after Hsu is returned to San Mateo County jurisdiction.

In the meantime, Hsu is in federal custody at the hospital and is being watched by Mesa County sheriff's deputies, Schadler said.

Deputy California Attorney General Ralph Sivilla said: "We appreciate the excellent work by the FBI and the U.S. Attorney's Office in obtaining an arrest warrant and apprehending Mr. Hsu as quickly as possible."

Lawyers from the state Attorney General's Office are acting as prosecutors in the San Mateo County case.

When Hsu failed to show up in court Wednesday morning, Sivilla said Brosnahan told him Hsu had been scheduled to arrive at Oakland International Airport 5:30 a.m. Wednesday on a charter flight from New York.

Amtrak spokesman Marc Magliari said he could not reveal the names of train passengers but said a passenger with "a medical issue" was taken off a train at Grand Junction midday Thursday after Amtrak crewmembers summoned emergency services.

Magliari said the train runs daily from Emeryville to Chicago via Denver. It left Emeryville at 7:10 a.m. Wednesday and was due in Grand Junction at 11:43 a.m. Thursday, but arrived a few minutes early, he said.

Grand Junction Fire Department spokesman Mike Page said emergency responders from the department were summoned Thursday to aid a patient who had fallen on the train, according to a dispatch report.

The patient was able to walk off the train and arrived at the hospital at 12:02 p.m., Page said.

The FBI spokesman said the procedure for transferring Hsu will be that he will first appear before a federal magistrate in Colorado, where he will have the choice of either contesting or not contesting the move.

After a federal magistrate in Colorado orders the transfer, Hsu will be brought before a federal magistrate in Northern California, probably in San Francisco, and then will be moved to San Mateo County custody, Schadler said. At that point, under normal procedures, the federal charge would be dropped, the FBI agent said.

Natalya LaBauve, a spokeswoman for the U.S. Attorney's Office in San Francisco, said she had no information about when the federal complaint filed against Hsu will be unsealed or when Hsu is expected to appear in federal court in San Francisco.

In the San Mateo County case, Hsu was accused in 1991 of stealing $1 million from about 20 investors to buy and resell latex gloves that did not exist, according to the attorney general's office. He pleaded no contest in 1992 to one count of grand theft and under the plea agreement was to be sentenced to three years in state prison and payment of restitution to the victims.

When Hsu failed to show up for sentencing in 1992, a judge issued a warrant for his arrest and set bail at $2 million.

Hsu eluded authorities for 15 years but after recent news stories about his role as a political campaign fundraiser and contributor linked him to the grand theft case, he surrendered before San Mateo County Superior Court Judge James Ellis on Aug. 31 and posted $2 million bail.

When he failed to show up for his next hearing Wednesday, his bail was revoked and a new arrest warrant was issued.

According to Federal Election Commission records, a Norman Hsu -- with apparel-related business names and addresses listed in New York and California -- contributed $260,000 to political parties, most since 2004.

Recipients included the Democratic Party and Democratic U.S. senators Hillary Clinton, D-N.Y., Barack Obama, D-Ill., Dianne Feinstein, D-Calif., John Kerry, D-Mass., and Edward Kennedy, D-Mass.

Financier Norman Hsu's Sordid Past

ABC7 Exclusive Interview With Former Hsu Associate
By Vic Lee
SAN FRANCISCO, Sep 7, 2007 (KGO) - Authorities are awaiting word on when fugitive financier Norman Hsu will be brought back to the Bay Area.

Hsu is the man who skipped out on two million dollars bail in San Mateo County Wednesday, only to be rearrested last night in Colorado, where he's now in the hospital.

He's been on the run for 12 years.

Hsu rubbed shoulders with the powerful and notorious as well.

Raymond Kwok Chow, alias "Shrimp Boy," is one of Hsu's known associates.

He was notorious gangster in Chinatown in the early 1990's, at roughly the same time when state prosecutors say Norman Hsu started his ponzi scheme with his latex gloves business.

Chow says he is now clean, and spoke with us about his relationship with Norman Hsu.

Chow dressed brazenly in white at the funeral of Allen Leung, the Chinatown business leader shot to death last year.

Chow was once one of the most feared gangsters in Chinatown.

"I grow up in crime. I grow up in the city and involved with the most crime," said Chow.

In the 1980's and early 1990's, San Francisco's Chinatown was the battleground of a bloody war between powerful gangs.

Chow's gang "Wo Hop To" finally won.

This was when Chow says he met Norman Hsu. He says Hsu dabbled in clothing, import and export and real estate. He adds Hsu was also in trouble.

"I guess he into a lot of financial problem back then and I loaned him some money," said Chow. "And I help him with my knowledge and with my strength. That's all there is."

In the early hours of August 28, 1990, Foster City Police stopped a car for making an illegal turn.

In the back seat, they found a frightened Norman Hsu. In the front were Raymond Chow and two associates.

Hsu told police he had been kidnapped.

"There was a 12 hour ordeal where there was discussions, arguments. Mr. Hsu claims he was assaulted several times and threatened," said Capt. Matt Martell, Foster City Police Department.

Hsu told police he had business dealings with Chow and there was a dispute over money.

"And what that dollar amount was, different dollar amounts ranged between $300,000 and a $1 million worth of claims," said Capt. Martell.

Chow says Hsu lied, and claims it was Hsu who called him for help that night because he owed people money.

"I met him because he was in trouble, and at that time, I helping him out a lot," said Chow. "The way he told me, I mean, he being extortion, he being a lot of people tried to hurt him.

Chow and the others were arrested, but charges were later dropped when Hsu became uncooperative with prosecutors.

Now Hsu faces prison time for grand theft. Chow spent most of the recent past in prison, but he says he's changed.

"Today, Raymond, myself, I upfront to face up to all the past I have done, and to try to correct my life," said Chow.

Chow is now the chairman of the Chinese Freemasons, the position Allen Leung held before he was killed.

Chow says he's hurt that police, and even many of his fellow Chinese, believe he had something to do with Leong's murder.

We asked him for the record if he had any involvement with Mr. Leong's death.

"Oh. Mr. Leong? No," said Chow.

Allen Leong's murder is still unsolved. Police have never identified a suspect.

Chow says that alleged kidnap incident in 1990 was the last time he saw Norman Hsu.

Soon after, Hsu was and arrested and charged with grand theft.

In case you're wondering, Chow says his grandmother gave him the nickname "Shrimp Boy."

Norman Hsu Hospitalized After Fall

Norman Hsu is listed in fair condition tonight at Saint Mary's hospital in Grand Junction, Colorado.

He was taken by ambulance there after falling ill on an Amtrak train bound for Denver.

ABC7 has learned that while on board, Hsu apparently fell down and in the words of a paramedic "became delirious."

Hospital officials contacted authorities, who arrested Hsu last night.

"When he is fit to leave the hospital, to be released from the hospital, he will be transported to a federal magistrate in Grand Junction. That magistrate will give him his initial appearance and advise him that he has federal UFAP charges against him. He will be ordered then transported to the northern district of California," said FBI spokesman Joseph Schadler.

It's not clear when Hsu will be transported back to San Mateo County, where he jumped bail on Wednesday.

He surrendered a week ago today after skipping out on his sentencing for grand theft charges in 1991.

Hsu surfaced in recent years as a top donor to Democratic candidates like Senator Hillary Clinton.

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