Ding, ding. Of course she knew and knew for years.
Rush brought up a great point yesterday regarding the vetting of Hsu. Her Thyness has Secret Service protection and has for years. Nobody gets close to someone under Secret Service protection without a thorough background check. She had to know this Hsu guy and what he was about. There's really no way she couldn't have known, unless of course her mind is Jello, jello, jello......