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Complaint: Hsu Bilked Investors, Made Illegal Contributions
The U.S. attorney for Manhattan filed a 16-page criminal complaint against Norman Hsu today. You can read it here.
Hsu is charged with defrauding investors of more than $60 million. The scam, as described by prosecutors, was actually pretty simple. Hsu would lure investors in by delivering on small-time deals, gaining their trust. But when it came time for the big deals, he never actually invested the money as promised -- instead, he just used newer investors' money to repay older investors, and so on and so on. The classic Ponzi scheme.
Interestingly, the prosecutors say that Hsu's considerable fundraising skills (for Hillary Clinton and other Dems) were part of the fraud:
During the same time period, NORMAN HSU, the defendant, in an effort to raise his public profile and thereby convince more victims to invest in his fraudulent scheme, pressured victims into individually contributing tens of thousands of dollars to various candidates... he supported. HSU made implied threats to the victims leading them to believe that their failure to make the required political contributions would adversely affect the victims’ ongoing investment relationship with HSU.
The complaint also alleges that Hsu reimbursed two people for $20,000 in political contributions, a crime.
The charges, two counts of fraud and one of violating campaign finance laws, amount to a maximum 45-year sentence if served consecutively. Hsu also faces a maximum fine of $120 million.
Comments (9)
Anonymous wrote on September 20, 2007 2:43 PM:Hsu... A GOP mole set up with illegal dollars to embarrass Hillary and the Dems?
In this day and age, very well could be.
annefrank wrote on September 20, 2007 2:52 PM:Current Hillary-Hsu donors were also involved in the 90s Clinton donor scandal.
http://www.washingtonpost.com/wp-dyn/content/article/2007/09/19/AR2007091902508.html?hpid=topnews
A list of the donors who have "bundled" large sums from dozens of individuals to give to Hillary Rodham Clinton's presidential campaign includes several figures who were involved in the 1990s Democratic Party fundraising scandal that tarnished her husband's record.
Among them is an Oklahoma oilman who testified in the mid-1990s that the firm he worked for, owned by Democratic fundraisers, sought to curry favor with Bill Clinton's administration by providing payments and a golf club membership to a Cabinet secretary's son.
annefrank wrote on September 20, 2007 2:54 PM:Is TPM investigating the Hsu-Hillary-Hippie connection?
Rosen gave Hsu $40M - Hsu then funneled almost $1M to Hillary while she was obtaining a $1M earmark for Rosen's Woodstock Memorial.
Just sayin...
annefrank wrote on September 20, 2007 3:06 PM:Is TPM investigating the Hsu-Hillary-Hippie connection?
Rosen gave Hsu $40M - Hsu then funneled almost $1M to Hillary while she was obtaining a $1M earmark for Rosen's Woodstock Memorial.
Just sayin...
KYJurisDoctor wrote on September 20, 2007 3:31 PM:It sounds like a political HSUnami for Hillary Clinton.
http://osi-speaks.blogspot.com/2007/09/is-there-hsunami-in-hillary-clintons.html#links
KYJurisDoctor wrote on September 20, 2007 3:35 PM:It sounds like a political HSUnami for Hillary Clinton.
http://osi-speaks.blogspot.com/2007/09/is-there-hsunami-in-hillary-clintons.html#links
PW wrote on September 20, 2007 3:47 PM:Anyone else notice how much he resembles the pathetic classmate of "Marge," the sheriff in "Fargo"? That sad, spoiled face...
dan wrote on September 20, 2007 7:40 PM:It is interesting that no news org includiong TPM picked up the fact that Mr Hsu fingered Obama as the leaker for WSJ. LATimes reported that his suicide nte Mr Hsu implied that Obama leaked his status to WSJ.
Anonymous wrote on September 21, 2007 7:53 AM:The last time the "vast right wing conspiracy" tried to get the Clinton's they failed. This time they have decided to do it over and do it right. This is probably what Karl Rove meant when he said that Hillary Clinton was "fatally flawed" as a candidate.