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Complaint Says Hsu Reimbursed 2 Dem Donors

Buried in this article from the DNC’s New York Times:

Fund-Raiser Is Held Without Bail


September 21, 2007

Norman Hsu, the Democratic fund-raiser with a habit of fleeing the law, confessed to F.B.I. agents last week that he had swindled investors in what the government describes as a multimillion-dollar Ponzi scheme, and acknowledged pressuring at least some of them to contribute to political campaigns, prosecutors said in a criminal complaint unsealed Thursday in New York.

Today in San Mateo Superior Court, Mr. Hsu was ordered held without bail after returning to California from Colorado on an outstanding warrant for his arrest in a grand theft case, and after being charged in the New York fraud case.

The complaint against Mr. Hsu, filed in the Federal District Court in Manhattan, charges him with bilking hundreds of investors around the country out of at least $60 million over the last four years. It says he used some of that money to reimburse, in violation of election law, at least two people who, the government says, made a total of $60,000 in campaign donations at his request

Today, his attorney revealed that he planned to ask for the return of the $2 million bail Mr. Hsu posted earlier this month after surrendering in the fraud case. Prosecutors have opposed the request, saying they believe that money was stolen and should ultimately be returned to victims.

The new complaint said that while in Colorado, Mr. Hsu reached out to federal agents on three occasions and asked to speak to them without his lawyers present. He is said to have told the agents that his business deals involved no real investments but were in fact fraudulent, and “admitted that he made implied threats to his investors to pressure them to contribute to political candidates he supported.” The threats, the authorities said, were that Mr. Hsu would cut the investors out of deals that he described as lucrative…

Though several investors were bullied into making donations, the Ponzi scheme had not been created to generate political contributions, David A. Cardona, the special agent in charge of the F.B.I.’s New York office, said at Thursday’s news conference. Rather, Mr. Cardona said, it was the cachet derived from Mr. Hsu’s political activities that gave his investment schemes a certain allure…

Oh, so there was no desire “to generate political contributions.”

Then why did all of the money go to liberal Democrats exclusively?

This article was posted by Steve on Friday, September 21st, 2007. Comments are currently closed.

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