« | »

NYT Whitewashes Democrats’ Hsu Scandal

From those champions of campaign finance reform at the New York Times:

Clinton Donor Under a Cloud in Fraud Case

August 30, 2007

By MIKE McINTIRE and LESLIE WAYNE

Senator Hillary Rodham Clinton’s campaign said yesterday that it would give to charity $23,000 it had received from a prominent Democratic donor, and review thousands of dollars more that he had raised, after learning that the authorities in California had a warrant for his arrest stemming from a 1991 fraud case

The travails of Mr. Hsu have proved an embarrassment for the Clinton campaign, which has strived to project an image of rectitude in its fund-raising and to dispel any lingering shadows of past episodes of tainted contributions.

Already, Mrs. Clinton’s opponents were busy trying to rekindle remembrances of the 1996 Democratic fund-raising scandals, in which Asian moneymen were accused of funneling suspect donations into Democratic coffers as President Bill Clinton and Vice President Al Gore were running for re-election

Everyone is trying to make the implications that it’s Chinese money, that it’s the Al Gore thing all over again, but I haven’t seen any proof of that,” said John A. Catsimatidis, a leading donor and fund-raiser for Mrs. Clinton in New York.

Some donations connected to Mr. Hsu raise questions about his bundling activities, although there is no evidence he did anything improper. The Wall Street Journal reported that contributors he solicited included members of an extended family in Daly City, Calif., who had given $213,000 to candidates since 2004, even though some of them did not appear to have much money.

A lawyer for Mr. Hsu, E. Lawrence Barcella Jr., has said that Mr. Hsu was not the source of any of the money he raised from other people, which would be a violation of federal election laws.

On his own, Mr. Hsu wrote checks totaling $255,970 to a variety of Democratic candidates and committees since 2004. Even though he was a bundler for Mrs. Clinton, his largess was spread across the Democratic Party and included $5,000 to the political action committee of Senator Barack Obama, Democrat of Illinois…

Mr. Hsu’s success on the political circuit was not always matched by success in business.

Born and raised in Hong Kong, Mr. Hsu came to the United States when he was 18 to attend the University of California, Berkeley, as a computer science major. He later received an M.B.A. at the Wharton School at the University of Pennsylvania, according to a brief biography that appeared in apparel industry trade publications in 1986.

With a group of partners from Hong Kong, Mr. Hsu started a sportswear company in 1982 called Laveno that went bankrupt two years later, not long after he left the company. From that, he cycled through several other enterprises, mostly men’s sportswear, under the Wear This, Base and Foreign Exchange labels.

Mr. Hsu’s career hit a low in 1989, when he began raising $1 million from investors as part of a plan to buy and resell latex gloves.

Ronald Smetana, a lawyer with the California attorney general’s office, said Mr. Hsu was charged with stealing the investors’ money after it turned out he never bought any gloves and had no contract to resell them.

When Mr. Hsu was to attend a sentencing hearing, he faxed a letter to his lawyer saying he had to leave town for an emergency and asking that the court date be rescheduled, Mr. Smetana said.

He failed to show up for the rescheduled appearance, and a bench warrant was issued for his arrest. That was the last that prosecutors saw of Mr. Hsu.

“We assumed he would go back to Hong Kong, where he could recede into anonymity,” Mr. Smetana said…

Mr. Hsu issued a statement yesterday, saying he was “surprised to learn that there appears to be an outstanding warrant” and insisting that he had “not sought to evade any of my obligations and certainly not the law.”

“I would not consciously subject any of the candidates and causes in which I believe to any harm through my actions,” he said.

At some point, Mr. Hsu resurfaced in New York, where he was connected to several clothing-related businesses, according to campaign finance records, which list his occupation variously as an apparel consultant, clothing designer, retailer or company president…

In typical fashion, we are only hearing about the Hsu scandal in the New York Times by way of a defense of their DNC bosses.

What’s the problem? Hillary is going to give the money to charity? (After first insisting that she was going to keep it.)

And notice how the theft of one million dollars is played down as a “fraud case” and “a career low.” 

Note too how The Times accepts the explanation that Hsu simply forgot about his three year prison sentence. Yes, that is very plausible. 

And they are right, there is certainly no reason to suspect any Chinese involvement in this — just because all of the people involved so far are Chinese immigrants to this country.

Obviously Mr. Hsu is just a nice guy who tends to put these kind of unpleasant details out of his head.

Though, despite being a complete failure at business, he is amazingly generous to the Democrat Party.

Which of course that makes him blameless in the eyes of the New York Times and the rest of the media.

This article was posted by Steve on Thursday, August 30th, 2007. Comments are currently closed.

5 Responses to “NYT Whitewashes Democrats’ Hsu Scandal”

Sorry, comments for this entry are closed at this time.


« Front Page | To Top
« | »