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Norman Hsu Indicted in N.Y.

The U.S. Attorney in Manhattan formally indicted one-time Hillary Clinton fundraiser Norman Hsu today, laying out what prosecutors described as a "massive fraud scheme" that allegedly left investors in Hsu's fictitious clothing businesses taken to the tune of $20 million.

The indictment charges Hsu with six counts of mail fraud, six counts of wire fraud, and three counts of violating the Federal Election Campaign Act for allegedly squeezing contributions out of his investors, and in some cases, repaying donors who wrote checks to Hsu's chosen political candidates.

Hsu remains in a California jail on separate fraud charges there, but prosecutors in New York said they expect Hsu to be transferred there "in coming weeks."

Hsu's California attorney, James J. Brosnahan, was tied up in meetings today and was not available for comment.

The 13-page indictment offered few new details about the litany of allegations leveled against Hsu after news reports first revealed this summer that the major Clinton fundraiser was wanted on outstanding fraud charges in Northern California. The document describes a complex Ponzi scheme in which Hsu allegedly collected more than $60 million in investments for a clothing business, using each new investment to pay off a previous one.

When victims learned that Hsu was a fugitive several of them contacted him expressing concern, the indictment says. Hsu "falsely reassured many of the victims, stating in sum and substance that their investments were not in danger but that Hsu might need additional time to ensure that checks maturing during the next several days would be covered." The indictment went on to say that millions of dollars worth of checks from Hsu were not honored by banks when his victims attempted to cash them.

In all, the indictment said, the victims lost at least $20 million. In addition to leveling the indictment, prosecutors sought to seize all of Hsu's assets. Among the items specifically listed in the indictment, "A saxophone autographed by a former President of the United States."

--Matthew Mosk

By Washington Post editors  |  December 4, 2007; 3:40 PM ET
 
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Comments

why is there no mention in this paper of the recent indictment of Bush bundler, GOP contributor, and Mitt Romney fundraiser Alan B. Fabian?

More charges in $32M case against GOP donor

Luke Broadwater, The Examiner
2007-11-29 08:00:00.0
Current rank: Not ranked
BALTIMORE -

The $32 million fraud case against Alan Fabian, a major Republican party donor, widened Wednesday when a federal grand jury added several new charges.

Fabian, who served as former Lt. Gov. Michael Steele's finance director during his 2006 bid for U.S. Senate, was indicted in August after he allegedly created two companies to purportedly purchase $32 million in computer hardware and software for other businesses. But Fabian's companies never purchased the equipment or bought much less expensive equipment, according to the indictment.

Wednesday's indictment accused Fabian of two counts of filing false tax returns and one count of making false statements in connection with a tax return

Fabian, a certified public accountant, has donated more than $44,000 to Maryland's Republican Central Committee and various GOP candidates since 2001, the year federal prosecutors say he began one of the largest fraud schemes in Marylands history.

Fabian also co-chaired the national finance committee for Republican presidential candidate Mitt Romney, but resigned after his indictment.

The new charges allege that on April 15, 2003, Fabian filed a false individual federal tax return for the tax year 2002 indicating that he and his spouse had total income of $475,827 when in fact, he knew that he had unreported additional income of at least $500,000 obtained from his participation in a scheme.

The two indictments seek a forfeiture of $32 million in assets, including eight properties in North Carolina and a property in Hunt Valley, a Silverton yacht, three vehicles, and Fabian's interest in several companies.

If convicted, he faces dozens of years in prison.

Posted by: justaquestion | December 6, 2007 12:06 PM | Report abuse

The Clintons and California local and state politicians should be questioned in court under oath and asked if they knew Norman Hsu was a convicted felon and fugitive from justice with ties to organized crime in China and the US when they accepted campaign contributions from Hsu and attended fundraisers with him in 2006-2007. Those politicians receiving funding from Hsu include Gavin Newsom, Kamela Harris, Fiona Ma, Jerry Brown, Diane Finestein, Barbara Boxer, Mark Leno and others. Norman Hsu was recently Co-Chair of a Clinton-Kennedy gala benefit and was introduced as "Our friend, Norman Hsu" by former President Bill Clinton in New York. Clinton, referred to Norman Hsu as "our friend" in his opening remarks in October 2006, at Speak Truth to Power: Voices from Beyond the Dark New York Opening Night Gala - Benefit Chair, Mrs. Robert F. Kennedy. Watch Video: Speak Truth to Power - Voices from Beyond the Dark New York Opening Night Gala @ http://wideiris.net/sttp/clinton.html - Another Chinagate?

Posted by: cawatch | December 5, 2007 10:42 AM | Report abuse

The Clintons and California local and state politicians should be questioned in court under oath and asked if they knew Norman Hsu was a convicted felon and fugitive from justice with ties to organized crime in China and the US when they accepted campaign contributions from Hsu and attended fundraisers with him in 2006-2007. Those politicians receiving funding from Hsu include Gavin Newsom, Kamela Harris, Fiona Ma, Jerry Brown, Diane Finestein, Barbara Boxer, Mark Leno and others. Norman Hsu was recently Co-Chair of a Clinton-Kennedy gala benefit and was introduced as "Our friend, Norman Hsu" by former President Bill Clinton in New York. Clinton, referred to Norman Hsu as "our friend" in his opening remarks in October 2006, at Speak Truth to Power: Voices from Beyond the Dark New York Opening Night Gala - Benefit Chair, Mrs. Robert F. Kennedy. Watch Video: Speak Truth to Power - Voices from Beyond the Dark New York Opening Night Gala @ http://wideiris.net/sttp/clinton.html - Another Chinagate?

Posted by: cawatch | December 5, 2007 10:42 AM | Report abuse

Hillary Clinton supported Norman Hsu, clearly Hillary demonstrated very poor judgment. She demonstrated her ability to choose criminals. She shouldn't be trusted to administrate our country.

Posted by: terryeo | December 5, 2007 1:37 AM | Report abuse

"I'm laughing so hard it hurts! Some people have amazingly high levels of short term memory loss!

Posted by: franklinone | December 4, 2007 09:20 PM "

You're typing, but you're not saying anything. What recent event is it you believe I have forgotten?

Posted by: zukermand | December 4, 2007 10:18 PM | Report abuse

Posted by: zukermand | December 4, 2007 04:55 PM-
It appears there is no evidence of the knowledge or involvement of the Clinton campaign. Good. We need all the honest politicians we can get.

I'm laughing so hard it hurts! Some people have amazingly high levels of short term memory loss!

Posted by: franklinone | December 4, 2007 9:20 PM | Report abuse

ACCORDING TO GEORGE BUSH (THE D.U.M.B.A.S.S. ONE) THIS GUY NEEDS TO BE PARDONED. YEAH RIGHT! PUT THIS IDOT IN SLAMMER AND FORGET ABOUT HIM. IT'S JUST TOO BAD THAT SCUMBAG SCOOTER LIBBY IS STILL OUT THERE, THANKS TO MR. PRESIDENT.

Posted by: BOBSTERII | December 4, 2007 6:57 PM | Report abuse

Obama received nowhere near the funds that Hillary did, sent Hsu packing early and permanently. Hillary was still raking in the bucks from Hsu who was one of her largest bundlers. And wasn't it Hsu who thought it would be a good idea to shake-down poor Chinese immigrants for campaign cash for Hillary?

Look for Hsu to get the perp walk just about the time of NH primary.

Poor Hillary... when it rains, it pours.

Posted by: jade7243 | December 4, 2007 6:56 PM | Report abuse

Why isn't Hsu-gate on the front page?
Too many duped politicians involved!

http://spreadsheets.google.com/pub?key=pI5QkfhRBwUgAiaAQVTXffw&gid=0

John Edwards isn't on the list!

And Edwards isn't on the list of Lobbyist endorsements!
http://www.rollcall.com/politics/kstendorsements.html

Go Edwards!

Posted by: JoseyJ | December 4, 2007 6:15 PM | Report abuse

Oh, by the way I see the President's man Paul Wolfowitz is coming back to the Bush team I am certain Bush is calling him back for his advice whether to attack Iran? He was a major asset to GW to get him to go to Iraq. God help us all, The prez wants to be responsible for WWIII since his popularity has faded and left him w/ no congress that will keep funding his follies.

Posted by: dons4rd | December 4, 2007 6:10 PM | Report abuse

winngerald - you are exactly right!
Hsu donated about $20K to Obama's Hope fund.

Hillary directed Hsu to donate to politicians in key and early primary states. Later some of these politicians would shun DNC rules and influence changing primary dates because early primaries help Hillary.

http://www.boston.com/news/nation/articles/2007/09/26/hsu_raised_big_money_for_clinton_supporters

Posted by: JoseyJ | December 4, 2007 6:09 PM | Report abuse

There is going to be a lot of candidates disillusioned when Ron Paul comes from the backstretch and beats the whole crowd. Republicans should be favoring him , they might have me luck than where they stand w / the capitol crewd

Posted by: dons4rd | December 4, 2007 6:01 PM | Report abuse

Um, Hsu has given money to Obama, Hsu steered assistance to Obama, and Obama's campaign tried to get Hsu aboard as a fundraiser, too. Based on what WaPo has reported, I'd say that the byline to this article might better read "Fundraiser for Obama and Clinton Indicted". Or are we just waiting for the other shoe to drop on Obama's other fundraiser issues in Chicago?

Posted by: winngerald | December 4, 2007 6:00 PM | Report abuse

The Clintons are good at making accidents happen to those who are not in bed with the elite. It's my guess that something bad will happen to some people that ran against her if she loses, Remember Vince Foster on the capitol grounds??? Regards William Howell

Posted by: dons4rd | December 4, 2007 5:56 PM | Report abuse

now we know why clinton smells like hsu...

Posted by: dwightcollinsduarte | December 4, 2007 5:50 PM | Report abuse

It appears there is no evidence of the knowledge or involvement of the Clinton campaign. Good. We need all the honest politicians we can get.

Posted by: zukermand | December 4, 2007 4:55 PM | Report abuse

It's the Clinton's. That's why.

Posted by: TennGurl | December 4, 2007 4:24 PM | Report abuse

Why is Hsu-ergate not on the front page?

Posted by: AWWNats | December 4, 2007 4:02 PM | Report abuse

What was the Name of that Contractor down in the Rio Grande Valley?

LOL! Relax Hsu, Clinton's are good at Pardons! Your no worse than Mark Rich, You just did not flee quick enough!

Posted by: rat-the | December 4, 2007 3:46 PM | Report abuse

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