REDWOOD CITY, Calif. , Sept. 5, 2007

Disgraced Democrat Donor On The Run Again

New Arrest Warrant Issued For Norman Hsu After He Skips Bail Hearing

  • Play CBS Video Video Fugitive Fundraiser Arrested

    Norman Hsu, who has raised millions for Democrats, including Hillary Clinton, surrendered to California authorities. He faces charges of fraud dating back to the 1990s. Sandra Hughes reports.

  • Booking photograph of Norman Hsu, from the San Mateo County Sheriff's Office.

    Booking photograph of Norman Hsu, from the San Mateo County Sheriff's Office.  (San Mateo County Sheriffs Office)

(AP)  Disgraced Democratic fundraiser Norman Hsu was a wanted man again after he failed to show up for a court date Wednesday and a judge issued a new warrant for his arrest.

Hsu, whose criminal past has roiled the campaigns of top presidential candidates, was scheduled to ask a judge to cut in half the $2 million bail he posted last week when he turned himself in after spending 15 years on the lam from a felony theft conviction.

Instead, San Mateo Superior Court Judge Robert Foiles ordered Hsu's bail forfeited to the county and issued a new arrest warrant. If Hsu is arrested again, he will be jailed without bail this time.

Hsu, a Hong Kong native, was also supposed to turn over his passport Wednesday. Hsu's prominent Silicon Valley criminal defense attorney Jim Brosnahan said Hsu failed to give the passport to the legal team on Monday.

"Mr. Hsu is not here and we do not know where Mr. Hsu is," Brosnahan said outside court. Brosnahan said that "there was some contact" with Hsu a few hours before the scheduled 9 a.m. court appearance, but he declined to say how and who talked to Hsu.

Hsu pleaded no contest in 1991 to a felony count of grand theft, admitting he'd defrauded investors of $1 million after falsely claiming to have contracts to purchase and sell Latex gloves. He was facing up to three years in prison when he skipped town before his 1992 sentencing date.

Prosecutors said they suspected Hsu fled the country then. But a few years ago, Hsu re-emerged in New York as an apparel executive and a wealthy benefactor of Democratic causes and candidates. They included presidential contenders Barack Obama and Hillary Rodham Clinton, whose campaign designated Hsu a "HillRaiser" — a title given to top donors.

Brosnahan said he didn't know if Hsu returned to his Manhattan condominium or stayed in California after his five-hour jail stint Friday when Hsu turned himself in. He was released from jail after posting $2 million bail, which a judge refused then to reduce to $1 million.

Prosecutors with the California Attorney General's office had agreed to the bail reduction because it would be used to reimburse the victims Hsu admitted swindling out of $1 million in the early 1990s.

"We did think that was enough," Deputy Attorney General Ralph Sivilla said outside court. Sivilla also said he was troubled that Hsu didn't turn in his passport.

Federal Election Commission records show Hsu donated $260,000 to Democratic Party groups and federal candidates since 2004. Though a top fundraiser for Clinton, he also donated to Obama's Senate campaign in 2004 and to his political action committee. He also contributed hundreds of thousands of dollars to state and municipal candidates.

After reports surfaced of his fugitive status, politicians at all levels scrambled to distance themselves. On Wednesday, Rhode Island Rep. Patrick Kennedy, who initially said he would keep the $6,200 from Hsu, announced that he would give the money to charity.

Kennedy had originally counted $6,600 in donations, but a review of federal campaign records showed it was actually $6,200.

Obama's campaign said it would give to charity the $2,000 Hsu contributed to his 2004 Senate campaign and the $5,000 Hsu gave to his political action committee, Hopefund.

Hsu's $43,700 in donations to the Democratic Senatorial Campaign Committee and $2,500 to the Democratic Congressional Campaign Committee also will go to charity, both groups said.

Clinton joined the other candidates, returning $23,000 in contributions that Hsu made to her presidential and senatorial campaigns and to her political action committee, HillPac. But his close association with her campaign put Clinton on the defensive.

Last week, Hsu said he thought the criminal charges had been taken care of when he completed his bankruptcy proceedings in the early 1990s.

"I have not sought to evade any of my obligations and certainly not the law," Hsu said in a prepared statement.

© MMVII The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.
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by klingon69 September 6, 2007 2:41 PM EDT
so, you''''re saying the Clintons found out when we did that he''''s a criminal right? And what did they do shortly thereafter? give up the $$! I''''d say that''''s honorable.
Being as this person has contributed to major/minor Democratic campaigns for several years, I would say that they didn''t just find out about him, no they decided to look honorable only after it came to light that he had a 15 yr outstanding warrant for his arrest.
Reply to this comment
by actornaught September 6, 2007 1:48 PM EDT
"...when democratic corruption actually receives media attention, the leftwingers pounce all over CBS...

It''s a joke. I''ll even explain it. It''s called ''irony''. Every article that''s covered the many ''pub ethics failures has brought out sqwawks of ''liberal MSM'' from the hate-radio parrots. Then the more comical ones by moron ''cons on those articles recently have claimed this story isn''t being covered. But this has been covered here at CBS since the morning it ''came out''.

I will say that pretty much all of the neocon posters show a pattern of being humorless. And not too bright.

This story has practically nothing to do with Clinton. 20-year background checks isn''t realistic, and you KNOW your empty suit candidates aren''t doing any such checks.
Reply to this comment
by rhs648 September 6, 2007 3:30 AM EDT
All of this means so little. Both major parties have dishonest people and honest people, too. Likewise, this is true of party supporters. Does this make everyone dishonest? Of course not. Equate this to a high school. Every school has hard working students and kids who aren''t interested in learning. Even independent candidates and some of their supporters can be dishonest. It would be great if our institutions dismissed people who are found to be dishonest. Self-policing, although unlikely, would be ideal.
Reply to this comment
by xzavierbrown September 6, 2007 3:01 AM EDT
Ahhh hello neo con press

Mitt Romney''''s national finance co-chairman, Alan B. Fabian, recently was indicted on 23 counts of money laundering, fraud, perjury, and obstruction of justice, among other crimes


Posted by pepperp1 at 10:49 PM : Sep 05, 2007
+ report abuse

*******

good for him..now can we focus on this guy??or are you hoping that if you cry about what somebody else did ..the world would forget what Hsu''s action and its involvement with the DNC?? or are you going to allow these types infiltrating your precious party??
Reply to this comment
by xzavierbrown September 6, 2007 2:58 AM EDT
here is an instance with overwhelming evidence of fraud and these liberals would create very flowery and very imaginative conspiracy to excuse these types of behaviour..

Reply to this comment
by johnshaft4 September 6, 2007 2:46 AM EDT
Apparently, because this guy has the "right stuff", the reason that he was a "no show" is because Karl Rove recognized his intrinsic GOP family values and kidnapped him in order to convert him into a "Master Mind", Christian, Republican, tax devouring, Homosexual criminal...
Reply to this comment
by erichsh September 6, 2007 2:31 AM EDT
I see a familiar pattern here. When CBS runs an article critical of a Republican (as it does so frequently), the leftwingers pounce all over the individual and Republicans in general. On those rare occasions when democratic corruption actually receives media attention, the leftwingers pounce all over CBS and Republicans in general. Either way one can expect the usual torrent of name-calling and snide, condescending remarks, and the usual dearth of intelligent commentary. It gets old, it really does.
Reply to this comment
by fairandbal September 6, 2007 2:21 AM EDT
Can it be any more clear that CBS is full of a bunch of GOP operatives? How many years of investigations into Abramoff and he was NEVER listed as a GOP fund raiser by the MSM. And yet that''s the only party helped. Funny CBS, you keep doing your best to bring the GOP back in 2008.
Reply to this comment
by pepperp1 September 6, 2007 1:49 AM EDT
Ahhh hello neo con press

Mitt Romney''s national finance co-chairman, Alan B. Fabian, recently was indicted on 23 counts of money laundering, fraud, perjury, and obstruction of justice, among other crimes


Reply to this comment
by pwrslm September 6, 2007 1:46 AM EDT
thompson was in mccains campain in 2k....he knows all the ins and outs bout campain finance reform....would not put it past thompson to make that one of his primary issues
Reply to this comment
by pwrslm September 6, 2007 1:46 AM EDT
thompson was in mccains campain in 2k....he knows all the ins and outs bout campain finance reform....would not put it past thompson to make that one of his primary issues
Reply to this comment
by realpatriot1 September 6, 2007 12:45 AM EDT
To correct my previous post, the only current "top tier" candidates to seriously address any form of campaign finance reform so far are McCain, Obama, & Edwards. Candidates like Kucinich & Paul and others have addressed it as well, but Hillary, Guliani, Romney,etc. have been apparently too content with the fruits of the current system to express a desire to look at changes.
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by BlueInWI September 6, 2007 12:45 AM EDT
Why so little coverage of Giuliani''s many corrupt political backers like the one who was dealing in illegal drugs and money laundering. Oh, right... I forgot. He''s a Republican - we don''t talk about that or any of Giuliani''s many mistresses.

Paula Jones was a huge deal for Clinton; but then again he was a democrat.

The corporate media complex likes its tax loopholes, freer control over the broadcast spectrum, and decreased regulation regarding too much control of media markets. Hence, it supports Rescumlicans. The mainstream corporate media is absolutely corrupt and completely worthless - unless you want to hear about Al Gore''s tendency to exaggerate or his artificial image.

By the way George Thompson (campaigns in red pickup but drives a Mercedes) and Giuliani (says he was at ground zero more than the recovery workers) both have much larger character/image problems than the ones the media made up about Al Gore. But, you won''t hear about them...
Reply to this comment
by jerr11 September 6, 2007 12:42 AM EDT
Where do the Democrats find all these clowns?
Reply to this comment
by realpatriot1 September 6, 2007 12:38 AM EDT
glossypan,

Wow! A person who actually has the intelligence to skip the holier-than-thou partison aspects and see the real issue in this story. You are definitely smarter than the average bear on this site, at least today.

What''s so incideous about the corrupt system is that anyone who is in Washington for any length of time iether becomes part of the system or is drawn and quartered and swift-boated out of office at the next election. Mr./Ms. Smith soon becomes Mr./Ms. special interest prostitute.
Antone who succeeds in retaining their integrity becomes a pariah and a backbencher with no influence.

The only way it will change is to make it a primary election issue in its own right. The establishment and the media powers that be don''t want that and will not cover it, that''s why Ross Perot had to purchase his own tv time to talk about it.

The only current candidates who''ve shown any interest in even talking about it seriously are McCain, Obama, and Edwards.
Reply to this comment
by glossypan September 5, 2007 11:58 PM EDT
Yet another argument for public campaign financing. Do we really want a country where a candidate has to spend more time raising money than they do representing us? Where donors give money to several candidates to insure favor no matter who wins? We have sold our country to special interests. No one candidate or party can change a system that stinks.
Reply to this comment
by name_verify September 5, 2007 11:41 PM EDT
MICROWAVE POPCORN CAN KILL YOU!

NOW REACT!
Reply to this comment
by pepperp1 September 5, 2007 11:26 PM EDT


yeah right, Rupert Murdoch and his Fair and Balanced rag the WSJ just happened upon this mysterious man and supposed scandal, a guy who know one knows where his money comes from or how he was in the country and all of a sudden SHAZAM he just showed a couple of years ago to give thousands to many many Dem candidates.....do not belive it is tough to figure who might be funded this Donor Boater...

for those of you that do not recall the cooked up RNC China spy scandal these same scum tried to pull on Bill Clinton, just know it looks and smells like more of the same more of the same.... %u2026%u2026


I personally am waiting for the Ark scandals Griffin was sent to Ark as an unqualified USA after Rove had Gonzo fire the qualified USA, Griffin you recall just happened to be a RNC operative working in the largest county in Fla during the election of 2000 where many Blacks 24,000 just up and decided not to cast a vote for President while at the poll that day....... SHAZAM again magical crowd are
Reply to this comment
by processor2 September 5, 2007 11:25 PM EDT
If Hillary is dumb enough NOT to know who he is,

then Hillary''s not smart enough to be president

...
Reply to this comment
by processor2 September 5, 2007 11:25 PM EDT
If Hillary is dumb enough NOT to know who he is,

then Hillary''s not smart enough to be president

...
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