Posted on 09/12/2007 5:19:53 PM PDT by jdm
NEW YORK (AP) — Local prosecutors are investigating whether political fundraiser and contributor Norman Hsu, a fugitive from a California theft conviction for 15 years, stole millions of dollars from an investment fund.
A spokeswoman for Manhattan District Attorney Robert Morgenthau said Wednesday that lawyers for the fund, Source Financing Investors, referred the matter to her office last week "and we are investigating whether funds were misappropriated."
The spokeswoman, Barbara Thompson, said Hsu contributed $2,000 to Morgenthau's last re-election campaign. She said the district attorney has put the money into an escrow account pending the outcome of the investigation.
Source Financing lawyer Seth Rosenberg said he took information about Hsu to Manhattan prosecutors and asked for the investigation. He said published reports accurately stated that about $40 million is unaccounted for.
Rosenberg was referring to a Wall Street Journal article that said a company controlled by Hsu recently received $40 million from Source Financing.
That fund is run by Joel Rosenman, one of the creators of the 1969 Woodstock rock festival. The Journal said Rosenman reported this week the money is missing.
When Source Financing recently attempted to cash checks from Hsu's company, Components Ltd., the investors say they were told the account held insufficient funds, the Journal said.
Hsu's lawyers had no immediate comment to the allegations by Source Financing, the Journal said.
Rosenberg said Hsu "has an extraordinary ability to deceive."
"It appears that Source Financing Investors has joined Hillary Clinton, Bob Kerry and many others as his victims," he said.
Hsu, a Hong Kong native who suddenly appeared on the New York political scene about four years ago, is under guard in a Colorado hospital after failing to show up for a bail hearing last week in California.
He was arrested last Thursday at the hospital after he was taken from an eastbound Amtrak train for treatment of an undisclosed ailment. He was listed in good condition.
Hsu raised hundreds of thousands of dollars for Democratic candidates and groups until disclosure of his 1992 theft conviction, for which he pleaded no contest. Many of the candidates, including Clinton, say they will return or donate to charity the campaign money received from him.
Hsu had spent 15 years on the lam, avoiding sentencing in the theft case, until he surrendered to authorities in California on Aug. 31.
Prosecutors say that in that case Hsu bilked investors out of $1 million by telling them he had a contract to buy and sell latex gloves but he never bought the gloves and had no contract to sell them.
Then why did you loan him $40,000,000?!
The Journal said Rosenman reported this week the money is missing.
Why did he wait until this week to report that it's missing? Something stinks.
“It appears that Source Financing Investors has joined Hillary Clinton, Bob Kerry and many others as his victims,”
Victims, my behind. Thieves cheating thieves.
LOL
“The Journal said Rosenman reported this week the money is missing.”
Rosenman sure does a good job of keeping track of his money. Hey, it’s only $40 million. Perhaps Rosenman is trying to avoid liability.
Here it comes, the first hints at victimhood..
A blog linked to by hotair.com (which I cannot locate now for some reason) recounted (with photos) the attemtps to locate Hsu’s NYC business and residential addresses. None of the addresses listed on the FEC filings checked out. The physical street addresses indeed exist, but not the suite numbers listed in the FEC filings.
He is getting the money from China or he stole it from others in the US, or both.
This is caveman simple.
Hillary Clinton should be asked to resign her Senate seat!!!...Period!!!!!!!.............
No she shouldn't, she's not Republican. Resigning is only for the people on that aisle. Didn't you know that? Geesh!
The dimwits 'feel our pain'.
So apparently 'feeling' is enough for them.
For those of us who are not dimwits,
the ruling legal principal seems to be,
'If the Hsu fits you must convict.'
How are these democrats VICTIMS? They got millions of dollars. Better than the people Hsu ripped off in his schemes. BTW if Hsu really bilked people in California, shouldn’t the money be returned to THEM, not Hillary’s favorite “charity” or some “escrow fund”?
Nope Mr. Rosenman, you are somehow dirty in this whole thing.
I read one of your observations on this matter kitkat, wanted to ping you.
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