Posted on 09/12/2007 10:37:33 PM PDT by neverdem
New details emerged yesterday about the finances of the mysterious Democratic fund-raiser Norman Hsu, with the revelation that a private equity fund representing about 100 investors in New York gave him $40 million this year for a loan pool he said would generate a high rate of return.
The investors were notified this week that their money might be in jeopardy, in light of disclosures that Mr. Hsu defrauded investors in a Ponzi scheme 16 years ago in California and faced accusations that he engaged in similar conduct more recently, a Manhattan lawyer for the fund said.
The lawyer, Seth Rosenberg, said that managers of the investment fund tried in recent days to cash checks from Mr. Hsu but that they were returned because of insufficient funds. The concerns about the fate of the investment were first reported yesterday by The Wall Street Journal.
Mr. Rosenberg represents Source Financing Investors, a fund with about 100 participants that is managed by Joel Rosenman, who has said he met Mr. Hsu through a mutual acquaintance five years ago. Mr. Hsu told potential investors that he was pooling money to make short-term loans to private-label fashion designers in the United States to buy garments made in China, and that typical returns for someone who invested in the pool exceeded 40 percent.
Source Financing Investors sent a letter to its investors this week saying that it was concerned about what had happened to the $40 million entrusted to Mr. Hsu, and that it had notified the Manhattan District Attorney’s Office, which is investigating. Mr. Rosenberg said fund managers were shocked by the discovery of Mr. Hsu’s past legal troubles.
“Obviously, people with a proven history of success in finance wouldn’t have invested unless they believed it made economic sense,” he said.
(Excerpt) Read more at nytimes.com ...
Geez, could this be the silver bullet that takes HRC out?
Short term eh.....I guess copy-n-pirate until busted, then move on to another fake fashion product.
Nah, just getting it out of the way. A year from now it will be "old news", and the dirt on the Republican candidate will be front and center.
Morons give $40 million to democrat party felon on the lamb from jail. Wow, sign me up!
If shrillary gives the $40mill back and the other $850K her campaign might just be able to rent McCains bus......snicker
The dirt on the Republican candidate is being discussed now, whoever he will be.
"Yesterday, an investor in California whose name was found in the financial records said she feared that $40,000 she had invested with Mr. Hsu was gone. The woman, who described her concerns on condition that she not be identified, said that she initially reaped impressive returns — paid out every two to three months — on her investments, but that she had recently been unable to find out what had happened to her money."
Wow. This sounds like Hsu was actively ripping people off to this day. I thought his Ponzi schemes were 15 years ago. Is the bottom line that investors were being robbed to directly benefit Hillary and the other democrats?
Can we buy an ad on the front page of the NYet Times?
The Old Grey Lady sells herself for money, you know. They provided a ~$100,000 advertising discount to MoveOn.org this week.
$40 mil for Ronex watches and Guccci bags from politically connected investors? Invested with a felon on the run from the law? There’s nothing unusual about that....
Get the feeling that the investment would be returned with interest sometime after Jan. 20, 2009 if Hsu hadn’t attracted so much attention?
It's still relatively early in the campaign, and you never know just what will stick. Most people have an opinion of her, and if they see this kind of thing hang around, it will remind them just how much they disliked her when she was First Lady.
So he established a scheme to defraud investors and give the money to Mrs. Clinton and Democrats. OK.
I don't know. B. Hussein Obama and the Breck Girl have similar fundraising problems. IMHO, the NY Times fears that with her at the top of the ticket, with her high negatives, the neoCOMs might get a thumpin' all over the electoral map in 2008.
LOL!
Hsu drop~~PING!
Hmmm, was Hillary’s $850, part of this? I would guess not.
If they finally deem her unelectable, the long knives will come out long before March comes around.
LOL! That’s a great mug shot on Hsu!
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