Posted on 09/12/2007 6:26:42 AM PDT by jdm
The Wall Street Journal has tracked down the source of Norman Hsu's cash, and the good news is that the People's Republic of China didn't provide the funds -- at least, not some of them. However, the bad news is that Hsu apparently moved from Ponzi schemes to outright embezzlement as a former Woodstock backer proved as inept at background checks as the Democratic Party:
New documents reviewed by The Wall Street Journal may help point to an answer: A company controlled by Mr. Hsu recently received $40 million from a Madison Avenue investment fund run by Joel Rosenman, who was one of the creators of the Woodstock rock festival in 1969. That money, Mr. Rosenman told investors this week, is missing.
Mr. Hsu told Mr. Rosenman the money would be used to manufacture apparel in China for Gucci, Prada and other private labels, yielding a 40% profit on each deal, according to a business plan obtained by the Journal. Now the investment fund, Source Financing Investors, says Mr. Hsu's company owes it the $40 million, which represents 37 separate deals with Mr. Hsu's company. When Source Financing recently attempted to cash checks from the company, Components Ltd., the investors say they were told the account held insufficient funds.
Source Financing's arrangement with Mr. Hsu's company, according to court documents and investor accounts, echoes an older matter that came to light in recent weeks. In 1991, California officials charged Mr. Hsu with grand theft for failing to repay investors for money he raised to import latex gloves from China.
The Hillary Clinton campaign can stop the cash from going back to the bundled contributors. If Hsu stole $40 million, it explains how all of these families of modest means could afford to contribute eye-popping sums to her campaign and others. It also means that the FBI and Rosenman will want the money back.
This puts a brand new spin on the story, and a very bad development for the people through whom Hsu pushed these contributions. At a minimum, the donors who bundled Hsu's money face potential election-finance violations. The feds could add money laundering to the list of charges -- and since the money got sent around via wire transfers, wire fraud will likely get included. Finally, if the wire transfers show complicity to deceive, all of the contributors who participated may find themselves in the middle of a RICO prosecution, which could mean lengthy stretches in federal prison for everyone.
Furthermore, that would put the Democratic candidates and the organizations in a very uncomfortable position. The FBI would want to know just what involvement they had in Hsu's theft and subsequent manipulations of cash. While it would be unlikely that Hillary Clinton, Andrew Cuomo, Eliot Spitzer, the DSCC, and a host of other candidates and organizations would have knowingly approved embezzlement, some of their staff members could potentially have participated in the illegal activities that assisted it. In any case, it hardly paints the Democrats in a good light to have to answer depositions in a fraud involving the theft of $40 million, dragged out over the next several months.
However, the story still has some deep mysteries. One of the reasons Rosenman trusted Hsu was the 40% profits he and others received from investments in Hsu's companies in 2000-2004. With these companies exposed as fronts, the question remains how Hsu made those profits, which sucked in Rosenman and others. Did some other deep-pocketed entity front the money for Hsu in order to thoroughly launder the cash? It seems like the perfect long con -- show some flash up front and steal big in the end, but it still requires someone to supply the up-front money.
And if that was the point, why would Hsu bring all of this attention to himself by engaging in high-profile political fundraising? If theft was the point, it makes no sense. If influence and money-laundering was the point, who intended to benefit from it? Rosenman has his own connections to the Clintons and others. Who fronted Hsu?
Hsu's still an enigma. Now, however, we have literally hundreds of potential co-conspirators who will vie for the opportunity to mitigate their legal exposure and testify to Hsu's machinations. The FBI will not act gently, either, and neither will the IRS, which will undoubtedly recheck the returns of all involved in an effort to track the money themselves.
Interesting. Have any of the other Democrats demanded an explanation or are they observing Reagan’s 11th commandment better than the GOP?
Yah, there was no connection between 1960’s radicals and the international communist movement. It really sets my mind at ease that the money for Hsu funnelled through the guy that organized Woodstock, where Country Joe and the Fish sang “1,2,3,4, What are we fighting for . . .” and Sly and the Family Stone sang “War, what is it good for?” etc.
Answer: Maybe, but today ain't over yet ...
This story is for the terminally naive and those afflicted with extreme class envy. Surely, Wall Street financers dole out tens of millions to businesses that don’t exist and promise 40% profit. A fool and his money are soon parted and he therefore can only offer to supply cover for the Clintonistas. s/
Term life insurance on Hsu would be a pretty good bet.
Rosenman is a red herring as the ultimate source... Hsu had nothing to show him on his own. So either Chinese money seeded and suported the whole venture or Hsu was only a bag man hired to launder a huge illegal pot of money that Rosenman and the Clintons wanted funnelled to Hillary’s campaign via hundreds of apparently legitimate donors.
The article states that Rosenman and others did receive a 40% return from 2000-2004.
There are so many controversies that have swirled around Bill and Hill than you can hardly list them all: Gennifer Flowers, Monica Lewinsky, Paula Jones, Kathleen Willey, Juanita Broderick, Whitewater, selling the Lincoln bedroom, using the IRS against political enemies, selling pardons, taking the White House furniture, shady cattle futures deals, impeachment, firing the travel office staff to make room for cronies, it goes on and on and on. I pray the American people think long and hard before they vote to turn the White House into a sleazy circus sideshow.
Morissey asks the $40 million question:
And if that was the point, why would Hsu bring all of this attention to himself by engaging in high-profile political fundraising? If theft was the point, it makes no sense. If influence and money-laundering was the point, who intended to benefit from it? Rosenman has his own connections to the Clintons and others. Who fronted Hsu?
What is the deal there? Seriously -- what the hell was Hsu trying to accomplish?
Only one thing really makes sense to me: if everybody is looking at Hsu ... who's moving around where we can't see him?
George Soros?
Why was a con man who just scored a $40 Million hit so interested in Hillary?
Why was a felon with an outstanding warrant such a huge hit on the political party-scene?
Follow the money and it will lead back to the Chi-Coms. A high roller like Rosenman has no need for a bag man like Hsu to give the Clinton’s money. Hsu likely embezzled some of the money, but I’m still betting a good chunk of it ultimately came from Bejing.
Wire fraud, RICO prosecutions, campaign finance laws broken, sounds like a good start.
And surely Hsu embezzled forty million bucks mostly to stoke his insatiable altruism toward democrat politicians...
sarc
Hsu was flown to China by Steve Fossett.
look, the story is completely lame. rosenman knows that high end
designers products are not made in china. the ripoffs are. but rosenman’s
cya story stinks! something very criminal going on.
WIF O’BUCKHEAD
GRRRREAT post! Hooray Ed Morrissey!
Anti-truth, anti-freedom, anti-life Democrat Crime Syndicate members/enablers/co-conspirators BUMP!
America’s finest at the FBI have work to do.
FYI ping
Is he claiming a record for the fastest unlawful flight to avoid prosecution?
you make a very good point!
I bet Gucci and Prada are not too thrilled to have thier name tossed around in this story as cheap manufacturers.
Has anybody asked them?
They would if Hsu was a republican fundraiser...
I’d think the Democrats have to have some coordination in this scheme. Hsu didn’t do all this out of love for the Democrats. Too bad the MSM won’t cover the story, as usual.
Hillary has something stuck on the bottom of her Hsu.
Get rid of all import tariffs and a select few in the country get their election coffers filled in intricate well-planned laundering schemes. After all, they get to keep all of their election campaign monies whether elected or not with just a few rules in place so they don't have to publicly show on paper that the money is actually theirs.
What is the deal there? Seriously — what the hell was Hsu trying to accomplish?
Exactley. What was he getting out of this deal? You don’t just start givingthat much money to Hitlery and her cronies unless you want something or someone you work for wants something.
I’ve been told on another thread that prada and other high end names
are outsourcing to china. totally shocked by this. how can they maintain
integrity of the product? i still think the story is cya for clintons.
WIFE O’BUCKHEAD
They will cover this, but it takes time. There’s a Pulitzer lurking here, and journalists aspire to be the next Woodward and Bernstein, most of all. One big story and you are set for life.
I’ll repeat what I said earlier, This is SO SERIOUS that a couple of Republican Congressmen are going to quit over this. Now it looks like they may even face prison time.
Not said in jest anymore.
I hope they used a solar powered plane so there wouldn’t be any addition to global warming!
Rosenman says he "gave" $40 million to Hsu from an "investment" fund? ROTFLOL
This story smells to high heaven----like "robbery" reports of highly-secured areas. And insurance scams claiming precious jewelry was "lost" in the "robbery" or in the suspicious "fire."
First of all investigators should find out where Roseman's so-called "investors" got $40 million PLUS to give this guy. Do the stockholders know company CEO's were taking out millions from publicly-held companies? Does the IRS know? Does the SEC know?
Hsu was funneling money to multiple fake companies, and may have been colluding with Rosenman.
Illegal activities might include businesses, non-profit organizations, foundations, and donors (particularly officers of publicly-held companies) using corporate holdings, investment and development companies, management firms, brokerage companies, insurance companies, law firms, legal firms that process reimbursements, real estate firms, R/E partnerships, limited liability companies, banks, bonding insurance companies, etc, engaging in fraud, collusion, and illegal conversion of funds.
The colluding in schemes may have included misusing corporate reserve accounts, concealing losses, inflating asset values and improperly accounting for transactions, as well as deferring profits into reserve accounts, improperly shifting capital funding to other projects to hide illegal payments to Hsu.
Schemes to evade the IRS, FEC and US banking laws would constitute tax evasion, money-laundering, illegal monetary conversions, and SEC fraud.
Oh ho ho, what a mess! The cynic in me says that it too will be swept under the rug. I wish someone would sweep some of that cash under MY rug.
Hillary has got to have more money than anyone is aware of. Hsu is a goner....
Over Here!
Contributions to Political Committees
ROSENMAN, JOEL
NEW YORK, NY 10019
JR CAPITAL/INVESTMENTS
CLINTON, HILLARY RODHAM
VIA FRIENDS OF HILLARY
05/11/2006 1230.00 26020482759
05/11/2006 1970.00 26020482759
ROSENMAN, JOEL
NEW YORK, NY 10019
SELF/INVESTMENTS
CLINTON, HILLARY RODHAM
VIA FRIENDS OF HILLARY
09/21/2005 420.00 25020441536
12/14/2005 250.00 26020092050
ROSENMAN, JOEL
NEW YORK, NY 10022
SF MANAGERS LLC/INVESTMENTS
CLINTON, HILLARY RODHAM
VIA HILLARY CLINTON FOR PRESIDENT
03/28/2007 2300.00 27930584017
03/28/2007 2300.00 27930584017
Total Contributions: 8470.00
TRY A: NEW QUERY
RETURN TO: FEC HOME PAGE
Yau Cheng
Private Equity Financing
Sf Managers Llc Hillary Clinton
$4,600
2008
Joel Rosenman
Investments
Sf Managers Llc Hillary Clinton
$4,600
2008
CHENG, YAU C
NEW YORK, NY 10022
SF MANAGERS LLC/PRIVATE EQUITY FI
CLINTON, HILLARY RODHAM
VIA HILLARY CLINTON FOR PRESIDENT
03/28/2007 2300.00 27930580802
03/28/2007 2300.00 27930580802
CHENG, YAU C
NEW YORK, NY 10022
SOURCE FINANCING INVESTORS/FUND M
CLINTON, HILLARY RODHAM
VIA FRIENDS OF HILLARY
10/18/2006 2100.00 26020941457
CHENG, YAU C
NEW YORK, NY 10069
JR CAPITOL/JUNIOR PARTNER
CLINTON, HILLARY RODHAM
VIA FRIENDS OF HILLARY
06/13/2006 250.00 26020480524
Total Contributions: 6950.00
TRY A: NEW QUERY
RETURN TO: FEC HOME PAGE
Somebody is using his hubris and past misdeeds for their own ends.
OR maybe the fastest hit by the Clinton's.
OK... the plot thickens... Who is Yau Cheng and why is he working with Rosenman?
Looks like another shell corporation. This company is invisible to Google, just like Hsu's companies.
http://cache.gettyimages.com/xt/50539259.jpg?v=1&g=timelp&s=1
Wow its just like old times
One other thing. The Clinton Campaign says it will return 850K to 260 contributors. That averages $3269 per contributor. I thought that exceeds the amount an individual can contribute. I guess contributor could be plural as in Mr. and Mrs. Paw but it doesn’t seem likely.
Wouldn’t surprise me in the least...if ton’s of high-end items are made in China.
Sounds like the Chi coms set him up, if true. But I still say this is just fodder for the anti capitalist Dem base. 40% profit is astronomical and usorious, not real world.
Now we know why the left wing maggots were so afraid of the WSJ being sold to Rupert.
First was the article revealing the what the bungler,H$U had done with his bundling of funds.
Now. we have this article about a so called investment company controlled by a left winger (is it a hedge fund or what) listed as source for the bundling funds.
Did George $oreA$$ invest in this company to have his dirty hedge fund money laundered by this company before it “invested” in H$U?
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