Posted on 09/21/2007 12:12:28 AM PDT by CutePuppy
The guy who went to Wharton knows darn well that the only way the pyramid or Ponzi scheme can end is in crash, and you don’t want to be well known or visible when that happens. Yet he seems to have been trying to achieve exactly that while ratcheting up the amounts in the scheme and at the same time decided to get involved in illegal campaign contributions, and “threatened” his investors to contribute - all by his lonesome...?
But it only LOOKS like a duck!
Boy, glad to see the feds were really on top of this and caught him after only 15 years!!! Of course, if it would have been me they would have nabbed me in a few hours. LOL
One obvious money laundering mechanism was when Hsu coerced investors to contribute to his desired political campaigns if they wanted to continue to get good returns on their investments. Technically, these political contributions can be viewed as coming from the profits of their investment. So in effect, Hsu was laundering other peoples ponzi scammed money into political campaigns via ponzied fake returns he gave to investors. Is that not fitting. Hillary is running a political campaign partly financed with laundered ponzi scammed investment funds. Since close to $60 million is missing it looks as if a whole lot more ponzi money got coerced into these campaigns. Perhaps the campaigns were spending a lot of time finding other ways to launder in the contributions from Hsu. Where else could have all that investment money have gone ? If Hsu had it why not wire it to Hong Kong and fly a corporate jet back to Hong Kong or take bags of cash with you ? The political campaigns probably where putting lots of pressure on Hsu due to their monetary requirements and they eventually busted the ponzi scheme ?
I doubt Hsu’s money (or at the very least, “massive” amounts of it) came from some “massive” Ponzi scheme - that simply defies business sense and common sense and implies that a lot of very rich people were either gullible idiots to “invest” in Hsu’s “on-paper-only” enterprise (with a laughable “post-dated” checks as guarantees of future payments) or that he could keep raising money at frenetic pace to satisfy payments of “invested capital” + “profits” (which is what Ponzi / pyramid scheme requires). Money were simply laundered through Hsu’s “business[es]”, they didn’t come from Ponzi scheme, they came from somewhere else, that’s why I’d like to see the sources and destinations of wire transfers, “front and back” of the checks. Hsu is simply the conduit, the intermediary and got a bit of taste of money himself, but the rest was funneled to campaigns through distributions and reimbursements.
There seems to be a real rush to start and stop the chain of money with Hsu, and declare everybody else a “victim” - nice and clean, and done, and gone. The only way to explain away the source of Hsu’s excess money that went to campaign in that scenario would be a “massive Ponzi scheme” by one guy in a period of time of about 2 years, but that sounds not much more believable than turning $1,000 into $100,000 in one year in cattle futures. It also doesn’t explain at all or has any real connection with Hsu’s seeming obsession with political contributions and the need to ask through Rosenman (Hsu was in no position to “threaten” or “coerce”, explicitly or implicitly) his “investors” for small donations.
The more obvious explanations go beyond Hsu, but he seems to be at the moment a Grand Central Terminal, where all the trains stop and go no further.
Nothing beyond a political “embarrassment” of being “affiliated” with the Dem campaigns, not money laundering from outside sources through “smurfing” via Hsu’s ATM, not even anything close to Chinese Connection and “money bags” of Charlie Trie and John Huang.
From what I see in the complaint so far, that’s where it stops. I hope I am wrong, but the story is being rushed and simplified, and pieces of the puzzle the way they are presented now simply do not fit together, though they are being stretched to make the impression that they do.
Yeah. They have that part backward. But this is the FBI and they are dealing with big fish. Just on the legal grounds it threatens one of the major political parties and that threatens the Rino/Dino Globalist Elitist. Getting some mud on the Hildabeast may be all we can hope for. Rosenman was the person who produced Woodstock. He was not rolling around in the mud. He is like the Clintons. They corral and control the moonbats for the Globalist Elites Controlling the Democratic Party. Dinos. There heart is not really with that 'movement'. The only way they go down is if the moonbats stop playing in the mud and start taking life seriously. Not gonna happen.
Ponzi scheme, huh?
Maybe Hillary was planning on appointing him to the Social Security Administration.
How do they consider this a ponsi scheme?
I always thought the first level got paid and maybe the second level it like rob Peter to pay Paul..
In this case I am missing something here where does Ponsi scheme come in on or how is Ponsi applied here in a fund-raising?
Ah, it’s a Ponzi Scheme! That’s why this guy was attracted to Hillary and the Demos! They are all advocates for and masters of the Ponzi Scheme!
Great analysis. This is yet another example of the Bush Justice Department rushing to cover up the crimes of the Clintons (or more precisely, their mutual puppetmasters), because they are . . . [tagline]
I have the same problem as you do believing that this FBI Complaint is the truth and NOTHING BUT THE TRUTH.
These were all short term investments. Where did Hsu get the capital to be able to constantly payoff short term investors? A Ponzi scheme can only work when somebody lends money with the expectation that they will get the money back several years in the future. In Hsu’s case he was paying off his investors every three months.
Hsu would also have had the expenses of his lavish lifestyle and the political contributions.
Something does not add up.
From a portion of the complaint: “Over the course of the next two years, Victim-1 continued to invest in deals with NORMAN HSU, the defendant, investing in increasingly larger amounts and generally reinvesting his/her proceeds from each deal. For each deal, Victim-1 gave his/her investment money to HSU and, in return, HSU provided Victim-1 with an agreement and a post-dated check. For each deal, the post-dated check represented the investment money plus interest. Each time the post-dated check came due, Victim-1 cashed the check and realized a profit on his/her initial investment.”
If ever an independent investigation were neccessary, this is the time.....starting with the 1996 election!
$200,000 is the ante to take (so far as we know) at least one $40,000,000 and one $33,000,0000 pot. The whole Hong Kong businessman/alchemist legend just adds to the allure.
It’s like Jimmy Rockford working one of his patented “Oklahoma oilman” scams with Angel Martin.
Think about it: you can find out in 10 minutes on the internet whether a potential boyfriend has ever been arrested, in a mental hospital or declared bankruptcy. Here’s this guy, using his own name, who’s been declared bankrupt, is a fugitive from a 15 year old felony conviction and “investment counselors” hand him $40,000,000? He’s gotta have the cool confidence of a Christian with four aces.
None of these indictments gets anywhere NEAR the Clintons!! Crap, it looks like they skate again!!
Color me REALLY stupid, but HOW do the money launderers GET the money to Deposit in an American bank that’s withdrawn in Colombia into Pesos??
In an ideal world, the feds would flip Hsu and extract valuable information in return for a lesser sentence.
In the real world, the Justice Department and the FBI under this administration will play dead and Bonnie and Clyde will walk.
Not only will the Administration not allow anything untoward to happen to the Odd Couple, but, in addition, the FBI as well as our top legal department formerly under Gonzales and now Mukasey are still rife with Clinton holdovers.
So, who else remains that will flip the diminutive Mr. Hsu?
The blindfolded Lady Justice's scales are not balanced evenly any more.
Leni
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