Investors: Hsu’s Democratic connections helped convince us he was legitimate

posted at 8:26 pm on September 23, 2007 by Allahpundit

This is the one part of the Hsu saga that hasn’t gotten much press yet. Amid all the sexy details of great train escapes and gangland kidnappings and punching out old girlfriends (“He’s mentally unstable”) and where the money came from and how much of it Hillary’s planning to give back, the fact that Hsu was allowed to buy publicity by hobnobbing with prominent Democrats despite being a known fugitive with a history of bad business deals helped him cut a much more convincing figure when running his scams. We’ve been wondering why a savvy businessman like Joel Rosenman would toss $40 million this guy’s way — but why wouldn’t he? He was one of the top 20 Democratic bundlers in the country, according to the WSJ. Rosenman must have assumed that he’d passed the Democrats’ various political background checks and thus that it was okay to take a chance on him. The Dems have been allowed to skate thus far on the way they let their brand be used by him that way. As the lawsuits pile up, that’ll get much harder.

An Orange County investment company filed a lawsuit against disgraced fundraiser Norman Hsu on Friday, saying that he defrauded investors out of at least $23 million and dictated that they make contributions to Democratic candidates as a condition of doing business with him.

According to the suit, Hsu persuaded the company’s operator that he was legitimate partly by taking him to Democratic Party events, where, the suit alleges, Hsu was thanked and praised by New York Sen. Hillary Rodham Clinton and California Atty. Gen. Jerry Brown, among others…

The suit lays out how Hsu attempted to leverage his growing profile as a fundraiser to draw in investors and to tap his network of investors for political contributions.

It says Waters invested with Hsu in part because “prominent persons, including Sen. Hillary Clinton, New Mexico Gov. Bill Richardson, California Atty. Gen. Jerry Brown, national Democratic political advisor James Carville, film director Steven Spielberg, actor [Tobey] Maguire, grocery store magnate/billionaire Ron Burkle and others introduced and/or endorsed Hsu as a friend, colleague and trusted associate.”…

At one event for which no date is given, the suit says, Hillary Clinton spoke via videoconference, singling out Hsu for thanks. At another event, a 2006 fundraiser in San Francisco, Waters sat at a table with Brown, who “praised and endorsed Hsu.”

Hsu also told Waters he had hosted a dinner party for Bill and Hillary Clinton at his New York apartment, and had a private dinner with Sen. Edward M. Kennedy (D-Mass.) in Beverly Hills, the lawsuit says.

I wonder if there’s some sort of contributory negligence action afoot here if the investors can show that the Democrats knew or had to reason to know that he was (a) a fugitive, (b) with a history of bad practices, and (c) allegedly guilty of illegal fundraising. Ohhhh, the schadenfreude if there is. In the meantime, here’s the Glacier being quizzed about Hsu this morning on Meet the Press. She says they took action right away to refund the dirty donations — which is true only with respect to the money donated by Hsu, not the many hundreds of thousands of dollars more that he bundled for her. She also conveniently neglects to mention that she’s going to ask them to re-donate the money after she gives it back. Total questions about the warnings her campaign allegedly got from Jack Cassidy this summer: zero.

Link: sevenload.com


Related Posts:

Breaking on Hot Air

Blowback

Note from Hot Air management: This section is for comments from Hot Air's community of registered readers. Please don't assume that Hot Air management agrees with or otherwise endorses any particular comment just because we let it stand. A reminder: Anyone who fails to comply with our terms of use may lose their posting privilege.

Trackbacks/Pings

Trackback URL

Comments

“Constitutional Issues” in other words – we are figuring out how to shred it

EricPWJohnson on September 23, 2007 at 8:40 PM

He demanded they make payments to the Dems, cheated them out of 23 mil. And this is the party people want to handle your money?

What made him legitimate in the eyes of the Dems, is he gave money…thats all they need to know. Part of their “don’t tell” policy.

SHOW ME THE MONEY…

right2bright on September 23, 2007 at 8:42 PM

“Look, Hillary Clinton vouches for me, so you know I’m legit. Give me forty million, and write a big check for Hillary while you’re at it.”

No one is that stupid.

see-dubya on September 23, 2007 at 8:48 PM

“Constitutional Issues” in other words – we are figuring out how to shred it

EricPWJohnson on September 23, 2007 at 8:40 PM

My thoughts exactly, Eric.

BobH on September 23, 2007 at 8:51 PM

“Look, Hillary Clinton vouches for me, so you know I’m legit. Give me forty million, and write a big check for Hillary while you’re at it.”

It’s not just Hillary, it was umpteen other Democrats. I’m not saying there wasn’t more to it, but it’s sort of like how a driver’s license or passport can be used to obtain other forms of ID: the assumption is that once you’ve passed one supposedly thorough check, the next check can rely on that one to some extent.

Allahpundit on September 23, 2007 at 8:55 PM

…show that the Democrats knew or had to reason to know that he was (a) a fugitive, (b) with a history of bad practices, and (c) allegedly guilty of illegal fundraising.

Most “had reason to know” at least (a) and (b), don’t you think?

petefrt on September 23, 2007 at 8:58 PM

Tim & Hillary are a mirrored reflection of the currently dominant character trait of this country… = CROOKED.

Griz on September 23, 2007 at 9:08 PM

Somebody call 9-11 Mrs. Clinton’s pants are on fire.

Mojack420 on September 23, 2007 at 9:10 PM

THe Secret Service knew him and his past, , ergo Hillary knew and gave him a thumbs up anyway.
She should be toast ovet that alone ( national security my white butt cheeks), but they are the beloved Clintoons, so all of the BSC ( my new acronymn for bat-s*&^ crazy) libs will alllow her a pass, with the help of the MSM.
We’re gonna need a miracle peeps to keep this demon out of the WH.

bbz123 on September 23, 2007 at 9:11 PM

We’re gonna need a miracle peeps to keep this demon out of the WH.
bbz123 on September 23, 2007 at 9:11 PM

I hate to break it to you, but I really don’t think so, after the confession of a-year-2000-democratic-voter here drunyan8315 on September 23, 2007 at 1:17 PM

Mcguyver on September 23, 2007 at 9:20 PM

Investors trusted Hsu because oh his DEMOCRATIC Party connections? That should have been a WARNING signal to steer clear of this creep.

MaiDee on September 23, 2007 at 9:28 PM

Hillary’s west Coast Coordinator in June of this year when Mr Cafferty raised questions about Mr Hsu

“He is 100% legit”

So they did vouch for him even when there was questions

William Amos on September 23, 2007 at 9:41 PM

The Attorney for the California Group Hsu swindled is William Bollard noted for a recent client being Dog the Bounty Hunter.

CommentGuy on September 23, 2007 at 9:57 PM

The entire Clinton gang is one big Ponzi scam so why is this such a surprise.

Buzzy on September 23, 2007 at 10:14 PM

Their vetting process is similar to the counterfeit pen check at convenience stores. If the money passes the highlighter pen, it’s good to them.

‘Public Financing’ means ‘we’re going to take more of your money to throw dirt at each other and tell everyone how good we are.’

I’ve got a better idea. Instead of voting or spending money on worthless TV ads, lets choose our president through who collects the most money, and then they give all the money collected to charity.

I really can not believe that anybody on the planet thinks this person deserves the presidency. She’s already been in the white house 8 years too long.

ThackerAgency on September 23, 2007 at 10:26 PM

It’s a funny world. HClinton wants to be President. We already know that she is corrupt, and has been corrupt for decades. It doesn’t seem to matter-no matter what scandals in her past she just blithely moves on as if she were as innocent as a new born chick. She has no record to be proud of in the Senate, which I guess is part of why her platform so far continues to be Bash Bush. I would love to see an interview where some brave reporter would ask if her handling Bill’s “Bimbo eruptions” has helped her in her Senate work.
I would also ask her if she feels that her being a militant feminist is close enough to military service to prove her capable of being Commander in Chief. In the last Presidential election the Democrats went back 30 years into Bush’s Air National Guard service to try to smear him. Would she be willing to have her activities scrutinized as carefully? Could she stand the heat?
Even icebergs can melt.

Doug on September 23, 2007 at 10:50 PM

Clinton and her staff were not competent enough to figure out that Hsu was a criminal, but she wants us to trust her with our entire nation’s security?

Brilliant defense there, Hil.

wiserbud on September 23, 2007 at 10:56 PM

Did she have a chemical peel? All the cracks are filled in. could be air brush applied make up.

Public financing is a joke. A great way to ensure the two party rule.

Theworldisnotenough on September 23, 2007 at 11:14 PM

All the time she was speaking, in the back of her mind she is say, “keep smiling and gloss it over. It will go away. I’m Hillary, the MSM will give me a pass.” The fact that the story has reached MTP means it has legs. As more crap is revealed, the stink is going to be all over her. Thank goodness for talk radio and Fox News who will keep on her.

Mallard T. Drake on September 24, 2007 at 12:14 AM

right2bright

“Part of their “don’t tell” “Don’t ask, don’t tell” policy.” There, fixed it.

From the summaries of this mornings talk fests, it looks like the interviewers were not exactly primed with the latest from Suitably Flip. Did any of the Sunday hosts bring up the Fred Hochberg connection?

JM Hanes on September 24, 2007 at 12:37 AM

Don’t blame Hillary. Blame the system. She’s only doing what the system allows…Her lack of sense of personal responsibility is amazing. I’m holding my breath for that campaign finance law she’s sure to write and sponsor…

rotorhead on September 24, 2007 at 7:46 AM

..and had a private dinner with Sen. Edward M. Kennedy (D-Mass.) in Beverly Hills,

Baked Alaska – check
a herd of grilled cows- check
super trawler filled with gignormous shrimp- check
$42,000,000 bar tab- check
Flock of hookers- check
Beach pail full of blow- check

OK, that explains where the $43 million went, how was there any left to give to the other pols?

Alden Pyle on September 24, 2007 at 8:53 AM

Gawd she is so naughty. What benefit does the press get from supporting these liars?

frreal on September 24, 2007 at 8:57 AM

The Dems cannot help themselves. They are hurtling forward toward a cliff with a candidate that reeks of corruption, just as last time when they went with a “war hero”. After 90 days in combat, he games his way out with literally band-aid-level wounds, and “Viet Nam” was every third word out of his mouth! Rove had to be involved in that somehow!

Without the fawning MSM, these people could not get elected dogcatcher. Bring it on, Hillary!

drunyan8315 on September 24, 2007 at 10:50 AM

Of course, a big part of the Dems problem is that Hillary scared away any other heavies, and now all they have as alternatives are a couple of “Ken dolls” who are looking more and more hollow and hypocritical.

Keep telling us how the Pubbies are in despair about the lack of good candidates, MSM! Pure propaganda – designed to obscure the nasty little reality that any of the three or four front running Republicans would have an excellent chance of beating any of the top Democrats!

drunyan8315 on September 24, 2007 at 11:09 AM

OK, she said she gave it back. How to verify??

tgillian on September 24, 2007 at 1:03 PM

Spiderman, duped by Hsu?

Resolute on September 24, 2007 at 7:37 PM