Today's Article
Norman Hsu has
lavished $260,000 on
Dems since 2004, but
now many are
severing their ties to
this apparent scam
artist as fast as they
can.
The American Spark
Senator Clinton, House Democrats Sever Ties To Shady Donor
By Cliff Montgomery - Aug. 30th, 2007
Democratic presidential front-runner Senator Hillary Clinton (D-NY) will donate to charity the $23,000 she had
taken from a fundraiser who currently is wanted by California authorities for failing to show at his sentencing
hearing for a 1991 grand theft prosecution.
Clinton announced her decision Wednesday as more Democrats began severing their ties to Norman Hsu,
whose run-ins with the law and ties to numerous Democratic power players are beginning to be a public
embarrassment.
Al Franken, Minnesota's Democratic Senate hopeful, as well as Representative Michael Honda (D-CA) and
Representative Joe Sestak (D-PA), also declared they would not keep the payoffs--we're sorry,
donations--they had freely accepted from Hsu.
Hsu is perhaps best known in political circles as a motivated fan and fundraiser of Sen. Clinton. The California
fugitive had apparently even hoped to co-host a fundraising event for Sen. Clinton on Sept. 30th.
Hsu claimed in a Wednesday statement that it was all a big misunderstanding--like some kind of "Three's
Company" episode. Hsu claims he was under the impression that his old legal troubles had somehow all been
worked out, and that he was innocently unaware that a warrant for his arrest had been issued in California.
We at The American Spark won't directly judge Mr. Hsu, but we'll just say that, "The California sentencing
hearing for my 1991 grand theft prosecution simply slipped my mind," is not the best defense we've ever heard.
Ronald Smetana, a California deputy attorney general who worked as the prosecutor in the Hsu case, told
Associated Press (AP) that Hsu had first been arrested for running a high-dollar scam based on his false
claims of having landed a lucrative import contract for latex gloves. Hsu's lies allowed him to collect around $1
million from would-be investors.
In 1991, Hsu pled guilty to a felony count of grand theft, but did not appear in court for the sentencing.
Smetana told AP that he'd hoped to get a prison sentence for Hsu.
A clerk at the San Mateo County courthouse where Hsu's prosecution took place told AP that an outstanding
warrant for his arrest was issued in 1992. Bail was set at $2 million if Hsu were arrested.
In a Wednesday statement, Hsu declared:
"I believe I properly resolved all of the legal issues related to my bankruptcy in the early 1990s. Therefore, I was
surprised to learn that there appears to be an outstanding warrant--as demonstrated by the fact that I have
and do live a public life. I have not sought to evade any of my obligations and certainly not the law."
There apparently was no word from Mr. Hsu if he will be returning to California, however.
Recent reports in The Los Angeles Times and The Wall Street Journal on the more shady aspects of Hsu's
life have a number of Dems scrambling either to return or give to charity contributions personally received from
Hsu.
This Tuesday Hsu's Washington attorney, Lawrence Barcella Jr., denied charges that Hsu also may have
improperly directed contributions from numerous Democratic donors.
A recent Journal article reported that six relatives of San Francisco mail carrier William Paw have given a sum
of $45,000 to Sen. Clinton since 2005. The Journal adds that their contributions closely follow Hsu's donations.
Phil Singer, a Clinton campaign spokesman, told AP that the $23,000 she has received from Hsu is the total of
his numerous contributions to Sen. Clinton over the years. These include donations to her political action
committee, as well as to both her Senate re-election and presidential campaigns.
"In light of the information regarding Mr. Hsu's outstanding warrant in California we will be giving his
contributions to charity," Singer told AP.
But the Clinton presidential campaign had no immediate plans to return money which Hsu has gathered from
other donors, added Singer.
Franken's U.S. Senate campaign had taken $2,300 from Hsu. Representatives Honda and Sestak each
received $1,000 from Hsu for their re-election campaigns.
Federal Election Commission documents reveal that Hsu had lavished $260,000 on Democratic Party entities
since 2004. But now many Dems are severing their ties to Norman Hsu as fast as they can.
"The Sestak Campaign [has] decided to return Norman Hsu's campaign contribution," succinctly declared a
statement from Representative Sestak's re-election campaign office.
But Rep. Honda appears to be handling this sticky situation better than most. Honda deftly plans to turn
$5,000 of questionable contributions he received from Norman Hsu, from Paw family members and from
another apparently questionable donor whom his spokespeople wouldn't immediately identify to AP, into a
series of charitable donations.
Honda spokeswoman Gloria Chan told AP the $5,000 would be given to various community organizations, but
she added that Rep. Honda hadn't yet picked the ones he plans to help.
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