LAT: Fugitive Fundraiser Hsu Jailed After Turning Himself In Today

[flpoljunkie]

Fugitive fundraiser Hsu jailed after turning himself in

By Dan Morain and Chuck Neubauer
Los Angeles Times Staff Writers

9:57 AM PDT, August 31, 2007

REDWOOD CITY, Calif. -- Democratic fundraiser Norman Hsu, who had been a fugitive from a 1992 grand larceny case, was led to jail in handcuffs today after a judge ordered him to post $2 million bail.

Superior Court Judge H. James Ellis ordered Hsu held, although Hsu could post bail later today. Hsu, wearing a well-tailored black suit, turned himself in after news accounts identified him as a fugitive.

Supervising Deputy Atty. Gen. Ronald D. Smetana and the attorney representing Hsu had agreed that he could be freed on $1 million bail on the condition he surrender his passports and make all further court appearances. But Ellis rejected that arrangement and ordered Hsu into custody pending a full bail hearing Sept. 5.

Smetana said he expected to ask that Hsu serve some time in prison.

In 1992, Hsu agreed to serve three years, although that term could be modified if he makes full restitution, estimated at $1 million.

http://www.latimes.com/news/politics/la-na-hsu1sep01,0,7770103.story?coll=la-home-center

[flpoljunkie]

1. Obama campaign has written the Paws and asked them to affirm their contributions came from own funds

Obama Returning Hsu's Money

By Greg Sargent - August 30, 2007, 5:25PM

The Obama campaign -- like just about every other Democrat in our fair galaxy -- is returning contributions it got from Norman Hsu, the big-time fundraiser for Hillary and other Dems who, it turns out, is a fugitive on a fraud rap. Obama spokesperson Bill Burton sends over the following statement:

We have given the $7,000 in contributions from Hsu to charity and sent a letter to the Paws to affirm that the contribution they gave were from their own funds and not those of others.

The question now facing Obama and Hillary and many others is whether to give back money that was bundled by Hsu -- such as the Paws contribution referenced above. Sending this letter to the Paws could end up solving this problem. A source with knowledge of such matters tells me that if the Paws were to falsely affirm that the contribution was theirs they could be held legally liable for aiding in the falsification of an FEC report.

Meanwhile, Hillary, who's also agreed to return Hsu's money, if not the cash bundled by him, has been getting asked about the controversy all day, and Dem candidates who have received his money have scrambled to unload it.

http://tpmelectioncentral.com/2007/08/hillary_pushes_back_on_controversy_over_hsu.php

[rinsd]

2. This is a GOP hit.

I know Hsu and the money were the wrong thing to do but this one was saved for just the right time.

[flpoljunkie]

7. Not to worry, rinsd, Wolf is doing his best to slam Obama, too--not mentioning Hsu gave no money to

Obama's presidential campaign--and that Hsu is one of Hillary's "Hillraiser" bundlers.

That said, if Hsu is laundering campaign contributions through folks like the Paws, it will come out and tarnish the Democratic party--even if they had no idea what Hsu was up to.

It is time to clean up our corrupt campaign finance system. The Clintons had their chance, but chose not to lead on this issue--public financing of federal campaigns. They folded before a recalcitrant Congress.

We, the American people, are the losers in our current campaign finance system where special interests, not the public interest rule.

[rinsd]

8. Sorry I wasn't more clear. I mean this was a hit on all Democrats

He has given to a dozen different Dems and has given tens of thousands to the DNC & DSCC not to mention his fundraising.

[flpoljunkie]

9. My point Wolf lumped Obama and Hillary together when Hsu has donated exclusively to Hillary for '08.

Hsu is one of Hillary's "Hillraisers"--those who bundle at least $100,000. Hsu has give not one dime to Obama for his presidential campaign.

[Kagemusha]

3. Sounds like Obama's campaign is doing a good job here.

It's not the first time controversy has arisen and been quickly beaten down by prompt action in strict accordance with the law.

[Colobo]

4. I'm proud of the Obama camp.

[BenDavid]

5. And the difference between Obama's

campaign accepting donations from this person and the HRC campaign accepting donations is different how? None...so lets not say it tis okay and then belittle the other.....Selective outrage....

I do thank you
Ben David

[flpoljunkie]

6. As Christopher Hitchens might put it, "Politics is not great. How Money Poisons Everything."

Who said it was okay? Certainly, not I.

When the Clinton administration had a chance to push for public financing of federal campaigns, what did they do? They backed down and failed to push the issue-- when Democrats in Congress whined that federal funding might endanger their hold on their seats.

Our campaign finance system is little more than legalized bribery when lobbyists can legally serve as campaign fundraisers for members of Congress.

[karynnj]

10. Yes it is _ He was a Hilraiser

He gave Obama $7,000 - for the Senate campaign. He was a Hilraiser bundling over $1,000,000 of contributions to HRC and he gave more than $20,000 to her himself.

The good thing is that there are things that made him look ok on the surface - until all this came out. He was on the board of NYC's New School. As soon as it came out - Hillary, Obama, and several other Democrats donated the money. There is no way any campaign can look at the full records of every contributor.

[flpoljunkie]

11. LATimes reports today the Justice Dept. has opened an investigation into Hsu's campaign donations

Superior Court Judge H. James Ellis ordered him held on $2 million bail. Hsu, dressed in a sharply tailored black suit, was led from the court in handcuffs. After posting bail, the depth of his woes became more apparent. A Justice Department source disclosed that the FBI has opened an investigation into Hsu's campaign donations.

http://www.latimes.com/news/politics/la-na-hsu1sep01,1,4634696.story

[flpoljunkie]

12. It is actually the FBI who will be investigating Hsu's campaign donations.

[flpoljunkie]

13. BTW, I have seen this information nowhere else today--no AP or blog item, either.

Interstingly, this information was also buried about half way down in the LATimes article.

[karynnj]

14. Make that $100,000 -

The NYT says Hilraisers raise $100,000, not $1,000,000.