LATimes: FBI Looks Into Disgraced Donor Hsu's Business

[flpoljunkie]

Investigators study the legitimacy of an investment pool operated by Hsu, a Democratic fundraiser, who was arrested last week.

By Robin Fields, Chuck Neubauer and Tom Hamburger
Los Angeles Times Staff Writers

September 10, 2007

WASHINGTON — The FBI has begun examining a murky business venture run by disgraced Democratic fundraiser Norman Hsu that paid out hefty profits over the last several years to investors, some of whom were pressed to make contributions to Hillary Rodham Clinton and other political candidates.

Sources told The Times on Sunday that a number of participants and their associates in Southern California and elsewhere had been in contact with the FBI about an investment pool operated by Hsu.

One associate, Irvine businessman Jack Cassidy, said he had tried to warn authorities and the Clinton campaign as early as June that he feared Hsu was running an illicit enterprise, but had gotten no response.

"Nobody picked up the ball," said Cassidy, who was not an investor but heard about Hsu's business from a friend.

http://www.latimes.com/news/local/la-na-hsu10sep10,0,4412655.story?coll=la-home-center

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