As the race for the White House moved into its final weeks in 1996, Republicans were accusing the campaign of Bill Clinton and Al Gore of unethical fundraising tactics, including Gore’s attendance at a fundraiser at a tax-exempt Buddhist temple in California.

Now, as Hillary Rodham Clinton seeks the White House, the indictment yesterday of a former chief fundraiser, Norman Hsu, may see her confront potentially harmful fundraising questions of her own.

"Will this help? Of course not," said Maurice Carroll, director of the Polling Institute at Quinnipiac University, in Hamden, Conn. "You accumulate enough hurts and you have a problem."

In September, Clinton returned $850,000 to Hsu after it was revealed he was a fugitive from a prison sentence following a ponzi scheme conviction.

In October, she returned more campaign cash after it was revealed her campaign took in some 150 donations of between $500 and $2,000 each from Chinatown dishwashers and street vendors - many could not be located or denied making donations.

Hsu was indicted yesterday on 15 counts of defrauding investors of at least $20 million, and of violating campaign finance laws by donating to candidates in other people’s names.

Clinton spokesman Blake Zeff refused to comment. Prosecutors said there is no indication the Clinton campaign knew Hsu may have been operating illegally.

Dennis Goldford, a political scientist at Drake University in Des Moines, said that by reminding voters of the fundraising controversy surrounding the Clinton-Gore campaign, Hsu’s indictment could add to perceptions the Clintons cannot be trusted.

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Norman Hsu indicted in NY - will wait for a Hillary Clinton Pardon

Just in from AP:

A federal grand jury on Tuesday indicted Norman Hsu, a top Democratic fundraiser accused of cheating investors of at least $20 million and using some of the money to make illegal donations to political campaigns.

In the 15-count indictment returned in U.S. District Court in Manhattan, the government accused the 56-year-old clothing-industry entrepreneur of duping investors nationwide with a massive Ponzi scheme.

The Hillary Clinton campaign was too busy digging through Barack Obama’s homework to respond.

Source: Michelle Malkin

Hsu associates touted his connections

Democratic fundraiser Norman Hsu reveled in his role as friend to Bill and Hillary Clinton.

As Hsu raised more than $800,000 for Sen. Hillary Rodham Clinton’s presidential campaign, the couple praised him at star-studded events and showered him with thank-you notes. Hsu often wore a bomber jacket that bore the presidential seal, a gift from the former president, he told associates.

But Hsu’s turn in the political limelight was about more than ego gratification.

Documents obtained by the Los Angeles Times show how Hsu’s business associates traded on his connections — going so far as to claim that former President Clinton was a Hsu client — to lure investors into a scheme that took in tens of millions of dollars nationwide.

A marketing brochure distributed by an Orange County firm to attract investors to Hsu’s business claimed the 56-year-old Hong Kong native’s "extensive political investment community includes former President Bill Clinton, who continues to invest to this day."

Howard Wolfson, a Clinton spokesman, denied that the former president had invested with Hsu. And Sen. Clinton’s financial disclosure statements show no investments or income from Hsu for her or her husband.

Still, as a marketing tactic, the claim may have worked all too well: A Southern California couple recently filed a lawsuit saying they lost more than $3 million in a Hsu-run Ponzi scheme — based in part on the brochure’s promises.

In September, federal prosecutors charged Hsu, saying he defrauded investors out of $60 million and violated federal election laws for reimbursing political donors for contributions made in their names.

Investigators and investors have alleged that Hsu used his status as an elite Democratic Party fundraiser to give the appearance of legitimacy to his investment scheme, which promised big profits from short-term bridge loans.

"Hsu’s political campaign fundraising activities were part of an effort to raise his profile and induce more people to invest in the Ponzi scheme," FBI Special Agent David A. Cardona said when Hsu was charged.

Hsu invited business associates to fundraisers, where they rubbed shoulders with celebrities and Democratic Party luminaries. Their word of mouth helped establish Hsu’s bona fides with potential investors.

But the brochure and the lawsuit filed in October by Gregory and Joyce Adams lay out for the first time how Hsu’s network pitched the deals that allegedly turned his Clinton ties into gold.

The lawsuit — filed against Adams’ investment advisor, Paul H. Heckler, and his firm, Yosemite Capital Management — describes how Gregory Adams was approached by an acquaintance and given the brochure in December 2006.

The homemade booklet for Ashton & Associates, which pictured a bridge on its cover, emphasized Hsu’s political resume. It included a partial list of his campaign contributions to Hillary Clinton and an array of congressional candidates.

The brochure’s other claims carried equal weight with Adams, according to his lawyer, Jeffrey Tidus.

It said that the principals of Ashton & Associates and Ashton Investments, another firm handling the bridge-loan deals, had a relationship with Hsu that dated to college. And it guaranteed annual returns of up to 28%, stating that "through the past 17 years, not a single Ashton investment has failed to achieve its stated return."

A spokesman for Hsu declined to comment on whether Hsu knew of the brochure or approved its claims.

To Adams, whose wealth derived from the sale of his family’s outdoor advertising company, the Ashton pitch satisfied his goal of having a high-yield, low-risk portfolio.

"He believed them when they said it was safe," Tidus said.

Before investing, Adams said, he met with Ashton & Associates President Mark Cheshire and Ashton Investments President Kevin Cornish at Ruby’s Cafe in Tustin. He brought along Heckler.

At the meeting, the lawsuit alleges, "Heckler actually expressed the view that the bridge-loan investments sounded like a Ponzi scheme." Yet after learning that he could earn commissions by bringing clients into the venture, Heckler became an "enthusiastic" supporter of the investment, the lawsuit says.

The lawsuit also says Heckler ignored a plea from Gregory Adams’ mother to keep him out of the bridge-loan deals because they sounded too good to be true.

Gregory Adams ended up putting most of his assets — including his IRA — into Hsu’s scheme, wiring more than $3 million into it between June and August, the lawsuit says.

In September, after the Los Angeles Times disclosed that Hsu was a fugitive wanted in connection with a 15-year-old theft case, the investment scheme swiftly came undone.

Heckler, Cheshire and Cornish did not respond to repeated requests for comment. A source close to Cornish said he did not write the brochure and did not endorse it.

According to the lawsuit, Heckler persuaded clients other than Adams to invest, telling them the minimum required to participate was $250,000.

Last month, Heckler and his firm were sued by another client, venture capitalist Robert Barron of Laguna Niguel, who said he lost $800,000 in the scheme.

Investment companies in New York and Orange County sued Hsu in September, saying that he had duped them — along with hundreds of individual investors who participated in the bridge-loan deals through them.

The federal criminal complaint against Hsu alleges that he pressured investors to make contributions to Democratic candidates as a condition of doing business with him.

Hillary Clinton’s presidential campaign has donated to charity or to the U.S. Treasury the $23,000 that came directly from Hsu and has refunded more than $800,000 in contributions linked to him — including $6,900 from Cornish and his wife.

Adams was not among the donors, Tidus said.

Hsu remains in the San Mateo County Jail, awaiting sentencing on the 1992 theft charge.

Source:  LA Times

Hillary’s Texas Money Bundler

Has the Clinton Campaign cloned another Ms. Chung Seto of NYC Chinatown bundling fame, or a Boss Parr from a long-past Texas Senatorial race?

Hillary has a Texas border town bundler, Alonzo Cantu, who, according to the Washington Post, 

"…persuaded more than 300 people in Hidalgo County, where the median household income in 2006 was $28,660, to write checks ranging from $500 to $2,300 to the senator from New York." 
According to the Post, Clinton has raised $640,000 from donors in and around McAllen, the principal city in Hidalgo County, while Obama is running at $2,086.  One donor, Cantu’s brother-in-law, is quoted as saying, with a smile, "The last thing you want to do is get on Alonzo’s bad side."

Cantu’s bundling role among a less affluent population is reminiscent of Ms. Seto’s fundraising success among waiters and dishwashers in NYC’s Chinatown.  Perhaps in the days ahead we’ll know if all of Cantu’s donors can be found. Or not.

Meanwhile, this story reminds those of us who live in Texas of another political campaign here back in 1947.  The Senatorial election that year was between a legend in Texas politics and a young congressman from Austin.  The legend, Coke Stevenson, had been the Speaker of the Texas House, Lieutenant Governor, and twice elected Governor.  The congressman was Lyndon Johnson. 

NYT Op-Ed Columnist Still Fooled By Norman Hsu’s Bogus Investor Pitch

In a piece that manages simultaneously to pooh-pooh luxury brands like Gucci and Prada for supriously manufacturing their ostensibly high-end, European goods in China and to castigate the "xenophobic" brand executives who seem to believe Chinese manufacture indicates lower quality, New York Times op-ed columnist and Newsweek cultural correspondent Dana Thomas supports the former claim with a questionable source.

[The high] prices are worth it, we are told, because these goods are handmade in Europe by artisans. In fact, that is not always the case — as we learned from the recent news reports on the activities of Norman Hsu, the Democratic political fund-raiser indicted on charges of investment fraud. Mr. Hsu told potential clients that he would use their money to finance the manufacturing of Gucci and Prada items in China — and promised a 40 percent return on the investment.

This was surprising, given that both brands have long maintained that they do not produce their wares there. A Prada spokesman reiterated it when the Hsu news broke, telling Women’s Wear Daily that Prada does not manufacture its products in China — though if you look inside one of Prada’s popular nylon toiletry cases, you’ll sometimes find a small tag that states otherwise.

Thomas may not have fully understood the nature of "the Hsu news", because at the heart of matter is the allegation that Hsu’s apparel activities were wholly fictional.  The "charges of investment fraud" relate to an alleged Ponzi scheme, in which the only business being done was the recruitment of more investors (and the occasional flood of contributions to dozens of Democratic candidates).  I visited Hsu’s stated places of business back in September and failed to find not only a bustling apparel conglomerate, but any trace of Hsu or his many business entities.

That’s not to say Gucci and Prada aren’t using Chinese labor - just that the allegation is poorly supported by parroting Hsu’s phony claims.  Dozens of investors were hoodwinked by Hsu, a mistake that has left them tens of millions of dollars poorer.  At the time, his A-list political affiliations and the impressive early returns he generated for his investors were enough to overshadow Hsu’s otherwise unverifiable business activities.  With these political and corporate veneers now stripped away, it’s odd that Thomas is still so willingly duped.

Source: Suitably Flip

Whitewashing Of Clinton Past Still A Priority

The Hillary Clinton juggernaut likes to try to run over every new threat, especially the ones it can call "old news."

Every new book on her life, personal and political, is dismissed as "old news" — unless the person retelling and reshaping the "old news" is Hillary. Her recounting of her life is minty-fresh. Every other book smells like a reopened casket.

Whenever — if ever — authors of Hillary books are introduced by the national media, the tone of the interviews focuses in on Hil-lary’s talking point: "Why should anyone care?" From the start, the message is that these books belong in the garbage can, not in the library.

The books that have come out this year have provided interesting new material that should in some way shape the media’s understanding of Hillary. Yet, even liberals like Carl Bernstein or the New York Times duo of Jeff Gerth and Don van Natta have seen their books presented not as "news" but as pernicious attempts to change Hil-lary’s narrative.

How is it that the wife of an impeached president, the policy architect of a 1,300-page left-wing health care fiasco and the document-shredding stonewaller of a welter of scandals can turn her controversial career and bizarre First Marriage into assets and not liabilities?

How is that Team Clinton, disgraced and disgraceful, is back for another presidential run? Credit the national "news" media.

Tim Graham, my colleague at the Media Research Center, and I have spent a couple of years reviewing all of the national media’s framing and promotion of Hillary Rodham Clinton since her national debut in 1992. Their often-gushy and gooey treatment of her political life and ethical fiascos can be summed up in one word (and one book): "Whitewash."

They are the stereotype of the aggressive watchdog, except the media elite are baring their teeth and growling and barking at conservative critics of Hillary — while rolling over and playing the slobbery pooch for her.

They have downplayed or ignored her every scandal, bizarrely suggesting to the public that they should hold her in high esteem for her honesty and integrity. A Time reporter just called her a "moral conservative."

They have taken her stark black-and-white voting record that scores 95% or 100% rankings from liberal interest groups and implausibly painted it into a landscape of soft and comforting centrist pastels.

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Bozell Column: Beware Hillary’s ‘Whitewash’

The Hillary Clinton juggernaut likes to try and run over every new threat, especially the ones they can call "old news." Every new book on her life, personal and political, is dismissed as "old news" – unless the person retelling and reshaping the "old news" is Hillary. Her recounting of her life is minty-fresh. Every other book smells like a reopened casket. Whenever – if ever – authors of Hillary books are introduced by the national media, the tone of the interviews focuses in on Hillary’s talking point: "Why should anyone care?" From the start, the message is that these books belong in the garbage can, not in the library. The books that have come out this year have provided interesting new material that should in some way shape the media’s understanding of Hillary. Yet even liberals like Carl Bernstein or the New York Times duo of Jeff Gerth and Don van Natta have seen their books presented not as "news," but as a pernicious attempt to change Hillary’s narrative.

How is it that the wife of an impeached president, the policy architect of a 1300-page left-wing health-care fiasco, and the document-shredding stonewaller of a welter of scandals can turn her controversial career and bizarre First Marriage into assets, and not liabilities? How is that Team Clinton, disgraced and disgraceful, is back for another presidential run?

Credit the national "news" media.

My colleague Tim Graham and I have spent a couple of years reviewing all of the national media’s framing and promotion of Hillary Rodham Clinton since her national debut in 1992. Their often-gushy and gooey treatment of her political life and ethical fiascoes can be summed up in one word (and one book): "Whitewash."

They are the stereotype of the aggressive watchdog, except the media elite are baring their teeth and growling and barking – at conservative critics of Hillary, while rolling over and playing the slobbery pooch for her. They have downplayed or ignored her every scandal, bizarrely suggesting to the public that they should hold her in high esteem for her honesty and integrity; a Time reporter just called her a "moral conservative." They have taken her stark black-and-white voting record that scores 95-percent or 100-percent rankings from liberal interest groups and implausibly painted it into a landscape of soft and comforting centrist pastels.

Read the rest of this entry »

Hsu-Greased Pols Lining Up Behind Clinton

The Hill has compiled an updated roster of Congressional endorsements of Presidential candidates (HT: Matt Lewis).  Not surprisingly, Hillary Clinton is out in front, with 59 Representatives, 9 Senators, and one non-voting Delegate in her corner.  That gives Clinton 3/4 of the Senatorial endorsements and just over half of the House endorsements announced to date.

Here are a few other statistics worth a ponder.

15% of Hillary’s House and Senate endorsers (10 of 68) received tainted contributions from Norman Hsu’s donor network, compared to 7.5% (40 of 535) of all current Congress members.  A majority of her Senatorial endorsements (a whopping 56%) received Hsu money, compared to 28% of all current Senators.

That means legislators who threw their weight behind Clinton were twice as likely to be greased by Hsu as their average colleague.

(The percentage of Obama endorsers who received Hsu’s support rate was not meaningfully different from the Congress-wide rate (7.7% vs. 7.5%) and not a single Edwards backer saw Hsu money.)

Likewise, Hsu-gilded legislators backed Clinton with roughly twice the frequency (25%) as Congress on the whole (12.7%).  Hsu’s beneficiaries were 5x likelier to endorse Clinton than Obama (25% vs. 5%), while her endorsement advantage Congress-wide over Obama is only 2.6x.

Whatever causal link may lie behind the divergence is of course left to one’s imagination.  The pattern does lead the more feverishly conspiratorial to wonder whether the seemingly scatter-shot dispersal of Hsu’s support among dozens of candidates may have served a more focused end, such as the elevation of a single candidate for whom those recipients may have later had an opportunity to toss an endorsement.

But it’s equally possible that Norman Hsu simply admires politicians who admire Hillary Clinton and that he chose to support them without so much as the most tacit of quid pro quos.

Or it could be a little of both.

Source: Suitably Flip

THE BUNDLER: How a Business Flop Became Political Force

[Norman Hsu]

By the time Norman Hsu flew to Beverly Hills in early September and checked into the Raffles L’Ermitage hotel, the life of the top Democratic donor and self-professed clothing magnate was coming unraveled.

Mr. Hsu, a slight, 56-year-old immigrant from Hong Kong, was under investigation for campaign-finance violations. An old grand-theft charge had come back to haunt him. Sen. Hillary Rodham Clinton and other politicians had begun returning his donations. He was so distraught that he sent off suicide notes before leaving his Manhattan home for California.

Still, he appeared unruffled when he settled into the hotel’s café to comfort a nervous investor, Martin Waters. Mr. Hsu was dressed in jeans, Prada shoes, a black T-shirt and a baseball cap. "Don’t believe what you are reading," Mr. Hsu said, according to Mr. Waters, who owns a small clothing company and was owed more than $20 million for deals he and his friends made with Mr. Hsu. "Plenty of people are still supporting me," Mr. Hsu assured him, mentioning Pennsylvania’s governor, who initially stood by him when news of his troubles broke. "Your loans are secure." Mr. Hsu also met with other investors that day, but his effort to salvage his reputation went nowhere. Within weeks, federal prosecutors in Manhattan had charged him with fraud and election-law violations, accusing him of running a "massive" Ponzi scheme that cost investors more than $60 million. Mr. Hsu’s story has received considerable public scrutiny over the past few months, but one question still looms large: How did his classic immigrant pursuit of the American Dream become so twisted? An in-depth look at Mr. Hsu’s peculiar rise and abrupt fall reveals a man consumed with a desire to gain respect and wealth, even as his scattershot business ventures failed at every turn. In politics, he found everything he seemed to be looking for — glamorous friends, acclaim and a measure of credibility that he used to help attract investors to his dubious business pitches. His business failures and resulting deceptions required him to construct a facade. To those who met him, he seemed a success, filled with confidence, warmth, generosity and sincerity. But he was dogged by lawsuits and angry creditors, once outwitting an intimidating debt collector nicknamed "Shrimp Boy" by telling police he was being kidnapped. He would tap one circle of friends, then disappear, only to turn up later with new friends and new funding.

Politics was a world where his schmoozing and fund-raising talents were powerful currency. He became a "bundler," someone who could induce hundreds of acquaintances to donate. Bundling has emerged as a major source of U.S. campaign-finance abuse, and Mr. Hsu was in the thick of it.

He befriended Mrs. Clinton and other Democrats, decorating his SoHo loft with their photos. He displayed a saxophone autographed by former President Bill Clinton, bought for $26,000 at a Red Cross benefit. He sported a chocolate-brown leather bomber jacket with the presidential seal. "Bill Clinton gave this to me," he told Mr. Waters.

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The Hillary Whitewash Continues

It seems that no bad Hillary Clinton deed goes unresponded to.

As we are in the midst of a presidential campaign, this by itself is not an issue. That it is the national media that is leading this charge is. One need focus on but the latest corners of the Clinton pantheon to come to light to see the full court press the press puts on when their girl needs them.

In an October 10 Boston Globe interview, Senator Clinton let her socialism slip a bit, saying "I have a million ideas. I can’t do all of them. I happen to think in running a disciplined campaign - especially when it comes to fiscal responsibility, which is what I’m trying to do - everything I propose I have to pay for. You know, you go to my website, you’ll see what I would use to pay for what I’ve proposed. So I’ve got a lot of ideas, I just obviously can’t propose them all. I can’t afford them all. The country can’t afford them all." (Emphasis ours.)

The Republican National Committee, and later in a presidential debate Republican contender Rudy Giuliani, focused like a laser on this statement, specifically the first and last lines, and had a field day.

The Globe was appalled that anyone would use Hillary’s words against her, and appeared embarrassed that they were the source for the slam. Not only did they reprint the text of the interview, they went so far as to pen an editorial defending Senator Clinton. They opined that her remark "has been so badly twisted by her opponents that we feel it necessary to reprint the interview transcript", asserted that "Clinton was saying she opposes big government spending, not the other way around" and concluded that "what Americans really can’t afford are cheap political distortions."

Differences on the meaning of what the Senator said aside, this mop-up work should be the work of the Clinton campaign’s political and PR divisions, not that of a supposedly impartial and neutral news entity. The examples of Democrat malfeasance with the words of Republicans are many; of media outlets rushing to cry foul and correct the record precious and few.

And then there is the ongoing MSM Clinton reclamation project that is the Norman Hsu saga.

Hsu had been long on the lam from the law and long on dollars for Hillary Clinton. He dodged sentencing on 1992 grand theft charges to which he pled no contest, but found time amidst all the subsequent running to raise and deliver $850,000 to Campaign Clinton’s presidential effort.

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