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Democratic Fundraiser Hsu Convicted
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| Longtime Democratic fundraiser Norman Hsu was convicted yesterday of violating campaign finance laws. Mr. Hsu donated nearly $40,000 to Gov. Ed Rendell’s campaign coffers. (Paul Sakuma/Associated Press) |
Rendell Previously Referred To Him As ‘One Of The Best 10 People I’ve Met’
By CHRIS FRIEND, The Bulletin
Longtime Democratic fundraiser Norman Hsu was convicted yesterday of violating campaign finance laws in a case that became an embarrassment to Secretary of State Hillary Rodham Clinton and other prominent Democrats, including Pennsylvania Gov. Ed Rendell.
Mr. Hsu donated nearly $40,000 to Mr. Rendell’s campaign coffers.
According to published reports, Mr. Hsu also hosted an $18,000 dinner for Mr. Rendell at an exclusive New York City restaurant, in which less than 20 people attended.
The governor reportedly referred to Mr. Hsu as “one of the best 10 people I’ve me.” He had also said Mr. Hsu “raised money for me because he believes in all the things we’re doing and he never asked for a bloody thing — not a job, not a contract, not to attend a wedding.”
Mr. Rendell was one of the last politicians to distance himself from Mr. Hsu and return the campaign money he received; he eventually gave the funds to charity.
The governor also returned campaign contributions from two donors associated with Mr. Hsu, totaling $7,000.
A jury in federal court in Manhattan deliberated less than three hours over two days before returning the guilty verdict. Mr. Hsu, already jailed following an earlier guilty plea, showed no reaction as he was led out of court.
The trial came just days after Mr. Hsu pleaded guilty to 10 counts of wire and mail fraud, admitting he had cheated investors out of at least $20 million in a Ponzi scheme.
“I think he expected it because it was quick,” said his attorney, Alan Seidler. The lawyer said there would be an appeal.
Mr. Hsu, 58, had been accused of using clients of his fraudulent investment business, including actors and other political novices, as straw donors to make thousands of dollars in campaign donations. The scheme was designed to bypass rules limiting the amount any single individual or group could donate.
Jurors heard testimony from several investors who recounted how Mr. Hsu showed off his political connections by decorating his home with photos of himself with marquee Democrats. One witness testified she met President Barack Obama, Mrs. Clinton, former President Bill Clinton, U.S. Sen. John Kerry, U.S. Sen. Ted Kennedy and U.S. Rep. Patrick Kennedy of Rhode Island at fundraisers she attended with him.
Prosecutors played a voicemail recording of Mrs. Clinton, then a senator, effusively praising Mr. Hsu for his loyal support.
“I’ve never seen anybody who has been more loyal and more effective and really just having greater success supporting someone than you,” she told him. “Everywhere I go, you’re there. If you’re not, you’re sending people to be part of my events. You know, we’re going to win this campaign, Norman, because you single-handedly are going to make that happen.”
After Mr. Hsu’s 2007 arrest, the senator returned more than $800,000 to donors whose contributions were linked to him.
The defense suggested “greedy” investors who cut non-prosecution deals with the government framed Mr. Hsu. His attorney argued his client’s decision to plead guilty to separate securities fraud charges before the trial gave him credibility.
Sentencing is set for Aug. 19.
The Associated Press contributed to this report.
Chris Freind can be reached at cf@thebulletin.us
Mr. Hsu donated nearly $40,000 to Mr. Rendell’s campaign coffers.
According to published reports, Mr. Hsu also hosted an $18,000 dinner for Mr. Rendell at an exclusive New York City restaurant, in which less than 20 people attended.
The governor reportedly referred to Mr. Hsu as “one of the best 10 people I’ve me.” He had also said Mr. Hsu “raised money for me because he believes in all the things we’re doing and he never asked for a bloody thing — not a job, not a contract, not to attend a wedding.”
Mr. Rendell was one of the last politicians to distance himself from Mr. Hsu and return the campaign money he received; he eventually gave the funds to charity.
The governor also returned campaign contributions from two donors associated with Mr. Hsu, totaling $7,000.
A jury in federal court in Manhattan deliberated less than three hours over two days before returning the guilty verdict. Mr. Hsu, already jailed following an earlier guilty plea, showed no reaction as he was led out of court.
The trial came just days after Mr. Hsu pleaded guilty to 10 counts of wire and mail fraud, admitting he had cheated investors out of at least $20 million in a Ponzi scheme.
“I think he expected it because it was quick,” said his attorney, Alan Seidler. The lawyer said there would be an appeal.
Mr. Hsu, 58, had been accused of using clients of his fraudulent investment business, including actors and other political novices, as straw donors to make thousands of dollars in campaign donations. The scheme was designed to bypass rules limiting the amount any single individual or group could donate.
Jurors heard testimony from several investors who recounted how Mr. Hsu showed off his political connections by decorating his home with photos of himself with marquee Democrats. One witness testified she met President Barack Obama, Mrs. Clinton, former President Bill Clinton, U.S. Sen. John Kerry, U.S. Sen. Ted Kennedy and U.S. Rep. Patrick Kennedy of Rhode Island at fundraisers she attended with him.
Prosecutors played a voicemail recording of Mrs. Clinton, then a senator, effusively praising Mr. Hsu for his loyal support.
“I’ve never seen anybody who has been more loyal and more effective and really just having greater success supporting someone than you,” she told him. “Everywhere I go, you’re there. If you’re not, you’re sending people to be part of my events. You know, we’re going to win this campaign, Norman, because you single-handedly are going to make that happen.”
After Mr. Hsu’s 2007 arrest, the senator returned more than $800,000 to donors whose contributions were linked to him.
The defense suggested “greedy” investors who cut non-prosecution deals with the government framed Mr. Hsu. His attorney argued his client’s decision to plead guilty to separate securities fraud charges before the trial gave him credibility.
Sentencing is set for Aug. 19.
The Associated Press contributed to this report.
Chris Freind can be reached at cf@thebulletin.us
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