Norman Hsu Charged in New York

Norman Hsu has been charged in federal court in New York with conducting a ponzi scheme to defraud investors of $60 mil and with campaign finance violations.

Today's charges stem, in part, from new allegations that Hsu defrauded a group of New York investors who entrusted him with more than $40 million, believing they were financing a clothing venture.

Hsu was charged with felony mail fraud and wire fraud in connection with the Ponzi scheme and a violation of the Federal Election Campaign Act in connection with campaign donations.

Background on the New York investors case is here.

The campaign violation counts allege he made "contributions to candidates in other people's names."

The Complaint isn't unsealed yet on PACER. But the docket says the feds intend to seek his transfer to federal custody "shortly." Here's what the docket says so far.

COMPLAINT as to Norman Hsu (1) in violation of 18 U.S.C. 1341 & 1343; 2 U.S.C. 441f and 437g(d)(1)(A). (Signed by Judge Gabriel W. Gorenstein ) (gq) (Entered: 09/20/2007)

ORDER TO UNSEAL as to Norman Hsu...that the Complaint in the above-stated matter be unsealed at 1:00 p.m. today. The deft is currently in custody in another jurisdiction on state charges, and the Gov't will seek his transfer to federal custody shortly. (Signed by Judge Theodore H. Katz on 9/20/2007)(gq) (Entered: 09/20/2007)

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    I must assume (5.00 / 0) (#6)
    by Deconstructionist on Thu Sep 20, 2007 at 03:16:51 PM EST
      he was one helluva storyteller, but that makes his "I thought it was just a bankruptcy court matter" and "oops, wrong train" stories so sad. Obviously the man had chops in his day. It's always sad when the great ones hang around past their prime-- sort of like watching Willie Mays with the Mets.

    I've never seen the comparison (none / 0) (#7)
    by scribe on Thu Sep 20, 2007 at 03:35:11 PM EST
    of Say Hey Willie bumbling around in center more aptly applied.

    Horribly sad, though it was, to watch.


    WSJ Has the complaint (none / 0) (#1)
    by cboldt on Thu Sep 20, 2007 at 01:48:18 PM EST
    Acording to that (none / 0) (#2)
    by Deconstructionist on Thu Sep 20, 2007 at 02:13:41 PM EST
     he initiated contact with the FBI, waived his right to counsel, and gave an uncounseled confession.

      Maybe he is insane.

    discussing things with them (none / 0) (#3)
    by scribe on Thu Sep 20, 2007 at 02:42:00 PM EST
    surely would seem to imply a lack of sanity.

    I read the complaint, and it paints an ugly picture.  But, the big question I have is:  for what reason did he "urge" his "investors" to contribute to candidates while, in the words of the complaint he:

    made implied threats to the victims leading them to believe that their failure to make the required political contributions would adversely affect the victims' ongoing investment relationship with HSU.

    There's nothing in it for him, other than being a groupie?

    It seems that is a factor (none / 0) (#4)
    by Deconstructionist on Thu Sep 20, 2007 at 02:50:25 PM EST
      but let's face it pictures on the wall of you and sundry politicos can have an influence on some potential investors.

    true, but a good rap (none / 0) (#5)
    by scribe on Thu Sep 20, 2007 at 03:10:46 PM EST
    to pitch your deal probably works even better.

    That's the problem with being famous - everyone wants to have a picture of themselves with you, but you never really know what they are about or will do with that photo of you....