Norman Hsu Sentenced to 24 Years in Prison

by Stephan Tawney on September 29, 2009

You remember this guy. He’s the felon who illegally funneled hundreds of thousands of dollars into the campaign coffers of national Democratic candidates, including Secretary of State Hillary Clinton. He’s been sentenced to 24 years in prison after being convicted for his role of a Ponzi scheme in May.

Mr. Hsu was convicted in May of illegally funneling tens of thousands of dollars to U.S. political candidates. Also in May, he pleaded guilty to charges related to a Ponzi scheme that prosecutors said raised at least $60 million and swindled investors out of at least $20 million.

Mr. Hsu rose from a relatively unknown businessman to a prominent fund-raiser who pulled in hundreds of thousands of dollars for Hillary Clinton and other politicians. However, that fund-raising proved to be his downfall after an August 2007 article in The Wall Street Journal raised questions about whether the contributions violated campaign-finance laws.

Prosecutors had alleged that Mr. Hsu pressured some investors in the Ponzi scheme between 2004 and 2007 to individually contribute thousands of dollars to candidates for president and Congress whom Mr. Hsu supported. Mr. Hsu illegally reimbursed some investors for making those contributions, skirting campaign-finance laws, prosecutors said.

In 2007, Mrs. Clinton’s presidential campaign agreed to return $850,000 in funds raised through Mr. Hsu. During the May trial, the government introduced a voice-mail message of support to Mr. Hsu left by Mrs. Clinton. “What am I going to do with you, Norman? You are working so hard for me,” Mrs. Clinton said. “I just don’t even know what to say anymore. I’ve never seen anybody who has been more loyal and more effective and really just having greater success supporting someone than you.”

Time flies when you’re having fun. Despite it feeling like just last week, Hsu actually surrendered to authorities back in 2007 after evading authorities for years. He was arrested and released on $2 million bail, but failed to show up in court once again. He was later found unconscious on a train after unsuccessfully trying to commit suicide through the use of pills.

The case just once again goes to show the amazing scale of corruption that touches even the highest levels of government, including the current Obama Administration. The best cure for corruption is sunshine.



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