The Wall Street Journal has partially solved the riddle of where Norman Hsu got the money he used to donate substantial sums to Hillary Clinton’s Senatorial and Presidential campaigns as well as numerous other Democratic candidates.
Joel Rosenman, the producer of the Woodstock rock concerts in 1969 and 1994 gave Hsu’s company an astonishing $40 million “investment” with which Mr. Hsu has apparently absconded: (WSJ Subscription required):
New documents reviewed by The Wall Street Journal may help point to an answer: A company controlled by Mr. Hsu recently received $40 million from a Madison Avenue investment fund run by Joel Rosenman, who was one of the creators of the Woodstock rock festival in 1969. That money, Mr. Rosenman told investors this week, is missing.
In a letter this Monday, Mr. Rosenman told investors that the 37 outstanding deals with Components Ltd. are set to mature â€œover the next four months.â€ But he indicated that was not likely. He said he had deposited two checks from Components that â€œmatured Sept. 7.â€ He was informed by the banks that there were insufficient funds.
â€œThis development, coupled with recent revelations,â€ he wrote, â€œled us to believe that payments due on our recent transactions with Components and Hsu may not be made.â€
Forty million dollars? This fellow Hsu must have a golden tongue with an uncanny knack of separating people from their money. And I think it is obvious we underestimated his abilities. Norman Hsu is not some run of the mill grifter. He is a superstar in the world of con men; a first class, top of the line, first team all American crook.
No word on exactly when Rosenman invested this money with Hsu but the Journal article mentioned it was “recently.” If so, that hardly explains the great bulk of donations Hsu has made to Democrats going back at least 3 years. How many others has Hsu bilked? And is his entire life one big Ponzi scheme where he scams mark after mark, using the proceeds from his most recent victims to pay off some of the past investors?
There is nothing “common” about this criminal. Which brings up several troubling questions that few seem to be asking at the moment:
Hillary Clintonâ€™s campaign couldnâ€™t explain yesterday why it blew off warnings about felon-turned-fund-raiser Norman Hsu – and the Daily News learned FBI agents are collecting e-mail evidence in the widening scandal.
Clinton was forced Monday to give back a whopping $850,000 raised by convicted scam artist Hsu after learning his investment ventures were being probed by the FBI as a potential Ponzi scheme.
She earlier gave to charity $23,000 Hsu donated himself after reports revealed he fled sentencing for a $1 million scam in California in 1992.
Yesterday, the campaign insisted it did all it should to vet Hsu after California businessman Jack Cassidy warned in June that Hsuâ€™s investment operation was fishy. Cassidy e-mailed his tips to the California Democratic Party, which forwarded them to the Clinton campaign.
We should also be asking questions about Mrs. Clinton’s security. How could the Secret Service let someone like Hsu within 50 yards of Hillary? Or were their objections overridden?
But the question the Justice Department is going to want answered is who in Mrs. Clinton’s campaign knew about the Cassidy warning and then failed to adequately vet Hsu’s shady dealings? Or, more troubling, discovered Hsu’s history and still took the money anyway.
Meanwhile, See Dubya at Hot Air has dug into Clinton’s donor list and pulled out several contributions from Rosenman’s family as well as others connected with his investment company:
Source Financing, Mr. Rosenmanâ€™s company, has asked the beneficiaries of Mr. Hsuâ€™s largesse to quit giving it away to charity in order to recover it for their investors.
No word on whether Mr. Rosenman wants his own contributions to Hillary back, nor those of a Ned Rosenman who also works for Source Financing, nor those of a Molly Rosenman, also of Source Financingâ€“each of whom gave her $4600 back in March.
Mr. Rosenman’s partner, a Mr. Yau Cheng also donated $4600 to Hillary. See Dubya asks whether all of these checks were part of a bundle delivered by Hsu to the Clinton campaign. In fact, there were 260 individual donors whose checks were bundled by Mr. Hsu. Malkin rightly calls on Hillary to come clean and cough up the list. She’s already returned $850,000. Why not make the names public?
Timing will be critical in this case. When did Hsu receive the $40 million? All the donations from Source Financing were made in March of this year. Was there some kind of understanding between Rosenman and Hsu about part of that $40 million when repaid offered as reimbursement to donors scared up by Source Financing? Was more of that $40 million earmarked for political donations to Democrats? How many operations like this exist to get around FEC regulations?
This could be the biggest election financing fraud in history, even surpassing the Nixon crimes committed during the 1972 election.
Some of the questions about the source of Norman Hsu’s largess spread around the country to Democratic candidates have been answered. But as in all scandals, each question answered raises additional problems. This is a very serious scandal for the Clinton campaign, one that could even sink her candidacy even if it doesn’t touch Hillary directly. And depending on how extensive the lawbreaking was, it may pull down the Democratic party a notch or two nationally.