Fundraising Investigation Deepens

The curious case against Norman Hsu is going to continue and each layer seems to reveal something more.

Yesterday, Hsu turned himself into police on the fugitive warrant in California. He was wanted for bilking several businessmen of millions in an import scheme. He was later released on $2-million bail.

Now it turns out that the Department of Justice is looking into the donations that Hsu made to Hillary Clinton and several other powerful Democrats:

While California state prosecutors were dealing with the business-fraud case, the Justice Department was ramping up a look at Mr. Hsu's more recent political activities. People familiar with the new probe said Justice officials are investigating a pattern of donations by acquaintances of Mr. Hsu's in California. The investigation began following a Wall Street Journal story this past week about donations by these people -- mail carrier William Paw and the five other members of his family who list their Daly City address as 41 Shelbourne Ave., a small house near San Francisco airport.

Mr. Hsu has denied reimbursing any associates for their donations, which would be a felony, or other wrongdoing in his fund-raising activities. "I've asked friends and colleagues of mine to give money out of their own pockets, and sometimes they have agreed," he said in an email to the Journal this past week. A member of the Paw family also has said the family's donations were their own.

Let's take Hsu at his word and suppose he asked several people to make donations for candidates he endorses: what would be in it for them? Sure, Mr. Hsu may well give out of the goodness of his heart and truly support the Democrat party, but why would the Paw family when it clear they don't exactly make alot of money? Was it because Hsu is such a good friend and they trusted his word even though those donations would hurt them financially? That's doubtful.

This case will go on to the detriment of Hillary Clinton. She has attempted to distance herself from it but it conjures memories of allegations against the Bill Clinton campaign in 1996 and the connection the Chinese had to it, an issue that the Chinese-American community would like us all to forget. Sorry, China is arming themselves at an alarming rate, has an abhorrent record on human rights and is aiming to be the power in a region important to us, any issue regarding China and a major political candidate is important and will not be swept aside.

On another note, every politician connected to Hsu has said he or she would donate any money Hsu raised to charity except one: The esteemed Governor of the Commonwealth of Pennsylvania, Ed Rendell. Rendell is the former head of the DNC and was once the Mayor and DA in Philadelphia. He's not giving up the funds yet and he is standing by the major fundraiser:

"He is a man who has proved himself to be of good character," Rendell said yesterday, adding that he had socialized with Hsu about 15 to 20 times over the years. He said he met Hsu "through my work" as chairman of the Democratic National Committee in 2000.

Rendell received $37,866 from Hsu during 2005 and 2006, according to state campaign-finance records. Pennsylvania does not limit the size of contributions.

Which, of course brings up the question of whether or not Hsu was raising the money in a shady fashion back in 2000. Is Rendell the person who brought Hsu into the fold that allowed Hsu to meet and fund raise for other politicians? That could be a reason Rendell is speaking out for the man. These are all questions to be answered and one suspects the WSJ will be going full-bore on this story.

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