Hsu and the $40 million Ponzi Scheme

It’s an overused line, but the other Hsu really dropped tonight. It seems Hsu was running yet another Ponzi scheme but this time he went for the whole enchilada.

’60s Figure Says He Financed Donor Hsu

Where did Norman Hsu get his money?

That has been one of the big questions hanging over the prominent Democratic fund-raiser, as reports have surfaced about hundreds of thousands of dollars he made in political donations, plus lavish parties, fancy apartments and a $2 million bond he posted to get out of jail earlier this month.

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.

Mr. Hsu told Mr. Rosenman the money would be used to manufacture apparel in China for Gucci, Prada and other private labels, yielding a 40% profit on each deal, according to a business plan obtained by the Journal. Now the investment fund, Source Financing Investors, says Mr. Hsu’s company owes it the $40 million, which represents 37 separate deals with Mr. Hsu’s company. When Source Financing recently attempted to cash checks from the company, Components Ltd., the investors say they were told the account held insufficient funds.

It’s the latex glove scam only with a Gucci logo on it.

Well we now know how the Paw’s and other people of modest incomes managed to give so much to Democrats. I said in my last post that I did not understand what was taking the FBI so long to untangle this mess. Now it is all clear. They have a few hundred suspects.

Every person who gave “bundled” donations to Hillary and other Democrat may have committed several felonies. Not the least of which is money laundering, campaign financing violations, wire fraud, RICO violations, tax evasion, the list goes on and on. That’s not to say they are all dirty but geeze the FBI has some work ahead.

I also said in my last post the “scandal meter” was still on low… It just climbed tonight, $40 mill ain’t chump change. Now, I doubt Hillary knew Hsu’s background, but still, the political stink is growing and there are a few people on her staff the FBI is going to want to talk to. — And the other candidates aren’t going to wait for the whole thing to be sorted out before the mud flies. Look for John Edwards to something about this within hours. (Unless he got money too, I forget)

We now know why Hillary was so eager to give back the $850,000 a few days ago. She surely knew this was going to break.

We also know why he skipped on a $2 million bond and tried to OD on the train. He had bigger things on the brain than a 15 year old conviction.

Yet I still have dozens of unanswered questions on this deal..

Like the look on Rosenman’s face when he read in the paper about the latex glove scam and realized he had fallen for the same thing to the tune of $40 million.

Hsu gave $1.8 million to the Dems, he gave $2 million to California to get out of jail. He probably spend $5 million being a jet setter. So where is the other $30 million or so that’s missing?

Hsu scammed Rosenman out of such a large sum because they worked some smaller deals and made money. Where did that money come from? In my last post, we learned he had all sorts of investors, Hsu’s MO would have been to take their money and give it to Rosenman. So that’s probably explained but still, we need to know.

Bringing Rosenman into the picture raises some other issues though… Rosenman is a long time Hillary pal. By the looks of it, Hsu never cared about politics until he started doing business with Rosenman. Hsu never even voted. — Did Rosenman push Hsu to donate to Hill and various Dems? While he is the “victim” I’m sure the Feds are keeping their eyes open on this front as well.

Questions, questions, questions…

I’ll close like like I did last post, say what you will about the MSM, they are booming on this story. Every day is another bombshell.

H/T Tanks Game

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