September 14, 2007

Hsustock: The Definition Of Insanity

If the definition of insanity is repeating the same actions over and over despite consistent failure, then the American judiciary needs a shrink when it comes to Norman Hsu. Despite having run out on his sentencing for a nolo contendere plea on fraud 15 years ago, and despite having jumped bail when finally brought to justice for jumping bail before, a Colorado judge set a $5 million bail for Hsu:

A judge ordered a cash bond of $5 million for Norman Hsu, the shadowy Democratic fund-raiser, after Colorado authorities told the court here that Mr. Hsu might have been involved in another multimillion-dollar fraud investigation involving dozens of investors in Orange County, Calif.

The revelation that Mr. Hsu, a fugitive for 15 years in a California fraud case, might be implicated in another fraud investigation came after New York investors learned this week that $40 million they had invested with Mr. Hsu might be in jeopardy.

Mr. Hsu’s lawyer, Eric Elliff, said Mr. Hsu was willing to waive extradition and would probably be taken to California after a hearing here on Sept. 19.

Judge Bruce R. Raaum told Hsu's attorney that "Two million wasn't enough to keep him from absconding." Given the amount of money to which he had access -- including $40 million from Woodstock founder Joel Rosenman -- $5 million won't give him that much difficulty either. The prosecutor noted that police found a checkbook on Hsu that listed a $6 million balance.

Let's think about that for a moment. Who keeps $6 million in a checking account? FDIC/FSLIC only insures to $100,000, which leaves 98.3% of those unprotected in case of a bank failure, but that's not the real eyebrow raiser. Who needs to be that liquid? Who has to have that much money accessible through a checking account and, one presumes, a debit card?

That again calls into question why Hsu put himself on a slow train to Chicago. Clearly the man had enough resources to charter a plane anywhere he needed to go. With six million dollars liquid in a checking account, he had an opportunity to land almost anywhere and have plenty to start again, perhaps in Rio where the long arm of the American law could not reach him. Instead he chooses Amtrack and an odd suicide attempt, complete with typed and FedExed valedictions to Barry Scheck?

And even before jumping bail, why did Hsu need to be that liquid? Where did the money originate? Is this what's left of Joel Rosenman's money, or did this come from another source?

We certainly would love to hear the answers to these questions. Unfortunately, Raaum's decision to grant a two-time bail jumper an opportunity to try the hat trick probably means that we will hear that Hsu has gone missing once more in the near future. The $5 million still leaves him with a cool million to relocate a little more effectively than his last attempt -- and in better style, too.

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Comments (39)

Posted by sf | September 14, 2007 7:58 AM

This does indeed seem astonishingly foolish--given Hsu's record, it's hard to imagine any honest judge allowing him to bail.

Then again, it's been said that people get the government they deserve. Clearly this includes the judiciary.

Posted by CDR M | September 14, 2007 8:04 AM

Perhaps the judge sees Hsu as a potential cash cash because if he jumps bail on 5 million, Hsu forfeits the cash and the county/state gets a windfall!

Posted by CatoRenasci | September 14, 2007 8:05 AM

This is the height of lunacy: a man who has jumped bail TWICE should not be permitted bail under any circumstances, and a prisoner who has allegedly attempted suicide, should be under a 24/7 suicide watch in jail.

The interests of justice require that Runaway Hsu be isolated and protected until federal and state investigators have had their way with him, and then he needs to be in California state prison system protective custody (under suicide watch) for his entire term, and then under the same conditions for the federal and state term(s) he'll be serving for his other frauds.

Posted by TomB | September 14, 2007 8:05 AM

We also need to ask judge Raaum some tough questions, namely what is the current rate to get bail for a repeated bail jumper with the high level Democratic connections?

Posted by CDR M | September 14, 2007 8:06 AM

I meant cash cow! It's easy money baby! Plus Hillary's minions get another crack at plugging the crack in the dam.

Posted by TheRealSwede | September 14, 2007 8:07 AM

Something is rotten in California.

Posted by TomB | September 14, 2007 8:09 AM

CatoRenasci,
I'd skip the suicide watch part.

Posted by Cybrludite | September 14, 2007 8:13 AM

TomB,

I would disagree on the basis of "Dead men tell no tales" and this is a tale which needs telling.

Posted by Levans | September 14, 2007 8:15 AM

I suspect many of the same team that sought to destroy the lives of women who enjoyed the attentions of Bill and put together the deal to trade our national security interests for Chinese money are hard at work now in making sure Hsu stays accessible so they can "contact" him.

And certainly there seems to be plenty of people in the judicial system willing to accommodate such people in the interests of assuring Hillary and the Dems are not damaged -- for the good of the country, of course.

Posted by Retread | September 14, 2007 8:15 AM

OK, here's the burning question: how did he fit that many zeros after the 6 in that little tiny space in the check register?

Posted by quickjustice | September 14, 2007 8:18 AM

Remember that the Alberto Gonzalez Justice Department also dropped the federal unlawful flight charges against Hsu as well, opening the door to the Colorado state judge to spring Hsu.

As to why a Colorado state judge would grant bail to a two-time bail jumper and obvious flight risk, I have to think that either the judge has been reached, or that the Clintons have their game plan-- Hsu will plead an insanity defense, and act the role-- or both.

Anyone attempting to interrogate Hsu now will get the wide-eyed, gurgling, babble of insanity. Psychosis can be induced with the right drugs-- or Hsu can take lessons in faking craziness from our own incarcerated mobsters here in New York. "Analyze This", Part III!

Oh, and thanks for the heads-up on the insanity defense, Shipley. Had any good Manchurian food lately?

Posted by Keemo | September 14, 2007 8:19 AM

The biggest threat to Hsu is not the American legal system; as soon as he is free on bail, the predators representing the interests of very powerful people, will hunt this man down and kill him. Absolutely "NO" way does this man stay alive.

Stay on this story CE; don't let the dirty Dems off the hook. Hsu is the example of typical "mode of operation" for the dirty Dems. "Those damn Conservatives will make a big fuss over this, then it will blow over as it always does with those people".

Watch as the MSM and the dirty Dems try to manufacture something to get our attention off Hsu long enough for them to rid the world of Hsu. Get rid of this Hsu, just to replace him with another piece of Pu.

Posted by quickjustice | September 14, 2007 8:27 AM

Cross-posted from my other comment:

The insanity defense! From day one, Hsu was crazy, roaming the halls of Clinton campaign headquarters without shoes and no shirt, and a suitcase full of crack or meth, and no one in the Clinton campaign noticed?

Or maybe that got him dates with Clinton staffers?

Posted by j | September 14, 2007 8:29 AM

So who appointed or financed this state judge? You mean to say the Feds could not force Hsu to stay in the slammer? I agree, he won't be around long. Why he went along with the bail is another story.

Posted by John | September 14, 2007 8:40 AM

Dead Man Walking

Posted by JAT | September 14, 2007 9:22 AM

Dead man's Hsu on the Zepher? Sounds like we need Hercule Poirot on the case..."But of course! What Hsu was found?"

Posted by the fly-man/bong boy | September 14, 2007 9:34 AM

Who needs to make 30 withdrawals of just under 10k to give cash to their maids? People can be eccentric with their resources can't they?

Posted by rbj | September 14, 2007 9:39 AM

Bong boy, sure "People can be eccentric with their resources"
Problem being, Hsu was being eccentric with other people's money. You do realize he's a convicted con man, don't you?

Posted by LarryD | September 14, 2007 9:50 AM

From the Belmont Club:

"Colorado law requires that bond be set in all cases but capital murder, and even then only when proof is evident and the presumptions great. I am sworn to enforce the law of Colorado. A $4,000,000 would quadruple the highest bond ever set in this jurisdiction. That having been said, I am now in possession of a lot more information about Mr. Hsu and his history. I would very much like to ask for no bond, but such in illegal under the law of my state. Rest assured, however, that I now will be asking the judge to set it a goo[d] deal higher than the $4,000,000 I had earlier contemplated."

In the event, Hautzinger asked for a $50 million bond, but the judge reduced it to $5 million.

I think we need to start directing the ridicule towards the Colorado state legislature.

Posted by the fly-man/bong boy | September 14, 2007 9:52 AM

So people that make their resources legitimately and then skirt the law, using those resources to buy controlled substances are somehow excused? Hmmm.

Posted by RD | September 14, 2007 10:00 AM

But Captain Ed sputter, sputter, sputter...if'n he runs away and forfeits the bail that only leaves $1,000,000.00 fer the lawyers...think they will allow that. He's essentially broke as far as they're concerned unless he has some hidden off-shore accounts.Poor man, really, he's boxin shadows.

Posted by rbj | September 14, 2007 10:05 AM

Boy, put the bong down, you make no sense.

Posted by quickjustice | September 14, 2007 10:15 AM

The explanation of the Colorado prosecutor gets him and the state judge off the hook, but still doesn't explain the U.S. Justice Department decision to drop the federal unlawful flight charge. A federal judge could have ordered Hsu held.

Has Hsu (or the Clintons) reached someone high up in the Administration? Is it just Gonzalez incompetence? Or have the Justice Department professionals lost their nerve, because Hillary's Attorney General may be their new boss? That also could explain why Sandy Burglar walked with a hand-slap.

Sorry to change the focus, guys, but given these extraordinary facts and the depths of Hsu's penetration of the Democrat Party (and one woeful Republican), the failure of the feds to prosecute Hsu just doesn't add up.

Posted by The fly-man/bong boy | September 14, 2007 10:28 AM

All I'm saying is Ed asked a question about why someone, inferring something nefarious, sans-indictment, would need to handle their liquid resources in such a manner. I brought up the example of Rush Limbaugh and his unusual behavior of making at least 30 withdrawals of cash just under 10k, skirting the law for which that behavior was specifically designed to monitor, and no indictment or charges were ever brought against him. I think Ed's statements are hyperbolic and prejudicial. This of course is necessary to try to get the momentum up for the authorities to investigate Mrs. Clinton. So let's wait for the indictment, investigation, everyone's explanations and THEN see if this is White Water albatross I'm sure many of you hope that it will be.

Posted by rbj | September 14, 2007 11:13 AM

"Rush Limbaugh and his unusual behavior of making at least 30 withdrawals of cash just under 10k, skirting the law for which that behavior was specifically designed to monitor,"

Ah, see, now with some facts I can understand you. Rush making those withdrawals was entirely legal. What statute, and I want a specific citation, makes it illegal to make 30 withdrawals of $9,000?

Posted by the fly-man/bong boy | September 14, 2007 12:01 PM

Exactly, what makes it illegal to have 6 million in one's checking account? Here is a link for you to read and then ask yourself why Rush didn't just withdraw his cash in larger increments.
http://en.wikipedia.org/wiki/Bank_Secrecy_Act

Posted by David M | September 14, 2007 12:02 PM

Trackbacked by The Thunder Run - Web Reconnaissance for 09/14/2007
A short recon of what’s out there that might draw your attention, updated throughout the day...so check back often.

Posted by rbj | September 14, 2007 12:32 PM

Bong boy:
1) Hsu pled guilty to fraud
2) He fled from being sentenced to 3 years in prison

Now it appears he may be involved in violating campaign contribution laws and fraud and oh yes, fleeing from being sentenced again.

Do you understand that Hsu is a criminal? Why are you so eager to change the subject that Hillary Clinton is repeating the campaign financing problems that her hubby had? Especially ones involving foreign nationals?

Posted by Incredulous | September 14, 2007 12:47 PM

There has been no mention of any of this scandal on my local news station (WDBJ7 in Roanoke, VA) nor on their website. When I sent an e-mail to inquire about the absence of news, here's the reply I received:
"Hope all is well! I've (sic) haven't found any state politicians who've received money from Hsu. Can you offer any guidance? I'm interested in doing the story if there is one."
signed: Richmond Bureau Chief

So, once again, we're told there is nothing to see here-- just move along.

I'm still-- Incredulous

Posted by Barnestormer | September 14, 2007 12:50 PM

The Captain asks: "Who keeps $6 million in a checking account? FDIC/FSLIC only insures to $100,000,...."

Good question, but on the risk scale I'm guessing a bank failure ranks well behind say, ball-and-socket trauma or other extralegal collection techniques favored by certain irritable creditors. It's not like this guy's most troublesome payable is to Blockbuster for an overdue Jackie Chan video.

Posted by Trochilus | September 14, 2007 2:26 PM

The most interesting development over the past few days is that two major swindles he has reportedly been involved with, one with a New York investment fund, and another ABC7 is reporting about in Orange County, CA, strongly suggest that none of the funds he has available -- including the $6 million in the checking account -- are really his funds at all.

In fact, according to the attorney for the New York investment fund, they are even asking Democrats who received the contributions not to return them or donate them to charity, but to preserve them to help cover the losses of the swindled investors!

One can imagine they will also be seeking process, either in Colorado, or elsewhere to prevent Hsu from posting bail using the funds in that checking account. They already lost $2 million with his first train ride.

Posted by the fly-man/bong boy | September 14, 2007 4:08 PM

Look I'm not changing the subject. Let all the investigations lead to where they may. I understand this guy is a convicted felon. I understand the perception that the MSM is ignoring this. OK, that being said, my comments have been premised around Ed's comment about the 6 million in a checking account and the air of nefariousness he has projected upon the case by noting unseemly circumstantial evidence. I have mentioned before that I think this is being presented as a situation that possibly could become an albatross of the White Water variety for the Clintons. That I think is wishful thinking. My comments about Rush Limbaugh and his 30 withdrawals of just under 10K , to me are precisely the same arguments used by the Left, and dismissed by the Right, now and at the time, that this was somehow nefarious and I had just as many unanswered questions at the time regarding Rush's predicament as Ed has now regarding Mr. Hsu. i was trying to point out the hypocrisy as I saw it. Ed's conjecture just opened the door. Did Rush get indicted? No. Will, Mrs. Clinton, will shall see. Don't get your hopes up. I'd try getting a real candidate to challenge the Democrats before I'd start trying to take them down for what I think will be minor , careless infractions. No autopsy, no foul.

Posted by Barnestormer | September 14, 2007 5:50 PM

fly/bong's closed Q&A:"Did Rush get indicted? No," is technically correct, but deceptively facile. Limbaugh, while not indicted, was indeed charged(by the alternative procedure of criminal information), with a single count of "prescription fraud." And although discrete charges of money laundering were never lodged, it's worth recalling that the entire matter was disposed of in a pre-trial agreement. Thus, the role, if any, which the potential money laundering counts may have played in the agreed upon outcome remain in the realm of speculation.

As to whether Norman's substantial checking account balance is deserving of an "air of nefariousness," I have not a clue; perhaps a simple reserve for prodigious helpings of mu Hsu pork.

Posted by kubob | September 14, 2007 6:46 PM

The reason HSU couldn't use the 6 mill to flee is that most likely that money is from other Democrat victory interested parties. IE Soros, and the Chinese PLA. It's most likely money he wasn't able to launder to the Dems, or was scheduled to be laundered later before he was exposed.

Posted by MMH | September 14, 2007 6:57 PM

$40 million @#@#???? Shrewed investors would check the companies back ground before pouring that liquid. But again to some $40 million is just a drip.

Posted by Dave | September 15, 2007 12:02 AM

The 40 million smells very odd to me. No competent fund would give out 40 mil without checking carefully the company they were givign it to. It is also very convinient that the fund finds out they have been scammed 2 weeks after Hsu is exposed. Looks like someone laundering money to evade campaign giving limits.

Posted by Trochilus | September 15, 2007 4:11 PM

To Incredulous | September 14, 2007 12:47 PM

Perhaps your "no-name" friend – aka, Richmond Bureau Chief -- at the Roanoke T.V Station, WDBJ7 in Roanoke, VA, is not a very avid reader.

If he (or she) was, he/she would likely have come across this Wall Street Journal article from way back on August 30th, which details the contributions from the 6-member Paw family, plus Norman Hsu himself. Other Hsu-related links can be found here.

By no stretch of the imagination, does this include all the Hsu-related contributors from his considerable bundling schemes, but it is instructive. There were (according to Hillary Clinton’s campaign) 260 separate contributors Hsu had bundled for her campaign, not just the 6-member Paw family.

And, that number may well go up.

But just including the contributions from the “Paws and Hsu” list, it seems your newly-elected senator, Jim Webb, took $3,500 from just those Hsu-related contributors, the DCCC took $15,000, no doubt some of which went to Virginia candidates, the DSCC took a whopping $117,500, much of which was sent to Mr. Webb to assist him in his 2006 race.

And, the last time I checked, Democrats Hillary Clinton, Joe Biden, Barack Obama and Bill Richardson would each like to be the President of the United States, which includes the Commonwealth of Virginia. And every one of them – according to this partial list -- has directly taken some of these Hsu-related contributions.

Hillary, of course, stands the deepest in this Hsu scandal. (Sorry, I couldn't resist!)

I’ll just bet several of those 260 Hsu-bundled contributors are residents of the Old Dominion! You think?

So . . . what the devil is the Richmond Bureau Chief talking about?

Oh, and just for fun, in the former portion of Virginia that became the separate state of West Virginia, substantial Hsu-related contributions (from this partial list) -- $15,700 -- went to your neighbor, good old Senator Jay Rockefeller.

Posted by Trochilus | September 15, 2007 4:14 PM

To Incredulous | September 14, 2007 12:47 PM

Perhaps your "no-name" friend – aka, Richmond Bureau Chief -- at the Roanoke T.V Station, WDBJ7 in Roanoke, VA, is not a very avid reader.

If he (or she) was, he/she would likely have come across this Wall Street Journal article from way back on August 30th, which details the contributions from the 6-member Paw family, plus Norman Hsu himself. Other Hsu-related links can be found here.

By no stretch of the imagination, does this include all the Hsu-related contributors from his considerable bundling schemes, but it is instructive. There were (according to Hillary Clinton’s campaign) 260 separate contributors Hsu had bundled for her campaign, not just the 6-member Paw family.

And, that number may well go up.

But just including the contributions from the “Paws and Hsu” list, it seems your newly-elected senator, Jim Webb, took $3,500 from just those Hsu-related contributors, the DCCC took $15,000, no doubt some of which went to Virginia candidates, the DSCC took a whopping $117,500, much of which was sent to Mr. Webb to assist him in his 2006 race.

And, the last time I checked, Democrats Hillary Clinton, Joe Biden, Barack Obama and Bill Richardson would each like to be the President of the United States, which includes the Commonwealth of Virginia. And every one of them – according to this partial list -- has directly taken some of these Hsu-related contributions.

Hillary, of course, stands the deepest in this Hsu scandal. (Sorry, I couldn't resist!)

I’ll just bet several of those 260 Hsu-bundled contributors are residents of the Old Dominion! You think?

So . . . what the devil is the Richmond Bureau Chief talking about?

Oh, and just for fun, in the former portion of Virginia that became the separate state of West Virginia, substantial Hsu-related contributions (from this partial list) -- $15,700 -- went to your neighbor, good old Senator Jay Rockefeller.

Posted by Trochilus | September 16, 2007 2:10 PM

And, Incredulous, you could also send your anonymous "Richmond Bureau Chief" pal at WDBJ7 this little gem from the Sunday, September 16, 2007 Richmond Times Dispatch.

It's pretty clear somebody down there in the media is paying attention. Captain Ed has also given us an update today on the Washington Post story.

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