WASHINGTON — Money has brought both trappings and trouble for Norman Hsu. Major contributions to the campaigns of Sen. Hillary Rodham Clinton and other candidates have made the apparel executive an insider in elite political circles. He shows up in cozy pictures with politicians, at lavish fundraising events, and on the boards of prestigious organizations.
But Hsu's history includes more unsavory episodes and associations. In 1990, he allegedly was kidnapped by Chinese gang members in San Francisco as part of an apparent effort to collect a debt. A year and a half later, he pleaded no contest to a charge of fleecing investors in what authorities called a Ponzi scheme of fraud. Along the way, he left a bankruptcy filing and bitter investors who accused him of making off with their savings.
Hsu is now at the center of a political scandal, with Sen. Clinton (D-N.Y.) and others rushing to return his contributions and sever embarrassing ties to a man still wanted on an outstanding warrant for the fraud case in California. Hsu could turn himself in as early as today in San Mateo County, where a hearing on the matter has been scheduled.
"The 15-year-old legal matter that Norman Hsu has is moving toward resolution," said San Francisco attorney James J. Brosnahan in a statement to The Times. Hsu hired Brosnahan to represent him in California.
Court documents and interviews with close associates of Hsu have shed considerable light on his unlikely emergence as a major Democratic fundraiser. But much of Hsu's story remains a mystery -- including how to account for significant gaps on his resume and record, and where he got all the money that he has showered on Democratic candidates and causes.
Clinton and other candidates have scrambled to distance themselves from Hsu's money. At a New York event Thursday, Clinton said: "I wish Mr. Hsu well in dealing with the problems he's confronting."
But he has powerful defenders. Former Sen. Bob Kerrey (D-Neb.) said in an interview that Hsu was being pilloried unfairly.
"This isn't Osama bin Laden or some drug kingpin," Kerrey said. "What he's done is he's volunteered to help people raise money for their campaigns. That doesn't make him either unique or bad."
Kerrey said he recruited Hsu to serve on a board of directors at New York City's New School university, of which Kerrey is president. Kerrey said Hsu had called him earlier this week to warn him about coming media coverage. Kerrey added that Hsu had been "a terrific member" of the New School board and had not been asked to step down.
