Democratic Fundraiser Hsu Surrenders to Face 1991 Fraud Charges

By Daniel Hawn

Published on September 04, 2007

National attention first focused on Hsu after a Wall Street Journal report raised questions about possible campaign-finance law violations by Hsu and the relationship between Hsu and the Paw family, who collectively have donated $213,000 to Democratic candidates since 2005. All six members of the Paw family claim the same 1,280-square-foot, one-story house as their residence; according to public records, Hsu also once listed the Paw house as his home address.

Shortly thereafter, the Los Angeles Times reported that Hsu was wanted in connection with a 1991 case in which Hsu was accused of defrauding investors out of over $1 million. After Hsu pleaded no contest to one charge of grand theft and agreed to serve up to three years in prison, he failed to appear for sentencing. Although bench warrants were issued for his arrest, Hsu avoided capture until public scrutiny over his fundraising activities brought his earlier legal troubles to light.

Many recipients of Hsu's largesse have elected to pass Hsu's donations on to charitable organizations in order to distance themselves from Hsu, including Sen. Clinton and fellow presidential candidate Barack Obama; however, Pennsylvania Gov. Ed Rendell reportedly intends to keep Hsu's $37,866 contribution unless Hsu is found guilty.

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