Political props in Hsu's schemes

Captain's Quarters:

The fallout continues from the exposure of Norman Hsu as a world-class con man. A Laguna Beach investment firm filed a lawsuit against the Democratic Party fundraiser for defrauding investors of $23 million, which apparently makes them Victim #3 in the FBI's complaint against Hsu. Given the description of the suit in the Mercury News, Briar Wood Investments may add some celebrities and politicians as codefendants:

A Laguna Beach investment firm filed a lawsuit against Democratic fundraiser Norman Hsu on Friday, claiming he defrauded investors out of at least $23 million and required them to donate to Democratic candidates.

According to the lawsuit filed by Briar Wood Investments, Hsu persuaded the company's operator to do business with him by taking him to star-studded Democratic Party events. There, the 56-year-old Hong Kong native was praised by New York Sen. Hillary Rodham Clinton, California Atty. Gen. Jerry Brown and others, the lawsuit said.

As a condition of doing business with the fundraiser, Hsu directed investors to make contributions to certain Democratic candidates, the lawsuit said. The investors turned over tens of thousands of dollars, including $30,000 worth of checks to Clinton's campaign on a single day.

The requirement that investors donate to political campaigns may create even more grief for Hsu. If the FBI can prove coercion, it could be possible to prosecute Hsu under a RICO predicate. At the least, that requirement can be shown as a manner in which Hsu laundered his own contributions to Democrats without tripping any legal alarms at the FEC -- and every individual contribution would then become a separate charge against Hsu. He could face thousands of counts in federal court of election fraud, wire and mail fraud, and money laundering, apart from the Ponzi cons he perpetrated.

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While Captain Ed focuses on the potential criminal case, I think Hsu will easily be overwhelmed by all of the criminal charges. What is really interesting to me is how many Democrats were easily used in this scheme to defraud. Like the investors, they were eager to do business with Hsu and his friends. For a party whose leaders claimed to have been mislead by a President they look down on as a simpleton, they seem remarkably easy to be conned and used in a con job. That does not strike me as a resume of someone the country would want as leaders.

In most countries someone who is so easily used and mislead resigns from government and leaves the public scene. In this country the Democrats will ask for a promotion to higher office.