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Wednesday, May 20, 2009

Political fundraiser expected to appeal Hsu charges


NEW YORK — Longtime fundraiser Norman Hsu was convicted Tuesday of violating campaign finance laws in a case that became an embarrassment to Secretary of State Hillary Rodham Clinton and other prominent Democrats he courted.

Hsu, already jailed following an earlier guilty plea, showed no reaction as he was led out of court.

"I think he expected it because it was quick,” said his attorney, Alan Seidler. The lawyer said there would be an appeal.

Hsu, 58, had been accused of using clients of his fraudulent investment business, including actors and political novices, as straw donors to make thousands of dollars in campaign donations.

It was designed to bypass rules limiting the amount any individual or group can donate.

During the trial that began May 12, television actress Susan Chilman testified that she given nearly $42,000 to Clinton and other Democratic candidates. Once she took out her checkbook, Hsu would simply give her a name and an amount, then later reimburse her, Chilman said.

Jurors also heard testimony from several other investors who recounted how Hsu showed off his political connections by decorating his home with photos of himself with marquee Democrats. One witness testified she met President Barack Obama, Secretary of State Clinton, President Bill Clinton, Sen. John Kerry, Sen. Ted Kennedy and Rep. Patrick Kennedy of Rhode Island at fundraisers she attended with him.

Prosecutors played a voicemail recording of Clinton, then a senator, effusively praising Hsu for his loyal support.

After Hsu’s 2007 arrest, the senator returned more than $800,000 to donors whose contributions were linked to him.

Hsu’s trial came just days after he pleaded guilty to 10 counts of wire and mail fraud, admitting that he cheated investors.

Sentencing was set for Aug. 19.


by the associated press

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