"Ahh so!" Hsu conned it our of a NYC Hedge Fund!
A $40 Million Shortfall in the Hsu Case
WSJ WASHINGTON WIRE
In Campaign 2008
Ianthe Jeanne Dugan and Brody Mullins report on developments in the Hsu case.
Where did political donor Norman Hsu get his money? New documents reviewed by The Wall Street Journal may help point to an answer: A company controlled by Hsu recently received $40 million from a Madison Avenue investment fund run by Joel Rosenman, who was one of the creators of the Woodstock rock festival in 1969. That money, Rosenman told investors this week, is missing.
DONATION DATA
See details on political donations from Norman Hsu and a handful of Mr. Hsu's business associates in New York.
Hsu told Rosenman the money would be used to manufacture apparel in China for Gucci, Prada and other private labels, yielding a 40% profit on each deal, according to a business plan obtained by the Journal. Now the investment fund, Source Financing Investors, says Hsu's company owes it the $40 million, which represents 37 separate deals with Hsu's company. When Source Financing recently attempted to cash checks from the company, Components Ltd., the investors say they were told the account held insufficient funds.
Source Financing's arrangement with Hsu's company, according to court documents and investor accounts, echoes an older matter that came to light in recent weeks. In 1991, California officials charged Hsu with grand theft for failing to repay investors for money he raised to import latex gloves from China.
"Norman Hsu has an extraordinary ability to deceive," says Seth Rosenberg of Clayman & Rosenberg, a lawyer representing Mr. Rosenman.
Rosenman and a partner, Yau Cheng, wrote a joint letter on Monday to alert their fund's investors. "Last week, our attorneys met with representatives of the Manhattan District Attorney's office to inform them of the situation," they wrote. The district attorney is investigating, the letter says. A spokesman for the district attorney did not respond to a request for comment. Hsu's lawyers had no immediate comment to the allegations by Source Financing.
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