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Politics : Liberalism: Do You Agree We've Had Enough of It? -- Ignore unavailable to you. Want to Upgrade?

To: Ann Corrigan who wrote (14599)	9/12/2007 11:42:07 PM
From: Hope Praytochange	Read Replies (1) \| Respond to of 224729

The investors were notified this week that their money might be in jeopardy, in light of disclosures that Mr. Hsu defrauded investors in a Ponzi scheme 16 years ago in California and faced accusations that he engaged in similar conduct more recently, a Manhattan lawyer for the fund said. The lawyer, Seth Rosenberg, said that managers of the investment fund tried in recent days to cash checks from Mr. Hsu but that they were returned because of insufficient funds. The concerns about the fate of the investment were first reported yesterday by The Wall Street Journal. Mr. Rosenberg represents Source Financing Investors, a fund with about 100 participants that is managed by Joel Rosenman, who has said he met Mr. Hsu through a mutual acquaintance five years ago. Mr. Hsu told potential investors that he was pooling money to make short-term loans to private-label fashion designers in the United States to buy garments made in China, and that typical returns for someone who invested in the pool exceeded 40 percent. Source Financing Investors sent a letter to its investors this week saying that it was concerned about what had happened to the $40 million entrusted to Mr. Hsu, and that it had notified the Manhattan District Attorney’s Office, which is investigating. Mr. Rosenberg said fund managers were shocked by the discovery of Mr. Hsu’s past legal troubles. “Obviously, people with a proven history of success in finance wouldn’t have invested unless they believed it made economic sense,” he said. “They had every reason to believe these were authentic financial transactions that related to real business deals.”http://siliconinvestor.com/readmsg.aspx?msgid=23876780