Interesting Speculation From See-Dub on Norman Hsu's Shady Money

Very, very clever. Basic idea: The PRC actually did make good on Hsu's promises of cheaply made and highly profitable clothing, precisely so Norman Hsu could get the money needed to donate like a cyclone to Hillary! Clinton.

In other words, they laundered the PRC's money through Hsu, deliberately taking a major loss in order to pad Hsu's pockets with money by which to influence American elections.

Funny how the PRC is always putting money into the DNC, and how the DNC is all too happy to play the "dupe" in permitting this persistent practice.

Posted by: Ace at 04:16 PM

Comments

1 What? The Chinese laundering money? Never.

Posted by: notickee;nowashee at September 15, 2007 04:36 PM (x4ZSx)

Ancient Chinese Secret.

It just occured to me that only those 40 yrs or older will probably get that.

Posted by: alabaster jones at September 15, 2007 04:50 PM (GczzL)

3 Or those of us who've played Shadow Warrior.

Posted by: See-Dubya at September 15, 2007 04:52 PM (1gdFs)

My memory is sort of vague so this may not be exactly accurate but I am pretty sure about a lot of it.

Fred Thompson was on the committee that investigated the Charlie Trie/John Huang connection to the DNC\Bill Clinton and campaign contributions. Nothing came of it primarily because most of the people involved who knew anything, left the country. But John Glenn ran interference during the whole thing and a little while later became the oldest astronaut. We were all so happy.

Loral (A US satcom company that was the largest contributor to Bill Clinton in the 1996 election) wanted to help the Chinese put up a satellite. The CIA, NSA, and every other agency that is tasked with protecting this country said they couldn't because Loral was under investigation for passing technology to the PRC to make their nuclear missiles more reliable. Bill Clinton said they could. The rocket blew up. When the US tried to go and pick up the satellite (which the Chinese agreed to beforehand in such an event) the Chinese said no. Recently the Chinese blew up one satellite with one of their other satellites.

Posted by: CozMark at September 15, 2007 05:00 PM (wA0en)

5 The PRC is at the root of this. Bank on it.

Posted by: Purple Avenger at September 15, 2007 05:02 PM (9AgBh)

6 So are we saying that Hillary! could become America's first Chinese president?

Posted by: Merovign at September 15, 2007 05:28 PM (IaYDo)

7 Alabaster: thanks to teh magick of teh intarwebs, the culturally-deprived Youth of Today don't have to miss the great moments:

http://youtube.com/watch?v=ojm1Xzwlc9Q

Posted by: Dead Career Sketch at September 15, 2007 05:38 PM (NdG3x)

8 That's just crying out for a remix, by the way. The white woman even looks vaguely like Hillary! Clinton.

Posted by: Dead Career Sketch at September 15, 2007 05:41 PM (NdG3x)

I don’t discount PRC involvement, and I expect that it’s there, somewhere, but I don’t quite see it yet.

In any event, I will have to willingly suspend my sense of disbelief concerning anything Hillary! says.

Posted by: Arbalest at September 15, 2007 06:14 PM (ijjup)

10 The China - Clinton ties will come out eventually, again. This woman has zero chance at the presidency, which leaves me wondering just who they will run? Obama might be the only guy left standing when the smoke clears, Edwards self destructed before even getting started.

Posted by: Christopher Taylor at September 15, 2007 06:47 PM (wmgz8)

11 The Clinton's experiences in cattle futures in Arkansas was just grammar school training for the scams they've pulled since and will continue to pull as long as they've got access to power and the ability to pass out taxpayer funded goodies.

Posted by: Sticky B at September 15, 2007 06:57 PM (wkjFE)

12 cozmark, nice summary. Anybody got the goods on Terry McAuliff and Global Crossing?

Posted by: funky chicken at September 15, 2007 07:44 PM (I+jPP)

McAuliffe

http://findarticles.com/p/articles/mi_m1282/is_17_54/ai_90888291

Interesting that the house investigations didn't pan out either. It seems similar to the Senate and the Clinton/Loral/China thing.

Oh dear. GHW Bush and Global Crossing?

http://www.time.com/time/magazine/article/0,9171,203517,00.html

Scowcroft too?

http://archive.newsmax.com/archives/articles/2003/3/5/162452.shtml

Posted by: funky chicken at September 15, 2007 08:13 PM (I+jPP)

14 No wonder Hsu headed west instead of east. And tried to die the painless way-with pills. If he screwed up a major PRC scam, he'd be in big trouble back home.

Posted by: Rosley at September 15, 2007 08:14 PM (cs0d5)

15 Is Hillary one of Mr. Hsu's pigs?

Posted by: Al Swearengen at September 15, 2007 09:46 PM (wMre0)

The truth is that all sorts of folks get conned every day, for small sums and large sums. AOL merged with Time-Warner with the AOL stock price at something like 200 - the largest con I can think of. So the 40 million could just be a con, true.

But then why would Hsu give 850 large to Clinton? While it is true that some folks like to get close to the famous and get a picture, it could not possibly take more than 50 grand to do this.

Democrats are trying to play this so it seems the money didn't come from Hsu, but rather it was forced individual contributions in order to join his fund. Talk about a con! Has anyone thought about how truely nuts this is? Of course most of the money came from Hsu.

No, 850 grand is someone who wants something, or a bag man for someone else who does.

Posted by: Robert at September 15, 2007 11:05 PM (Rb4Qc)

There might be some problems in the analysis at Hot Air (not that it’s wrong, just might need more information):

As per the WSJ article, each deal was about $1million, and there are 37 (total? still outstanding?) that account for the $40 million.

Next, these deals occurred over a 4-year timeframe.

So, as per Item D, did the Chinese factories really do work on speculation, or were some paid? It seems unlikely that any would/could wait more than 6 months for full payment, certainly not on a single $1million deal.

Even if each "deal" represents 5 or so sub-contracts, waiting is still a problem, and it makes any criminal activity much harder to cover.

Besides, the 37 deals occur over a 4-year timeframe.

It seems likely that the Chinese were paid for their work. $40million of deals are done, but to what point: "manufacturing", "sales"? It has to be "sales", otherwise the money problem happens much sooner, and with less total money available. Sales should generate $56million, but over 4 years.

Perhaps the $1million-per-deal average just a statistic, and the more recent deals were for very much more money (say $15-$20million). This might account for bounced checks due to insufficient funds and a missing $40milion.

Is $40million really the number? I suppose that it depends on how the deals happened.

Item E means that the investors have lost no money. But the WSJ suggests that they have, and if the Chinese were paid, and perhaps Hsu pocketed a couple of million, then this leaves only the investors to take any losses.

How likely is it that anyone would knowingly pay $40million for Hsu’s services? Getting to be private friends with any public figure should be doable for, what, a $2million fee and $2million in expenses (donations)?

How likely is it that anyone would knowingly take a $40million bath (given the value of $40million today)? Of the players mentioned, my guess is that none will walk away from $40million. Someone has to be seen to pay; a $40million bath is very bad for the reputation.

Back to one of the main (implicit) questions, what "things" do US politicians have or control that are worth $40million, that can be delivered to any private buyer, with no ramifications? The "delivered " and "ramifications" requirements greatly narrow the list.

If $40million really is the correct number, who has $40million of incentive? Not the right people, it seems.

I think there’s still more information to come.

Posted by: Arbalest at September 15, 2007 11:41 PM (ijjup)

18 Arbalest,

Occam's razor to me says that it was either a legit business or a con of some kind without any PRC connection, because Hsu did the same thing before in CA. He got investors into an import company that did not import anything.

However, there is a possibility of a PRC connection or that Rosenman knew these deals were just fronts for funding. We need more information, though.

I'd say the best way to check this out:

Were there any actual orders? Let's see who the clients were. If there are no real customers, I'd be more likely to think this is a pure Ponzi scheme.

Did he pay the factories or not? Were there any actual letters of credit opened? Again, if they were never opened, I'd be inclined to think this was a scam. If they were opened, was merchandise actually shipped to real customers? (You can defraud banks by shipping empty containers, but still present docs to the bank for the L/C payment.)

Rosenman already knows the answer to the above questions, unless they were completely incompetent. If you were doing the factoring, you would at least want to see the orders to check the customer's finance (after all, they are one of the default risks.) You'd probably want to see the Letter of Credit, too - just to make sure everything was on the up and up.

Now, once you have the letters of credit, you can see who he was buying the products from. That could be a good lead to see if there is a PRC connection or not. Hsu is from Hong Kong. If they are all Hong Kong private firms, or Chinese private firms, I would be more doubtful that the PRC is involved. If they are state-run firms, well, that could be a sign.

I'd be interested to see a list of Rosenman's investors in this scheme and run their names through the political contribution database as well. If every single one is maxed out for Hillary...that would be a bad sign, too.

And keep in mind without any PRC involvement, this is still a major scandal by itself.

Posted by: Aaron at September 16, 2007 10:21 AM (R+Z37)

And does anyone ever connect Wal*Mart's Chinese connections, as curiously HQ'd from Arkansas, formerly governed by....who was it....WJClinton? Hmmmm?

So where's the Middle East political-influence purchasing money going? Perhaps to the lose-O-crats?

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