Legal News

Norman Hsu and the Champagne-Stuffed Refrigerator

By Nathan Koppel

The prosecution of former Democratic kingpin Norman Hsu, now playing out in lower Manhattan, has not lacked for color.

As a quick recap, prosecutors claim that Hsu, a big fundraiser for Hillary Clinton's presidential run, violated federal law by soliciting friends to donate to Clinton and other Dems — and then reimbursing the friends for their contributions. Hsu last week pleaded guilty to mail and wire fraud for running a fraudulent investment business, but he has denied violating campaign-finance laws. Click here for a blog post on Hsu’s recent plea.

This much is clear from the trial: Hsu was one heck of a bon vivant, hosting lavish dinners and sporting what had to have been one of the better-stocked fridges in New York.

Yesterday, prosecutors questioned Dennis Cheng, the New York finance director for Clinton's presidential campaign, who said that Hsu raised $800,000 to $1 million for the campaign. Chen described a party that Hsu hosted in a private room at The Modern, the restaurant situated in New York's Museum of Modern Art. The party featured an open bar and some notable politicos, including Clinton, according to Cheng who says that guests were given gift bags that included an Ipod Shuffle.

Today in court, Cheng testified that he got birthday presents from Hsu, including a wallet and designer leather bag. A woman, who was a friend of Hsu and an investor in his business ventures, testified today that Hsu gave her Gucci bags and Tiffany's jewelry as birthday gifts.

But for our money, the phattest picture of Hsu emerged today when an FBI agent took the stand. She testified about a 2007 raid on Hsu's Soho apartment. It's not entirely clear why, but the prosecutor asked the agent to discuss a photo she took of the inside of Hsu's refrigerator, which was stocked almost entirely with champagne bottles. The agent was then about to turn her attention to Hsu's deluxe-looking wine cooler, when the judge cut off the line of questioning.

The agent, however, was allowed to discuss photos the FBI took of the Hsu's wall of fame, which included pictures of Hsu sharing smiles and embraces with the likes of Obama, Bill Clinton, Eliot Spitzer, Ted Kennedy, among many, many more.

Full post as published by Law Blog - WSJ.com on May 14, 2009 (boomark / email).