HolyCoast: Hillary's Asian Money Connection Surfaces Again
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Wednesday, August 29, 2007

Hillary's Asian Money Connection Surfaces Again

During the Clinton administration there were several examples of Asian men of seemingly modest means that managed to funnel huge sums of money into the Clinton campaign coffers. It's happening again:
DALY CITY, Calif. -- One of the biggest sources of political donations to Hillary Rodham Clinton is a tiny, lime-green bungalow that lies under the flight path from San Francisco International Airport.

Six members of the Paw family, each listing the house at 41 Shelbourne Ave. as their residence, have donated a combined $45,000 to the Democratic senator from New York since 2005, for her presidential campaign, her Senate re-election last year and her political action committee. In all, the six Paws have donated a total of $200,000 to Democratic candidates since 2005, election records show.

That total ranks the house with residences in Greenwich, Conn., and Manhattan's Upper East Side among the top addresses to donate to the Democratic presidential front-runner over the past two years, according to an analysis by The Wall Street Journal of donations listed with the Federal Election Commission.

It isn't obvious how the Paw family is able to afford such political largess. Records show they own a gift shop and live in a 1,280-square-foot house that they recently refinanced for $270,000. William Paw, the 64-year-old head of the household, is a mail carrier with the U.S. Postal Service who earns about $49,000 a year, according to a union representative. Alice Paw, also 64, is a homemaker. The couple's grown children have jobs ranging from account manager at a software company to "attendance liaison" at a local public high school. One is listed on campaign records as an executive at a mutual fund.

The Paws' political donations closely track donations made by Norman Hsu, a wealthy New York businessman in the apparel industry who once listed the Paw home as his address, according to public records. Mr. Hsu is one of the top fund-raisers for Mrs. Clinton's presidential campaign. He has hosted or co-hosted some of her most prominent money-raising events.

So who is Mr. Hsu and why isn't he in California anymore?
For the last 15 years, California authorities have been trying to figure out what happened to a businessman named Norman Hsu, who pleaded no contest to grand theft, agreed to serve up to three years in prison and then seemed to vanish.
"He is a fugitive," Ronald Smetana, who handled the case for the state attorney general, said in an interview. "Do you know where he is?"

Hsu, it seems, has been hiding in plain sight, at least for the last three years. ...

On Tuesday, E. Lawrence Barcella Jr. -- a Washington lawyer who represents the Democratic fundraiser -- confirmed that Hsu was the same man who was involved in the California case. Barcella said his client did not remember pleading to a criminal charge and facing the prospect of jail time. Hsu remembers the episode as part of a settlement with creditors when he also went through bankruptcy, Barcella said.

Under federal law it's illegal to give money to someone else in order for them to make a political contribution, and yet these guys don't even seem to try and hide their activities. This one won't go away anytime soon, though as in the cases in the 90's, the Clintons will probably escape unscathed. The Wall Street Journal is all over this and today published a second piece on Mr. Hsu which you can read here.

The Clintons aren't the only ones who have benefited from mysterious Asian money sources. Don't forget Al Gore's foray to the Buddhist temple in California in which monks who had taken a vow of poverty showered Gore with cash.

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