Fugitive Fundraiser Captured

GRAND JUNCTION, COLORADO -- Fugitive political fundraiser Norman Hsu, who skipped out on San Mateo County authorities this week rather than face sentencing for a 1992 fraud conviction, was apprehended Thursday night by federal and local lawmen in Grand Junction, Colo.

Captured at Hospital

Authorities said Hsu was taken into custody at St. Mary's Hospital in Grand Junction at 7 p.m. local time. He had been on the lam for almost two days after failing to appear in a Redwood City courtroom Wednesday to surrender his passport.

Sick on Train

Hsu was taken off an eastbound passenger train at the Grand Junction train station earlier in the day by paramedics who requested a backboard to move him, said Sgt. Lonnie Chavez with the Grand Junction Police Department. The exact nature of Hsu's condition was unclear, Chavez said.

Disappearing Act Deja Vu

Hsu's disappearing act seemed to be a reprise of a move he pulled 15 years ago, when he failed to show up for sentencing in the same grand theft case. Hsu was facing up to three years in state prison, a $10,000 fine and restitution payments after pleading no contest to a single count of grand theft in what prosecutors described as a $1 million fraud scheme.

But while free on bail after his plea, Hsu dropped from sight for 15 years, apparently spending time in Hong Kong, the Philippines and Taiwan, only to emerge in recent years as a seemingly wealthy New York resident who donated generously to Democratic political campaigns, regularly attended fundraisers and was photographed with party leaders.

Two Million Dollar Bail

A week ago, Hsu, 56, surrendered to San Mateo County sheriff's deputies in Redwood City after press accounts linked him to the earlier grand theft case. He spent a few hours in county jail before posting $2 million bail and agreeing to surrender his passport.

After Hsu posted bail, his attorney, Jim Brosnahan, sent a legal assistant to Hsu's New York condominium Monday to retrieve the passport but was unable to find it after a 90-minute search.

'Hillraiser'

Hsu, listed as a "Hillraiser" committed to bringing in $100,000 or more to the presidential campaign of New York Sen. Hillary Rodham Clinton, has given an estimated $600,000 of his own money to candidates ranging from San Francisco Mayor Gavin Newsom and Assemblywoman Fiona Ma to presidential hopeful Sen. Barack Obama of Illinois.

The size and scope of Hsu's contributions made him one of the party's largest individual contributors. While he gave $23,000 to Clinton and $7,000 to Obama, he also gave $62,000 to New York Gov. Eliot Spitzer, $50,000 to New York Attorney General Andrew Cuomo, and $50,000 to the New York State Democratic Party.

Ponzi Scheme

In the 1991-92 grand theft case, Hsu was charged with bilking about 20 investors, including his ex-girlfriend, out of about $1 million in connection with a business that was supposed to provide latex gloves to another firm - only no gloves were ever bought or sold, prosecutors said.

Prosecutor Ron Smetana said at a preliminary hearing . .

"What Mr. Hsu was in the business of was running a Ponzi scheme. He was taking money and spending part of it on himself and returning it as it was available. As with any Ponzi scheme, the first ones in and the first ones out always do quite well. Those (who) hope that their investment will continue and stay to the end tend to lose their shorts."

Kidnapped and Rescued

After the glove business collapsed in April 1990, Hsu was kidnapped four months later in San Francisco by a Chinatown gang leader in an effort to collect a debt from him, police said. The abduction was foiled after the car they were riding in ran a red light in Foster City and was pulled over by police, who rescued Hsu, authorities said.

Adapted from a story appearing in The San Francisco Chronicle by Jaxon Van Derbeken and John Coté on September 7, 2007