Article Last Updated: 01/05/2008 06:50:41 AM PST
Former Democratic fundraiser Norman Hsu, who spent more than 15 years as a fugitive after being convicted of defrauding investors in the early 1990s, was sentenced Friday to three years in California state prison. San Mateo County Superior Court Judge Stephen Hall rejected Hsu's request to dismiss 1991 charges of stealing
$1 million from investors in a scheme to buy and resell latex gloves, California Deputy Attorney General Ronald Smetana said.
Federal authorities will take Hsu to New York, where he still faces a 15-count indictment charging him with wire fraud, mail fraud and violating federal campaign finance laws, Smetana said.
Prosecutors say he recruited investors by promising high returns on short-term investments, used money from new victims to pay older ones and pressured investors to contribute to political candidates he favored.
"If his case should go to trial and if he testifies he could be impeached based on his felony conviction," Smetana said, referring to the New York case. If convicted "it will result in a more severe sentence because one of the things that's taken into account is his criminal history," Smetana said, adding that he expects Hsu to appeal the sentence.
Hsu failed to appear for sentencing in the California case and spent more than 15 years as a fugitive. He later became a Democratic fundraiser and contributor, giving hundreds of thousands of dollars to candidates and party committees, including Sen. Hillary Clinton, a Democratic presidential candidate, according to the Center for Responsive Politics, a Washington-based research group. Hsu's lawyer James Brosnahan didn't immediately return a call seeking comment.
Brosnahan asked the California court to withdraw Hsu's no-contest plea, which would've resulted in a conviction with no admission of wrongdoing, given the time elapsed since he was charged. Hsu also argued the case should be dismissed because California authorities didn't pursue him, resulting in a violation of his right to a speedy trial.
Hall rejected both claims, Smetana said.
Hsu must forfeit half of his $2 million bail to the U.S., which issued a seizure warrant for the money, and forfeit the remaining $1 million as restitution to California victims of his fraud, Smetana said.
