Fugitive fundraiser arrested in Colorado

SACRAMENTO, Calif. — Democratic fundraiser Norman Hsu, the patron to would-be presidents who found himself staring at the prospect of imprisonment and federal investigation, was arrested in Colorado on Thursday as he fled east by train.

Hsu, 56, was traveling by Amtrak at about noon when he fell ill and Amtrak personnel transported him to St. Mary's Hospital in Grand Junction, Colo., a hospital spokesman said.

There, he was arrested by the FBI a few hours later on a federal charge of unlawful flight to avoid prosecution. He was expected to appear before a federal magistrate-judge as early as this morning, pending his likely extradition back to California.

The warrant for his arrest remained under seal. However, federal sources said last week that the FBI has opened an investigation into Hsu's fundraising activities.

The strange case dates to 1991, when Hsu pleaded no contest to grand theft in San Mateo County, south of San Francisco, in connection with a scheme in which he bilked investors out of $1 million. He was supposed to be sentenced in 1992 to as many as three years in prison when he failed to appear.

He resurfaced a decade later as a well-heeled apparel-business owner based in New York who often traveled to Los Angeles and the San Francisco Bay Area.

Starting four years ago, Hsu became a benefactor to Democratic politicians nationally, giving hundreds of thousands of dollars and raising far more.

He has been among Sen. Hillary Rodham Clinton's most aggressive fundraisers, generating more than $100,000 for her presidential run.

Hsu also gave to some of Clinton's rivals, including Sen. Barack Obama, D-Ill., and New Mexico Gov. Bill Richardson. The candidates have returned the money or are donating it to charities.

Hsu turned himself in last Friday and posted $2 million, promising to return to court on Wednesday to surrender his passport. However, he failed to appear, setting off the manhunt that ended in Colorado.