Hsu is awaiting sentencing in California in a 1991 theft case, in which he pleaded no contest 15 years ago and then fled.
Hsu's lawyers said he is innocent of more recent charges, including those brought by Joel Rosenman of New York, who helped Hsu acquire $40 million to invest in apparel manufacturing, the Los Angeles Times reported Tuesday.
Rosenman now is suing, saying the apparel firms only existed on paper, the Times reported. Rosenman's family members were among 249 Hsu associates who gave more than $800,000 to the Democratic presidential bid of Sen. Hillary Clinton, D-N.Y.
Clinton's campaign has returned the money, including $18,400 to Rosenman's family and $13,800 to the family of Martin Waters, who also invested in Hsu and now is suing him, the Times reported. Susan Waters, Martin's wife, said she only gave to Clinton's campaign because of Hsu's association with Clinton.
"I've never been a Democrat and I've never given to a political campaign in my life," Waters told the Times, calling Clinton's decision to return the money "honorable."
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