Fugitive Democratic donor caught

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A major donor to the Democratic Party has been arrested in Colorado less than 48 hours after failing to attend a court hearing over a fraud conviction.

Hong Kong-born businessman Norman Hsu was detained by FBI agents after he fell ill while on an eastbound train and was taken to a Colorado hospital.

Mr Hsu contributed widely to Democratic Party groups and candidates, and was a major fundraiser for Hillary Clinton.

Mrs Clinton and other recipients said they would give the money to charity.

Mr Hsu's case dates back to 1991 when he admitted that he had defrauded investors of $1m and pleaded no contest to a felony count of grand theft.

He was facing three years in prison when he disappeared before a sentencing hearing in 1992. He is believed to have returned to his native Hong Kong.

A few years later, he reappeared in New York, working in the clothing business, and began to donate to Democratic causes and candidates.

Last week he turned himself in to the authorities and posted $2m bail.

Mr Hsu had been due to appear in court in Redwood City near San Francisco on Wednesday to hand over his passport and request that his bail be halved.

His lawyers said they did not know where he was, leading the judge to revoke Mr Hsu's bail and issue a warrant for his arrest.

'Hillraiser'

Mr Hsu has raised hundreds of thousands of dollars for Democratic candidates and committees.

Democratic Senator Hillary Clinton's presidential campaign had listed Mr Hsu as a "Hillraiser" - a top donor.

The Clinton campaign on Wednesday appealed to Mr Hsu to turn himself in and said the $23,000 he had given to Mrs Clinton's various fund-raising campaigns was being donated to charity.

Mr Hsu also donated $2,000 to the 2004 Senate campaign and $5,000 to the political action committee of Barack Obama, another Democratic presidential contender.

Mr Obama, as well as other candidates and Democratic groups, have also announced that Mr Hsu's donations will be given to charities.

Last week, Mr Hsu said he believed the charges against him had been resolved when he completed bankruptcy proceedings in the early 1990s and was surprised to learn that there appeared to be an outstanding warrant for his arrest.

"I have not sought to evade any of my obligations and certainly not the law," he said in a statement.