Campaign donor's giving raises questions
Little known about man who has sent thousands to GOP
By Andrew Zajac, Ray Gibson and Bob Secter

Tribune reporters

October 29, 2008

Big campaign donors typically come with deep pockets and influence.
But in Illinois this election cycle, no one not running for office
himself has given more to the nation's federal campaigns than Shi
Sheng Hao of Roselle, a virtual unknown in business and political
circles.

Before September 2007, Hao's name had never appeared in the
15-year-old federal database of campaign contributors. Since then,
however, his donations have topped $120,000 — including $70,100 on a
single June day to Republican presidential candidate John McCain.

Over the same time frame, a network of Hao relatives has kicked in
more. The take from this group over the last 13 months exceeds
$269,000, a small amount to Democrats but most of it to McCain and the
Republican National Committee, records show.

Hao didn't register to vote at the northwest suburban address attached
to his donations until October 2007, a month after he wrote his first
political check, $25,000 to the RNC.

The circumstances surrounding Hao's sudden and prolific political
activism are curious and his whereabouts unclear. His name isn't
listed on property records or the mailbox at the unassuming tract home
listed on his donations. Hao lives "overseas," insisted a man who
answered the door at the Roselle home recently. The man declined to
identify himself.

The story of Hao—whose varied roster of business associates appears to
include a Taiwanese government investment arm as well as the
mastermind of a decade-old Democratic fundraising scandal — is an
eyebrow-raiser in the current election climate.

Ethnic Chinese donors became an issue in the battle for the Democratic
nomination last year because some didn't seem to live where they
claimed on contribution records. Now, Republicans are raising
questions about the authenticity of many small donations Democrat
Barack Obama has received from abroad.

Sheila Krumholz, executive director of the Washington-based Center for
Responsive Politics, said the timing of the Hao-related contributions
appeared troubling, though there could be a plausible explanation.
"Large contributions from people who have never given previously do
generally provoke questions about who they are and what they're up to,
and most importantly, what they're looking for," said Krumholz, whose
non-partisan group closely tracks political donations. "The public
needs to be concerned because there are fraudulent donations, and
persons use them to gain influence and access in Washington."

McCain spokesman Brian Rogers said Hao was not a "major donor" and
"not a part of this campaign in terms of fundraising," but declined to
discuss him further or address the campaign's procedures for vetting
donors. RNC spokesman Danny Diaz said he would not respond to
questions from the Tribune, contending that the newspaper was biased
against McCain.

So who is Shi Sheng Hao, and what are his means and motives for
becoming a mega-donor? No one answers a telephone listed in his name
in the 630 area code, and there's no answering machine. Messages left
for him by phone and e-mail with several relatives went unanswered.

But this much can be gleaned from public records:

Donation disclosures list his occupation as a businessman with
entities identified only by slightly different acronyms: ADECC, AAEC,
A.A.E.C.C. On some he is also listed as president of American Chinese
Entertainment Ltd.

Hao and his wife, Hsin-Ning, declared bankruptcy in 1995, at the time
using the Roselle home as an address and listing as a business a firm
called Asian American Environmental Control.

Hao holds an Illinois driver's license that lists his address as the
Roselle home, but property records show the four-bedroom house has
been owned since 1992 by Robert and Jen Chi, and their last name is on
the mailbox. Contacted at the Des Plaines marketing firm where she
works, Jen Chi said she didn't want to discuss Hao, though she said
she knew how to get in touch with him and would have him call the
Tribune. He never did.

"I don't know anything about his business," said Chi, who herself gave
$15,000 to the RNC the week after Hao's first donation. "I don't want
to be stuck in the middle." Hao's wife, Hsin-Ning, also used the
Roselle address when she made a $25,000 contribution to the RNC last
year. In September, however, she listed a Taipei address on a $2,300
contribution to the campaign fund of former Democratic presidential
candidate Hillary Clinton.

There is no record in business databases of American Chinese
Entertainment Ltd., the firm listed in some Hao donation records.
However, an Asian American Entertainment Corp. was incorporated early
this year in California with a Shi Sheng Hao as president. Government
records show that firm and at least two other Hao companies have
connections to the family of Gene and Nora Lum, onetime prominent
Democratic fundraisers in the Asian-American community who were
convicted in 1997 of making political donations through illegal straw
donors.

A Taiwanese firm with a nearly identical name as Hao's new California
company, Asian American Entertainment Ltd., is also headed by a Shi
Sheng Hao. That firm has been embroiled in a lengthy legal battle in
Las Vegas over a soured partnership in an application for a casino
license in Macau, the former Portuguese colony now part of China.

A court filing in that case described Hao's firm as a business
affiliate of the China Industrial Development Bank, a finance arm of
the Taiwanese government. Hao is listed as a resident of Taiwan in
corporate papers filed in the case.

It is not clear whether the Shi Sheng Hao in the lawsuit and the
California ventures is the same Shi Sheng Hao using the Roselle
address. But public records point to numerous coincidences, including
corporations with similar names and an overlap of investors. Some
political donations from the Roselle address also refer to Hao by a
nickname, Marshall, the same nickname given for Hao in the Las Vegas
court action.

Federal records indicate a pattern of large and coordinated donations
from Hao, relatives and associates. Collectively, eight of them gave a
total of $130,000 to the RNC in late September to early October of
last year.

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