Norman Hsu Pleads No Contest to Felony Grand Theft
Shrimp Boy wasn't his only creditor.
While the press did not cover it, in 1991 he was charged in San Mateo in an 18-count indictment with grand theft for allegedly luring 20 investors into a series of deals in which he bought and sold latex gloves--the only problem being that the gloves didn't exist, according to the criminal charges at the time. In February 1992 he entered a "no contest" plea to one count of felony grand theft, for which he was to receive three years in jail. Yet four months later he failed to appear for sentencing, and the judge issued an arrest warrant for him.
Mr. Hsu’s career hit a low in 1989, when he began raising $1 million from investors as part of a plan to buy and resell latex gloves.
Ronald Smetana, a lawyer with the California attorney general’s office, said Mr. Hsu was charged with stealing the investors’ money after it turned out he never bought any gloves and had no contract to resell them.