Hsu Enters Prison With Apology, Explanation

Jan 8 2008 | 4:07pm ET

Facing a judge before going to prison, disgraced hedge fund manager Albert Hsu blamed his bipolar disorder for his misfortune, and decried putting the mentally ill in jail.

“My mental illness is not an excuse” for plotting to have his former mistress raped and kidnapped, Hsu said at his formal sentencing yesterday in Stamford, Conn. “But it is an explanation for my actions.”

Judge Richard Comerford sentenced Hsu, the founder of hedge fund Anchor Point Capital, to two-and-a-half years in prison, and 12 years probation. He also has to register as a sex offender upon his release, and a violation of his probation could send him back to the slammer for 12½ years. Hsu pleaded guilty to the charges in October.

Hsu apologized to his victim, whom he posed as to post an online ad on a bondage and sadomasochism Web site seeking “a real-life abduction and rape scene” that included her photo, license plate number and where she preferred to stand at a New Canaan, Conn., commuter rail station.

And he expressed regret for its effect on his family, saying he “never wanted to shame” it, and adding that the worst moment in his life was when his mother denied he was her son after his arrest. His wife, Kendra, with whom he has two children, has filed for divorce.

But he also inveighed against jailing the mentally ill. “Incarcerating [the mentally ill] in an environment that is already overcrowded is a step that further solidifies their mental illness,” he said.

Hsu said he has attempted suicide five times, and that he posted the offending ad after the medication for his bipolar disorder stopped working. Hsu had previously been warned by police in New Canaan after the victim complained of harassment.

Hsu’s victim, who has not been identified, approved of Hsu’s plea agreement, her attorney said. He could have faced up to 25 years in prison.

“This destroyed his life,” attorney Robert Bello said of his client. “This is a life sentence.”

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