DEVELOPING STORY: California businessman Norman Hsu, a former New York apparel executive and major contributor to Democratic candidates and causes, failed to appear for a bail reduction hearing Wednesday, leading to speculation that he again is a fugitive from the law, FOX News has learned.

Hsu's attorneys say they do not know his whereabouts, and that their client did not surrender his passport.

Hsu turned himself in to authorities last week after more than 15 years on the run from a felony conviction of grand theft. He admitted to defrauding investors of $1 million in a bogus investment scam.

He failed to appear in court for sentencing on that 1991 conviction, a revelation that prompted high profile Democrats -- including presidential candidate Hillary Clinton -- to return thousands of dollars donated by Hsu.

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