Richard Tafoya
Sep 20th, 2007, 10:44 PM
AP:
http://www.huffingtonpost.com/huff-wires/20070920/democratic-fundraiser/
Norman Hsu, one of the top fundraisers for big-name Democrats, was charged Thursday with swindling at least $60 million from investors and using some of his profits to make illegal donations to political campaigns.
Hsu, who was already facing a fifteen-year-old fraud case in California, was charged in New York with what prosecutors called a "massive" Ponzi scheme that ensnared investors across the country.
At a news conference, U.S. Attorney Michael Garcia said the main purpose of the fraud was to support a "lavish lifestyle," but he said it also may have been fueled by Hsu's desire "to purchase a place on the celebrity campaign circuit."
The criminal complaint, unsealed in U.S. District Court for the Southern District of New York, said the 56-year-old clothing-industry entrepreneur pressured his business partners to make hefty donations to congressional and presidential candidates, most notably Hillary Rodham Clinton. None of the partners was identified.
Garcia said there was no evidence that the campaigns were aware of the scheme or acted criminally. The Clinton campaign has been cooperating with the investigation, he said, and Clinton has already announced that she would give back $850,000 raised by Hsu.
Hsu also is accused of donating money in other people's names, which is a federal crime.
http://www.huffingtonpost.com/huff-wires/20070920/democratic-fundraiser/
Norman Hsu, one of the top fundraisers for big-name Democrats, was charged Thursday with swindling at least $60 million from investors and using some of his profits to make illegal donations to political campaigns.
Hsu, who was already facing a fifteen-year-old fraud case in California, was charged in New York with what prosecutors called a "massive" Ponzi scheme that ensnared investors across the country.
At a news conference, U.S. Attorney Michael Garcia said the main purpose of the fraud was to support a "lavish lifestyle," but he said it also may have been fueled by Hsu's desire "to purchase a place on the celebrity campaign circuit."
The criminal complaint, unsealed in U.S. District Court for the Southern District of New York, said the 56-year-old clothing-industry entrepreneur pressured his business partners to make hefty donations to congressional and presidential candidates, most notably Hillary Rodham Clinton. None of the partners was identified.
Garcia said there was no evidence that the campaigns were aware of the scheme or acted criminally. The Clinton campaign has been cooperating with the investigation, he said, and Clinton has already announced that she would give back $850,000 raised by Hsu.
Hsu also is accused of donating money in other people's names, which is a federal crime.