Posted on 09/20/2007 2:23:23 PM PDT by Ernest_at_the_Beach
NEW YORK (AFP) — A Chinese-American businessman whose huge donations caused a major embarrassment to the Democratic Party last month has been charged over a 60 million dollar fraud scheme, prosecutors said Thursday.
Norman Hsu, who was believed to be one of the top donors to Democratic presidential hopefuls Hillary Clinton and Barack Obama, was charged by New York prosecutors with fraud and violating federal campaign finance laws.
Hsu, 56, operated two companies through which he recruited victims by guaranteeing high rates of return on short-term investments, paying them with money handed over by newer investors in the scheme, prosecutors said.
He later pressured his investors to contribute tens of thousands of dollars to various politicians he supported, telling them their investment relationship with him depended on it.
"In committing acts of campaign finance fraud, Hsu corrupted a system in which transparency is paramount," New York Attorney Michael Garcia said.
"This case is about-self promotion and greed. Hsu perpetrated a massive Ponzi (fraud) scheme to support his lavish lifestyle and in the process stole tens of millions of dollars from unsuspecting investors," he added.
According to the Federal Bureau of Investigation, Hsu last week admitted to its agents in Colorado that he had used his two companies for "phony" deals and had pressured investors into contributing to political candidates he endorsed.
If convicted on the charges, Hsu faces up to 45 years in jail.
Hsu, reportedly a naturalized US citizen originally from Hong Kong, was arrested on September 6 in Colorado on a warrant charging him with fleeing to avoid prosecution in California, where he was wanted over a 1992 fraud case.
A Colorado court on Wednesday approved his extradition to California, where he was expected to arrive later Thursday or Friday. New York authorities said they would coordinate with Los Angeles prosecutors to secure Hsu's extradition.
Clinton and Obama vowed last month to donate the campaign donations they had received from Hsu to charity after questions were raised about hundreds of thousands of dollars in donations linked to the disgraced businessman.
fyi
CNN and MSNBS were too busy protecting the gang that beat up a single white fella to cover anything detrimental to the RAts....
Clinton and Obama vowed last month to donate the campaign donations they had received from Hsu to charity after questions were raised about hundreds of thousands of dollars in donations linked to the disgraced businessman.
Does anyone know if either has made the charitable contribution yet????
Yeah, right, which charities and do they ever receive the money? Sounds like it really belongs to the defrauded investors who should all be lining up outside of Hillary's and Obama's headquarters, demanding their money back.
How come the Media isn’t talking about ‘a culture of corruption’ around this guy?
Oh, excuse me this is a Democrat fundraiser...why did I even bother asking?
Some articles portray Hsu as shy and uncomfortable about his role as a "high-rolling big-timer", others seem to imply that he was slick and powerful enough on his own to have hoodwinked not only the entire DemocRAT party, but law enforcement as well.
I don't believe either, nor do I believe that he acted ALONE in all of this.
Yippee, this gets better and better! Now that there are federal charges related to the “Ponzi” scheme Hillary should be grilled over her plan to try to get 260 so-called “donors” to re-donate. NONE of the money associated with Hsu should go anywhere except to a judicially monitored escrow fund until it can be determined who the money really belongs to. This story just keeps getting worse for the Demagogues!!
I see you’ve been busy.....keep up the good work!
ROFL!
Thanks Ernest, just finished ‘Hill-Care’ today!
Donors Stir 'Bundling' Questions (another "shoe")
****************************EXCERPT INTRO*********************
BRISTOW, Va. -- When Hillary Rodham Clinton held an intimate fund-raising event at her Washington home in late March, Pamela Layton donated $4,600, the maximum allowed by law, to Mrs. Clinton's presidential campaign.
But the 37-year-old Ms. Layton says she and her husband were reimbursed by her husband's boss for the donations. "It wasn't personal money. It was all corporate money," Mrs. Layton said outside her home here. "I don't even like Hillary. I'm a Republican."
The boss is William Danielczyk, founder of a Washington-area private-equity firm and a major fund-raising "bundler" for Mrs. Clinton. Mrs. Layton's gift was one of more than a dozen donations that night from people with Republican ties or no history of political giving. Mr. Danielczyk and his family, employees and friends donated a total of $120,000 to Mrs. Clinton in the days around the fund-raiser.
Yep, busted.
think the RATS will cough up the money NOW??? it'll prolly have to be pried out of their claws.
What is that? Sounds like a line out of “You’ve Got Mail” where Tom Hanks says “its not personal, it’s business”...I don’t buy it that she’s a republican. Hillary’s theme song should be from ABBA “Money, Money, Money”
falling into the pit they dug.
Hillary? Return money? Not likely.
Clinton pocketed $850,000 in this scheme.
First she said she’d give it back when the dirt spilled out.
Hillary has since said she might accept newly issued checks if donors can confirm the money is from their personal funds, not from Hsu.
Caught a bit of Hardball,...Matthews had an Edwards guy on,,,,sounds like they are going to try and use this against Hilllary and maybe Obama.....in some way....
Chris Matthews is in possession of Paul v Clinton info. I spoke with the producer yesterday. Let’s see what he does.
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