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Feds to Charge Hsu on Pyramid Scheme, Dem Fundraising
Some of missing money said to be donated
By Jonas Oransky
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Posted Sep 20, 07 11:15 AM CDT
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(Newser)
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Rogue Democratic fundraiser Norman Hsu’s troubles are deepening today, as federal officials are expected to charge the twice-on-the-lam financier with running a $60 million pyramid scheme and breaking campaign-finance laws. Hsu faces accusations that he falsely told investors their money was going into a clothing operation; some of was allegedly routed to political candidates, the Wall Street Journal reports.
Alleged violations of campaign finance laws may be in relation to earlier Journal reports of suspicious bundling of contributions from unlikely donors. Hsu is in custody after having fled a court appearance in California relating to a 1992 conviction on fraud charges. Most recently, a private-equity firm says $40 million it invested with Hsu over the past three years has gone missing.