0
Hsu Hit With Another Fraud Suit
California investors say he swindled them and coerced contributions
By Nick McMaster
|
Posted Sep 22, 07 11:03 AM CDT
|
Share
(Newser)
–
In the latest legal woes to befall disgraced fundraiser Norman Hsu, a California investment company filed a lawsuit yesterday claiming he defrauded investors out of $23 million and demanded political contributions as a prerequisite for doing business. The allegations come a day after the feds filed criminal complaints against Hsu, the Los Angeles Times reports, for a $60 million Ponzi scheme and violation of campaign finance laws.
The suit says Hsu finessed the firm's chief and some 60 others into investing in short-term loans to "high end apparel" companies that would yield investors 100-day returns of up to 20%. Hsu is said to have demanded tens of thousands of dollars in contributions to Democratic candidates, and used pals such as Hillary Clinton to gain investors' confidence. A group of New York investors filed a similar suit late last week.