X

Feds to Charge Hsu on Pyramid Scheme, Dem Fundraising

Some of missing money said to be donated
By Jonas Oransky,  Newser Staff
Posted Sep 20, 2007 11:15 AM CDT

(Newser) – 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.

story continues below

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. (Read more Norman Hsu stories.)

We use cookies. By Clicking "OK" or any content on this site, you agree to allow cookies to be placed. Read more in our privacy policy.
Get the news faster.
Tap to install our app.
X