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.

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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.)

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