Sep 20, 2007 10:01 pm US/Eastern
U.S. Attorney Outlines Hsu's Alleged Fraud Scheme
Sen. Clinton Distancing Herself From Sticky Situation
NEW YORK (CBS) ―
-
-
Norman Hsu (file)
San Mateo Co. Sheriff's Office
The U.S. Attorney in Manhattan is accusing Norman Hsu of running a "massive" fraud scheme and using some of the profits to make illegal donations to candidates running for Congress and the presidency.
Hsu gave early and often to Democratic candidates, but according to the feds, his donations were part of a scheme to defraud investors out of $60 million.
"In committing acts of campaign finance fraud, Hsu corrupted a system in which transparency is paramount in order to purchase a place on the celebrity campaign circuit," U.S. Attorney Michael Garcia said.
Prosecutors say Hsu took millions from unsuspecting partners for a pair of companies that had no legitimate business operations. He is charged with giving some of the money to political candidates, most notably Sen. Hillary Clinton.
"Hsu also pressured investors to make political contributions to designated candidates," Garcia said.
The Clinton campaign has tried to distance itself from Hsu. It reportedly does not want to remind voters of Bill Clinton's decision to reward campaign donors with perks like sleepovers in the Lincoln bedroom and trips on Air Force One, plus the pardon of financier Marc Rich. Here's why:
"Her opponents will try to make as much hay out of this as possible," political consultant Hank Scheinkopf said. "Norman Hsu is someone they'll try to stick to Hillary Clinton like glue. Why? To remind people of what they thought are the worst of the Clinton years."
The Clinton campaign says it's giving the money Hsu raised for them back to the donors, all $850,000 dollars of it.
If convicted Hsu faces up to 45 years in jail and heavy fines.
People who think they may be entitled to restitution are being asked to contact the U.S. Attorney's Office at 866-874-8900.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
Click to enlarge
Stumble It!
Reporting
Comments