 A disgraced Democratic fundraiser, Norman Hsu, has been charged with concocting a $60 million "Ponzi" fraud scheme and related federal campaign finance crimes, federal prosecutors said yesterday.
| File this under "Most of us could be rich, but we're too honest. Even the crooks among us." |
Beginning in 2003, Hsu was the managing director of two short-term financing companies that lured investors by promising high rates of return, the prosecution's complaint said. Hsu then allegedly used his investors' money to operate a pyramid scheme in which he would pay back the companies' newer shareholders with money obtained from older ones. Hsu also would ask his investors to donate money to various political campaigns in their own names and then reimburse them, a violation of the Federal Elections Campaign Act, the complaint said. "This case is about self-promotion and greed," the U.S. attorney for the Southern District of New York, Michael Garcia, said at a news conference. "In committing acts of campaign finance fraud, he corrupted a system in which transparency is paramount in order to purchase a place on the celebrity campaign circuit."
| I don't think the Justice Department can investigate this guy properly. I think we ought to have Patrick Fitzgerald as a special prosecutor. After all, it worked for Lewis Libby. |
Hsu is charged with one count each of wire and mail fraud, and one count of violating the Federal Election Campaign Act. If convicted, Hsu faces up to 45 years in prison for the fraud charges, a $250,000 maximum fine for the campaign finance charge, and as much as twice the gross gain or loss from the financial fraud charges. |