PAPER CHASE NEWSBURSTDigest RSS feedFull RSS feed
Serious law. Primary sources. Global perspective.
Receive IM, Email or Mobile alerts when new content is published on this site.


Wednesday, December 05, 2007

Democratic Party fundraiser indicted for fraud, campaign finance violations
Brett Murphy at 12:07 PM ET

Photo source or description
[JURIST] Disgraced Democratic Party fundraiser Norman Hsu [Wikipedia profile] was indicted [press release, PDF] Tuesday on 15 additional counts of mail fraud, wire fraud, and violations of the Federal Election Campaign Act (FECA) [text] in connection with a massive alleged Ponzi scheme [SEC backgrounder]. Hsu also allegedly made illegal campaign contributions in other peoples' names in violation of the FECA. According to the indictment [text]:
In an effort to raise his public profile and thereby convince more victims to invest in his fraudulent scheme, Hsu pressured many of his victims to individually contribute thousands of dollars to various candidates for President of the United States, the United States Senate, and the United States House of Representatives whom Hsu supported. Hsu allegedly made direct and implied threats to these victims, leading them to believe that their failure to make the required political contributions would adversely impact their ongoing investment relationships with Hsu.
Each charge of fraud carries with it the possibility of a sentence of up to 20 years in prison, as well as large fines.

In September, New York prosecutors charged [JURIST report] Hsu with one count each of mail fraud, wire fraud and violating FECA in connection with the same scheme. The FBI arrested [press release] Hsu in Colorado on federal charges of unlawful flight to avoid prosecution after Hsu failed to appear for a bail hearing in California on unrelated fraud charges on September 5. Hsu formerly raised funds for political candidates, including Sen. Hillary Clinton (D-NY). Clinton agreed [San Francisco Chronicle report] in September to return $850,000 she received from Hsu. AP has more.



Link | e-mail   | print | subscribe | JURIST news archive | © JURIST

For a one-stop snapshot of the latest legal news that matters, with breaking documents, new legal videos, live law-related webcasts, commentary by expert law professors and more - all updated through the day in real time, with no ads and no registration barriers - visit JURIST's homepage and check back often...


LATEST LEGAL NEWS

 Japan lower house passes bill lifting restrictions on space militarization
4:24 PM ET, May 9

 Pakistan leaders fail to agree on resolution restoring ousted judges as new deadline looms
4:06 PM ET, May 9

 EU parliament head slams possible court ban of Turkish ruling party
2:16 PM ET, May 9

 click for more...

LATEST FORUM

Prosecute the Lawyers Too

Marjorie Cohn
Thomas Jefferson Schl. Law

ABOUT

Paper Chase is JURIST's real-time legal news weblog, powered by a team of 20 law student reporters and editors led by law professor Bernard Hibbitts at the University of Pittsburgh School of Law. As an educational service, Paper Chase is dedicated to presenting important legal news and materials rapidly, objectively and intelligibly in an accessible, ad-free format.

CONTACT

Paper Chase welcomes comments, tips and URLs from readers. E-mail us at JURIST@pitt.edu