Fundraiser Accused of $60 M Ponzi Scheme
Democratic fundraiser Norman Hsu is accused in a criminal complaint unsealed today of defrauding investors out of more than $60 million and breaking campaign finance laws.
Among those who allegedly lost money are New York investors who thought they were investing in a clothing business, the Washington Post reports. They allegedly lost $40 million in the “massive” Ponzi scheme.
The investors have filed a separate civil suit against Hsu on behalf of their investment company, Source Financing Investors. “While SFI thought it was investing in a legitimate clothing manufacturing enterprise, it was really providing Hsu with millions of dollars in cash to fund Hsu’s pet political fundraising projects, and an extravagant international lifestyle,” the lawsuit alleges.
The criminal complaint also contends Hsu broke campaign finance laws by making contributions under other people’s names, the Wall Street Journal reports (sub. req).
The Journal posted a press release (PDF) and complaint (PDF).
