Democratic Bundler Charged With Fraud

Norman Hsu, the Democratic fundraiser with the habit of fleeing the law, was charged today with bilking at least $60 million from investors in a nationwide Ponzi scheme, tens of thousands of dollars of which was funneled by way of “straw donors” to candidates for national office in violation of federal election law.

In a complaint unsealed in Federal District Court in Manhattan, Mr. Hsu, 56, was accused of strong-arming his investors into giving money to various political causes and to candidates running for president or for seats in the Senate or House of Representatives. One of those candidates, the authorities said, was Hillary Clinton, who was aware of the investigation and has cooperated with it fully.

Mr. Hsu was charged on one count of mail fraud, one count of wire fraud and one count of violating the Federal Election Campaign Act. If convicted he could face 20 years jail for each of the fraud charges, and five years on the campaign finance charge.

Mr. Hsu, a 56-year-old apparel industry executive and a major donor to Democratic candidates and causes, surrendered to the authorities in San Mateo, Calif. at the end of August after reports surfaced that, for the last 15 years, he had been a fugitive from a 1992 million-dollar fraud conviction.

He was released on $2 million bail, but a week later he fled again. While riding on an Amtrak train from California to Denver, he fell violently ill and was taken to a hospital in Grand Junction, Colo., where federal agents eventually arrested him.
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