Ex-Top Democratic Donor Pleads Guilty To Fraud
Lawyer Blogs
Norman Hsu, a former top fund-raiser for the Democratic Party, pleaded guilty Thursday to running a fraudulent investment scheme but he continues to fight charges of making fraudulent political contributions.
Hsu, 58 years old, pleaded guilty to five counts of mail fraud and five counts of wire fraud at a hearing before U.S. District Judge Victor Marrero in Manhattan.
"I would use later investments to pay off earlier investments, so as to create the impression that my investment strategy was operating properly when, in fact, it was not," Hsu said. "I knew what I was doing was illegal,"
Jury selection is scheduled on the four remaining counts of campaign finance fraud in his case beginning Monday.
Hsu faces up to 20 years in prison on the mail and wire fraud charges.
Alan Seidler, Hsu's lawyer, said Hsu made the plea without having a plea agreement with the government.
Prosecutors had alleged Hsu falsely represented to investors that his companies - Components Ltd. and Next Components Ltd. - were in the business of extending short-term financing to companies and promised short-term, high-return investments.
Between 1997 and August 2007, the government claims Hsu convinced investors to entrust him with at least $60 million in a Ponzi scheme. After repaying some investors their principal and interest, Hsu allegedly swindled other investors out of at least $20 million, prosecutors said.
During his plea, Hsu said the scheme began in 1999.
Prosecutors also have alleged Hsu, in order to raise his public profile, pressured some investors between 2004 and 2007 to individually contribute thousands of dollars to candidates for president and Congress whom Hsu supported.
In some cases, Hsu allegedly reimbursed investors for making political contributions with proceeds from the scam, prosecutors said.
Related listings
-
Appeals court says raid on Muslims' Va. home OK
Lawyer Blogs 05/07/2009Government agents searching for evidence of terrorist funding acted reasonably when they broke down a Muslim family's front door, entered with guns drawn and handcuffed a frantic woman and her teenage daughter, a federal appeals court ruled Wednesday...
-
Stocks could pose conflicts for court prospects
Lawyer Blogs 05/06/2009Some Supreme Court prospects have extensive corporate holdings, including shares in Fortune 500 companies such as General Electric and Microsoft and stock in a manufacturer that recalled lead-paint-coated "Flush & Sounds Potty" toilet seats. Sinc...
-
Iowa plant ex-worker wants ID theft plea withdrawn
Lawyer Blogs 05/06/2009A former human resources employee at an Iowa kosher slaughterhouse where hundreds of illegal immigrants were caught in a raid last year has withdrawn her guilty plea to identity theft. Laura Althouse's attorney filed a motion Monday to withdraw the p...
New Rochelle, New York Personal Injury Lawyers
If you or a loved one has been injured in an accident, contact Kommer, Bave & Ollman, LLP, in New Rochelle, New York, immediately. We can answer all your questions and work with you to determine if you have the grounds for a personal injury lawsuit. The attorneys at our firm are determined to resolve even the most difficult of cases. We will work closely with you to determine the best course of action to get your claim or case resolved in the most efficient way possible. We will fight for your right to compensation! No one should have to suffer a financial burden from the result of another person’s carelessness. The attorneys at Kommer, Bave & Ollman, LLP will aggressively fight to ensure that justice is served on your behalf.