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Hsu Pleads Guilty

The two-time fugitive, Ponzi scheme operator, and fraudulent benefactor of prominent Democratic politicians (including Barack Obama, Joe Biden, Hilary Clinton, Eliot Spitzer, et al) has pled guilty to a slew of fraud charges, but has not acknowledged any political motives.

Former top Democratic fundraiser Norman Hsu pleaded guilty in federal court Thursday to charges he cheated investors out of at least $20 million in a massive Ponzi scheme.

The 58-year-old Hsu (SHOO) pleaded guilty to 10 counts of wire and mail fraud before U.S. District Judge Victor Marrero.

"I knew what I was doing was illegal," Hsu told the judge.

His lawyer, Alan Seidler, said outside court afterwards that his client was likely to testify on his own behalf at a trial on four counts of violating federal campaign-finance laws. Hsu is accused of violating those laws by making hundreds of thousands of dollars in contributions to more than 50 politicians.

"He's like a groupie. He just likes the political process," Seidler said, adding that Hsu was adamant that he never made a political contribution expecting something in return. Prosecutors said he made contributions to political candidates in the names of others.

Assistant U.S. Attorney Katherine Lemire told Marrero that the government will seek to prove that Hsu made political donations "to fuel" the Ponzi scheme and pressured victims of his fraud to contribute to political candidates.

(HT: JWF)

Previous Norman Hsu coverage

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Hsu Pleads Guilty

The two-time fugitive, Ponzi scheme operator, and fraudulent benefactor of prominent Democratic politicians (including Barack Obama, Joe Biden, Hilary Clinton, Eliot Spitzer, et al) has pled guilty to a slew of fraud charges, but has not acknowledged any political motives.

Former top Democratic fundraiser Norman Hsu pleaded guilty in federal court Thursday to charges he cheated investors out of at least $20 million in a massive Ponzi scheme.

The 58-year-old Hsu (SHOO) pleaded guilty to 10 counts of wire and mail fraud before U.S. District Judge Victor Marrero.

"I knew what I was doing was illegal," Hsu told the judge.

His lawyer, Alan Seidler, said outside court afterwards that his client was likely to testify on his own behalf at a trial on four counts of violating federal campaign-finance laws. Hsu is accused of violating those laws by making hundreds of thousands of dollars in contributions to more than 50 politicians.

"He's like a groupie. He just likes the political process," Seidler said, adding that Hsu was adamant that he never made a political contribution expecting something in return. Prosecutors said he made contributions to political candidates in the names of others.

Assistant U.S. Attorney Katherine Lemire told Marrero that the government will seek to prove that Hsu made political donations "to fuel" the Ponzi scheme and pressured victims of his fraud to contribute to political candidates.

(HT: JWF)

Previous Norman Hsu coverage