US Democratic fundraiser Hsu pleads not guilty to fraud

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http://wiredispatch.com/news/?id=64646

US Democratic fundraiser pleads not guilty to fraud

REUTERS
Reuters North American News Service

Feb 28, 2008 16:59 EST


NEW YORK (Reuters) - A Democratic fundraiser whose troubles prompted Hillary Clinton to return $850,000 in campaign contributions pleaded innocent Thursday to orchestrating a $60 million fraud and making illegal political donations.

Norman Hsu, 56, pleaded not guilty in federal court in Manhattan after he was indicted in December for mail fraud, wire fraud and violating the Federal Election Campaign Act.

The latest case follows similar charges that arose in California that prompted Democratic presidential candidate Clinton to return $850,000 in campaign contributions.

Hsu, a clothing entrepreneur, was sentenced in January in San Francisco to three years in prison for stealing about $1 million from investors.

In the New York case, prosecutors allege he swindled investors out of $20 million between 2000 and 2007 by getting them to invest $60 million in a Ponzi scheme and promising them high returns on short-term investments.

If convicted, he faces 20 years on each fraud charge and five years on each campaign finance charge. (Reporting by Christine Kearney, editing by Daniel Trotta and David Wiessler)