Federal Regulators Sue Democrat Fundraiser for $60 Million Scam

On Monday, federal regulators sued political fundraiser Norman Hsu for allegedly operating a $60 million investment scam and using some proceeds to contribute to Sen. Hillary Rodham Clinton and other prominent Democrats.

The Securities and Exchange Commission filed a lawsuit in U.S. District Court in Los Angeles. It accuses Hsu of using a company called Next Components to solicit investments that promised high rates of return by providing short-term loans to other companies.The lawsuit also states that Hsu used the investments to pay off early investors in a classic Ponzi scheme while using the rest to make political contributions and support a lavish lifestyle.

The SEC is seeking to recoup the investors' money and financial penalties.

In May, a federal judge in Los Angeles ordered Hsu to pay $28.8 million to aggrieved investors who sued him. Hsu wasn't represented by a lawyer in that case and never responded to the lawsuit.

Source: The Associated Press