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Democratic Fundraiser Sent To N.Y. To Face Charges

By Jonathan Dienst

POSTED: 7:06 pm EST February 27, 2008
UPDATED: 10:14 pm EST February 27, 2008

In leg-irons and handcuffs, Democratic Party fundraiser Norman Hsu was flown to New York Thursday by U.S. Marshals to face federal criminal charges.

Hsu, 56, is accused of using straw donors to funnel money into Hillary Clinton's campaign as well as those of other Democratic politicians. Clinton campaign officials have said they knew nothing of Hsu's alleged scheme and have turned his huge donations over to charity.

Prosecutors said Hsu funneled tens of thousands of dollars through others to get around campaign finance limits. Hsu allegedly then reimbursed those contributors. As part of the investigation, FBI agents said they seized cash, banking records and handwritten ledgers of the alleged campaign finance scheme.

Hsu is also accused of orchestrating a $60 million fraud.

He is accused of duping investors of those millions. Investigators said he also improperly pressured some investors to make campaign contributions to some Democrats.

Hsu is expected to be arraigned on the federal criminal charges as early as Thursday in federal court in Manhattan.

He is expected to plead not guilty.

Hsu was in custody on unrelated fraud charges.

He was charged with federal crimes including wire fraud and mail fraud in September.

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Emmy award-winning reporter Jonathan Dienst is a member of News 4 New York's investigative reporting team.
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