NEW YORK -- Federal prosecutors in New York announced criminal charges on Thursday against Democratic fundraiser Norman Hsu.

Hsu was charged with orchestrating a $60 million "Ponzi Scheme" and engaging in widespread campaign finance violations.

VIDEO:Hsu Hit With Federal Charges In N.Y.

WNBC.com was first to report the news that the charges were expected Thursday.

"There were no legitimate transactions being conducted by Hsu's companies," U.S. Attorney Michael Garcia said. "Like all 'Ponzi' schemes, Hsu's eventually collapsed leaving investors holding millions of dollars in bad checks."

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Hsu Complaint - Press Release - pdf
Hsu Complaint - pdf

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Hsu has been a key Democratic Party fundraiser in recent years, donating large amounts including to the campaign of Sen. Hillary Clinton.

Federal authorities investigated Hsu's business dealings as prominent Democrats have been scrambling to return his campaign donations. Clinton has said she will return $850,000 the convicted scam artist had helped raise for her presidential campaign.

Hsu is in custody on an outstanding fraud warrant in California. Reports surfaced this summer raising questions if Hsu was illegally funneling money into campaigns through third parties.

Many Democrats, including Clinton, said they were unaware of Hsu's alleged wrongdoing and promised to donate the campaign funds to charity or their rightful owners. Tucked at the end of the 16-page criminal complaint filed Thursday against Hsu are a few lines indicating that Hsu admitted his guilt to the FBI.

FBI Special Agent Patricia O'Connor writes that, on Sept. 14, Hsu was interviewed by two FBI agents in Colorado. She writes:

"HSU then waived his Miranda rights and admitted to the FBI agents that he used Components Ltd. and Next Components Ltd. for "phony" deals. HSU also admitted that the phony deals involved investments in the sale and distribution of items that did not actually exist, and that he used money he obtained from newer investors to pay initial investors." She adds: "HSU also admitted that he made implied threats to his investors to pressure them to contribute to political candidates he supported."

Robert Emmers, a spokesman for Hsu, declined to comment. Hsu's lawyer in San Francisco, Jim Brosnahan, did not immediately return phone messages Thursday.

The charges are the latest in a string of legal problems for Hsu.

He is already in custody in Colorado, where he was captured after skipping a scheduled court appearance in California on an unrelated, 1991 fraud case.

In that case, state prosecutors accused him of fraudulently persuading investors to pump money into a clothing import business that didn't actually exist. He pleaded guilty, but fled to Hong Kong before he could be sentenced.