Democrat fundraiser Hsu pleads guilty to fraud

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Democrat fundraiser Hsu pleads guilty to fraud - MashGet

NEW YORK (Reuters) - A former Democratic Party fundraiser whose arrest in 2007 prompted Hillary Clinton to return $850,000 in campaign contributions, pleaded guilty on Thursday to fraud charges in an investment scheme.

Norman Hsu, who was sentenced to three years in prison by a California state judge in January 2008, pleaded guilty in Manhattan federal court to charges of mail fraud and wire fraud in running a Ponzi scheme of up to $60 million.

Jury hears Secretary of State Hillary Clinton's call to swindler Norman Hsu

A gushing voicemail message from Hillary Clinton to admitted swindler Norman Hsu was played for jurors Tuesday at his campaign finance violations trial.

"What am I going to do with you, Norman," the then-senator said in the undated message, apparently left in the early days of her failed presidential bid.

"You are working so hard for me that I just don't know what to say any more. I've never seen anybody who has been more loyal and more effective and really just having greater success supporting someone than you."

"Everywhere I go, you're there," she added. "If you're not, you're sending someone to be part of my events. You know, we're going to win this campaign, Norman, because you're singlehandedly going to make that happen."

Jurors in Manhattan Federal Court heard Clinton urge Hsu, then a fund-raiser for the Democratic party, to get some rest.

"Get some sleep," said Clinton, now secretary of state. "Slow down for a few minutes. We're going to get to the end of the first quarter and then we can all take a little rest. Lots of love. Bye bye."

The tape was introduced into evidence on the first day of trial because Hsu had played it for an investor to prove he had access to the upper ranks of the Democratic Party, including the Clintons and the Kennedys.

Jurors also were shown dozens of photos that adorned the walls of Hsu's SoHo flat, picturing him with President Obama, Attorney General Andrew Cuomo, Howard Dean, Patrick Kennedy, Dianne Feinstein and Bill Richardson. Hsu, 58, pleaded guilty Friday to fraud-related charges stemming from a $20 million Ponzi scheme - but he's fighting charges he violated federal campaign contribution laws.

Clinton returned more than $800,000 in Hsu-linked contributions after details of the Ponzi scheme became public. Prosecutors say Hsu pressured former investors into making political contributions. His lawyer said the investors gave the money willingly to impress Hsu and "because they were greedy and frankly dumb."

Actress Suzanne Raffaelli - who cut a deal with prosecutors to testify against Hsu - said that at his urging, she forked over $91,300 to dozens of political candidates.

"I was not politically involved at all," she said. "He loved politics and he wanted to bring in checks to give to the politicians.

"It never crossed my mind that it wasn't [legal]," she added.

For one of Hsu's birthdays, she and friend chipped in for a present they knew would make him happy: a $500 contribution to New Jersey congressman Frank Pallone.

"He was really hard to buy gifts for," Raffaelli said.

Read more: "Jury hears Secretary of State Hillary Clinton's call to swindler Norman Hsu" - Jury hears Secretary of State Hillary Clinton's call to swindler Norman Hsu