SEC Sues Infamous Political Donor Hsu For Fraud

Law360, New York (October 7, 2008, 12:00 AM EDT) -- The U.S. Securities and Exchange Commission on Monday sued a former bundler for Sen. Hillary Clinton's presidential campaign for securities fraud that involved fake bridge loans to unnamed companies.

Norman Hsu, the founder and managing director of Next Components Ltd., is facing allegations in the U.S. District Court for the Central District of California that he initiated a $60 million Ponzi scheme that promised 24 percent returns for investors but hasn't paid out those returns since August 2007.

According to the complaint, Hsu used investor funds...
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