Norman Hsu used investor funds to compensate sales agents, make political campaign contributions, and support his luxurious lifestyle.Hsu is in federal custody awaiting trial after he was indicted in December for mail fraud, wire fraud and violating the Federal Election Campaign Act.His arrest prompted former Democratic presidential candidate Clinton to return $850,000 in contributions last year.
A Legal Aid Society lawyer representing Hsu did not immediately return a call seeking comment."As alleged in our complaint, Hsu and his company used investor funds to make significant political contributions to prominent politicians," said SEC enforcement director Linda Thomsen in a statement. "He allegedly then used the veneer of respectability created by his political connections to persuade his investors that the investments he offered were legitimate."The SEC said Hsu presented himself as an international businessman with high-level contacts at overseas businesses, particularly in the Chinese apparel and technology industries.
Hsu hosted dinners for investors at expensive four-star restaurants and provided them with invitations to exclusive society functions, such as presidential political fund-raising events, the SEC said.
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