Norman Hsu Found Guilty of Violating the Federal Election Campaign Act

May 19, 2009 -- NEW YORK -- Lev L. Dassin, the Acting United States Attorney for the Southern District of New York, announced that Norman Hsu was found guilty today on all four counts in the superseding indictment charging him with violating the Federal Election Campaign Act by making contributions to various political campaigns in the names of others. Hsu was found guilty following a six-day trial before U.S. District Judge Victor Marrero in Manhattan federal court.

The evidence at trial established that every year from 2004 through 2007, Hsu asked other individuals to make contributions to designated federal candidates. Hsu directly reimbursed the individuals for the political contributions they had made on his behalf. Contributions amounted to in excess of $2,000, but rose to exceed $25,000 in each of the following three years.

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On May 7, 2009, Hsu pleaded guilty to five counts of mail fraud and five counts of wire fraud in connection with an investment scheme in which he defrauded investors across the United States of millions of dollars.

Each of the mail fraud and wire fraud counts carries a maximum prison term of 20 years in prison and a maximum fine of the greater of $250,000 or twice the gross gain or less from the offense. Each of the four counts of federal campaign finance fraud of which Hsu was found guilty carries a maximum prison term of five years in prison and a maximum fine of the greater of $250,000 or twice the gross gain or loss from the offense.

Hsu, 57, is scheduled to be sentenced on the campaign finance, mail and wire fraud counts on August 19, 2009 at 9:30 a.m. by Judge Marrero.

Mr. Dassin praised the work of the Federal Bureau of Investigation and thanked the Department of Justice’s Public Integrity Section for its assistance in this case.

This prosecution is being handled by the Office’s Public Corruption Unit. Assistant United States Attorneys Katherine A. Lemire, Alexander J. Willscher and Rua M. Kelly are in charge of the prosecution.

Source: FBI