SEC sues Democrat fundraiser for alleged $60M scam

By PAUL ELIAS Associated Press Writer SAN FRANCISCO (AP) - Federal regulators on Monday sued political fundraiser Norman Hsu for allegedly operating a $60 million investment scam and using some proceeds to contribute to Sen. Hillary Rodham Clinton and other prominent Democrats. The Securities and Exchange Commission filed a lawsuit in U.S. District Court in Los Angeles that accuses Hsu of using a company called Next Components to solicit investments that promised high rates of return by providing short-term loans to other companies. Instead, Hsu used the investments to pay off early investors in a classic Ponzi scheme while using the rest to make political contributions and support a lavish lifestyle, the lawsuit states. The SEC is seeking to recoup the investors' money and financial penalties. Public records show Hsu donated... [read full story]