[JURIST] Disgraced Democratic fundraiser Norman Hsu [Wikipedia profile] has been charged [press release, PDF] by federal prosecutors in New York with fraud for alleged campaign finance law violations, according to a criminal complaint [PDF text] unsealed Thursday. Hsu allegedly created a massive Ponzi scheme [SEC backgrounder], resulting in more than $60 million of illicit gains, and illegally made campaign contributions in other peoples' names in violation of the Federal Election Campaign Act [text]. Hsu formerly raised funds for political candidates, including Sen. Hillary Clinton. Earlier this month, Clinton agreed [Chronicle report] to return $850,000 she received from Hsu.
The FBI arrested [press release] Hsu in Colorado on federal charges of unlawful flight to avoid prosecution after Hsu failed to appear for a bail hearing in California on unrelated fraud charges on September 5. AP has more.