The Trail item gave an incorrect first name for Beverly LaHaye, the wife of author Tim LaHaye.
N.Y. Goes After Hsu
The U.S. attorney in Manhattan indicted former Hillary Rodham Clinton fundraiser Norman Hsu yesterday, laying out what prosecutors described as a "massive fraud scheme" that allegedly left investors in Hsu's fictitious clothing businesses with losses of $20 million.
The indictment charges Hsu with six counts each of mail fraud and wire fraud and three counts of violating the Federal Election Campaign Act. He allegedly squeezed contributions out of his investors and, in some cases, repaid donors who wrote checks to Hsu's chosen candidates.
Hsu remains in a California jail on separate fraud charges there, but prosecutors in New York said they expect him to be transferred there "in coming weeks."
Hsu's California attorney, James J. Brosnahan, was not available to comment.
The 13-page indictment offered few new details about the allegations leveled against Hsu after news reports first revealed this summer that he was wanted on outstanding fraud charges in Northern California. The document describes a complex Ponzi scheme in which Hsu allegedly collected more than $60 million in investments for a clothing business, using each new investment to pay off a previous one.
In all, the indictment said, the victims lost at least $20 million. In addition to leveling the indictment, prosecutors sought to seize all of Hsu's assets. Among the items listed in the indictment: "A saxophone autographed by a former President of the United States."
-- Matthew Mosk
Romney Fires Crew
Less than a week after former Massachusetts governor Mitt Romney defended himself during a debate against accusations that he had hired a company that used illegal immigrants to care for his lawn as governor, his campaign announced that he fired the same lawn-care company for again employing illegal immigrants.