NYC Comptroller John Liu's Campaign Treasurer Arrested For Alleged Fraud Scheme
NEW YORK (CBSNewYork) - Comptroller John Liu's campaign treasurer has been arrested.
Jenny Hou, whose real name is Jia Hou, faces fraud charges.
Authorities say Hou used "straw donors" to funnel over-the-limit illegal contributions to the Liu campaign. Authorities allege part of the scheme included an effort to get the New York City Campaign Finance Board to supply matching funds to the ones contributed by the straw donors.
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Authorities allege that Hou, 25, would arrange for donors who wanted to exceed the maximum limit to be matched with straw donors, who would be reimbursed for their "donation." Hou also allegedly instructed campaign workers to write bogus signatures on forms.
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"The intent of those rules is in part to limit the influence of wealthy contributors on political campaigns," said FBI Assistant Director-in-Charge Janice K. Fedarcyk. "In a very real sense, Hou is accused of undermining the democratic process."
Hou's arrest is just the latest legal headache tied to Liu, who is considered a possible Democrat mayoral candidate.
Back in November, CBS 2's Marcia Kramer spoke with Liu about the scandals dogging his campaign. One of his top money men - Xing Wu Pan - was previously arrested for using fake donors to hide large contributions.
"There are some people who are wondering about your political viability given the fact that there's a federal investigation and that you've hired a criminal attorney," Kramer asked Liu at the time.
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"I'm aware that there's an investigation and we intend to fully cooperate," Liu replied.
Do you think Liu has a viable political future or is his campaign too compromised? Sound off in our comments section below.
