Fundraiser for NYC Comptroller Charged with Fraud

More potentially bad news for New York City Comptroller John Liu.  In the wake of Tuesday’s news reports that his campaign fundraising is under investigation by the U.S. Attorney’s office, one of his fundraisers was arrested on Wednesday for wire fraud in relation to illegal campaign donations.

A criminal complaint that was unsealed this week says that an undercover agent from the Federal Bureau of Investigation posed as a businessman seeking to donate $16,000 to an unidentified candidate for citywide office in New York.  According to multiple news report, that candidate was Liu.

The FBI agent posed as a businessman offering to donate $16,000, which far exceeds the $4,950 donation limit for city-wide candidates.  According to the compliant, Pan recruited 20 “straw donors” in an effort to circumvent the limit. He is charged with two counts of wire fraud.

It is not clear from the charges that Liu knew of the scheme.  He released a statement disavowing any knowledge of the fraud.

In the wake of the criminal charges, former state Attorney Robert Abrams announced that he will not conduct the independent inquiry into Mr. Liu’s campaign finances that he was hired to undertake.

And, according to the NY Post, Liu still says he plans to run for New York City Mayor in 2013.