Democratic donor pleads guilty to campaign fraud - Financial Times

A Democratic fundraiser and hotel executive has pleaded guilty to conspiracy to evade campaign finance laws and witness tampering, the Department of Justice said.

Sant Singh Chatwal, chairman of Hampshire Hotels Management, pleaded guilty on Thursday to making more than $180,000 in illegal federal campaign donations to three candidates through “straw donors” who were reimbursed, the DoJ said in a statement.

He raised at least $100,000 for Hillary Clinton in her 2008 presidential campaign against Barack Obama. The justice department did not comment on whether Mrs Clinton was one of the three candidates, but it said there was no allegation that candidates took part in or were aware of Mr Chatwal’s scheme.

Mr Chatwal was skirting legal limits on contributions to an individual candidate’s campaign of $2,300 in 2008 and $2,400 in 2010.

A Supreme Court ruling earlier this month removed an aggregate cap of $123,000 on a single donor’s total donations to all candidates and parties, but did not change the cap on donations to individual candidates.

When sentenced, Mr Chatwal, 70, faces up to 25 years in prison, the DoJ said. He was released on bail of $750,000 on Thursday.

Loretta Lynch, US attorney for the Eastern District of New York, said: “The Election Act’s spending limits are in place to limit financial influence in federal elections and to ensure transparency as to the identity of donors.

“Chatwal sought to buy access to power through unlimited and illegal campaign contributions, funnelling money from the shadows through straw donors. Chatwal’s scheme sought to subvert the very purpose of the Election Act.”

The justice department said he then tried to stymie the government’s investigation by attempting to persuade witnesses to his crime to stay silent.

Hampshire Hotels has properties in New York, Miami, Bangkok and Cochin, India.

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