Fined a million dollar for now.
By Deepak Chitnis
WASHINGTON, DC: Indian American hotel mogul Sant Singh Chatwal has pleaded guilty to charges of using straw donors to help finance the campaigns of several high-level Democratic candidates, in addition to a handful of other charges, and will pay the US government $1 million in fines.
Chatwal, 70, pleaded guilty on Thursday, in the Eastern District Court of New York, to charges of conspiracy to violate the Federal Election Campaign Act, which prohibits making campaign donations to any single candidate in excess of either $2,400 or $5,000.
Between 2007 and 2011, Chatwal used friends and family members to give to Hilary Clinton’s 2008 Presidential run, Nevada Senator Harry Reid’s 2010 campaign, and even New York Mayor Bill de Blasio’s election last year. In total, Chatwal gave some $180,000, all to Democratic candidates.
“Chatwal sought to buy access to power through unlimited and illegal campaign contributions, funneling money from the shadows through straw donors,” said Loretta E. Lynch, US Attorney for the Eastern District of New York, in a statement. “[He] then rolled the dice to stymie the government’s investigation, thinking he could corruptly convince witnesses to his federal election crimes to stay silent. That gamble did not pay off.”
In addition to the illicit campaign donations, Chatwal coerced at least one accomplice into concealing information from the FBI and IRS, coaching them on how to answer difficult questions and keep the straw donor scheme under wraps. The Department of Justice said that the candidates to whom Chatwal made contributions were unaware of the illegality of his actions, and were not complicit in any way.
In fact, Mayor de Blasio announced on Thursday that he plans to return the $15,000 his campaign received as a result of fundraising by Chatwal. According to the New York Observer, Chatwal personally donated just under $5,000, keeping him within the legal limit, but then used “bundled money” to contribute a further $10,000.
Chatwal now faces five years in prison, and an additional $250,000 fine on top of the $1 million he has already agreed to pay. He has also already paid $750,000 in bail money, keeping him out of jail for the time being. He is facing five years behind bars when sentenced later this year.
“Mr. Chatwal deeply regrets his actions and accepts full responsibility for the consequences,” a Chatwal spokesperson told the media, in a statement.
Chatwal was the CEO of the Hampshire Hotels and Resorts Chain, but stepped down to Chairman in light of his legal woes. Originally from India, Chatwal is one of the wealthiest and most well-known desi business owners in the US. In addition to the Hampshire Hotel empire, he is also the owner of the Bombay Palace restaurant chain, and is a founding trustee of the American India Foundation (AIF).
He is the father of actor/model/socialite Vikram Chatwal, who was recently in the news for filing a lawsuit against his former fiancée in order to get back a $300,000 engagement ring he claims she ran off with after calling off their wedding.
Chatwal’s sentencing date is currently scheduled for July 31.
2 Comments
Great news! Thats US for you! Where are all those Devyani-supporters, who think US is unjust? He must have utilized his corrupt Indian-mind while doing so, but just couldnt escape. Simply a great example! Wonder if US could lodge him in Tihar alongside their hotel-buyer Subrata Roy..
Say it isn’t so.