CRM(202) 616-2777WWW.USDOJ.GOV
TDD (202) 514-1888NEW CHARGES FILED AGAINST TWO BUSINESSPEOPLE
IN NEW JERSEY CAMPAIGN FINANCE INVESTIGATION WASHINGTON, D.C.-- A federal grand jury in Newark, New Jersey today returned a superseding indictment charging David Chang with engaging in a conduit contribution scheme to benefit the 1996 Senatorial campaign of Robert Torricelli. Chang is charged with causing false statements to be made by the Torricelli campaign to the Federal Election Commission, as well as conspiring with others to defraud the United States.
The 16-count indictment also charges Chang with engaging in a separate conspiracy, along with Audrey Yu, to obstruct the grand jury's investigation into the conduit scheme. In addition, Yu is also charged with perjury.
The two are among 22 people charged by the Campaign Financing Task Force, which was established by Attorney General Janet Reno to investigate allegations of campaign financing abuses in the1996 election cycle.
Both Yu and Chang, two Englewood Cliffs, New Jersey, businesspeople, had already been charged with offenses against the grand jury in January. At that time, a federal grand jury issued an 11-count superseding indictment charging Audrey Yu with conspiring with David Chang to keep records from a grand jury, obstructing justice, and tampering with a witness in an investigation into allegations of campaign finance improprieties in New Jersey. Chang was added as a defendant in the Yu superceding indictment.
On December 3, 1999, Yu was charged in a five-count indictment alleging that she gave perjured testimony during her appearance before the grand jury on September 24, 1999. According to the initial indictment, Yu allegedly lied when she denied knowing about the destruction of Bright & Bright documents then located at 464 Hudson Terrace in Englewood Cliffs. Yu was arrested on December 6.
On December 10, 1999, federal authorities filed a criminal complaint against, and arrested, Chang alleging that he conspired with Yu to obstruct justice. On the days of their arrests, Judge G. Donald Haneke in Newark released Chang and Yu on secured bonds and other conditions.
The Campaign Financing Task Force has been conducting a campaign finance investigation as Acting United States Attorney for the District of New Jersey, following the recusal of the former United States Attorney for the District of New Jersey. The case has been investigated by the Newark Divisions of the Federal Bureau of Investigation (FBI) and the United States Postal Service.
Today's superseding indictment alleges that Chang, acting both by himself and in a conspiracy with others, solicited conduit contributors to pass along hard money contributions to the 1996 Torricelli for Senate campaign. The conduit contributors were then reimbursed for contributions with funds provided by Chang and the Bright & Bright corporation. Chang also gave "in kind" contributions to the campaign through straw parties.
The superceding indictment also alleges that three days ago, while under court-ordered conditions of release for his offense, Chang contacted a grand jury witness and encouraged him to provide false information regarding a certain financial transaction if called to the grand jury.
In addition, the indictment alleges that Yu and Chang conspired to prevent the grand jury from obtaining records from companies associated with Chang, including Nikko Enterprises, Inc., Bright & Bright Corporation, and Panacom, Inc. It alleges that the two shredded documents that were responsive to grand jury subpoenas issued to Nikko and Bright & Bright.
Further, today's indictment alleges that Chang used misleading conduct towards two grand jury witnesses with the intent to get one witness to withhold documents from the grand jury and to get another witness to give false testimony that would support earlier false testimony given by Yu. In addition, Yu alone is charged with six counts of perjury, based upon her false testimony regarding the location and destruction of Bright & Bright documents at 464 Hudson Terrace in Englewood Cliffs, her presence at the 464 Hudson Terrace offices, and her ownership interest in Panacom.
Indictments and complaints are merely accusations. All defendants are presumed innocent until and unless proven guilty.
If convicted on all counts Chang faces up to 80 years in prison and Yu faces up to 65 years in prison. Indictments and complaints are merely accusations. All defendants are presumed innocent until and unless proven guilty.
The arraignment for David Chang will be held before Judge Alfred M. Wolin Wednesday, April 15, 2000, 9:15 a.m. at the U.S. District Courthouse in New Jersey.
The trial date and jury selection for David Chang is scheduled for April 25, 2000.
In addition to Chang and Yu, the Task Force has charged 20 other individuals and one corporation for offenses relating to violations of the campaign financing laws.
On March 2, 2000, Maria Hsia was convicted in D.C. on charges of causing false statements to be submitted to the FEC. The trial had been postponed pending an appeal of a ruling by the U.S. District Court in Washington, D.C., which had dismissed some of the false statement counts. In May 1999, the U.S. Court of Appeals in Washington, D.C. overturned the ruling and reinstated those counts. The task force dismissed a second indictment on tax charges after a jury in Los Angeles failed to reach a verdict.
On December 17, 1999, Yogesh Gandhi was sentenced to one year in prison for mail fraud, tax evasion, and violating federal election laws by aiding and abetting the making of a political campaign contribution by a foreign national.
On December 1, 1999, Carmine Alampi, a Bergen County New Jersey attorney, entered his guilty plea in United States District Court in Newark, New Jersey, to a one-count Information filed by the Campaign Financing Task Force alleging his illegal campaign contributions to United States Senator Robert Torricelli's 1996 Campaign.
On November 1, 1999, Yah Lin "Charlie" Trie, a Little Rock, Arkansas businessman, was sentenced, after pleading guilty, to a two-count information filed in Little Rock, Arkansas, to three years probation, four months home detention, 200 hours of community service, and a $5,000 fine for violating federal campaign finance laws by making political contributions in someone else's name and by causing a false statement to be made the FEC. Pan was also indicted with Trie in the District of Columbia, but has not yet been prosecuted because he has remained outside the United States.
On September 15, 1999, Lawrence Penna, the former President of a now-defunct New Jersey securities firm, was charged with violating election laws by funneling illegal campaign contributions to the 1996 federal election campaigns of President Clinton and Senator Torricelli. Penna's case was transferred by agreement to the Southern District of New York where charges relating to his violation of United States' securities laws were pending.
On August 16, 1999, a federal judge sentenced Robert S. Lee to three years of probation and 250 hours of community service for aiding and abetting the making of an illegal foreign campaign contribution to the Democratic National Committee.
On August 12, 1999, former Lippo Executive John Huang pleaded guilty to a felony charge, filed in U.S. District Court in Los Angeles, that he conspired with other employees of the Indonesia-based Lippo Group to make campaign contributions and reimburse employees with corporate funds or with funds from Indonesia. He was sentenced to one year of probation, 500 hours of community service, a $10,000 fine and directed by the judge to continue cooperating with the investigation as a condition of his probation.
In June 1999, Berek Don, former GOP party leader in Bergen County, NJ, also pleaded guilty to making illegal contributions to the Torricelli Campaign. The Don, Alampi, and Penna cases were also investigated by the FBI's Newark Division.
On March 23, 1999, Juan C. Ortiz, the Chief Financial Officer of Future Tech International, Inc., was sentenced to two years probation, $20,000 in fines, and 200 hours in community service for acting as a conduit for an illegal campaign contribution and participating in the reimbursement of eight other conduit contributions.
On December 14, 1998, Johnny Chung was sentenced to probation and 3,000 hours of community service for bank fraud, tax evasion and two misdemeanor counts of conspiring to violate election law.
On November 24, 1998, Howard Glicken, a fund-raiser for the Democratic party, was sentenced to 18 months probation, an $80,000 fine, and ordered to perform 500 hours of community service for violating campaign finance laws.
On November 4, 1998, Franklin Haney was indicted on more than 40 counts of conspiring with another to defraud the United States by impairing and impeding the FEC and conspiring to violate specific provisions of federal election law. He was acquitted of all charges on June 30, 1999.
On September 30, 1998, Democratic fund-raiser Mark B. Jimenez was indicted in Washington, D.C. on 17 counts of organizing, making and concealing illegal conduit contributions to a number of Democratic campaigns, including the Torricelli Campaign. In December 1998, Future Tech International, Jimenez' Miami based computer sales company, pleaded guilty to tax offenses resulting from its illegal deduction of a $100,000 contribution to the DNC and employee campaign contributions reimbursed through the company's payroll. On April, 15, 1999, Jimenez, who is now in the Philippines, was indicted in Miami on additional charges of tax evasion and fraud. The task force is pursuing Jimenez' extradition from the Philippines.
On July 13, 1998, DNC fund-raiser Pauline Kanchanalak and her business associate Duangnet "Georgie" Kronenerg were charged with conspiring to impair and impede the FEC, and causing the submission of false statements to the FEC. Trial is scheduled for April 2000. A dismissed portion of the Kanchanalak case is currently on appeal.
In 1997, the Task Force obtained guilty pleas from Democratic fund-raisers Nora and Gene Lum, and their daughter Trisha, and Michael Brown for illegal fund-raising activities after their cases were referred from Independent Counsel Daniel Pearson. In August 1998, Gene Lum pleaded guilty to filing a false 1994 tax return and falsely preparing Nora's 1994 tax return. After cooperating with the government, he was sentenced in June 1999, to two years in prison. Nora was sentenced to 5 months in a halfway house, 5 months in home detention, and ordered to pay a $30,000 fine. Trisha Lum and Michael Brown each received probation, a $5,000 fine, costs of more than $7,000, and were ordered to perform 150 hours of community service.
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