One of Sen. Hillary Clinton’s major fundraisers, Norman Hsu, used his position in the campaign to help carry out a $20 million Ponzi-like fraud scheme, federal prosecutors said today. "Hsu allegedly made direct and implied threats to these victims, leading them to believe that their failure to make the required political contributions would adversely impact their ongoing relationship" with Hsu’s investment company, U.S. attorney Michael J. Garcia said. Hsu was indicted by a federal grand jury for carrying out "a massive scheme that defrauded investors across the United States." He was also charged with violating Federal Election Campaign laws. Prosecutors say Hsu used others, essentially as fronts, to make contributions for him, and he then reimbursed them. Sen. Clinton, D-N.Y., distanced herself earlier this year from Hsu when it was revealed he was a fugitive from justice from a fraud conviction in California. Since 2004, Hsu personally contributed at least $600,000 to Democrats under his own name. He is currently in custody in California. Read the indictment against Hsu.