Sant Chatwal pleads guilty to violating US electoral laws

Indian-American hotelier Sant Singh Chatwal today pleaded guilty at a court here to violating federal election campaign laws by using straw donors to secretly funnel money to political campaigns and will pay a million dollars to the US as part of his plea agreement.
"Chatwal admitted that he used straw donors to secretly funnel money to political campaigns so that he could gain access to the politicians, and he coerced another person to hide his crime," said Acting US Assistant Attorney General David O'Neil.
Chatwal, 70, had raised at least USD 100,000 for Secretary of State Hillary Rodham Clinton's 2008 presidential campaign against Barack Obama.

He pleaded guilty in the Eastern District of New York to conspiring to violate the Federal Election Campaign Act (the 'Election Act') by making more than USD 180,000 in federal campaign donations to three candidates through straw donors who were reimbursed and to witness tampering.
There is no allegation that the candidates participated in, or were aware of, Chatwal's scheme, federal prosecutors said.
As part of his plea agreement with the government, he agreed to forfeit one million dollars to the US.

"Chatwal went to great lengths to undermine both election laws and our system of justice. Today's guilty plea shows our vigilance and determination to prosecute those who damage the integrity of elections by masking the true sources of campaign contributions," O'Neil said.

"Chatwal's scheme sought to subvert the very purpose of the Election Act. Chatwal 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," said US Attorney Loretta Lynch.
According to court filings and facts presented during the plea proceeding, Chatwal operated several businesses, including restaurants, hotels, and a hotel management company.
From 2007 to 2011, Chatwal used his employees, business associates, and contractors who performed work on his hotels (the "Chatwal Associates") to solicit campaign contributions on Chatwal's behalf in support of various candidates for federal office and PACs, collect these contributions, and pay reimbursements for these contributions.

Chatwal was awarded Padma Bhushan in 2010 for his role in the historic India-US civilian nuclear deal.
He heads the chain of the upscale Hampshire Hotels.