Virginia

Political donor charged in $30M investment fraud scheme

ALEXANDRIA, Va. (AP) — A well-heeled political donor has been charged with using his health-technology company to run a $30 million investment fraud scheme.

Sreedhar Potarazu of Potomac, Maryland, has given to Democrats and Republicans, but it is his large contributions to the Democratic National Committee that put him in the spotlight. A series of hacked emails released by WikiLeaks show DNC officials debating whether he deserved a seat next to President Obama at an event. DNC staffers also express frustration in the emails about Potarazu’s persistence in seeking an audience with Obama.

The fraud scheme outlined Thursday in court papers contains no direct link to his political donations. Federal prosecutors in Alexandria say Potarazu induced people to invest millions in his company by hiding his tax liabilities and lying about the company’s finances.

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