Indian-American hotelier Sant Singh Chatwal, who has pleaded guilty to funnelling large illegal contributions to the campaigns of top Democrats, is reported to have explained his motivation with the comment: “Without (donations) nobody will even talk to you.”
“When they are in need of money, the money you give, then they are always for you. That’s the only way to buy them,” Chatwal has said in a recorded conversation cited in a criminal information filed by the US prosecutors in a New York federal court.
A Padma Bhushan awardee (for and a long-time friend of the Clintons, the 70-year-old Chatwal could technically face up to 25 years in prison for the charges of conspiracy and witness tampering to evade the tough US campaign finance laws.
However, by striking a plea deal with the prosecution, he is expected to get away with a lesser prison term. Chatwal is reported to have agreed not to appeal any prison sentence shorter than 5-1/4 years. He has also agreed to forfeit $1 million.
Chatwal had pleaded guilty to using straw donors to funnel $180,000 in illegal contributions between 2007 and 2011 to the campaigns of three Democrats, whose names were not given out by the authorities. But The New York Times, citing a person with knowledge of the investigation, identified them as Hillary Clinton, former Senator Christopher Dodd and Congressman Kendrick B Meek.
There was no immediate comment either from Clinton, Dodd or Meek on Chatwal’s guilty plea. The Office of US Attorney loretta lynch said the three unnamed candidates in the case had no knowledge of the operation. A news release put out by her office said: “There is no allegation that the candidates participated in, or were aware of, Chatwal’s scheme.” Court records said Chatwal had been recorded multiple times telling an associate to lie about the donations. The straw donors used by Chatwal for making donations to the candidates would be reimbursed by him.
“Sant Singh Chatwal and his family have given more than $350,000 to candidates for federal office since the 1990s and have raised hundreds of thousands more,” The Times reported, noting that in 2000, when the current strict campaign fund restrictions were not in place, Chatwal had contributed more than $200,000 for Hillary Clinton’s Senate campaign. After Clinton announced her decision in 2007 to run for the White House, Chatwal formed “Indian Americans for Hillary 2008” and pledged to raise $5 million for her presidential campaign.
“Mr. Chatwal deeply regrets his actions and accepts full responsibility for the consequences. He looks forward to resolving this personal matter,” his office said in a statement. In recent days in the run-up to his guilty plea, Chatwal stepped down as CEO of his Hampshire Hotels and Resorts and appointed a new person to the post. He, however, remains chairman of the group.