A political donor and cable news commentator pleaded guilty on Friday to federal criminal charges in what prosecutors described as a $30 million investment fraud scheme tied to his health-technology company.
Sreedhar Potarazu, 51, an ophthalmogist from Potomac, Maryland, was appointed to serve on the credentials committee to this year’s Democratic National Convention, even though he has given to Republicans and Democrats. He was a frequent guest of Fox Business and other cable news shows, and in one appearance billed himself as a supporter of Republican John Kasich.
His name also appears in a series of hacked emails released by WikiLeaks showing DNC officials debating whether his donations of more than $300,000 merited a seat next to President Barack 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 was unconnected to his political donations.
At a plea hearing Friday in U.S. District Court in Alexandria, Potarazu admitted he defrauded more than 150 shareholders in his McLean-based company, VitalSpring Technologies, by hiding his tax liabilities and lying about the company’s finances.
Prosecutors say the fraud amounted to $30 million — Potarazu’s lawyer, Stuart Nash, said his client admits his guilt but disputes the amount of the fraud. Potarazu, who is free on $5 million bond while he awaits sentencing, declined comment after Friday’s hearing. He faces up to 15 years in prison.
Court records indicate one shareholder invested approximately….
MORE: Political donor pleads guilty to investment fraud scheme | The Seattle Times