(Reuters) - The campaign treasurer for New York City Comptroller John Liu has been indicted for making a false statement to federal officials, according to a court filing, further weakening Liu's bid to become mayor in 2013.
In February, Liu's campaign treasurer, Jia Hou, was arrested and charged with fraud for violating contribution limits. Prosecutors said she had used "straw donors" to funnel large, illegal contributions to Liu's mayoral campaign.
Straw donors make a campaign contribution in their own names but with funds provided by someone else, or are reimbursed for the donation later. Prosecutors say the scheme illegally boosted the amount of campaign matching funds for which Liu qualified.
The comptroller is the city's fiscal watchdog and helps oversee its $110 billion pension fund. Democrat Liu, who was born in Taiwan, is the city's most prominent Asian-American politician.