City Comptroller John Liu's campaign treasurer, Jia "Jenny" Hou, was arrested yesterday and charged with soliciting illegal donations for Liu's campaign accounts.

She faces up to 60 years in prison, and Liu's 2013 bid for mayor now seems less certain.

According to the indictment, Hou instructed volunteers to falsify signatures on donor forms and how to hide the evidence of the fraud.

The news comes on the heels of a undercover investigation by the federal government of a top Liu fundraiser. In that case, an undercover agent offered to give $16,000 to Liu's campaign. He was allegedly told the money would be split up into smaller donations, which would then qualify for generous 6-to1 matching funds from the government, but that Liu would know where the money really came from.

The indictment of the fundraiser was not good news for Liu, but the arrest of a member of his inner-circle calls not only his mayoral bid into jeopardy, but could mean his eventual resignation from a post that is supposed to act as the fiscal watchdog of the city.

Here's what other news organizations are saying this morning:

New York Post

NY Post Calls for John Liu to Step Down

New York Times

City Comptroller’s Campaign Treasurer Arrested on Fraud Charges

Mercury News

NYC comptroller reconsidering political bid