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Big Dem Donor Nemazee Indicted In Alleged $292 Million Scheme


Hassan Nemazee, a fund-raiser for H. Clinton and President Obama

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Federal prosecutors have accused a major Democratic fundraiser with ties to Barack Obama and Hillary Clinton of orchestrating a Ponzi scheme that involved swindling several major banks out of hundreds of millions of dollars, and using some of the proceeds to fund political candidates and PACs.

According to a Justice Department press release, Hassan Nemazee was indicted this afternoon by a grand jury, charged with using fake documents and signatures to bilk Citibank, Bank of America, and HSBC out of over $290 million, in an alleged scheme that dates back to 1998. Nemazee alleged used the Citibank money to repay the B of A loan, and vice versa. And even after being questioned by FBI agents about the Citibank loan last month, Nemazee allegedly went to HSBC to fraudulently draw down a line of credit, which he tried to access funds to pay back Citibank.

You can read the indictment here.

Last month, as we reported, Nemazee was charged with fraudulently applying for a loan of over $74 million from Citigroup. Prosecutors alluded to the wider alleged fraud in subsequent court documents, but had not until now claimed that Nemazee used the money to fund political causes. Nor had they referred to the alleged fraud as a Ponzi scheme.

Nemazee, 59, was Hillary Clinton's finance chair during her 2008 presidential run. He then became a top bundler for Barack Obama's campaign. He has also been a prolific contributor to Democrats himself.

A call to Nemazee's lawyer, Marc Mukasey, was not immediately returned.

More details to come...

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17 comments

Recommend Recommend (2)

September 21, 2009 6:57 PM   

Calling Bernard Madoff.... your cellmate has arrived.

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September 22, 2009 9:16 AM    in reply to traitorjoe

Let me get this straight. It is now illegal to borrow money to pay off a debt, and doing so is a ponzi scheme?

Isn't this what the Federal Government has been doing for the last eight years?

And what about homeowners who have "refinanced"? Isn't that borrowing money to pay off a debt? Is that a ponzi scheme also?

Or is this a story only because he helped finance Democrats?
.

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September 21, 2009 7:13 PM   

Bilked Citi and BofA out of millions? He's not a criminal he's a hero!!

;)

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September 21, 2009 7:54 PM    in reply to jackinthegreen

That was my first thought... heh.

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September 21, 2009 7:28 PM   

Was he hired by HC, or someone else, ie Mark Penn?

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September 21, 2009 7:53 PM   

I guarantee within the week the GOP will be calling for Obama's impeachment over this.

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September 21, 2009 9:16 PM    in reply to helenwheels

Try tomorrow, if not tonight. We need to have ready the Republican scam artists. But that shouldn't be hard to collect.

This guy was just smart enough to see which way the wind was blowing. In 2002, I'll bet he was shoveling at the Repugs.

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September 21, 2009 8:00 PM   

Is Marc Mukasey now the go-to lawyer for Ponzi fraudsters? He represents Bernie Madoff's second-in-command, Frank DiPascali.

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September 21, 2009 8:01 PM   

If he had been a Republican donor and the prosecutor had been a Republican there would never had been an investigation.

I guess the Democrats have more ethics? HAH HAH

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September 21, 2009 8:39 PM   

Wow. We are really starting to see what America is all about.

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September 21, 2009 9:18 PM   

It's worth noting that all his donations to Democrats didn't spare him from indictment -- by a Democratic administration.

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September 21, 2009 9:57 PM    in reply to Veritas78

Yes, but the loonies won't recognize that. I don't know how, but they will somehow link this to the birther movement.

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September 21, 2009 10:52 PM   

Very misleading headline.

Nice how you put Obama before Clinton, even though this crook did everything he could to keep Obama from spanking Clinton butt. Nemanzee reluctantly only "had ties" to Obama after Barack became the nominee.

Love the false equivalency. How very Republican.

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September 21, 2009 11:17 PM   

Absolutely incredible that the average homeowner trying to modify a mortgage has to begin at square one all over again should they neglect to cross a t on an app, but THIS guy can manage his way into hundreds of millions of cash without a hitch.
This all comes from the same banking system our tax money bailed out? The same banking industry swimming in profit margins and derivatives as I type?
Naw. Couldn't be. I'll rub my eyes and read again.

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September 22, 2009 9:16 AM   

R: Due Diligence...TPM reader NB.....I found the graf or two confusing, perhaps a clearer description of who was doing what would help.

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September 22, 2009 10:55 AM   

President-wannabee and Minnesota MIA Governor Tim Pawlenty has his own Ponzi Pal:

http://tinyurl.com/tpaw-vennes


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September 22, 2009 10:59 AM   

President-wannabee and Minnesota MIA Governor Tim Pawlenty has his own Ponzi Pal:

http://tinyurl.com/tpaw-vennes

Pawlenty has taken thousands of dollars from convicted money launderer and Ponziman Tom Petters associate Frank Vennes Jr. Pawlenty also requested a presidential pardon for Vennes.

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