Hassan Nemazee

Nemazee's Brother-In-Law Charged As Accomplice In Alleged Ponzi Scheme

Zachary Roth | September 25, 2009, 4:52PM

Hassan Nemazee

Hassan Nemazee's brother-in-law has been charged as an accomplice in the same alleged $292 million Ponzi scheme that Nemazee himself was indicted for earlier this week.

Shahin Kashanchi, 46, of Telluride, Colorado, was charged with helping Nemazee -- a major fundraiser for the Democratic party -- to submit fraudulent documents and correspondence to the banks Nemazee allegedly swindled.

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Hassan Nemazee

Nemazee's Attorney: This Case Is Not About Political Donations

Justin Elliott | September 23, 2009, 3:51PM

Hassan Nemazee

Hassan Nemazee's lawyer wants to make something very clear: The alleged $292M fraud case has nothing to do with Dem super-fundraiser Nemazee's political activities.

That's what Paul Shechtman of Stillman, Friedman & Shechtman emphasized to TPMmuckraker in an interview and to other news organizations in court this morning.

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Hassan Nemazee

Nemazee Pleads Not Guilty To Fraud Charges

Justin Elliott | September 23, 2009, 10:50AM

Hassan Nemazee

Democratic fundraiser Hassan Nemazee plead not guilty this morning to charges that defrauded banks in a $292M Ponzi scheme, the AP reports.

The AP adds this from Attorney Paul Schechtman, identified as one of Nemazee's lawyers:

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Terry McAuliffe

McAuliffe Mum On Ties To Nemazee

Zachary Roth | September 22, 2009, 6:24PM

Hassan Nemazee with Arthur Sulzberger Jr. and Terry McAuliffe at book party for McAuliffe's "What a Party! My Life Among Democrats." January 22, 2007.

Powerhouse fundraiser Hassan Nemazee had a lot of friends in Democratic circles. And one of the most important appears to have been the party's money-man par excellence, Terry McAuliffe.

But since the news broke yesterday that Nemazee had been charged with running a $292 million Ponzi scheme, the normally loquacious McAuliffe hasn't been his usual voluble self.

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Bill Clinton

In 90's, Nemazee Courted Clinton, Gore -- And GOP

Zachary Roth | September 22, 2009, 5:05PM

Hassan Nemazee

We've told you about Hassan Nemazee's leading role in raising money for the Democrats' climb back to power over the last few electoral cycles. But a longer look back shows that the New York financier -- who was charged yesterday with running a $292 million Ponzi scheme -- began building his influence by wrangling cash for the Clinton-Gore team during the 90s. And that his largesse also extended to the GOP.

Based on news reports accessed via Nexis, here's a quick time-line on Nemazee's political and fund-raising work during those years:

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Hassan Nemazee

Nemazee Spent Millions On Luxury Car, Plane, Lots Of Real Estate

Justin Elliott | September 22, 2009, 4:08PM

Hassan Nemazee with Arthur Sulzberger Jr. and Terry McAuliffe at book party for McAuliffe's "What a Party! My Life Among Democrats." January 22, 2007.

Besides showering Democratic politicians with hundreds of thousands dollars -- probably several million in all -- what was Hassan Nemazee spending all that money on?

Unlike Bernie Madoff or 'Sir' Allen Stanford, Nemazee's alleged Ponzi scheme did not involve bilking individual investors. The Feds put the fraud at $292 million since 1998. Even taking into account that some of the money was allegedly borrowed to pay off other loans, a person would have to spend hard and often, on more than just political donations, to burn through that kind of cash.

And, the indictment suggests, Nemazee did just that.

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Hassan Nemazee

As Democrats Reclaimed Power, Nemazee Was Key Fundraiser

Zachary Roth | September 22, 2009, 12:47PM

Hassan Nemazee

Hassan Nemazee may not be a household name. But as Democrats returned to power over the last few election cycles, the New York financier -- who yesterday was charged with running a $292 million Ponzi scheme -- has been among the most important players in drumming up the campaign funds that have enabled that success.

Let's start with the 2004 cycle. Nemazee had been a top fundraiser for the Clintons in the 1990s, but he appears to have courted John Kerry since at least 2002. By January 2004, he was described in news reports (via Nexis) as "one of Kerry's chief fundraisers." Subsequent reports from that year describe him as Kerry's "New York City finance chair."

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Hassan Nemazee

Flashback: Alleged Fraudster Was Wheeled Out To Defend Hillary Camp After Discovery Of Different Fraudster

Justin Elliott | September 22, 2009, 12:36PM

Hassan Nemazee and Norman Hsu

Remember the strange case of Norman Hsu that roiled the Hillary Clinton campaign during the Democratic primary back in 2007?

Hsu was a top bundler for the campaign who was found to have hidden his past as a crook and Hillary was forced to return over $800,000 in donations. He later plead guilty to a Ponzi scheme and was convicted on campaign finance charges.

Hsu, who currently resides in federal prison, reimbursed so-called "straw donors" drawn from his fraudulent business to get around contribution limits.

At the time of the crisis, Hassan Nemazee, indicted yesterday in his own alleged Ponzi scheme -- considerably larger than Hsu's $20 million operation -- was a national finance chair for the Hillary campaign.

And guess who the campaign dispatched to talk to reporters to tamp down the Hsu story? One Hassan Nemazee.

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Hassan Nemazee

Alleged Fraudster Nemazee Poured Dollars Into Dems' Coffers For Years

Justin Elliott | September 21, 2009, 6:36PM

Hassan Nemazee

Just how big a Democratic donor was Hassan Nemazee?

He and his wife (mostly he) gave the Democratic House and Senate campaign committees $191,700 over the past three election cycles, 2006, 2008, and 2010.

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Justice Department

Big Dem Donor Nemazee Indicted In Alleged $292 Million Scheme

Zachary Roth | September 21, 2009, 6:10PM

Hassan Nemazee

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.

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Hassan Nemazee

Feds: Nemazee Swindled Two Other Banks

Zachary Roth | September 2, 2009, 4:06PM

Hassan Nemazee

It looks like that fraudulent $74 million loan that top Democratic fundraiser Hassan Nemazee allegedly obtained from Citigroup may have just been the tip of the iceberg.

In a letter to the judge in Nemazee's case, reported by Reuters, prosecutors claimed that Nemazee also ripped off two other banks.

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