Hassan Nemazee

In Plea Deal, Ex-Clinton Fundraiser Nemazee Gets 12 Years

Rachel Slajda | July 15, 2010, 1:45PM

Hassan Nemazee

Hassan Nemazee, a former fundraiser for Hillary Clinton, was sentenced today to 12 years in prison after pleading guilty in March to bilking banks out of $292 million.

Nemazee pleaded guilty to three counts of bank fraud and one count of wire fraud. Prosecutors said Nemazee operated a type of Ponzi scheme in which he borrowed large amounts from three banks using fake collateral, and then paid off the debt with more loans.

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Hassan Nemazee

Dem Super Donor Nemazee Pleads Guilty To $292M Fraud

Justin Elliott | March 18, 2010, 4:41PM

Hassan Nemazee

Hassan Nemazee, who spent millions on a luxury lifestyle including huge donations to top Democratic politicians, pleaded guilty to a $292 million fraud scheme today in federal court in Manhattan, Reuters reports.

Nemazee's scheme involved borrowing huge sums from three banks and promising to pay off each bank with a loan from one of the others.

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Hassan Nemazee

Accused Ponzi Schemer Gave Tens Of Thousands To Clinton Foundation

Justin Elliott | January 4, 2010, 5:18PM

Hassan Nemazee and Bill Clinton

Yet another organization with ties to prominent Democrats has received money from accused Ponzi scamster Hassan Nemazee. This time, it was the William J. Clinton Foundation that received a hefty donation from Nemazee, the New York financier and Democratic Party fundraiser.

Nemazee, who was charged with stealing $292 million from several banks, gave between $50,000 and $100,000 to the former president's charity in 2009, according to a donor list released yesterday.

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Fraud

AP: 2009 Was The Year Of The Collapsing Ponzi Scheme

Justin Elliott | December 28, 2009, 6:07PM

Bernie Madoff, Scott Rothstein, and Allen Stanford

Over 150 Ponzi schemes collapsed this year, up from just 40 last year, according to a new and, for TPMmuckraker readers, totally unsurprising tally by the AP.

The wire service reports:

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Bill Richardson

Is Bill Richardson Keeping Campaign Cash From Accused Ponzi Schemer?

Justin Elliott | November 23, 2009, 12:18PM

Hassan Nemazee and New Mexico Gov. Bill Richardson

New Mexico Gov. Bill Richardson did not give back donations to his presidential campaign from accused fraudster Hassan Nemazee, and Richardson may have also kept $5,000 given by Nemazee to his 2006 gubernatorial campaign.

The donations to Richardson have come under increased scrutiny since Forbes reported last week that Nemazee's investment firm was gunning for a state contract at the same time Nemazee gave the money to the '06 gubernatorial campaign. Carret Asset Management, partially owned by Nemazee, won the contract in 2007 and has made nearly $2 million in fees.

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Bill Richardson

After Campaign Donations, Richardson Admin. Gave Big Contract To Alleged Ponzi Schemer's Firm

Justin Elliott | November 19, 2009, 10:56AM

Hassan Nemazee and New Mexico Gov. Bill Richardson

An investment firm partly owned by Democratic mega-fundraiser and accused Ponzi schemer Hassan Nemazee was awarded a New Mexico state contract in 2007 after Nemazee and an associate contributed to Bill Richardon's gubernatorial fund, according to an excellent Forbes story published this morning.

Nemazee, who was indicted in September on charges he bilked several banks out of $292 million, had a 24.9% stake in the investment firm, Carret Asset Management. In 2007 it won the contract to manage $200 million from the State Investment Council, the agency that controls oil and gas leasing fees. The firm has netted nearly $2 million on the deal.

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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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Hassan Nemazee

Feds: Clinton Fundraiser Forged Signatures To Defraud Citigroup

Zachary Roth | August 28, 2009, 5:41PM

Hassan Nemazee

We've taken a look at the complaint filed by the Feds against Hassan Nemazee, the top Hillary Clinton fundraiser who was charged this week with fraudulently trying to getting a $74 million loan from Citigroup.

The gist of Nemazee's alleged scheme, begun in 2006, was relatively simple: In order to convince Citigroup that he had sufficient collateral to secure the line of credit he was asking for, he gave the bank false account statements, according to an affidavit signed by an FBI agent on the case. And, says the agent, he forged the names of actual staffers at brokerage houses where he claimed those accounts were housed. He also allegedly included phone numbers and addresses for what he claimed were the brokerages, but was in fact a virtual office he had set up.

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Hillary Clinton

Top Clinton Fundraiser Charged With Defrauding Citigroup

Zachary Roth | August 25, 2009, 3:41PM

Hassan Nemazee

The top fundraiser for Hillary Clinton's presidential campaign has been charged with fraudulently applying for a loan of over $74 million from Citigroup.

Federal prosecutors allege that Hassan Nemazee, a New York businessman who was national finance chair for the Clinton campaign, "submitted, and caused to be submitted to Citibank numerous documents that purported to establish the existence of accounts in Nemazee's name at various financial institutions containing many hundreds of millions of dollars. In fact, those were fraudulent and forged documents."

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