http://sg.news.yahoo.com/afp/20090922/tts-us-fraud-justice-finance-politics-972e412.html
US Democratic fundraiser ran Ponzi scheme: prosecutor
AFP
AFP - Tuesday, September 22
[The Bank of America building is seen in Washington, DC. US prosecutors said a prominent...] The Bank of America building is seen in Washington, DC. US prosecutors said a prominent Democratic fundraiser has been indicted for running a Ponzi scheme in which he defrauded three major banks, including Bank of America and HSBC Bank USA, of 290 million dollars.
NEW YORK (AFP) - – US prosecutors said a prominent Democratic fundraiser has been indicted for running a Ponzi scheme in which he defrauded three major banks of 290 million dollars.
New York financier Hassan Nemazee was arrested August 25 on charges of using fake documents to secure a loan from Citibank.
The investigation quickly broadened however and a grand jury has now indicted him for running a three-bank pyramid fraud also targeting Bank of America and HSBC Bank USA, said Preet Bharara, prosecutor for the Southern District of New York.
The indictment returned Monday alleges that from 1998-2009, Nemazee scammed hundreds of millions of dollars and as of last month still owed 142 million dollars to Bank of America and almost 75 million dollars to Citibank.
The loans had been obtained by using faked documents purporting to show he had sufficient collateral, the indictment alleged.
To maintain the fraud, Nemazee allegedly used fraudulently obtained money from Bank of America to pay off part of the debt to Citibank -- and vice versa.
In August, when Citibank and the FBI began to probe deeper, Nemazee "drew down on a line of credit that he had fraudulently obtained from HSBC and used the monies to pay Citibank the 74.9 million dollars he owed them," the prosecutor's office said.
The indictment states that Nemazee, 59, used the proceeds to make election campaign donations, to support charities, to purchase property in Italy, and to pay for properties in New York.
He is charged with three counts of bank fraud, each of them carrying a maximum prison term of 30 years and a fine of one million dollars, or twice the gain or loss resulting from the crime.
Prosecutors are also seeking 292 million dollars in forfeiture. His assets liable for forfeiture include five properties, 16 businesses, a hedge fund, 32 bank accounts, a 2008 Maserati Quattroporte sportscar, and a 2007 Cessna aircraft.
"For more than ten years, Hassan Nemazee projected the illusion of wealth, stealing more than 290 million dollars so that he could lead a lavish lifestyle and play the part of heavyweight political fundraiser," Bharara said.
"Today's indictment exposes the sheer brazenness of Nemazee's schemes and marks the end of his decade of deception."
The Wall Street Journal reported that the Democratic National Committee, Obama for America, and the Presidential Inaugural Committee that was responsible for organizing President Barack Obama's inaugural festivities would donate to 61,700 dollar contributed by Nemazee to charity.
US Democratic fundraiser ran Ponzi scheme: prosecutor
AFP
AFP - Tuesday, September 22
[The Bank of America building is seen in Washington, DC. US prosecutors said a prominent...] The Bank of America building is seen in Washington, DC. US prosecutors said a prominent Democratic fundraiser has been indicted for running a Ponzi scheme in which he defrauded three major banks, including Bank of America and HSBC Bank USA, of 290 million dollars.
NEW YORK (AFP) - – US prosecutors said a prominent Democratic fundraiser has been indicted for running a Ponzi scheme in which he defrauded three major banks of 290 million dollars.
New York financier Hassan Nemazee was arrested August 25 on charges of using fake documents to secure a loan from Citibank.
The investigation quickly broadened however and a grand jury has now indicted him for running a three-bank pyramid fraud also targeting Bank of America and HSBC Bank USA, said Preet Bharara, prosecutor for the Southern District of New York.
The indictment returned Monday alleges that from 1998-2009, Nemazee scammed hundreds of millions of dollars and as of last month still owed 142 million dollars to Bank of America and almost 75 million dollars to Citibank.
The loans had been obtained by using faked documents purporting to show he had sufficient collateral, the indictment alleged.
To maintain the fraud, Nemazee allegedly used fraudulently obtained money from Bank of America to pay off part of the debt to Citibank -- and vice versa.
In August, when Citibank and the FBI began to probe deeper, Nemazee "drew down on a line of credit that he had fraudulently obtained from HSBC and used the monies to pay Citibank the 74.9 million dollars he owed them," the prosecutor's office said.
The indictment states that Nemazee, 59, used the proceeds to make election campaign donations, to support charities, to purchase property in Italy, and to pay for properties in New York.
He is charged with three counts of bank fraud, each of them carrying a maximum prison term of 30 years and a fine of one million dollars, or twice the gain or loss resulting from the crime.
Prosecutors are also seeking 292 million dollars in forfeiture. His assets liable for forfeiture include five properties, 16 businesses, a hedge fund, 32 bank accounts, a 2008 Maserati Quattroporte sportscar, and a 2007 Cessna aircraft.
"For more than ten years, Hassan Nemazee projected the illusion of wealth, stealing more than 290 million dollars so that he could lead a lavish lifestyle and play the part of heavyweight political fundraiser," Bharara said.
"Today's indictment exposes the sheer brazenness of Nemazee's schemes and marks the end of his decade of deception."
The Wall Street Journal reported that the Democratic National Committee, Obama for America, and the Presidential Inaugural Committee that was responsible for organizing President Barack Obama's inaugural festivities would donate to 61,700 dollar contributed by Nemazee to charity.
