Feds: Clinton donor made contributions from 'Ponzi scheme' proceeds.
www.politico.comFederal prosecutors broadened their case against the major Democratic donor Hassan Nemazee today, charging that he ran a "$292 million Ponzi scheme," and "used the proceeds... to make donations to the election campaigns of federal, state, and local candidates."
The charges in an indictment returned today by a grand jury in New York's Southern District make Nemazee -- after Norman Hsu -- the second top-shelf donor to Hillary Clinton's presidential campaign charged with running a Ponzi scheme. But while Hsu targeted Chinese immigrants, Nemazee allegedly ripped off major banks, including Citibank, Bank of America, and HSBC, securing huge lines of credit by forging and falsifying his collateral.
In that vein, Nemazee -- who was also a major donor to then-candidate Barack Obama and other Democrats -- is accused of "establishing at least two 'virtual offices' at locations in Manhattan that held themselves out, at Nemazee’s direction, as being associated with the broker-dealer at which Nemazee purportedly held securities that were the collateral for his loans."
The indictment says Nemazee, a highly-educated Iranian exile, also used the proceeds to make donations to charity, purchase property in Italy, and pay off mortgages in Manhattan and Westchester.
Prosecutors are seeking to seize, among other things, a 2008 Maserati Quattroporte, and a 2007 Cessna aircraft from Nemazee.
The indictment also seeks $292 million in forfeiture against Nemazee. In addition, the indictment identifies Nemazee’s interest in the following assets as subject to forfeiture: five real properties, 16 corporate entities and one hedge fund, 14 securities accounts, 32 bank accounts, a 2008 Maserati Quattroporte, and a 2007 Cessna aircraft.
“For more than ten years, Hassan Nemazee projected the illusion of wealth, stealing more than $290 million so that he could lead a lavish lifestyle and play the part of heavyweight political fundraiser,” said U.S. Attorney Preet Bharara who is, ironically, a former top aide of another major recipient of Nemazee's lucre, Senator Chuck Schumer. “Today’s indictment exposes the sheer brazenness of Nemazee’s schemes and marks the end of his decade of deception.”
He's charged with three counts of bank fraud, and could face up to 30 years in jail; prosecutors have also charged him with identity theft, which could add two years to the sentence.
Hsu, the other Clinton donor, plead guilty to operating a Ponzi scheme, but is fighting campaign finance charges.
Nemazee's lawyer, Marc Mukasey, didn't respond to an email seeking comment on the indictment.
(UPDATED with some additions.)
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This jerk ripped off banks we the taxpayer have to bail out.
