Top Democrat Fundraiser Hassan Nemazee indicted for Massive Ponzi Scheme: Close ties to New Yorkers Schumer, Gillibrand, Cuomo & Clinton

JUST BREAKING...

Iranian-American investments banker Hassan Nemazee has been indicted on one count of bank fraud. He was arrested Aug. 23 at the Newark Airport in New Jersey, ticket in hand, about to board a flight to Italy.

Nemazee had obtained a loan for $100 million from HSBC, which he used in what investigators claim was a giant "Ponzi Scheme," ala Bernie Madoff. But the total amount of dollars allegedly bilked from investers in the scam amounted to $292 million.

Nemazee posted $25 million in bail. He faces up to 30 years in prison if convicted.

From Reuters, Sept. 18:


The HSBC lawsuit, dated Sept. 2, said that "to accomplish the fraud, Nemazee represented to HSBC that he had $89 million in Treasury Notes, with a current market value of more than $125 million, in a specified brokerage firm account; submitted a supposed agreement from the brokerage firm with forged signatures, false addresses, and false telephone numbers; used a mail drop; and submitted fabricated brokerage statements."

HSBC said that on Aug. 24, "Nemazee drew $75 million from HSBC on his fraudulently obtained credit facility, and used the funds to pay off his Citibank loan."

In court papers, lawyers said the government had frozen two of Nemazee's accounts at JPMorgan Chase & Co (JPM.N).

They said JPMorgan Chase froze his securities account at Brean Murray, Carret & Co and Bank of America Corp (BAC.N) froze his funds
The Feds are charging Nemazee, according to the Huffington Post, with defrauding government-owned Citibank by giving them:


"fraudulent and forged" documents showing he owned millions of dollars in collateral
HuffPo also lists a number of Democrat politicians who've received major donations from Nemazee and PACs he's been a board member of, including the Iranian American Political Comm. From HuffPo:


ALBANY, N.Y. (AP) -- Attorney General Andrew Cuomo, freshman U.S. Rep. Scott Murphy, and U.S. Sens. Charles Schumer and Kirsten Gillibrand are among the many New York Democrats who accepted donations from a national Democratic fundraiser now charged with lying to get a $74 million business loan.

Cuomo and state Comptroller Thomas DiNapoli each received $5,000 in campaign contributions from investment banker Hassan Nemazee.

Read more at: http://www.huffingtonpost.com/2009/08/28/hassan-nemazee-schumer-gi_n_271570.html