Friday, September 25, 2009

Money Does Grow on Trees

After Democratic financier Hassan Nemazee was accused of forging loan documents in order to borrow $74 million from Citibank, he wired the money back. A nice try, but not one that would stave off his arrest. Authorities arrested Nemazee on Aug. 25, shortly before he left on a European vacation. He was charged with bank fraud, released on a $25 million bond and placed under house arrest in his New York City apartment. Nemazee, who raised money for both Hillary Clinton and Barack Obama in the 2008 election, faces a prison sentence of up to 30 years. Reportedly raised $100,000 for Clinton's 2008 campaign, and went on to raise $500,000 for Barack Obama after Clinton bowed out of the race in June.

NEW YORK (Reuters) - Many of the fake documents used by a leading Democratic Party fund-raiser to defraud HSBC and Citigroup Inc were made by his brother-in-law, U.S. prosecutors said on Friday. Authorities arrested and charged Shahin Kashanchi, brother-in-law of indicted fund-raiser Hassan Nemazee, who donated to the presidential campaigns of Barack Obama, Hillary Clinton and other leading Democrats over the years.

Nemazee pleaded not guilty on Wednesday in Manhattan federal court to defrauding a total of three banks -- Bank of America was the other -- out of $292 million in loan proceeds. "Based on e-mail traffic between Kashanchi and Nemazee, Kashanchi was regularly producing what Kashanchi referred to as the 'normal quarterly statements' for one of the non-existent collateral accounts, among other things," the office of the U.S. Attorney in New York and the FBI said in a statement. "Kashanchi would simply create phony account statements designed to look like real account statements, but bearing account numbers for accounts that did not exist and reflecting balances that purported to establish Nemazee's great wealth."

------- Hassan Nemazee was an heir of daddy Mohamed Nemazee, of Iranian descent born in 1896 in Bombay. Mohamed made the family fortune as a shipping magnate during the 1920s and '30s. Family friends included the Shah Pahlavi, who appointed daddy Nemazee as Commercial Advisor to the Iranian Embassy in Washington D.C. where Hassan was born.

Bill Clinton nominated Hassan in 1999 as ambassador to Argentina, but Nemazee eventually had to withdrew his nomination after a former partner raised allegations of business improprieties. Nemazee also helped out Kerry's campaign in 2004.

Nemazee Capital, established in 1987 by Hassan, invests in healthcare, media, oil and natural gas and other industries, according to the firm’s Web site. The firm has more than $3 billion under management according to a July press release.

Healthcare hmmm? What's that phrase about paybacks and bitches ... I feel it applies here somewhere.

Sooooo.... just producing financial statements out of thin air to reflect nonexistent balances that establish great wealth .... must be what my daddy meant by "paper rich and dollar poor."

No comments:

Content © 2005-2020 by Kate/A.