Last week, banker and Democratic mega-fundraiser Hassan Nemazee was detained by FBI agents investigating whether Nemazee had used forged documents to get Citibank to provide him with a $74 million loan. The next day, though, Nemazee paid Citibank back the entire $74 million—presumably because he was hoping that if he returned the cash, he might be able to make the problem go away. But the move was a bit suspicious. If he had the $74 million sitting around, why would he have bothered carrying out the scheme in the first place?
He didn't, as it turns out. Prosecutors now say he used the same tactic with at least two other (unnamed) banks, tapping into credit lines totaling $100 million, which he then accessed to pay back Citibank. Clever!
No Nemazee's legal mess just got a whole lot messier and he faces a handful of additional charges. The good news is that he should be able to look forward to getting less junk mail from now on. Given he's managed to defraud three major financial institutions by using phony documents to obtain lines of credit, he can count on having his name dropped off those mailing lists that banks use to send out 0% interest credit card offers, can't he?Fund-Raiser Faces New Allegations [WSJ]
Fundraiser Nemazee Defrauded Other Banks, U.S. Says [Bloomberg]
Related: Nemazee Gets House Arrest; Wanna Move In Next Door? [Cityfile]