bloomberg.com | 8/26/09 | $74 million | suspect: Hassan Nemazee
Hassan Nemazee, chairman of Nemazee Capital Corp. and a democratic fundraiser, was arrested on a bank fraud charge and ordered to remain under house arrest on $25 million bail.
Nemazee was charged with using phony documents to induce Citibank into lending him as much as $74 million. The financier got the loan by telling Citibank he held accounts with hundreds of millions of dollars that could serve as collateral,.
Nemazee, 59, brought to court in Manhattan yesterday, was held overnight and was to be released today with his bond guaranteed by a $20 million Manhattan residence and his $8 million home in Katonah, New York.
The financier used fake addresses and phone numbers controlled by him to mislead the bank, prosecutors said. The accounts “either never existed or had been closed years before Nemazee submitted the documents referencing those accounts,” Bharara said in the statement.
Nemazee repaid the loan to Citibank yesterday, a day after he was interviewed by Federal Bureau of Investigation agents, prosecutors said. The interview took place at Newark Liberty International Airport as Nemazee was checking in for a flight to Rome.
Comments