Hassan Nemazee: Fundraiser Charged for $292M Pyramid Scheme

Hassan Nemazee, a former fundraiser for Barack Obama, Hillary Clinton, and other Democrats, has been charged with a $292 million pyramid scheme. Hassan Nemazee was indicted for defrauding Bank of America, HSBC, and Citigroup Inc in loan proceeds.

"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 United States Attorney Preet Bharara in Manhattan in a statement.

Nemazee had allegedly falsified documents and signatures to show that he had hundreds of millions worth of collateral.

Nemazee typically donates more than $100,000 annually to Democratic political candidates. A spokesman for the Democratic National Committee said it would donate the $61,700 contribution from Nemazee in 2008-09 to charity.

The 59-year-old allegedly used some of the money to buy his property in Italy and maintenance payments on properties in New York.

Hassan Nemazee could face up to 30 years in prison and millions in fines.

The New York businessman has ties with prominent Democrats. Nemazee served as national fiance chairman for Clinton's 2008 presidential campaign. He helped Obama after Clinton's defeat. He was John Kerry's fiance chairman for his 2004 presidential bid.