Ex-fundraiser for Hillary Clinton sentenced to 12 years in prison for bank and wire fraud
By APThursday, July 15, 2010
Ex-Clinton fundraiser gets 12 years in prison
NEW YORK — A wealthy Manhattan investment banker who was once a top fundraiser for Hillary Rodham Clinton and other big-name Democrats was sentenced Thursday to 12 years in prison for defrauding banks of $292 million by a judge who called the case a “Shakespearean tragedy.”
Hassan Nemazee, 60, had reached a plea deal in March, admitting that he cheated banks out of $292 million and pleading guilty to three counts of bank fraud and one count of wire fraud. U.S. District Judge Sidney Stein in Manhattan said he’ll get out of prison in about a decade.
Nemazee was the national finance chairman of Clinton’s 2008 presidential campaign. He also raised money for President Barack Obama and a long list of other prominent Democrats. He was Sen. John Kerry’s New York finance chairman during his failed 2004 presidential run.
Stein said he showed leniency to Nemazee in part because of “his involvement in American political life.” If he had followed federal sentencing guidelines, Nemazee would have received at least another three years in prison and as much as 19 1/2 years.
Prosecutors said Nemazee, an Iranian-American, used fake collateral starting in 1998 and continuing for more than a decade in order to obtain large loans from major banks. The judge ordered Nemazee to pay $292 million in restitution.
An indictment said he forged signatures, concocted bogus account statements and established “virtual offices” to conceal a scam. It said he used proceeds from new loans to pay off older ones — a maneuver prosecutors called a Ponzi scheme.
In 1999, President Bill Clinton nominated Nemazee to be U.S. ambassador to Argentina, but the appointment was never confirmed by the Senate, in part because of concerns about Nemazee’s business dealings.
Nemazee told the judge he blamed his crimes on “pride, ego, arrogance, self-image, self-importance. All these and more are reasons why I traveled down this destructive path.”
Prosecutors said he used some of the proceeds of his crimes to make personal donations to election campaigns, to make charitable donations and to live a lavish lifestyle that included apartments in Italy and Manhattan, partial interest in a private plane and a luxury yacht.
They said he unsuccessfully tried to capitalize on his standing and reputation in political circles by seeking nomination to a Cabinet-level position last year.
He was ordered to surrender by the afternoon of Aug. 27. As the sentencing hearing ended, Nemazee wiped his eyes and hugged family members. When he left the courthouse, he walked quickly to a waiting sedan.
More than 100 letters were written to the judge on Nemazee’s behalf and Stein cited one that he said resonated with him because it told how important it was in Iran to protect the honor of a family name.
“The proud name Nemazee now also involves you being a federal felon subject to a prison term. And that’s really a tragedy,” Stein said. “At some level, this is a Shakespearean tragedy. Only you brought this about.”
The judge called Nemazee a “highly intelligent, educated person” who had been extremely charitable. He also made several mentions of Nemazee’s involvement in political life, saying it was admirable and lifted him high in Iranian-American society.
Yet, he said, Nemazee had committed a crime that was “breathtaking in its brazenness, in its scope.”
He said “some explanation for the conduct comes from character flaws” and he wanted to send a message with a lengthy prison term to others who might consider similar crimes.
Nemazee said he could never forgive himself and had spent long hours trying to understand why and how he could commit such crimes.
“The guilt and shame that I bear will remain with me long after I return from prison,” Nemazee said.
Tags: Barack Obama, Bill Clinton, Corporate Crime, Fraud And False Statements, Hillary Clinton, John Kerry, New York, New York City, North America, Political Fundraising, United States
