Former investment banker jailed for 12 years for bank fraud

19 July 2010

Hassan Nemazee, an investment banker and former political fundraiser, has been jailed for 12 years for his part in stealing $292 million as part of a Ponzi scheme.

According to prosecutors, the trader ran the scheme, which targeted a number of financial institutions including Bank of America, Citigroup and HSBC.

He pleaded guilty to the charges of wire fraud in relation to loan transactions and bank fraud earlier in the year.

Mr Nemazee persuaded banks to lend him large sums by using forged documents and signatures to show he had enough assets to guarantee the loans.

Judge Stein sentenced the former banking executive to jail and ordered him to repay the $292 million he illicitly stole from the institutions.

The judge, who was quoted by Bloomberg, said: “You know exactly what you have done. I don’t think there is any fooling yourself by yourself. You have done a great deal of good in your life.

“[However] this crime is breathtaking in its brazenness and scope,” he added.

Previously, Mr Nemazee undertook fundraising work on behalf of a number of Democrat politicians including Bill Clinton and Barack Obama.

By Jim Ottewill

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