Citigroup Inc (NYSE: C) was defrauded to the tune of $74 million by New York businessman and Democratic fundraiser, Hassan Nemazee, by getting a loan using fake loan documents.
In a letter to the U.S. Federal Court yesterday, Assistant U.S. Attornies Daniel W. Levy and John M. Hillebrecht stated that Nemazee repaid the large line of credit using the same type of fake documents, such as fake account statements and forged signatures that allowed him to fraudulently obtain a $74 million loan from Citigroup’s Citibank unit. Nemazee repaid the loan on August 24th.
Nemazee, who once served as the finance chairman of the Democratic Senatorial Campaign Committee, was charged criminally last week in regards to the Citigroup Loan. Nemazee has also been involved in various Democratic presidential campaigns.
New reports also indicate that Nemazee obtained several lines of credit from a third institution by providing similarly falsified documents. Prosecutors estimate that his total outstanding loans exceed $100 million.
The Federal government has also obtained the seizure of two of Nemazee’s accounts at another financial institution. No other banks than Citi were named in the letter.