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According to the complaint filed in Manhattan federal court, Nemazee engaged in a fraudulent scheme to induce Citibank to lend up to $74 million to Nemazee based on false representations that Nemazee owned millions of dollars in collateral. Nemazee submitted, and caused to be submitted to Citibank numerous documents that purported to establish the existence of accounts in Nemazee's name at various financial institutions containing many hundreds of millions of dollars. In fact, those were fraudulent and forged documents.
Specifically, the various accounts referenced in the fraudulent documents that Nemazee submitted, and caused to be submitted to Citibank either never existed or had been closed years before he submitted the documents referencing those accounts. Furthermore, on many of the documents at issue, Nemazee falsely provided as the address and telephone numbers of various financial institutions purportedly vouching for his financial strength an address and telephone number that was, in fact, controlled by Nemazee. As a result, in the event anyone at Citibank made an effort to confirm the existence of the assets reflected on the fraudulent documents submitted by Nemazee, they would in fact be contacting a telephone number assigned to Nemazee himself, and not any financial institution.
On Aug. 23, 2009, federal agents interviewed Nemazee at Newark Liberty International Airport as he was in the process of checking in for a flight to Rome. On Aug. 24, 2009, Nemazee repaid to Citibank his outstanding loan, an amount in excess of $74 million.
Nemazee, 59, currently resides in Manhattan and Katonah, N.Y. He is charged with one count of bank fraud, which carries a maximum prison term of 30 years and a maximum fine of $1,000,000 or twice the gain or loss resulting from the crime.
Nemazee is expected to be presented later today in Manhattan federal court before U.S. Magistrate Judge Ronald L. Ellis.
Mr. Bharara praised the investigative work of the FBI. Mr. Bharara said that the investigation is continuing.
Assistant U.S. Attorneys John M. Hillebrecht and Daniel W. Levy are in charge of the prosecution.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
SOURCE U.S. Department of Justice
http://www.USDOJ.gov
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