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UPDATE 3-Democratic fund-raiser charged in Citigroup fraud

 * Nemazee faces count of bank fraud, 30 years in prison
 * To be released Wednesday on $25 million bond
 * Nemazee supported Hillary Clinton, other top Democrats
 (Recasts; adds bail hearing, other details on allegations)
 NEW YORK, Aug 25 (Reuters) - A major fund-raiser for Barack
Obama, Hillary Clinton and other Democrats was charged by
federal prosecutors in New York in connection with a scheme to
defraud Citigroup Inc C.N.
 Hassan Nemazee, 59, was accused of one count of bank fraud
for allegedly seeking a fraudulent $74 million loan from
Citigroup's banking unit, U.S. Attorney Preet Bharara and the
Federal Bureau of Investigation said on Tuesday.
 Nemazee will be released Wednesday on $25 million bond and
be confined to his apartment on Park Avenue in Manhattan, with
no access to computers. The bond is secured by the apartment
and another home in Katonah, New York.
 Marc Mukasey, a former federal prosecutor who represents
Nemazee, at a hearing called the bail "draconian," saying "it's
the most onerous bail package I've ever been a part of." His
client did not enter a plea.
 Nemazee faces up to 30 years in prison and a fine that
could reach $1 million or more. He is chairman and chief
executive of Nemazee Capital Corp, a private equity firm.
 The U.S. attorney's office declined to elaborate on the
charges. Another hearing was set for Sept. 24.
 Prosecutors said Nemazee tried to get Citigroup's banking
unit to lend up to $74 million based on fraudulent and forged
documents suggesting that he had hundreds of millions of
dollars of accounts available as collateral.
 They said Nemazee provided Citigroup with fake references
so that when the bank would try to confirm details about his
accounts, it would actually be contacting him.
 The scheme lasted from December 2006 to this month,
prosecutors said.
 Federal agents stopped him on Sunday at Newark Liberty
International Airport as he prepared to board a flight to Rome,
and he repaid a loan of more than $74 million to Citigroup the
following day, the government said.
 Nemazee was a national finance chair of Hillary Clinton's
2008 presidential campaign, and a supporter of Sen. John
Kerry's run for the White House in 2004.
 He typically donates more than $100,000 annually to
Democratic political candidates, including Senate Majority
Leader Harry Reid and Sen. Charles Schumer, and sits on the
board of the Iranian American Political Action Committee.
 Bill Clinton, when he was president, had nominated Nemazee
to be U.S. ambassador to Argentina. Hillary Clinton is U.S.
Secretary of State.
 Nemazee is listed as having been among the top "bundlers"
of contributions to Obama's presidential campaign, according to
OpenSecrets.org, a website maintained by a nonpartisan research
group, the Center for Responsive Politics.
 According to Nemazee Capital's website, the firm was
founded in 1987 and specializes in financial services.
 It said its acquisitions have included Carret Asset
Management, a privately held firm founded by legendary investor
Philip Carret, and part of what is now Brean Murray Carret &
Co, a small investment bank.
 Brean did not immediately return a request for a comment.
Citigroup spokeswoman Shannon Bell said the bank is working
with authorities on the matter.
 The case is: U.S. v. Nemazee, U.S. District Court, Southern
District of New York (Manhattan), No. 09-mj-1927.
 (Reporting by Jonathan Stempel; Additional reporting by Elinor
Comlay and Edith Honan; editing by Steve Orlofsky, Robert
MacMillan and Matthew Lewis)


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