MANHATTAN (CN) – The CEO of Nemazee Capital Corp. has been arrested and charged with trying to defraud Citibank of $74 million, federal prosecutors said. Federal agents stopped Hassan Nemazee at Liberty International Airport in Newark as he prepared to board a flight to Italy.
Prosecutors say Nemazee submitted fraudulent documents to the bank, claiming he had hundreds of millions of dollars in collateral. But the accounts he cited did not exist or had been closed, and the phone numbers he provided for verification all were his own, prosecutors said.
Nemazee repaid his $74 million loan on Monday afternoon, and never made that flight to Italy, the U.S. Attorney’s Office said in a statement.
He is charged with bank fraud, which is punishable by 30 years in prison and twice the gain from the crime. Nemazee, 59, of Katonah and Manhattan, was to be arraigned on Tuesday afternoon.