Raise your hand if you’re surprised to discover a fraud is funneling money to an even bigger fraud.
The Persian-Jewish proprietor of a bogus hedge fund under investigation by the Securities and Exchange Commission is a prolific Democratic donor who dined at the Obama White House just months before the SEC shut down his Ponzi scheme.
Shervin Neman, a self-described hedge fund manager in Los Angeles, is said to have targeted members of his own Persian-Jewish community in a $7.54 million Ponzi scheme that the SEC claims “raised funds from at least 11 investors in the fraudulent securities offering.”
Neman, the SEC alleges, raised funds by fictitiously claiming he was a hedge fund manager with Neman Financial L.P. After collecting monies from unsuspecting investors, Neman claimed to have invested the money in high-grossing entities such as Facebook stock and foreclosed residential properties.
“Although Neman promised investors exorbitant returns resulting from his investing acumen and access to pre-IPO shares of well-known companies, what they actually received was simply other investors’ monies, the hallmark of a Ponzi scheme,” the SEC alleged in a statement on the matter.
His association with the president also raises questions about how team Obama will handle donations made by questionable supporters.
The alleged swindler donated $35,800 to the Obama Victory Fund and DNC in the second fundraising quarter of 2011, according to FEC filings. He also donated generously to Sen. Dianne Feinstein’s (D-Calif.) re-election fund, as well as to several other Democratic causes. In each of the donations, Neman describes himself as either a “hedge fund manager” or the CEO of Neman Financial.
They’re just prtend to give the money back and will find some other shady operators to donate. It’s the Chicago Way.