Bogus Hedge Fund Manager and Ponzi Scheme Operator a Max Donor to Obama and the DNC

Posted by on Apr 25, 2012 at 11:06 am

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.

Neman—who has opened his wallet to the president’s reelection effort and other Democratic causes—is another name on a growing list of Obama donors and bundlers who are ensnarled in controversy.

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.

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