NEMAZEE INVOLVED WITH BOTH CLINTON AND REPUBLICANS

Who What Why - On August 25th, Hassan Nemazee, a top fundraiser for Hillary Clinton, was arrested and charged with forging loan documents in order to borrow $74 million from Citibank. . . Behind the Nemazee arrest lies a sprawling cautionary tale of presidents, would-be presidents, and the shadow world of wealthy operators who cozy up to them for their own gain. It reaches into the Bush operation as well as that of the Clintons, and is a microcosm of an influence bazaar that has gone global along with the economy.

Hassan Nemazee, who served as a finance director for Hillary Clinton's 2008 presidential campaign, began raising sizable sums for the Democratic National Committee in the mid-nineties. In 1998, in the midst of the Lewinsky affair, Nemazee collected $60,000 for Bill Clinton's legal defense fund in $10,000 increments from relatives and friends. . .

In 2005, Nemazee and his business partner, Alan Quasha, went deep into the Clinton circle to hire Terry McAuliffe, the Clinton confidante and former chairman of the Democratic Party, for Carret Asset Management, their newly acquired investment firm. During the interregnum between McAuliffe's party chairmanship and the time he officially joined Hillary Clinton's campaign as chairman, Nemazee and Quasha set McAuliffe up with a salary and opened a Washington office for him. . .

In March 2007, Nemazee, at the behest of McAuliffe, threw a dinner for Ms. Clinton at Manhattan's swank Cipriani restaurant, which featured Bill Clinton and raised more than $500,000. In 2008, after Barack Obama gained the nomination, Nemazee raised a comparable sum for him.

Before moving into the Democratic camp, Nemazee had backed such Republican senators as Jesse Helms, Sam Brownback and Alfonse D'Amato. . . Nemazee's business partner, Alan Quasha, who specializes in buying up troubled companies, has also played both sides of the partisan divide. Quasha gave to both Bush and Al Gore in 2000, and in the 2008 race gave to Republicans Mitt Romney and Rudy Giuliani as well as Democrats Barack Obama and Chris Dodd.

The strikingly trans-partisan and trans-national nature of this high-stakes influence game is best exemplified by the relationship between Quasha's oil company, Harken Energy, and George W. Bush. Harken provided a home for Bush in the 1980's when his own oil businesses failed, offering him handsome compensation and a solid financial base from which to enter politics. Bush was named to the Harken board and received a range of benefits from the company while devoting most of his time to his father's presidential campaign and then his own outside career efforts.

Harken is a curious outfit. Its early funding sources were opaque, and its investors and board members had a dizzying array of connections into global power centers - and ties to the Saudi leadership and the former Philippine dictator Ferdinand Marcos, the Shah of Iran, as well as to the Swiss Bank, UBS, which has been charged by the US government with providing cover for Americans who were evading taxes.

Around the time George W. Bush joined its board, Harken received an unusual and sizable cash infusion from the Harvard Management Company, which handles Harvard University's endowment, the largest in the nation. . . Former employees of Harvard Management have recently made highly-publicized charges that the company engaged in Enron-style investment practices. . .

Nemazee's role as a foreign policy adviser to Hillary Clinton can be better understood through his own Iranian connections. His father was a shipping magnate who was close with the Shah of Iran and served as the Shah's commercial attache in Washington; Nemazee was a founding member of the Iranian-American Political Action Committee, a lobbying group. Recent strains have been reported between President Obama and Secretary of State Hillary Clinton over policy toward Iran. Clinton has advocated a harder line toward the Islamic fundamentalists who took over when the Shah of Iran was overthrown in 1979, while Obama has stressed dialogue.

For more on Harken, Baker's 2009 book, Family of Secrets