WASHINGTON (AP) — The Obama campaign is returning donations from a Los Angeles hedge fund manager who is accused by the government of operating a Ponzi scheme.
Shervin Neman donated the maximum $35,800 to the Obama campaign and $30,800 to the Democratic National Committee. The Obama campaign says it will be refunding the contributions and have placed the funds in escrow until a trusteeship or other appropriate place is established for the returned funds.
The Securities and Exchange Commission accused Neman of operating a $7.54 million Ponzi scheme earlier this month that targeted members of the Persian-Jewish community in Los Angeles.
The SEC alleges that Neman promised investors large returns from a purported hedge fund that invested in foreclosed residential properties but served instead as a Ponzi scheme.