Hassan Nemazee, a New York businessman and a well-known fund-raiser for the Democratic Party, has been sued by the US unit of HSBC Holdings Plc, which alleged that Nemazee deceitfully obtained a $100 million loan from the bank; and used a large part of the loan amount for repaying another loan he misleadingly obtained from Citigroup Inc.

In its lawsuit, filed in New York State Supreme Court in Manhattan on September 2, HSBC has accused Nemazee of obtaining a $100 million credit facility from the bank on August 24. The bank further said that Nemazee at once withdrew $75 million of the loan amount.

The HSBC complaint elaborated that the 59-year-old Nemazee cheated the bank by claiming that the loan was secured by $89 million in US Treasury notes, which had a current market value of over $125 million. HSBC further said that the documents that Nemazee provided were supposedly from a brokerage firm, and bore counterfeit signatures and fake addresses.

Earlier, on August 25, Nemazee, who was one of the leading 'bundlers' of donations to Obama's 2008 presidential campaign, was charged of one count of bank fraud, for misleading Citigroup's banking unit to seek a $74 million loan.

As per the court papers, Nemazee was arrested on August 23, at New Jersey's Newark Liberty International Airport, while he was checking in for a flight to Italy.