Obama Returns Contribution From Accused Hedge Fund Fraudster

Apr 26 2012 | 2:30am ET

President Barack Obama's re-election campaign is to return more than $35,000 donated by an accused Ponzi schemer.

Shervin Neman gave the Obama campaign the maximum $35,800 contribution. Earlier this month, the Securities and Exchange Commission won an emergency order against Neman's Neman Financial hedge fund, accusing him of running a $7.5 million fraud targeting Persian Jews in California.

"With 1.8 million donors this far, we constantly review those contributions for issues," the Obama campaign said. "In this particular case, we will be refunding the contributions and have placed the funds in escrow until a trusteeship or other appropriate place to return these funds is established given the interests of the investors."

Neman, who reportedly visited the White House in November, also gave $30,800 to the Democratic National Committee.

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