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The Washington Post is reporting another case of Clintonitis, that forgetful condition that seems to afflict the Clintons whenever big campaign dollars are tied to people mired in legal problems ranging from felony fleeing from authorities to bank fraud and questionable court settlements.

The latest person to enter the fray is a Sikh Indian-American businessman who goes by the name of Sant Singh Chatwal. Chatwal is a Trustee of the William J. Clinton Foundation and has been dogged by charges of tax evasion and corrupt business practices in countries that span over 2 continents. Somehow, despite declaring that he had only $100 to his name in a bankruptcy case in the late 90’s he managed to still afford a 7000 square foot upper east side Penthouse in New York. But things like that don’t seem to phase the Clinton’s who have deep ties with the man.

Oh yeah, American taxpayers were fleeced by over $11 million dollars when Chatwal abruptly settled a case with the U.S. government after running a $500,000 fundraiser for Hillary Clinton in 2000. The FDIC was looking to recoup $12 million dollars to cover loan losses yet for some unknown reason the case was abruptly settled for $125,000 after the Hillary fundraiser according to the Washington Post. That’s some loan. How much of that money came out of your pocket? (src. Washington Post)

Note that the fundraiser was held in that posh upper east side penthouse, the one Chatwal managed to afford while telling bankruptcy lawyers that he had only $100 dollars to his name.

Following the settlement of the U.S. case Chatwal was charged with bank fraud by Indian authorities.

In September 2000, Chatwal hosted a half-million dollar fundraiser at that Upper East Side penthouse for Hillary Clinton’s Senate campaign.

A few months later the FDIC abruptly settled the case, agreeing on Dec. 18, 2000, to let Chatwal pay $125,000 for the loans that it had said caused at least $12 million in losses.

Greene, Chatwal’s lawyer, said he believed that the actual losses caused by the loans were smaller but agreed that the bankruptcy resulted in a much smaller settlement. “He fully intended to pay the bank until the Indian banks involuntarily forced him into bankruptcy,” Greene said.

The lawyer also said there was nothing wrong with Chatwal raising political money even as he worked to clear up the legal and financial matters. “I see no reason why an individual cannot support a political campaign in which he believes,” Greene said.

Just as Chatwal’s U.S. cases were being resolved, Indian authorities in December 2000 charged him with bank fraud. On April 30, 2001, he appeared in a Mumbai court and posted a $32,000 bond, according to court officials there. Chatwal was not under travel restrictions, though, and he went back to New York.

He returned to India a month later and made headlines in Indian newspapers by appearing with Bill Clinton during a visit with earthquake victims. The trip was underwritten by the American India Foundation, where Chatwal’s son was a board member. Aides to the former president said Chatwal was one of about 100 members of the Clinton delegation.

Eventually, Indian authorities “discharged” Chatwal from the bank case and closed the matter, Greene said. (Src. WaPo)

Chatwal is also another one of those deep pocketed friends of the Clintons whose generosity also spread to other Democrats. According to Wikipedia Chatwal has worked closely with the Democratic party. Guess who benefited besides Hillary Clinton? Let’s start at the top with Nancy Pelosi and work our way down to Chuck Schumer and John Kerry.

I found this obscure website reference complete with photos of the Clintons where Schumer is mentioned as saying that Chatwal is personified as the American Dream.

Hillary Clinton with Dhamon Chatwal

New York, Nov. 24, 2002: Sant Chatwal lives in a 7,000-square-foot East Side penthouse, presides over a massive hotel and restaurant empire and counts celebrities and politicians – including Bill and Hillary Clinton – among his friends. On weekday mornings, when he leaves the 45th-floor apartment where he’s entertained the former First Couple, Sen. Chuck Schumer and rap mogul Russell Simmons, he steps into a chauffeured Land Rover for the ride to his offices on the West Side. It’s an entire building with its own private garage.

Chatwal has been lionized by Schumer as the personification of the American Dream – an immigrant who made it big. He came here by way of Canada from India as a young man to build his empire, starting with the Bombay Palace Restaurant at 30 W. 52nd St.

But with all that, on the books of the New York City Department of Finance, Chatwal has another billing.

The Washington Post does a pretty good job of outlining the mans legal issues:

Chatwal’s case reached from his native India to New York City. The IRS pursued him for approximately $4 million in unpaid business taxes, while New York state placed a lien seeking more than $5 million in taxes. He forfeited a building to New York City on which he was delinquent on property taxes and was sued by federal regulators seeking to recoup millions of dollars in loans from a failed bank where he served as a director.

Across the ocean, three Indian banks forced him into U.S. bankruptcy, and he was charged with bank fraud. He was out on bond when he showed up in India in 2001 during a visit by his longtime friend Bill Clinton.

Yet none of the legal and financial woes — occasionally touched on in American or Indian newspapers or highlighted by political opponents — raised red flags inside Hillary Clinton’s fundraising operation. Chatwal recently said he plans to help raise $5 million from Indian Americans for Clinton’s presidential bid.

It seems that Democrats really are experts in detecting people tied to that culture of corruption. They see it in the mirror everyday.

Others: Captain’s Quarters

Update: Previous Title was changed from Another Corrupt Clinton-Democrat Fundraiser Gains Over $11 Million in Government Loan Settlement to “Clinton Fundraiser Settles $12 Million Government Loan Case for $125,000″. This title is closer to the WaPo version of the story.

Correction: The FDIC case was to cover losses as receiver of a bank. The government didn’t appear to make any direct loans to Chatwal as the FDIC insures bank deposits. This is where it gets tricky. Chatwal was the director of the bank. The PDF court filings mentions a total of $25 million in loses and it looks like $12 million of that is directly attributable to Chatwal. (see Page 3, Court Filing)

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