EDITOR'S NOTE: Alan G. Quasha responds to this article with thirteen specific objections, and Russ Baker and Adam Federman reply in turn to Quasha, in our web letters section.

Quasha's Clinton play began in 2003, when he bought Carret Asset Management, a once-revered private equity investment firm that manages nearly $2 billion in assets. Its founder, Philip Carret, a Wall Street legend and hero of Warren Buffett, died in 1998; the firm was sold twice

before Quasha bought it for a song. Some were troubled when they learned the identity of the new owner. "I was horrified that he was going to hide behind my family's name," says Renee Carret, a longtime executive at the firm whose grandfather started the company in 1963. When Quasha took over, she resigned. "I just personally didn't want to be affiliated with him. There were too many questions that were left unanswered."

As his co-chair in the private firm, Quasha chose his old friend Nemazee, a fellow Harken investor. By the time of the Carret acquisition, Nemazee, a founding member of the Iranian-American Political Action Committee whose family was close with the late Shah of Iran, had become a significant fundraiser for the Clintons and the Democratic Party. In 1995 he raised money for the DNC. 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. Clinton subsequently nominated Nemazee as ambassador to Argentina but withdrew the nomination after an article in Forbes raised questions about Nemazee's business dealings in the 1980s and '90s--which noted that the American-born Nemazee magically became "Hispanic" by acquiring Venezuelan citizenship because of a requirement that certain California public pension funds be run by minorities.

Failure to be named ambassador did not, however, hamper Nemazee's rise within the Democratic Party. By 2004 he was New York finance chair for John Kerry's campaign, and in 2006 he served under Senator Chuck Schumer as the national finance chair of the Democratic Senatorial Campaign Committee (DSCC)--a period during which the committee raised about $25 million more than its Republican counterpart. This past March Nemazee, at the behest of McAuliffe, threw a dinner for Hillary at Manhattan's swank Cipriani restaurant, which featured Bill Clinton and raised more than $500,000.

The exact nature of McAuliffe's duties at Carret is unclear, and Quasha, Carret and McAuliffe all declined to answer The Nation's questions on this matter. But McAuliffe seems to have served, at least occasionally, as a good will ambassador for Quasha's business operations. He brought Wang Tianyi, head of a formerly state-owned Chinese firm and a business associate of Quasha's, to meet with Bill Clinton. And Quasha has visited the ex-President at his Harlem office over the past several years, according to Joe Wozny, former president of a Carret affiliate. Wozny recalls that Quasha "was up there quite a few times, meeting with Bill Clinton." As for that Washington office, the Carret website says only that it specialized in providing "information regarding products and services for institutions."

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