boston.com your connection to The Boston Globe

Romney fund-raiser quits after indictment

A fund-raiser for Mitt Romney's presidential campaign resigned from his volunteer post last week after being indicted in Maryland for allegedly defrauding companies of $32 million.

Alan B. Fabian, 43, a Maryland businessman who cochaired the national finance committee for Romney's campaign, was indicted Wednesday by a Maryland grand jury on 23 counts of mail fraud, money laundering, bankruptcy fraud, perjury, and obstruction of justice, according to the US attorney's office in Baltimore.

Fabian had served as cochair since January and had contributed the maximum amount of $2,300, said Eric Fehrnstrom, a campaign spokesman.

"We have accepted Mr. Fabian's resignation from his unpaid, volunteer position on the national finance committee, and we are returning his contribution to the campaign," Fehrnstrom said in an e-mail yesterday.

The campaign, however, will not return contributions from donors who were recruited by or have ties to Fabian, Fehrnstrom said.

"There is no reason to return donations from people who have not been accused of any wrongdoing," Fehrnstrom said.

Prosecutors allege that Fabian defrauded an equipment leasing company, financial institutions, and a government consulting company through his two companies, Strategic Partners International Inc., and Strategic Partners International LLC.

The indictment was the result of a roughly two-year investigation, said federal prosecutor Rod J. Rosenstein.

Fabian was released on $25,000 unsecured bond and can travel only in Maryland, Virginia, North Carolina and South Carolina and the District of Columbia, Rosenstein said.

Prosecutors are seeking forfeiture of $32 million worth of Fabian's assets, including eight properties in North Carolina, a property in Maryland, a yacht, three vehicles, cash, and Fabian's interest in several companies.

David B. Irwin, Fabian's lawyer, said his client had cooperated with the investigation.

"We're very disappointed that they decided to file charges," Irwin said. "We hope to get it resolved as soon as possible."

Fabian faces nine mail fraud counts, nine money laundering counts, one obstruction of justice count, two bankruptcy fraud counts, and two perjury counts. The mail fraud penalties are the most serious; each count carries a maximum sentence of 20 years.

Ryan Haggerty can be reached at rhaggerty@globe.com.

SEARCH THE ARCHIVES