2011 Iranian embezzlement scandal
The 3,000 billion toman embezzlement scandal in Iran (also 2,800 billion embezzlement; approximately US$943.5 million)[clarification needed] was a corruption scandal involving the use of forged documents to obtain credit from at least seven Iranian state and private banks to purchase recently privatized state-owned companies.[1] The fraud reportedly extended over a four-year period, but became more serious in the months before the scandal broke in September 2011.[1][2] According to Iranian newspapers, Iranian businessman Mahafarid Amir Khosravi (also known as Amir-Mansour Aria) masterminded the scam, and as of late October 2011, at least 67 people have been interrogated and 31 of them have been arrested, with Aria being executed in 2014.[1]
Overview
According to
According to
Iranian state prosecutor
The investigation determined that businessman Mahafarid Amir Khosravi had masterminded the scheme, with his Aria Investment Development Company being the primary recipient of the loans. Khosravi was convicted of embezzlement, money laundering, and bribery. He and three of his closest associates received the death penalty in July 2012.[8] A total of 39 people were convicted of fraud in the case. On 24 May 2014, Khosravi was executed by hanging, while Khavari remains a fugitive.[8] However, Khosravi’s lawyer said that he was made unaware of Khosravi’s execution, according to the IB Times.[9] According to the BBC, the Iranian chief prosecutor said that two other defendants were sentenced to life in prison, whereas 33 more are set to receive prison sentences as high as 35 years.[10][11]
Reaction
Supreme Leader
On 3 October 2011, Supreme Leader Ayatollah Ali Khamenei told the viewers of Iranian state TV, "People should know all these (responsible) will be pursued. ... God willing, the traitorous hands will be cut." The leader also stated the media should not use the case to "strike at officials."[2]
Parliament
The speaker of the
According to Al Jazeera, a defendant argued that senior officials associated with the scandal had walked away, while individuals with low-level involvement had been intensely prosecuted by the judiciary.[14]
Mahmoud Ahmadinejad
On 16 September 2011, Iranian President Mahmoud Ahmadinejad rejected the accusations against some of his administration's officials.[15] Conservative critics of Ahmadinejad have accused his close aide, Esfandiar Rahim Mashaei (whom the conservatives strongly oppose) of having connections with Amir-Mansour Aria.[2] According to CNN, the allegation linked to the president concerning the embezzlement of over $2.5 billion is one out of many allegations by Islamists.[16]
See also
- Fatemi Circle
- Iran Insurance embezzlement case
- Banking in Iran
- Corruption in Iran
References
- ^ a b c d Iran Makes New Arrests in Fraud Case. Rick Gladstone. The New York Times 25 October 2011
- ^ a b c d e Iran's supreme leader calls for ‘cutting traitorous hands' in huge bank scam[dead link]. Associated Press,. The Washington Post (3 October 2011)
- ^ a b "Iran Accuses Businessman of Bank Fraud". Associated Press. The New York Times (12 September 2011)
- ^ a b "Iran: Banker's Return Sought in Bank Scandal". The New York Times (29 September 2011)
- ^ "Main Suspects Arrested in Iran Bank Embezzlement". Farsnews. Archived from the original on 29 March 2012. Retrieved 20 September 2011.
- ^ "Banker in Iran scandal said to be in Toronto".
- ^ "Iran: Former Chief of a Major bank, Accused in Embezzlement Scandal".
- ^ a b "Iran billionaire executed over $2.6B bank fraud". USA Today. Associated Press. 24 May 2014. Retrieved 24 May 2014.
- ^ "The Iranian Billionaire Involved In The 2011 Embezzlement Scandal Was Executed Saturday, Here's Why ".
- ^ "Four sentenced to death over $2.6bn Iran bank fraud".
- ^ "Iran sentences fugitive ex-bank chief to jail over $2.6bn embezzlement scandal".
- ^ "Embezzlement in Iran is 'intolerable scandal'". 19 September 2011. Archived from the original on 6 September 2012. Retrieved 20 September 2011.
- ^ "Analysis: Iran's biggest financial scam weakens Ahmadinejad".
- ^ "Death terms in Iran bank scandal".
- ^ "Iranian parliament meets over embezzlement scandal, vows to pursue corruption". China Daily. Archived from the original on 10 October 2011. Retrieved 20 September 2011.
- ^ "Epic bank scandal investigation hits Ahmadinejad".