Finance:Al-Madina Bank scandal

From HandWiki

Al-Madina Bank (Arabic: بنك المدينة) was a Lebanese bank that was seized by the Banque du Liban and closed completely in 2003[1][2] because of its mysterious case of suspicion in money laundering, corruption and fraud.[3][2] The main figure in the scandal was Rana Koleilat,[4] but also Adnan Abu Ayyash, the bank owner, and his brother Ibrahim.[5][6][7] As many as 135 people may have been involved in the corruption case,[8] included political, military, financial and legal figures.[9] The total amount of money lost from the bank was 1.65 billion US dollars.[9]

History

Bank Al-Madina began operating in 1982, with its headquarters in Hamra.[10]

Adnan Abu Ayyash bought the bank in 1986,[3] and was its main shareholder, along with his brother Ibrahim.[11]

The bank expanded to 18 branches in Lebanon throughout the 90's.[10]

Scandal

A report was filed accusing the bank of embezzling millions of dollars and writing bad checks, and 411 people were suspected of receiving suspicious funds from the bank.[12]

In 2003, a committee was formed to investigate the bank's millions of dollars of fraud to investigate money laundering.[13]

Rana Koleilat was accused of playing a key role in the fraud.[14]

Reports have said that the amount missing money from Al-Madina and its subsidiary United Credit Bank (UCB) could total as much as euro 1.0 billion.[14]

The bank collapsed in 2003.[15][16]

Missing funds from the bank were linked to the assassination of the Rafik Hariri[1][16] in 2005.

Bank Managers

  • Dr. Adnan Abu Ayyash - Honorary Chairman/General Manager
  • Sheikh Ibrahim Abu Ayyash - Chairman/General Manager
  • Mr. Michel El-Helou - Board Member[10]

References

  1. ↑ 1.0 1.1 Prothero, Mitch (2005-10-27). "The Money Scandal Behind the Hariri Assassination" (in en-US). Time. ISSN 0040-781X. http://content.time.com/time/world/article/0,8599,1123483,00.html. 
  2. ↑ 2.0 2.1 "Report: Al-Madina Bank file in the spotlight again" (in en). https://www.lbcgroup.tv/news/breaking-news/73300/report-al-madina-bank-file-in-the-spotlight-again/en. 
  3. ↑ 3.0 3.1 "Al-Madina Bank owners accused of stealing millions from Saudi account" (in en). https://www.albawaba.com/business/al-madina-bank-owners-accused-stealing-millions-saudi-account. 
  4. ↑ Strasburg, Jenny (2012-08-01). "Lebanese Bank Case Tests U.S. Privacy Law" (in en-US). Wall Street Journal. ISSN 0099-9660. https://online.wsj.com/article/SB10000872396390444130304577561292679998980.html. 
  5. ↑ "Douze ans plus tard, le mystère de la banque al-Madina reste entier". 2015-04-27. https://www.lorientlejour.com/article/922403/douze-ans-plus-tard-le-mystere-de-la-banque-al-madina-reste-entier.html. 
  6. ↑ "Al-Madina Bank scandal winds down". https://www.dailystar.com.lb//Business/Lebanon/2004/Jan-08/373-al-madina-bank-scandal-winds-down.ashx. 
  7. ↑ "Madi Receives Names of 411 Suspects Involved in al-Madina Bank Scandal". April 8, 2013. http://www.naharnet.com/stories/en/78659. 
  8. ↑ "Beirut First Investigative Judge Wraps Up Probe in al-Madina Bank Case". June 13, 2013. http://www.naharnet.com/stories/en/86784. 
  9. ↑ 9.0 9.1 "ملف بنك المدينة إلى الضوء من جديد" (in ar). https://www.lbcgroup.tv/news/news-reports/73215/%D9%85%D9%84%D9%81-%D8%A8%D9%86%D9%83-%D8%A7%D9%84%D9%85%D8%AF%D9%8A%D9%86%D8%A9-%D8%A5%D9%84%D9%89-%D8%A7%D9%84%D8%B6%D9%88%D8%A1-%D9%85%D9%86-%D8%AC%D8%AF%D9%8A%D8%AF/ar. 
  10. ↑ 10.0 10.1 10.2 "More than a banking scandal?". https://calert.info/details.php?id=59. 
  11. ↑ "Al-Madina Bank owners accused of stealing millions from Saudi account" (in en). https://www.albawaba.com/business/al-madina-bank-owners-accused-stealing-millions-saudi-account. 
  12. ↑ April 8, 2013. "Madi Receives Names of 411 Suspects Involved in al-Madina Bank Scandal". http://www.naharnet.com/stories/en/78659. 
  13. ↑ "Central Bank to Investigate Status of 135 Suspected of Links to al-Madina Bank". May 13, 2013. http://www.naharnet.com/stories/en/82815. 
  14. ↑ 14.0 14.1 "Beirut First Investigative Judge Wraps Up Probe in al-Madina Bank Case". June 13, 2013. http://www.naharnet.com/stories/en/86784. 
  15. ↑ Rami (2016-04-15). "Kawalis Al-Madina - The Real Story Of Al-Madina Bank Scandal" (in en-US). https://www.plus961.com/2016/04/kawalis-al-madina-the-real-story-of-al-madina-bank-scandal/. 
  16. ↑ 16.0 16.1 Strasburg, Jenny (2012-08-01). "Lebanese Bank Case Tests U.S. Privacy Law" (in en-US). Wall Street Journal. ISSN 0099-9660. https://online.wsj.com/article/SB10000872396390444130304577561292679998980.html. 



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