Finance:Al-Madina Bank (Scandal)
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 headquarter 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
- ↑ 1.0 1.1 Prothero, Mitch (2005-10-27). (in en-US)Time. ISSN 0040-781X. http://content.time.com/time/world/article/0,8599,1123483,00.html.
- ↑ 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.
- ↑ 3.0 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.
- ↑ 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.
- ↑ "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.
- ↑ "Al-Madina Bank scandal winds down | Business , Local | THE DAILY STAR". https://www.dailystar.com.lb//Business/Lebanon/2004/Jan-08/373-al-madina-bank-scandal-winds-down.ashx.
- ↑ April 2013, Naharnet Newsdesk 08; 11:53. "Madi Receives Names of 411 Suspects Involved in al-Madina Bank Scandal". http://www.naharnet.com/stories/en/78659.
- ↑ June 2013, Naharnet Newsdesk 13; 15:51. "Beirut First Investigative Judge Wraps Up Probe in al-Madina Bank Case". http://www.naharnet.com/stories/en/86784.
- ↑ 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.
- ↑ 10.0 10.1 10.2 "More than a banking scandal?". https://calert.info/details.php?id=59.
- ↑ "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.
- ↑ April 2013, Naharnet Newsdesk 08; 11:53. "Madi Receives Names of 411 Suspects Involved in al-Madina Bank Scandal". http://www.naharnet.com/stories/en/78659.
- ↑ May 2013, Naharnet Newsdesk 13; 13:45. "Central Bank to Investigate Status of 135 Suspected of Links to al-Madina Bank". http://www.naharnet.com/stories/en/82815.
- ↑ 14.0 14.1 June 2013, Naharnet Newsdesk 13; 15:51. "Beirut First Investigative Judge Wraps Up Probe in al-Madina Bank Case". http://www.naharnet.com/stories/en/86784.
- ↑ 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/.
- ↑ 16.0 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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