Iran Economy NewsIran hit by massive '$2.6 bn banking scam'

Iran hit by massive ‘$2.6 bn banking scam’

-

AFP: Several Iranian banks have been targeted in one of the biggest frauds in the Islamic republic’s history, losing nearly $2.6 billion in more than two years, media reports said Sunday.

TEHRAN (AFP) — Several Iranian banks have been targeted in one of the biggest frauds in the Islamic republic’s history, losing nearly $2.6 billion in more than two years, media reports said Sunday.

The fraud was reportedly orchestrated by a single man, referred to as “Mr X” in Iranian media, who developed a network and used forged letters of credit to purchase assets, including one of Iran’s largest steel production companies, Khuzestan Steel Company.

“Mr X” ran his master plan from June 2009 to last August, pocketing around 28 trillion rials (nearly $2.6 bn) and also unsuccessfully attempting to form a new bank,” said central bank chief Mahmoud Bahmani in remarks published Sunday.

Bank of Saderat CEO Mohammad Jahromi, whose organisation was one of the victims of the fraud, said seven other banks were also hit.

Head of general inspection organisation, Mostafa Pour Mohammadi, labelled the fraud “the most unprecedented financial corruption case” in the Islamic republic’s history. He did not elaborate.

Influential conservative lawmaker Ahmad Tavakoli said the case represented “a terrible corruption disease (lurking) in (Iran’s) banking system and administrative apparatus.”

On Wednesday, judiciary chief Ayatollah Sadeq Larijani said “the people involved in this case have been arrested” before the media got wind of the story. He did not elaborate.

The Germany-based corruption watchdog Transparency International last year ranked Iran 146th out of 178 countries on its annual list.

Latest news

Iran Regime’s Oil Revenue Supports Terrorism

On August 2, John Kirby, the US National Security Council Coordinator for Strategic Communications at the White House, stated...

From Flash Floods to Socioeconomic Crises, Iran’s Regime Leaves Destruction in Its Wake

During the trial of Hamid Noury, one of the Iranian regime’s perpetrators in the 1988 massacre, the victims and...

Iran’s Regime Faces a Critical Infiltration Crisis

One of the main challenges faced by the Iranian regime over the past couple of years is the top-level...

Iran: The Unseen Threats of Reviving the JCPOA

In a recent announcement, the Iranian regime has admitted that is considering building a new ‘research reactor’ at its...

Iran Regime and Its ‘Sweet Cake’ for the People

In a so-called ‘ceremony of honoring’, introducing the commander of the Sarallah Corps of Kerman province, the Iranian regime’s...

Iran: Poverty Will Increase Protests Despite Regime’s New Repression Plans

These days, the Iranian regime is faced with rallies and strikes of different unions related to livelihood challenges, from...

Must read

U.N. panel OKs curbs on Iran trade

Washington Times: The U.N. Security Council voted unanimously yesterday...

Iran foreign minister to visit Turkey amid corruption probe

AFP: Iran's foreign minister is set to visit Turkey on...

You might also likeRELATED
Recommended to you