Iran Bank Fraud Scandal: 4 Sentenced To Death

It looks like there is one country that does know how to deal with bank fraud.

Huffington Post  DUBAI, July 30 (Reuters) – An Iranian court has sentenced four people to death for a billion-dollar bank fraud that tainted the government of President Mahmoud Ahmadinejad, state media reported on Monday.

Iranians, hit by sanctions and soaring inflation, were shocked by the scale of the $2.6 billion bank loan embezzlement that was exposed last year and by allegations it was carried out by people close to the political elite or with their assent.

Of the thirty-nine people tried for the fraud – the biggest in the Islamic Republic’s history – four were sentenced to hang, the IRNA state news agency reported.

“According to the sentence that was issued, four of the defendants in this case were sentenced to death,” prosecutor general Gholam-Hossein Mohseni-Ejei told IRNA.

Two people were sentenced to life and others received jail sentences of up to 25 years, Mohseni-Ejei said. In addition to jail time, some were sentenced to flogging, ordered to pay fines and banned from government jobs.

Mohseni-Ejei did not name the defendants and Iranian media have identified them only by their initials. State television broadcast parts of the trial but blurred out the faces of the accused.

The man described by Iranian media as the mastermind of the scheme, businessman Amir Mansoor Khosravi, is said to have forged letters of credit from Iran’s Bank Saderat to fund dozens of companies and buy a state-owned steel factory.

Mahmoud Reza Khavari, the former head of Iran’s biggest bank, state-owned Bank Melli, resigned over the affair and fled to Canada where records show he owns a $3 million home, Iranian and Canadian news agencies reported.


The case has been politically awkward for Iran’s leadership as it aims to show it is tough on corruption and raised questions about whether the government’s privatisation drive has largely benefited friends of the political elite.

Ahmadinejad has rejected claims that the investment company at the heart of the scandal has links to his closest aide, Esfandiar Rahim Mashaie, a powerful figure who has become the prime target for the president’s adversaries within the hardline ruling elite.

Ahmadinejad’s economy minister, Shamseddin Hosseini, survived an impeachment vote last year, where members of parliament accused him of lax banking supervision.

Acknowledging the political damage, Iran’s Supreme Leader Ayatollah Ali Khamenei, while criticising financial corruption, said in televised comments last year that the media should not “drag out the issue.”

“Some want to use this event to score points against the country’s officials,” Khamenei said. “The people should know the issue will be followed up on.”

Mohseni-Ejei has held up the case as a demonstration that Iran can deal appropriately with high-level fraud. “The government, parliament, and all available devices were used to pursue the issue so that corruption can be fought in an open manner,” he was quoted as saying earlier this month by IRNA.

But one of the defendents complained that, while the judiciary had pursued some low-level players in the fraud vigorously, senior officials involved in the scandal had gone unpunished.

“Many other banking officials are outside of prison right now. Why are you able to put us on trial and have nothing to do with them?” the unnamed steel company official said, according to Iran’s Fars news agency.

The anti-corruption group Transparency International ranked Iran 120 out of 183 countries on its 2011 Corruption Perceptions Index, which measures countries according to their perceived levels of government corruption.

(Reporting By Yeganeh Torbati; Editing by Robin Pomeroy)

6 thoughts on “Iran Bank Fraud Scandal: 4 Sentenced To Death

  1. Bankers being dealt with is music to my ears.

    Oh those rogue countries are so evil, putting them bankers to death. Those bankers stole everything from the people. They should be living in peace and well-compensated, not persecuted. Ahmedijia-whatever should be punished for this heinous act. It’s not right! He won’t get away with this. THIS MEANS WAR!! Wait until I tell Israel this. You’ll see. WWIII here we come. YAHOOooooo!!!! (Sarcasm)

  2. The more I hear about Amadinejad, the more I like him. The ONLY reason they’re out to get Iran is because they’re one of the handful of countries left that DON’T have a central bank owned by the NWO, and it’s killing them (the NWO).
    Honestly, if this guy’s name wasn’t so hard to pronounce, I’d vote for him for president of this country!

    1. Well, I wouldn’t go as far as voting him for president of this country, but the fact that he is against the NWO, central banking and so on, does make him somewhat of a growing hero to us freedom-fighters against the NWO. However, remember, this guy is also not quite a saint, either. But if you want to look at it from the lesser of two evils standpoint (dare I say that), he does seem to be the lesser of two evils.

  3. The Iranians are a lott of things, but not stupid, and always ubderestemated and unknown.

    There are very motch bullshitt about the so called Aryan race or what ever notion that issue is drwn up, is largly and completly missunderstudd.

    The very name Aryan is directly related to present Iran, the name Aryan comes from the old, very old religion of Zoroastrism(remeber nitchzes, zarathustrat).
    The god is Azhura Mazda, a firegood.
    The Aryans are the inventor of Sufism and almoust every aspect og law and society, math and writings, a.s.o.
    A histoy that goes far back in time, immemorial, beyound Egypt.

    Their collectins of writings regarding Azhura Mazda, is collected in a series(a bibel) called The Aryan Avesta, its from this the name Aryans is comming from, like the notion of Cristians.
    So in essens, the word Aryan means One from Iran, in the past and sould also be in the future.
    Why Aryan is mixed into a debate on Race and especaly white racism, is idiotic at best, and only displayes a total lack of historical knowledge.


  4. True NC, he’s no saint, but what leader of any country today is?
    I still say he beats the snot out of that POS we have in office now!

    Besides, I have to admire the man for his courage in standing up to these scum. Very few are willing to these days.

    1. He’s Persian. It’s not really his courage. It’s just in the blood. lol And yes, an MTV celebrity death match between Obama and Ahmednejiwhatever would be great to see. lol

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