2011 Iranian embezzlement scandal

April 2026 The 3,000 billion toman embezzlement scandal in Iran (also 2,800 billion embezzlement; approximately US$943.5 million)May 2014 is "2,800 billion embezzlement" supposed to read "'2,800 billion embezzlement'" or "2,800 billion embezzlement"? 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. The fraud reportedly extended over a four-year period, but became more serious in the months before the scandal broke in September 2011. 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.Iran Makes New Arrests in Fraud Case. Rick Gladstone. The New York Times 25 October 2011 Mostafa Pour Mohammadi, the head of a judicial investigations unit, has called the case "the most unprecedented financial corruption case in the history of Iran." The scandal has also been called "politically sensitive", involving Esfandiar Rahim Mashaei, a close aide to President Mahmoud Ahmadinejad, opposed by conservatives. Overview According to Iranian government newspapers and TV channels, the fraud was planned within seven state-owned and private banks, including Saderat Bank of Iran, and is the largest corruption scandal in Iranian history.August 2021 The fraud was first identified at Bank Melli, Iran's largest commercial bank. According to The New York Times and The Washington Post, the embezzlement was a "scheme to use forged documents or letters of credit to acquire assets, "including major state-owned companies" or "privatized government assets", (such as the Khuzestan Steel Company, a major steel producer"Iran Accuses Businessman of Bank Fraud". Associated Press. The New York Times (12 September 2011)) at one of Iran's largest banks, Bank Saderat. Iranian state prosecutor Gholam-Hossein Mohseni-Eje'i said 19 people had been arrested for being involved in the embezzlement scandal.Main Suspects Arrested in Iran Bank Embezzlement http://english.farsnews.com/newstext.php?nn=9006270087 Farsnews 20 September 2011 https://web.archive.org/web/20120329132123/http://english.farsnews.com/newstext.php?nn=9006270087 29 March 2012 dead dmy-all The Washington Post reports that 22 suspects, "including businessmen and bank officials" have been arrested, and the chiefs of two banks have been dismissed. On 27 September 2011, Mahomud-Reza Khavari abruptly resigned as the managing director of Bank Melli and fled to Canada after the bank was implicated in the fraud. However, a spokesman for the bank stated that Khavari had gone to Canada for "ordinary business reasons"."Iran: Banker's Return Sought in Bank Scandal". The New York Times (29 September 2011) According to the Globe and Mail, Mahmoud Reza Khavari owned a $3 million house in Toronto under his own name, https://www.ibtimes.com/iranian-billionaire-involved-2011-embezzlement-scandal-was-executed-saturday-heres-1589845 Banker in Iran scandal said to be in Toronto. and according to Iran News Update, Khavari allegedly acquired Canadian citizenship in 2005. https://irannewsupdate.com/news/economy/4283-iran-former-chief-of-a-major-bank-accused-in-embezzlement-scandal.html Iran: Former Chief of a Major bank, Accused in Embezzlement Scandal. 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. 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.Iran billionaire executed over $2.6B bank fraud 24 May 2014 USA Today Associated Press https://www.usatoday.com/story/money/business/2014/05/24/iran-billionaire-executed-over-26b-bank-fraud/9535639/ 24 May 2014 However, Khosravi’s lawyer said that he was made unaware of Khosravi’s execution, according to the IB Times. https://www.ibtimes.com/iranian-billionaire-involved-2011-embezzlement-scandal-was-executed-saturday-heres-1589845 The Iranian Billionaire Involved In The 2011 Embezzlement Scandal Was Executed Saturday, Here's Why . 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. https://www.bbc.com/news/world-middle-east-19045737 Four sentenced to death over $2.6bn Iran bank fraud. https://www.arabnews.com/node/1206451/middle-east Iran sentences fugitive ex-bank chief to jail over $2.6bn embezzlement scandal. 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."Iran's supreme leader calls for ‘cutting traitorous hands' in huge bank scamJune 2021 medicmedic. Associated Press,. The Washington Post (3 October 2011) Parliament The speaker of the Iranian parliament, Ali Larijani, said that all three branches of the government were determined to deal with the recent banking scandal.August 2021 Ahmad Tavakkoli, a member of parliament, said on 18 September 2011 that the embezzlement of 28 trillion rials (3,000 billion toman) is an intolerable scandal, adding that if administration officials are not able to handle the affairs, they should step down. In addition, he said that a number of members of parliament have introduced a motion, which envisages the establishment of a special committee to pursue the embezzlement case.Embezzlement in Iran is 'intolerable scandal' http://www.oananews.org/view.php?id=200408&ch= 19 September 2011 20 September 2011 https://archive.today/20120906085015/http://www.oananews.org/view.php?id=200408&ch= 6 September 2012 dead dmy-all With reference to top ranking Iranian government officials, the judiciary mentioned earlier that such a high level of corruption couldn’t have occurred without the support of various people, according to the Reuters report. https://www.reuters.com/article/us-iran-politics-fraud/analysis-irans-biggest-financial-scam-weakens-ahmadinejad-idUSTRE7954OQ20111006 Analysis: Iran's biggest financial scam weakens Ahmadinejad. 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. https://www.aljazeera.com/news/middleeast/2012/07/2012730141942976671.html Death terms in Iran bank scandal. Mahmoud Ahmadinejad On 16 September 2011, Iranian President Mahmoud Ahmadinejad rejected the accusations against some of his administration's officials.Iranian parliament meets over embezzlement scandal, vows to pursue corruption http://www2.chinadaily.com.cn/xinhua/2011-09-18/content_3817085.html China Daily 20 September 2011 https://web.archive.org/web/20111010022744/http://www.chinadaily.com.cn/xinhua/2011-09-18/content_3817085.html 10 October 2011 dead dmy-all Conservative critics of Ahmadinejad have accused his close aide, Esfandiar Rahim Mashaei (whom the conservatives strongly oppose) of having connections with Amir-Mansour Aria. 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. https://edition.cnn.com/2011/10/05/world/meast/iran-bank-scandal/index.html Epic bank scandal investigation hits Ahmadinejad. See also Fatemi Circle Iran Insurance embezzlement case Banking in Iran Corruption in Iran References 30em Category:2010s crimes in Iran Category:2011 crimes in Asia Category:2011 in Iran Category:2011 scandals Category:Corruption in Iran Category:Finance fraud Category:Scandals in Iran