LOS ANGELES, March 29, 2011 /PRNewswire/ --
- U.S. Financial System was a "Gateway" for the fraud, close to $1 trillion was funneled through New York Based Banks
- Former bank executive has recently been charged with criminal and regulatory violations by Bahraini Public Prosecutor
Ahmad Hamad Algosaibi & Brothers (AHAB) today filed a civil complaint against Glenn Stewart, the former CEO of The International Banking Corporation (TIBC), in The United States District Court for the Central District of California. The five claims asserted by AHAB charge that Stewart, an American citizen, assisted Maan Al Sanea in securing and misappropriating billions of dollars in borrowing - much of which was in AHAB's name or obtained using forged guarantees in AHAB's name.
The complaint, filed on March 28, 2011 signifies an important new stage in ongoing litigation between the Algosaibi family and Maan Al Sanea. The 44-page complaint sheds new insight into one of the largest global Ponzi schemes in history and asserts that Stewart created and/or utilized a number of entities, particularly in Bahrain, to obtain lending through misuse of Algosaibi family name, the proceeds of which were funneled into the Ponzi scheme. Up to $1 trillion were then laundered through the US financial system.
"Mr. Stewart's critical involvement in Al Sanea's scheme is undeniable," said AHAB's chief legal counsel, Eric Lewis. "This lawsuit represents a necessary step to bring the fraud's key conspirators to justice."
According to the complaint, Stewart and Al Sanea raised billions of dollars in funding using falsified financial statements and forged AHAB guarantees. It also claims Al Sanea and Stewart falsely represented that TIBC had the backing of the Algosaibi family. In particular, the pair forged documents in order to create the impression that senior Algosaibi family members participated in TIBC's governance and sanctioned its commercial activities.
The claim's counts against Stewart include (1) aiding and abetting fraud; (2) aiding and abetting breach of fiduciary duty; (3) conspiracy to commit fraud; (4) fraud; and (5) unjust enrichment.
Stewart, who illegally fled Bahrain in May 2010 currently, resides in Malibu, California. AHAB alleges that he constructed a complex scheme of offshore companies to skim phony commissions and other payments, in the amount of approximately $100 million.
Mr. Stewart was banned from traveling out of Bahrain but according to his own accounts he escaped during that government's investigation into the collapse of TIBC and his dealings. He was charged by the Public Prosecutor of Bahrain on March 8th with criminal and regulatory violations in that country.
SOURCE Ahmad Hamad Algosaibi and Brothers