Two former board members of private bank Falcon were charged with money-laundering and taking bribes. The charges are linked to the $4.5 billion Malaysian 1MDB graft scandal.
Khadem Al-Qubaisi and Mohamed Badawy Al Husseiny, two former directors of Swiss-based Falcon Private Bank, are being charged in Abu Dhabi after more than two years in custody, the «The Wall Street Journal» reported on Wednesday.
News of charges against the due emerged as an offshoot of Abu Dhabi sueing Goldman Sachs in U.S. court over the 1MDB scandal. The American investment bank had effectively enabled the graft scandal as well as bribes to the two men, who are both former high-ranking executives of Abu Dhabi's sovereign wealth fund.
Unlawful Business
Al Husseiny sat on Falcon's board until three years ago. The two are being investigated by Swiss prosecutors and the banking regulator, which allege they used their position on Falcon's board to enable 1MDB to conduct unlawful business.
U.S. officials accuse Al-Qubaisi, an Emirati citizen, of taking nearly $500 million of pilfered money and spending it on U.S. luxury real estate. Al Husseiny, who is American, is accused of pocketing more than $60 million.
Ruling Family Ties
Al-Qubaisi is Emirati, while Mr. Al Husseiny is an American citizen. Neither have been heard from since 2016, when they were reportedly arrested in Abu Dhabi after the 1MDB investigation – and the emirate's involvement – surfaced publicly.
Al-Qubaisi, who is linked to Abu Dhabi's ruling family, denied the accusations through a lawyer. The 47-year-old former finance executive's health is «failing» following two years detention, and he is cut off from outside communication, lawyer Michael O’Kane said.
Six-Country Probe
«It is extraordinary that he has now been charged when he has never been subject to a proper investigation in the U.A.E. into the 1MDB matter.» The emirate isn't part of a six-country probe into 1MDB led by the U.S. and including Switzerland, Luxembourg, and Singapore.
