Former Kabul Bank Chairman and CEO jailed for 15 years
By Khaama Press - Tue Nov 11 2014, 3:57 pm
The former chairman of Kabul Bank Sherkhan Farnood was jailed for 15 years by appellate court in Kabul on Tuesday.
Farnood was jailed for five years over money laundering and awarded an additional ten years imprisonment for involvement in embezzlement of nearly $1 billion of the bank’s funds which led to the collapse of the bank in 2010.
The court also awarded a fine of $334 million to Farnood for the embezzlement of Kabul Bank funds.
Similarly, the former chief executive officer of the bank Khalilullah Ferozi was jailed for five years over money laundering and was jailed for another ten years for being involved in embezzlement of the bank’s funds. He was also awarded a fine of $196 million.
The court also ordered to freeze all properties belong to Sherkhan Farnood and Khalilullah Ferozi.
Kabul Bank scandal case was reopened after President Ghani issued a decree to reopen the case of Kabul Bank scandal on the first week of his presidency.
Kabul Bank was one of Afghanistan’s largest private financial institutions founded in 2004 by Sherkhan Farnood, who was an international prominent poker player. Khalilullah Fruzi, the former chief executive of the bank, was another key staff.
Kabul Bank was seized by the government in 2010 after the exposure of a staggering $900 million fraud, which led the International Monetary Fund to temporarily halt its hundreds of millions of dollars of loans to the country.