WARRANT FoR United Stutes Disteit Const LO nrsrerer or con eres é - un atekoss 7 } ACTH py beet WonmiNes. ee AL SHACTH PliaRAON Boban ES * : / Hein MARSHALL. OW ANY AUTHORIZED AGENT YOU AME HEREBY COVMANDE SN oy teetone the omaest 28 LON tet presen cist DischiPTion BF Gianiies 18. 371 Consp in acy Betsey Ye Frawa ' 1s Lonzem Bachet mer iny “y po Aiding and Abe Vi 3a5.Toadeay A IN VIOLATION OF HAMOV at toery The warrant as ened and exeec.ters vith the gtact otUNITED STATES DISTRICT couRT FOR THE DISTRICT OF COLUMBIA Grand Jury Sworn in on January 16, 1991 Holding a Criminal Term UNITED STATES OF AMERICA crin xo. 92 G4- U655 “ve BCCI HOLDINGS (LUXEMBOURG), $.A. Violations: BANK OF CREDIT AND COMMERCE 18 Use §371 INTERNATIONAL S.A. (Conspiracy) ; BANK OF CREDIT AND COMMERCE 28 USC §1343 (Wire INTERNATIONAL (OVERSEAS) LIMITED Fraud) ; INTERNATIONAL CREDIT AND INVESTMENT 18 USC §1962(d) COMPANY (OVERSEAS) LIMITED (Racketeering AGHA HASAN ABEDI, Conspiracy) ; SWALEH NAQVI, and GHALTH PHARAON 18 USC §2 (Aiding and Abetting) . JOVOE HENS heey, 3 amon FILED IN OPEN CuuaT THE GRAND JURY CHARGES: B NOV t= 1591 SOUNT ONE CLERK, US. DISTRICT COURT Introduction DISTRICT OF COLUMBIA AT ALL ‘TIMES MATERIAL TO THIS INDICTMENT: i. The Federal Reserve System ("PRS") was an agency of the United States. the Board of Governors of the FRS ("the Board") had primary responsibility for supervising and regulating activities of bank holding companies and had residual respons‘bility for United States Offices of foreign banks. 2. The Federal Deposit Insurance Corporation ("FDIC") was an agency of the united States. The FDIC supervised FDIC- insured, state-chartered savings tanks which were not members of the FRS. The FDIC examined and supervised those banks under its Plishack Binley, PPOsB THE GRAND JURY CHARGES: UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA Grand Jury Sworn in on January 16, 1991 Holding @ Criminal Term UNITED STATES OF AMERICA crim xo. a-JE- O655 BCCI HOLDINGS (LUXEMBOURG), S.A. Violations: BANK OF CREDIT AND COMMERCE 18 USC §371 INTERNATIONAL S.A. (Conspiracy) ; BANK OF CREDIT AND COMMERCE ‘48 USC §1343 (Wire INTERNATIONAL (OVERSEAS) LIMITED Fraud); INTERNATIONAL CREDIT AND INVESTMENT 18 USC §1962(da) COMPANY (OVERSEAS) LIMITED (Racketeering AGHA HASAN ABEDI, Gonspiracy) ; SWALEH NAQVI, and GHAITH PHARAON 1a USC §2 (Aiding and Abetting) . Defendants. sLCTAENE FILED IN OPEN COURT COUNT ONE ‘CLERK, U.S. DISTRICT CouRT. im <0: DISTRICT OF COLUMBIA AT ALL TIMES MATERIAL TO THIS INDICTMENT: Roe + The Federal Reserve System ("FRS") was an agency of the United states. The Board of Governors of the FRS ("the Board") had primary responsibility for supervising and regulating activities of bank holding companies and had residual respons‘bility for United States offices of foreign banks, 2. he ¥eéeral Deposit Insurance Corporation ("FDIC") was an agency of the United States, The FDIC supervised FDIC~ insured, state~chartered savings banks which were not mombers of the PRS. The FDIC examined and supervised those banks under its Pidack Paabiy- PAROS2 purview, approved or denied applications for structural or corporate changes, and ruled on applications for insurance. The FDIC insured deposits in amounts up to $100,000 per account in banks which it insured. 3. The Federal Home Loan Bank Board ("FHLBB") was an agency of the United States established to regulate and supervise savings and loan associations and savings banks insured by the Federal Savings and Loan insurance Corporation ("FSLIC"). as part of its duties, the FHLBB governed the FSLIC. ‘The FHLBB examined insured institutions to ensure they were operated in a safe and sound manner and in conformity with applicable laws and regulations. 4. The FSLIC was an agency cf the United states established te protect depositors by insuring deposits in savings and loan associations and in certain savings banks in amounts up to $100,000 per account. 5. As of August 9, 1989, the Office of Thrift supervision ("OTS") succeeded to the interests of the FHLBB and the FSLIC with respect to the regulation end supervision of savings and Joan associations and certain savings banks, and the Porc succeeded the FSLIC as the insurer. 6. Independence Bank ("Independence"), Encino, California, was chartered, regulated and supervised by the State of california and had deposits insured by the Fore. 7. Centrust Savings Bank, a State Savings Bank ("Centrust"), was located in Miami, Florida, and was chartered by3 the State of Florida. CenTrust was regulated and supervised by the FHLBB and had deposits insured by the FSLIC until August 9, 1989. CenTrust was also subject to regulation and supervision by the Florida Department of Banking and Finance. 8. As of August 9, 1989, the insurance of the deposits of Cen?rust was transferred to the FDIC and the OTS began its role as regulator and supervisor of cenfrust. 9. centrust Trust, formerly the Westport Company, was a wholly-owned subsidiary of Cenfrust. 10. Defendant BCCI Holdings (Luxembourg), 8.A. ("BCCT Holdings") was a foreign bank holding company established under the laws of Luxembourg. 11, Defendant BCCI Holdings owned and controlled Defendant Bank of Credit and Commerce International S.A. ("BCCE S.A."), a foreign bank established under the laws of Luxembourg, BCCI S.A. operated agencies in Los Angeles, California and New York, New york. 42. Defendant BCCI Holdings also owned and controlied Defendant Bank of Credit and Commerce International (overseas) Limited ("BCCI Overseas"), a foreign bank established under the laws of the Cayman Islands. BCCI overseas operated agencies in Miami, Tampa and Boca Raton, Florida. 13. The term "BCCI Group," as used in this indictment, means the combination of BCCI Holdings, BCCT S.A. and BCCI overseas. 44. The term “BCCI Defendants," as used at times in this4 Indictment, means the Defendants BCCI Holdings, BCCT S.a., and BCCI overseas. 15. Defendant International Credit and Investment Company (Overseas) Limited (*IcIC¢ oversea: ) was a foreign bank established under the laws of the Cayman Islands. 16. Defendant AGHA HASAN ABEDI was a principal of BCCT Holdings, BCCL (overseas), BCCI §.A. and ICI overseas. 17. Defendant SWALEM NAQVI was a principal of BCCI Holdings, BCCI (overseas), BCCI S.A. and ICIC overseas. 18. Defendant GHATTH PHARAON was a Saudi Arabian businessman and a shareholder in the BCCI Group. The Conspiracy 29. Beginning in or about January 1984, the exact date being unknown to the Grand Jury, and continuing until in or about December 1989, in the District of Columbia and elsewhere, the Defendants BCCI HOLDINGS (LUXEMBOURG), $.A., BANK OF CREDIT AND COMMERCE INTERNATIONAL 5.A., BANK OF CREDIT AND COMMERCE INTERNATIONAL (OVERSEAS) LIMITED, INTERNATIONAL CREDIT AND INVESTMENT COMPANY (OVERSEAS) LIMITED, AGHA HASAN ABEDI, SWALEH NAQVI, and GHATTH PHARAON knowingly and willfully combined, conspired, confederated, and5 agreed together and with each other, and with others, both known and unknown to the Grand Jury, (a) to defraud the unitea states, in particular the Board, FDIC, FHLBB, and FSLIC, of and concerning their right to have their business and affairs conducted free from deceit, dishonesty, impairment and obstruction, by impeding, hindering, obstructing and defeating by deceitful and dishonest means the awful functions and operations of said agencies of the United States in regulating and supervising activities of the BCCI Group and their United States branches or agencies, ICIC Overseas, Independence and CenTrust, and (b) to commit offenses against the United states, that is: {1) to devise and intend to devise’ a scheme and artifice to defraud and to obtain money and property, namely, insurance protection and continued insurance protection by the FDIC, backed by funds and security of the United States, of deposits of Independence, by means of fraudulent and false pretenses, representations and promises, and to transmit and cause to be transmitted by means of wire communications in interstate and foreign commerce, certain writings, signs, signals, pictures, and sounds, for the purpose of executing such scheme and artifice, in violation of Title 18, United states Code, Section 1343; {2) to devise and intend to devise a scheme and artifice to defraud and to obtain money and property, namely, insurance protection and continued insurance protection by the6 FDIC, backed by funds and security of the United States, of deposits of Independence, by means of fraudulent and false pretenses, representations and promises, and for the purpose of executing and attempting to execute the scheme and artifice, xnowingly to cause to be delivered by the United states Postal Service various mail matter, in violation of Title 18, United States Code, Section 1341; (3) to knowingly execute and attempt to execute a Scheme and artifice to defraud a federally insured financial institution, and by means of fraudulent and false pretenses, representations and promises to obtain moneys, funds and other Property owned by or under the control of such a financial institution, in violation of Title 18, United states code, Section 1344; (4) to knowingly and willfully make false, fictitious and fraudulent statements to the FHLBB, and to knowingly and willfully make and cause to be made false entries in the books, xeports and statements of CenTrust, in violatien of Title 18, United states Code, Sections 1901 and 1006; (5) to knowingly and willfully cause to be made false entries, including material omissions, in the books and records of Tnd@ependenca with the intent te daceive the Board and FoTc, in violation of Title 18, United States Code, Sections 1001 and 1005; (6) to devise and intend to devise a scheme and artifice to defraud persons and entities throughout the United7 States of money and property, namely, funds from purchasers of subordinated debentures issued by CenTrust, by means of false and fraudulent pretenses, representations and promises, and for purposes of executing said scheme, to transmit and cause to be transmitted by means of wire communications in interstate and foreign commerce, certain writings, signs, signals, pictures, and sounds, in violation of Title 18, United states code, section 1343; (7) to devise and intend to devise a scheme and artifice to defraud persons and entities throughout tne United states of money and property, namely, funds from purchasers of subordinated debentures issued by CenTrust, by means of false and fraudulent pretenses, representations and promises, and for the purpose of executing said scheme, to cause to be placed in an authorized depository for mail matter things and matters to be delivered by the united states Postal Service, in violation of witle 18, United States Code, Section 1341. The May \d_ Means of cons) It was a part of the conspiracy that: 20. The Defenéants would enrich Defendants AGHA HASAN ABEDI, SWALEH NAQVI, the BCCI Defendants, ICIC Overseas and GHAITH PHARAON and their associates, by taking advantage of opportunities to deceive and exploit United States financial institutions, deceive United states Federal regulatory agencies, and deceive persons and entities throughout the United states. It was further a part of the conspiracy that:8 21. ‘The BCCI Defendants, ICIC Overseas, AGHA HASAN ABEDI and SWALEH NAQVI would acquire and maintain control and influence over Independence with the aid of Defendant GHAITH FHARAON, through deceptive stock purchases by way of hidden stock pledges, nominee agreements, nonrecourse loans, loan releases, beneficial interest agreements and outright falsehoods, fabrications and omissions in applications and reports filed with state and federal regulatory agencies; 22. ‘The Defendants would use Defendant ICIC overseas to facilitate deception of the Board, FDIC, FSLIC, and FHLB concerning the involvement of the ECCI Defendants, AGHA HASAN ABEDE, and SWALEH NAQVI with Defendant GHAITH PHARAON; 23. Defendant GHAITH PHARAON, the owner of approximately 25 Percent of the stock of Cenfrust, vould use his relationship with the BCCI Defendants and SWALEM NAQVZ to axrange for a branch of the BCCI Group to purchase approximately $25,000,000 of the total $180,000,000 CenTrust subordinated debentures in order to mislead and deceive regulators and investors as to the true market for the CenTrust subordinated debentures; 24. ‘The BCCI Defendants, Defendant GHAZTH PHARAON and another would cause material misrepresentations and omissions to be made to investors; 25. The Defendant GHAITH PHARAON and another would promise the BCCI Defendants and SWALEH NAQVI that CenTrust would repurchase any CenTrust subordinated debentures purchased by the BCCI Group;9 26. The BCCI Defendants and Defendant. SWALEH NAQVI would direct BCCI (Overseas) Paris to purchase approximately $25,000,000 of CenTrust subordinated debentures; 27. Defendant GHATTH PHARAON and another would cause CenTrust Trust to repurchase said subordinated debentures from BCCI (Overseas) Paris, after approximately six weeks, thus making the BCCI Defendants whole and completing the deception of other investors as to the true market for the CenTrust subordinated debentures. cts_in Furtherance of the 28. In furtherance of the conspiracy, and in order to effect the objects thereof, the defendants ana their co- conspirators committed and caused to be committed, in the District of Columbia and elsewhere, the following overt acts, among others: Acts Re ng to Independence Bank 1) On or about January 27, 1984, in Los Angeles, California, Defendant AGHA HASAN ABEDI had a conversation with an employee of the BCCI Group working in California, concerning the purchase by the BCCI Group of a bank on the west coast of the United States. 2) On or about august 26, 1984, in California, the employee referred to in Overt Act No. 1 had a conversation with the then-Chairman of Independence, Encino, California concerning the fact that Independence was for sale. 3) On or about November 13, 1984, the employee referred to10 in overt Act No. 1 wrote letters to Defendants AGHA HASAN ABEDI and SWALEH NAQVI, in each of which he discussed the acquisition by BCCI of Independence. 4} In or about November 1984, Defendant AGHA HASAN ABEDI had a telephone conversation with the employee referred to in Overt Act No. 1 in California, in which it was discussed that Defendant GHAITH PHARAON was interested in purchasing Independence himself. 5) On or about November 30, 1984, the employee of the BCCT Group referred to in Qvert Act No. 1 signed a "letter of intent," confirming the willingness of a then-unnamed principal to purchase all of the capital steck of Independence. 6) Between in or about December 1984 and January 1935, Defendant GHAITH PHARAON in his personal capacity and Defendant SWALEH NAQVI on behalf of the BCCI Group signed an Investment Advisory Agreement. 7) Between in or shout November of 1984 and April of 1985, representatives, agents and/or employees of the ECCI Group had conversations with the then owners of Independence concerning the purchase of Independence. 8) In or about April 1985, an employee of the BCCI Group had conversations with employees of the First National Bank of Boston ("Bank of Boston") concerning obtaining financing for Defendant GHATTH PHARAON to be used for a portion of the purchase price for Independence Bank. 9) On oF about April 30, 1985, Defendant GHAITH PHARAONa signed a stock purchase agreement with the then owners of Independence, pursuant to which Defendant GHAITH PHARAON agreed to purchase all of the capital stock of Independence Bank for $23,000, 000.00. 10) On or about May 17, 1985, Defendant GHAITTH PHARAON signed a memorandum agreement with Defendant ICIC overseas, which agreement provided, among other things, that: i. Pharaon and ICT¢ have agreed to acquire 100% of Independence from the present shareholders; ii, all shares would be held in the name of Pharaon but only 15% were to he held by Pharaon as the beneficial owner; and iii. Pharaon was to hold the remaining 85% of the shares in a fiduciary capacity for IcIc. 11) on or about May 17, 1985, Defendant SWALEH NAQVI signed the memorandum agreement referred to in Overt Act No. 10 on behalf of Defendant IcIC overseas. 12) On or about June 10, 1985, Defendant GHATTH PHARAON signed a document entitled "Notice of Acquisition of control which was filed with the FDIC and the California State Department of Banking, which called for the following information in question number 3: “Indicate the full name of each acquiring party or transferee, the total number of shares presently held by each, the total number of shares to be purchased or transferred to each and the total number of shares to be held by each following completion of the proposed transaction. Indicate nanes of beneficial owners if12 shares are to be registered in another name." the response to which disclosed the only purchaser to be Defendant GHAITH PHARAON. 13) On or about June 11, 1985, in Los Angeles, California, Defendant GHAITH PHARAON met with members of the California state Banking Department, in the course of which meeting Defendant GHAITH PHARAON failed to disclose the existence of the agreement between Defendant ICIC Overseas and Defendant GHAITH PHARAON which was executed on or about May 17, 1985 and which is referred to in Overt Act No. 10. 14) On or about August 30, 1985, an employee of the BCCT Group had a conversation with another employee of the 8CCI Group in which the first of these employees requested a loan be made by the BCCI Group to Defendant GHAITH PHARAON for purposes of acquiring Independence. 15) On or about August 30, 1985, an employee of the BCCI Group sent a telex which confirmed that the deposit of $@.5 million of Defendant GHAITH PHARAON will be held in an account at Banque Arabe et Internationale b'Investissement (BAII), Paris, France. 16) On ox about August 29, 1985, an employee of the BCCI Group sent a telex to BAII vhich instructed BAIT to confirm to the FDIC and the California State Banking Department, care of Defendant GHAITH PHARAON's attorney, that Defendant GHALTH PHARAON had in excess of $8.4 million on deposit with BAII, which funds were to be used by Defendant GHAITH PHARAON towards the13 purchase of Independence. 17) On or about September 4, 1988, BAII confirmed by telex to the California state Banking Department, care of Defendant GHAITH PHARAON's attorney, that it held in excess of $8.4 million on deposit for Defendant GHAITH PHARAON, which funds were to be used by Defendant GHATTH PHARAON towards the purchase of Independence. 18) On er about September 5, 1985, Defendant GHAITH PHARAON caused to be delivered to the California State Banking Department a letter. This letter stated that enclosed was a: "Telex dated September 4, 1985 also from BATI confirming that Pharaon has available in excess of $8.4 million on deposit for the portion of the purchase price not being financed." 19) In or about August 1985, employees of the BCCE Group had conversations with representatives of BAIT concerning the issuance by BAIT of a letter of credit to the Bank of Boston in the amount of $5 million. 20) On or about August 29, 1985, an employee of the Bccr Group sent a telex to BAII instructing BAIL to confirm by telex to the FDIC and the California State Banking Department, care of Defendant GHAITH PHARAON's attorney, that BAIT had agreed to issue a stand-by letter of credit in the amount of $5 million in favor of the Bank of Boston as security for the Bank of Boston's lean to Defendant GHATTH PHARAON to purchase Independence. 21) On or about August 30, 1985, BAIT sent a telex to the california state Banking Department and the FDIC, in care ofaa Defendant GHAITH PHARAON's attorney, concerning the issuance by BAII of a stand-by letter of credit in the amount of $5 million in favor of the Bank of Boston as security for the Bank of Boston loan to Defendant GHAITH PHARAON to purchase Independence. 22) On or about September 5, 1985, Defendant GHAITH PHARAON caused his attorney to deliver a letter to the California state Banking Department confirming the availability of the $5 million letter of credit to be issued by BAIT. 23) On or about September 30, 1985, Defendant GHAITH PHARAON signed an "Acquisition Promissory Note" for $12.6 million with the Bank of Boston. 24) On or about October 1, 1985, BAIT issued a stand-by letter of credit in the anount of $5 million in favor of the Bank of Boston, which letter of credit secured the Bank of Boston loan to Defendant GHAITH PHARAON. 25) On or about october 1, 1985, the BCCI Group issued a $5 million counter-guarantee to BAIL. 26) On or about october 1, 1985, agents of the BCCI Group, and Defendant GHAITH PHARAON caused the Bank of Boston to take acts affecting the distribution of funds completing the sale of all the capital stock of Independence Bank to Defendant GHATTH PHARAON. 27) In or about october 1, 1985, Defendant GHALTH PHARAON appointed the first of the employees of the BCCY Group referred to in Overt Act lo. 14 as a Director of Independence. 28) From in cr about March 1986 to in or about January15 1989, Defendants AGHA HASAN ABEDI and SWALEH NAQVI met with and corresponded with the Chief Executive Officer of Independence on numerous occasions regarding personnel and operational matters involving Independence. 29) On or about dune 25, 1986, in Paris, France, Defendant GHAITH PHARAON wrote a letter to Defendant SWALEH NAQVI which stated in pertinent part: “Recording to (the Chief Executive officer of Independence], and even if I established a holding co. for the purpose of sheltering some of the bank's income it is unlikely that under the present capital structure the bank would greatly grow without any additional capital. In the present circumstances, and until T have worked out some kind of re~scheduling with the Redec banks, I may face some difficulties in arranging independent facilities for Independence Bk for additional capital. “Therefore I would suggest that for the time being the 15/85 arrangement be maintained until we can determine the course we want Independence to take, and the degree of capital that needs to be made available, if we want the bank to crow, as well as the return on this capital, when compared to other investment opportunities. “If after meeting with (the Chief Executive Officer of Independence] you are convinced that26 additional capital is required and the returns on such capital are attractive, I would be prepared to meet with you and modify the 15/85 arrangement in accordance with ny earlier discussion with you and Mr. Abedi. Should this be the course to he followed it may also be necessary to have more support. from BCCI in terms of management support, and international contacts." 30) On or about July 3, 1986, Defendant SHazEH NAQVI directed agents of the BCCI Group to cause BECT Overseas (Panama) to make a loen in the amount of $12,631,000 to Defendant GHAITH PHARAON, which proceeds were used to repay the Bank of Boston loan to Defendant GHAITH PHARAON referred to in overt Act No. 23. 31) In or about July of 1987, in London, England, Defendants AGHA HASAN ABEDI and SWALBH NAQVI met with an individual concerning prospective employment with Independence. 32) On or about December 29, 1987, Defendant SWALEH NAQVI directed an employee of the BCCE Group to cause BCCI Overseas (Grand Cayman) to advance $3,500,000 to Independence. 33) On or about May 17, 1988, an employee of the BCCI Group caused a branch of the BCCI Group in Bahrain to advance $4,000,000 to Defendant GHAITH PHARAON, which proceeds were added to the capital account of Independence. 34) On or about August 7, 1989, an employee of the BCCI Group caused a branch of the BCCI Group in Bahrain to advance $10,000,000 to Defendant GHAITH PHARAON, which proceeds were used to repay a BAIT lean dated on or about July 5, 1989, in theW amount of $10,000,000 to Defendant GHATTH PHARAON. Qvert Acts Relating to CenTrust Savings Bank ce: to Sale of S ted Deb! s 35) On or about April 12, 1988, Defendant GHAITH PHARAON and another person caused to be filed a document titled “amendment No. 1 To FORM OC" with the FHEBB. 36) Between on or about April 1, 1988, and on or about May 19, 1988, throughout the United states, Defendant GHAITH PHARAON and another person and various other employees and agents of Cenfrust, together with underwriters, Merrill Lynch Capital Markets and Drexel Burnham Lambert, distriputed a preliminary prospectus and conducted marketing seminars relating to the sale of CenTrust's subordinated debenturas. 37) On or about May 16, 1988, Defendant GHATTH PHARAON and another person caused to be filed a document bearing the title “Amendment 3 to FORM OC” with the FELBB. 38) On or about May 19, 1988, Defendant GHAITH PHARAON and another person caused to be filed with the FHLBB a document bearing the title "Amendment 4 to FORM oc." 39) On ox about May 19, 1988, in Washington D.c., Defendant GHAITH PHARAON and another person caused to be filed with the FHLBB a document: bearing the title "OFFERING CIRCULAR" relating to subordinated debentures to be issued by CenTrust.18 ntas tates Re 40) On or about May 3, 1988, Defendant GHAITH PHARAON caused a letter to be delivered to the FHLBB in Washington D.c., which stated in pertinent part that the “subordinated debt issue would ad8 $200 million of additional regulatory capital and thus, additional protection for the FSLIC insurance fund." 41) On or about May 3, 1988, Defendant GHAITH PHARAON communicated by telephone fron in or near Savannah, Georgia with @ FHLBB employee in Washington, D.c., concerning the cenTrust subordinated debt issue. 42) In or about May of 1988, in Washington D.c., Defendant GHAI'TH PHARAON and another person met with employees of the FHLAS concerning the issuance by CenTrust of subordinated debentures. Subordinated Debenture: westo: 43) On or about May 24, 1988, Defendant GHAITH PHARAON and ethers caused to be transmitted by wire approximately $2,500,000 from Safeco Insurance Co., Seattle, Washington, to a firm in New York, New York, for the purchase of CenTrust subordinated debentures. 44) On or about May 25, 1988, Defendant GHAITH PHARAON and others caused to be transmitted by wire approximately $3,000,000 from Washington Mutual Savings and Lean Association, seattle, Washington to a firm in New York, New York, for the purchase of Centrust subordinated debentures.19 Sale to BCCI and Repurchase of ConTrust Subordinated Debentures 45) On or about May 23, 1988, in Savannah, Georgia Defendant GHAITH PHARAON caused a telex to be sent from Interedec, a company controlled by Defendant GHAITH PHARAON, to London, England, related to the purchase of the CenTrust subordinated debentures in which it was indicated that the beneficiary of the $25 million of the CenTrust subordinated debentures “will be BCC in Paris." 46) On or about May 24, 1988, in New York, New York and Paris, France, Defendants SWALEHK NAQYI and GHAITH PHARAON and the BCCI Defendants caused BCCI Overseas (Paris), a branch of the BCCI Group, to purchase approximately $25,000,000 of CenTrust subordinated debentures. 47) On or about June 24, 1988, Defendants GHAITH PHARAON and SWALEH NAQVI caused to be mailed from New York, New York, to London, England, three CenTrust subordinated debenture registered certificates, labelled RU 10, RU 11 and RU 12, in the name of BCCI Paris, totalling $25,000,000. 48} On or about July 15, 1988, Defendant GHAITH PHARAON caused to be mailed a letter from an employee of Interedec, located in Georgia, to an employee of CenTrust in Florida, concerning the purchase by CenTrust of the subordinated Gebentures previously purchased by BCCi overseas (Paris), a branch of the BCCI Group, in which it was stated: “(The Chairman of the Board of CenTrust} had asked me te provide relevant details to you in order for20 Centrust to repurchase the USD 25 million Debentures fom BCCE Paris on 27th July 1988 together with interest accrued up to 27th July 1989." 49) On or about July 25, 1988, defendant GHATTH PHARAON caused to be delivered a letter from London, England, to Richmond Hill, Georgia, which transferred the CenTrust debentures referred to in overt Act No. 47, 50) On or about quly 27, 1988, the Defendant GHALTH PHARAON and another caused CenTrust to transmit by wire approximately $25,000,000 to Security Pacific International Bank in New York, New York, related to the purchase by CenTrust of the subordinated debentures previously purchased by BCCI Paris. 51) Between on or about July 1, 1988, and March 1, 1989, on several occasions, in Atlanta, Georgia, Defendant GHATTH PHARAON and another caused false and fraudulent statements to be made to federal banking regulators concerning the actual level of regulatory capital of centrust. (Title 18, United states code, Section 371) COUNT ‘HO 1. ‘The allegations contained in paragraphs 3, 4, 5, 7, 8, 9, 10, 41, 12, 13, 14, 16, 17 and 18 of COUNT ONE of this Indictment are realleged and incorporated by reference as if fully set forth herein.21 2. From in or about January 1988 to in or about July 1988, Defendants BCCE HOLDINGS (LUXEMBOURG), S.A., BANK OF CREDIT AND COMMERCE INTERNATIONAL S.A., BANK OF CREDIT AND COMMERCE INTERNATIONAL (OVERSEAS) LIMITED, AGHA HASAN ABEDI, SWALEH NAQVI, and GHAITH PHARAON devised and intended to devise a scheme and artifice to defraud and to obtain money and property by means of false and fraudulent pretenses, representations, and promises; 3. Tt was part of said scheme that: a) Defendant GHAITH PHARAON and another would seek to sell Cenfrust subordinated debentures to investors; ) Defendant GHAITH PHARAON, who owned approximately 25 percent of the stock of CenTrust, would use his relationship with the BCCI Defendants and Defendant SWALEH NAQVI to arrange for a branch of the BCCI Group to purchase $25,000,000 of the CenTrust subordinated debentures in order to deceive other investors as to the true market for the CenTrust subordinated debentures; ¢) Defendant GHATTH PHARAON and another would agree with the BCCT Defendants and Defendant SWALEH NAQVI that CenTrust would repurchase any CenTrust subordinated debentures purchased by the BCCI Group;£ 22 4) Defendant SWALEH NAQVI would direct and approve the purchase by BCCI (overseas) Paris, of approximately $25,000,000 of CenTrust subordinated debentures; @) Defendant GHAITH PHARAON and another would cause Cenfrust Trust to repurchase said subordinated debentures from BCCI (Overseas) Paris, after approximately eight weeks, thus making the BCCI Defendants whole and completing the deception of other investors as to the true market for the CenTrust subordinated debentures; #) Defendant GHAILH PHARAON and another would cause material misrepresentations and omissions to be made to investors. 4. On oF about May 3, 1988, in the District of the Columbia and elsewhere, the BCCI Defendants, and Defendants GHARTH PHARAON, SWALEH NAQVI, and AGHA HASAN ABEDI, aided and abetted by one another, for the purpose of executing the aforesaid scheme and artifice and attempting to do so, knowingly and willfully transmitted and caused to be transmitted in interstate commerce by means of wire communications certain writings, signs, signals, pictures and sounds to wit: a communication by telephone between the Defendant GHAITH PHARAON in Savannah, Georgia and an employee of the FHLER in Wachington, D.c. (Title 18, United States Code, Sections 1343 and 2)23 COUNT THREE Introduction 1. ‘The allegations in Paragraphs 1 through 14 and 16 through 18 of Count One of this Indictment are hereby re-alleged and incorporated by reference as if fully set forth herein. The Enterprise 2. At all times material to this Indictment, the BCCI Group, International Credit and Investment Company (overseas), Limited ("ICIC Overseas"), AGHA HASAN ABEDI, SWALEH NAQVI, GHATTH PHARAON, and others known and unknown to the Grand Jury, constituted an "enterprise" as defined in Title 18, United states Code, Section 1961(4), that is, a group of organizations and individuals associated in tact. 3. At all times material to this Indictment, this enterprise was engaged in, and its activities affected, interstate and foreign connerce. The Racketeering Conspiracy 4. Prom in or about January of 1984, to in or about July of 1991, in the District of Columbia and elsewhere, Defendants BCCI HOLDINGS (LUXEMBOURG), S.A., BANK OF CREDIT AND COMMERCE INTERNATIONAL S.A., BARK OF CREDIT AND COMMERCE INTERNATTOWAL (OVERSEAS) LIMITED, AGHA HASAN ABEDI, SWALEH NAQVI, and GHATTH PHARAOW2a along with others known and unknown to the Grand Jury, being Persons employed by and associated with the enterprise described in paragraph two of this Count, which enterprise was engaged in and the activities of which affected interstate and foreign commerce, unlawfully, willfully, and knowingly combined, conspired, confederated, and agreed together and with each other, and with persons known and unknown to the Grand Jury, to commit an offense against the United States, to wit: to violate Title 18, United States code, Section 1962(¢), that is, to conduct and participate, directly and indirectly, in the conduct of the affairs of the enterprise through a pattern of racketeering activity. 5. It was part of the conspiracy that the Defendants and their co-conspirators would and did commit acts of racketeering activity as set forth below in paragraph @ of this Count. 6. It was a further part of the conspiracy that each defendant agreed that tve or nore of the acts of racketeering set forth below in this Count would be committed in the conduct of the affairs of the enterprise. rs 12 Cor c: 7. ‘The allegations of Paragraphs 20 through 27 of count One of this Indictment are hereby realleged and inanrporated by yeference as if fully set forth herein. The pate cketeering Activity + It was a part of the conspiracy that the Defendants and their co-conspirators would conmit acts of racketeering activity25 consisting of the racketeering acts set forth below, and additional racketeering acts involving the unlawful control, operation, and manipulation of United states financial institutions and fraud against United States Federal bank regulatory agencies, and fraud against the investing public, constituting violations of Title 18, United States code, Sections 1341, 1343 and 1344. Racketeering act Wire Fraud Related to Independence Bank 1) Between on or about January 1, 1984, and December of 1989, Defendants AGHA HASAN ABEDI, SWALEH NAQVE, and CHAITH PHARAON, the BCCI Defendants, and ToI¢ overseas (not charged in this Count as a Defendant), devised and intended to devise a scheme and artifice to defraud and to obtain money and property, namely, insurance protection and continued insurance protection by the FDIC, backed by funds and security of the United states, for deposits of Independence, by means of fraudulent and false pretenses, representations and promises: 2) It was part of said scheme and artifice that on or about May 17, 1985, Defendant GHAITH PHARAON and Defendant SWALEH NAQVI, acting in the name of Defendant IcIC overseas, did enter inte a secret agreement whereby 85% of the shares of the stock of Independence, with the attendant voting rights, purportedly to be purchased in their entirety by Defendant CHATTH PHARAON, vere instead pledged to IcI¢ Overseas; it was further part of said scheme that Defendant GHAITH PHARAON did conceal and cause to be26 concealed this material fact from the FDIC and other regulators through fraudulent conduct and decei' it was further part of the scheme that the BCCI Group exercised influence and control over the affairs of Independence Bank; 3) On or about the dates set forth below, the above Defendants transmitted and caused to be transmitted in interstate and foreign commerce, certain writings, signs, signals, pictures, and sounds, for the purpose of executing such scheme and artifice, in violation of Title ig, United States Code, section 1343: Act Date Exon To Nature of Wire a) 8/30/85 Banque arabe ot Morrison and Telex Internationale Foerster d'Investissement Los angeles, cA ("BAZIN") Paris, France b) 9/4/85 Banque Arabe et Morrison and Telex Internationale Foerster d'tnvestissement Los Angeles, CA ("BAIT") Paris, France el) 10/1/85 First National citibank Wire Transfer Bank of Boston New York, NY $3, 066,228.33 (herinafter "Bank of Boston") Boston, MA ©2) 10/1/85 Bank of Boston citibank Wire Transfer Boston, MA New York, Ny §$2,113,771.67 63) 10/1/85 Bank of Boston First Wisconsin Wire Transfer Boston, MA International $3, 840,000.00 Bank New York, NY ©4) 10/1/85 Bank of Boston Crocker Bank Wire Transfer Boston, MA International $3,840,000 New York, NY27 ©5) 10/1/85 Bank of Boston Irving frust Wire Transfer Boston, MA New York, RY $535,040.00 66) 10/1/85 Bank of Boston Barclays Bank Wire Transfer Boston, MA New York, NY $4,584, 960.00 ©7) 10/1/85 Bank of Boston First American Wire Transfer Boston, MA Bank $478,000.00 New York, NY ©8) 10/1/85 Bank of Boston Pirst American Wire Transfer Boston, MA Bank $3,022, 000.00 New York, NY a) 10/1/85 Bec Amer Lodhi Telex London, England c/o Morrison and Foerster Los Angeles, CA e) 10/2/85 Morgan Guaranty Bank of Boston = Wire Transfer New York, NY Boston, MA $7,900,000 £) 4/2/88 Independence Bank Ghaith Pharaon ‘Telex Encino, CA Georgia 9) 5/17/88 —-Bankamerica Independence Wire Transfer International Bank $4,000,000 New York, NY Encino, CA (Title 18, United States Code, Sections 1343 and 2) RACKETEERING ACTS To THROUGH FOUR Racketeering Act two 1. The allegations contained in paragraphs 1, 2 and 3 of COUNT ‘TWO of this Indictment are realleged and incorporated by reference as if fully set forth herein. 2. On or about May 25, 1988, the BCCI Defendants, and Defendants GHAITH PHARAON, AGHA HASAN ABEDI, and SWALEH NAQVI, aided and abetted by one another, for the purpose of executing the aforesaid scheme and artifice to defraud and attempting to de so, knowingly and28 willfully transmitted and caused to be transmitted in interstate commerce by means of wire communications certain writings, signs, signals, pictures and sounds, namely, a wire transfer of approximately $3,000,000 of funds from Washington Mutual Savings and Loan Association, Seattle, Washington, to a firm in New York, New York, for the purchase of CenTrust subordinated debentures. (Title 18, United States code, Sections 1342 and 2) Racketeering Act Three 1. The allegations contained in paragraphs 1, 2 and 3 of COUNT TWO of this Indictment are realleged and incorporated by reference as if fully set forth herein. 2. On ox about the dates set forth below, the above Defendants transmitted and caused to be transmitted in interstate and foreign commerce, certain writings, signs, signals, pictures, and sounds, for the purpose of executing such scheme and artifice, in violation of Title 18, United States Cade, Section 1343: act Date From Nature of Wire a) 5/3/88 GHATTH PRARAON PHLBB Regulator Telephone call Georgia Washington, 0.c. b) 5/23/88 ACCT Group Interedec Telex Londen, Savannah, GA England ©) 5/24/88 Citibank BCCL overseas Wire Transfer New York, NY (Paris) approximately Paris, France $25,000,000 a) 7/27/88 CenTrust security Pacific Wire Transfer Miami, FL International Bank approximately New York, NY $25, 000,000 (Title 28, United States Code, Sections 1343 and 2)22 Act 1. The allegations contained in paragraphs 1, 2 and 3 of COUND TWO cf this Indictment are realleged and incorporated by reference as if fully set forth herein. 2. On or about May 25, 1988, in the District of the District of Columbia and elsewhere, the BCCI Defendants and Defendants GHAITH PHARAON, AGHA HASAN ABEDI, and SWALEK NAQVI, aided and abetted by one another, for the purpose of executing the aforesaid scheme and artifice to defraud and attempting to do s0, knowingly and willfully transmitted and caused to be transmitted in interstate commerce by means of wire communications certain writings, signs, signals, pictures and sounds, to wit: wire transfer of approximately $2,500,000 of funds from Safeco Insurance Co., Seattle, Washington, and a firm in New York, New York, for the purchase of CenTrust subordinated debentures. (Title 18, United states code, Sections 1343 and 2) All in violation of Title 18, United States Code, Sections 1962(a) and 1963, and Title 18, United States Code, Section 2. EORFEITURE The Grand Jury further charges: 1, The allegations contained in COUNT THREE of this Indictment are hereby realleged and incorporated by reference herein, for the purpose of alleging forfeitures pursuant to the provisions of Title 18, United States Code, Section 1963. 2. fhe Defendants AGHA HASAN ABEDI,30 SWALEH NAQVI, and GHAITH PHARAON have property constituting, and derived from, proceeds which they obtained directly and indirectly, from racketeering activity in violation of Title 18, United states Code, Section 1962, thereby making such property, or an amount of cash equivalent thereto, forfeitable to the United States of America pursuant to Title 18, United states Code, Section 1963(a)(3). Said properties consist ef any and all proceeds the Defendants received as a result of the racketeering activity alleged in Racketeering Acts Iwo through Four of Count ‘three. (Title 18, United States Code, Section 1963.) Be RYE BILL: ol hb Biko FOREPERSON YB. STEPHENS ROBERT S. MURLUER, TIT Attorney for the United states in Assistant Attorney General and for the District of Columbia Criminal Division United States Department of JusticeUNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA Grand Jury Sworn in on January 16, 1991 Holding a Criminal Term UNITED STATES OF AMERICA nv crim No. 91-0655 (IHG) AGHA HASAN ABEDI Violations: SWALEH NAQVI, and 1a USC _§372 GHAITH R. PHARAON (Conspiracy) ; 48 USC §1343 (Wire Defendants. Fraud) ; vate ee ee eee was x 18 USC §1962(a) (Racketeer ing ca pace Conspiracy) ; JOYCE HENS Giceal, 16 use §2, (Aiding and Abetting) . SUPERSEDING INDICTMENT THE GRAND JURY CHARGES: FILED 18 OPEN GoURT count ove OM} 1299 Introduction CLERK, U.S. DISTRICT COURT DISTRICT OF COLUMBIA AP ALL TIMES MATERTAL TO THIS INDICTMENT: 1. The Federal Reserve system ("FRS") was an agency of the United States. The Board of Governors of the FRS ("the Board") had primary responsibility for supervising and regulating activities of bank holding companies and had residual responsibility for United states Offices of foreign banks. 2. The Federal Deposit Insurance Corporation ("FOIC") was an agency of the United States. The FDIC supervised FDIC- insured, state-chartered savings banks which were not members of the PRS. The FDIC examined and supervised those banks under its purview, approved or denied applications for structural or corporate changes, and ruled on applications for insurance. The . SUPERSEDIN: ced2 FDIC insured deposits in amounts up to $100,000 per account in banks which it insured. 3. The Federal Home Loan Bank Board ("FHLBB") was an agency of the United states established to regulate and supervise savings and loan associations and savings banks insured by the Federal Savings and Loan Insurance Corporation ("FPSLIC"). As part of its duties, the FHLBB governed the FSLIC. ‘The FHLBE examined insured institutions to ensure they were operated in a safe and sound manner and in conformity with applicable laws and regulations. 4. The FSLIC was an agency of the united states established to protect depositors by insuring deposits in savings and loan associations and in certain savings banks in amounts up te $100,000 per account. 8. The Office of the Comptroller of the Currency ("occ") was an agency of the United States. The OCC regulated, examined and supervised nationally-chartered banks to ensure they were operated in a safe and sound manner and in conformity with applicable laws and regulations. 6. Independence Bank ("Independence"), Encino, California, was chartered, regulated and supervised by the state of California and had deposits insured by the FDIC. 7. The National Bank of Georgia (sometimes referred to as "NBG"), Atlanta, Georgia, vas regulated and supervised by the occ and had deposits insured by the FDIC. 8. GRP, Inc. was a corporation organized and existing3 under the laws of the State of Georgia, and was owed by GHAITH R. PHARAON. GRP, Inc., at times, was the holding company for NBG. 9. RBG Financial Corporation was a corporation organized and existing under the laws of the State of Georgia. NBG Financial Corporation, from 1983 onward, was the holding company of NBG. 20, Interedec (Georgia), Ltd. was a foreign company organized under the laws of the Bahamas, and was the sole owner ef NBG Financial Corporation. 31, Interedec (Georgia), N.V. was a foreign corporation organized under the laws of the Netherlands Antilles, and was owned by GHAITH R. PHARAON. Interedec (Georgia) N.V. was the sole owner of Interedec (Georgia) Ltd. 12. Financial General Bankshares was a bank holding congany authorized under the Bank Holding Company act. Financial General Bankshares had numerous subsidiary banks with state and federal charters. The subsidiary banks were insured by the Federal Deposit Insurance Corporation (FDIC). 43. Credit and Commerce American Itoldings (CCAH), and its wholly owned subsidiary, Credit and Commerce American Investment (CCAI), were corporations formed in 1978 to acquire control and ownership of Financial General Bankshares. CCAH and CCAI were bank holding companies under the Bank Helding Company Act. CCAH and CCAI owned several subsidiary banks doing business under the name "First American Bank." Tho various First American Banks had national bank charters and were insured by the PDIC.4 14. As of August 9, 1988, the Office of Thrift supervision ("OTS") succeeded to the interests of the FHLBB and the FSLIC with respect to the regulation and supervision of savings and loan associations and certain savings banks, and the FDIC succeeded the FSLIC as the insurer. 15. Cenfrust Savings Bank, a State Savings Bank ("CenTrust"), was located in Miami, Florida, and was chartered by the State of Florida. CenTrust was regulated and supervised by the FHLBB and had deposits insured by the FSLICc until august 9, 1989. Cenfrust was also subject to regulation and supervision by the Florida Department of Banking and Finance. 16. As of August 9, 1989, the insurance of the deposits of Cenfrust was transferred tc the FDI¢ and the OTS began its role as regulator and supervisor of CenTrust. 17. CenTrust Trust, formerly the Westport Company, was a wholly-owned subsidiary of centrust. 18. BCCI Holdings (Luxembourg), $.A. ("BCCI Holdings") was # foreign bank holding company established under the laws of Luxembourg. 19. BCCI Holdings owned and controlled Bank of Credit and Commerce International S.A, {"BCCI S.A."), a foreign bank established under the laws of Luxembourg. BCCI S.A. operated agencies in Los Angeles, California and New York, New York. 20. BCCI Holdings also owned and controlled Bank of Credit and Commerce International (Overseas) Limited ("BCCI Overseas"), a foreign bank established under the laws of the Cayman Islands.5 BCCI Overseas operated agencies in Miami, Tampa and Boca Raton, Florida. 21. The term "BCCI Group," as used in this Superseding Indictment, means the combination of BCCI Holdings, BCCI S.A. and BCCI Overseas. 22. International Credit and Investment Company (overseas) Limited ("ICIC Overseas") was a foreign bank established under the laws of the Cayman Islands. 23. Defendant AGHA HASAN ABECT was a principal of BecT Holdings, BCCI (Overseas), BCCI S.A. and ICIC Overseas. 24. Defendant SWALEH NAOQVI was a principal of BccT Holdings, BCCT (Overseas), BCCI S.A. and ICIC overseas. 25. Defendant GHAITH R. PHARAON was a Saudi Arabian businessman and a shareholder in the BCCI Group. the conspiracy 26. Beginning in or about January 1978, the exact date being unknown to the Grand Jury, and continuing until in or about July 1991, in the District of Columbia and elsewhere, the Defendants AGHA HASAN ABEDI, SWALEH NAQVI, and GHAITH R. PHARAON knowingly and wilifully combined, conspired, confederated, and agreed together and with each other, and with others, both known and unknown to the Grand Jury, (a) to defraud the United states, in particular the Board,6 the OCC, FDIC, FHLBB, and FPSLIC, of and concerning their right to have their business and affairs conducted free from deceit, dishonesty, impairment and obstruction, by impeding, hindering, obstructing and defeating by deceitful and dishonest means the jawful functions and operations of said agencies of the United States in regulating and supervising activities of the BCC! Group and their United States branches or agencies, ICIC overseas, National Bank of Georgia, CCAH, Independence, and CenTrust, and (») to commit offenses against the United States, that is: (1) to devise and intend to devise a scheme and artifice to defraud and to obtain money and property, namely. insurance protection and continued insurance protection by the FDIC, backed by funds and security of the United States, of deposits of Tndependence, by weans of fraudulent and false pretenses, representations and promises, and te transmit and cause to be transmitted by means of wire communications in interstate and foreign commerce, certain writings, signs, signals, pictures, and sounds, for the purpose of executing such scheme and artifice, in violation of Title 18, United states code, section 1343; {2) to devise and intend to devise a scheme and artifice to defraud and to obtain money and property, namely, insurance protection and continued insurance protection by the FDIC, backed by funds and security of the United states, of deposits of Independence, by means of fraudulent and false pretenses, representations and promises, and for the purpose of7 executing and attempting to execute the schema and artifice, knowingly te cause to be delivered by the United states Postal Service various mail matter, in violation of Title 18, United States Code, Section 1341; (3) to knowingly execute and attempt to execute a schene and artifice to defraud a federally insured financial institution, and by means of fraudulent and false pretenses representations and promises to obtain moneys, funds and other property owned by or under the control of such a financial institution, in violation of Title 18, United states code Section 1344; (4) to knowingly and willfully make false, fictitious and fraudulent statements to the FHLBB, and to knowingly and willfully make and cause to be made false entries in the books reports and statements of CenTrust, in violation of Title 18, United states Code, Sections 1001 and 1006; (5) to knowingly and willfully cause to be nade false entries, including material omissions, in the books and records of Independence with the intent to deceive the Board and FDIC, in violation of Title 18, United states Code, Sections 1001 and 1005; (6) to devise and intend to devise a scheme and artifice to defraud persons and entities throughout the United States of money and property, namely, funds from purchasers of subordinated debentures issued by CenTrust, by means of false and fraudulent pretenses, representations and promises, and for8 purposes of executing said schene, to transmit and cause to be transmitted by means of wire communications in interstate ang foreign commerce, certain writings, signs, signals, pictures, and sounds, in violation of Title 18, United States Code, Section 1343; (7) to devise and intend to devise a scheme and artifice to defraud persons and entities throughout the United States of money and property, namely, funds from purchasers of subordinated debentures issued by CenTrust, by means of false and fraudulent pretenses, representations and prowises, and for the purpose of executing said scheme, to cause to be placed in an authorized depository for mail matter things and matters to be delivered by the United states Postal Service, in viclation of Title 18, United states Code, Section 1341. ‘The Manners and Means of the Conspiracy It was a part of the conspiracy that: 27. Defendants would enrich Defendants AGHA HASAN ABEDI, SWALEM NAQVI, GHALTH R. PHARAGN, their associates, and the BCCI Group by taking advantage of opportunities to deceive and exploit United States financial, institutions, deceive united states Federal regulatory agencies, and deceive persons and entities throughout the United states. it was further part of the Conspiracy that: 28. Defendants AGHA HASAN ABEDI, SWALEH NAQVI, their co- conspirators and the BCCI Group would acquire and maintain control and influence over National Bank of Georgia and9 Independence with the aid of GHAITH R. PHARAON, through deceptive stock purchases by way of hidden stock pledges, nominee agreements, nonrecourse loans, loan releases, beneficial interest agreements and outright falsehoods, fabrications and omissions in applications and reports filed with state and federal regulatory agencies. 29. Defendants AGHA HASAN ABEDI, SWALEH NAQVI their co- conspirators and the BCCI Group would acquire and maintain control and influence over CcAH, through deceptive stock purchases by way of hidden stock pledges, nominee agreements, nonrecourse loans, loan releases, beneficial interest agreements and outright falsehoods, fabrications and omissions in applications and reports filed with state and federal regulatory agencies. 30. Defendants AGHA HASAN ABEDI, SWALEH NAQVI their co- conspirators and the BCCT Group would use IcIC Overseas to facilitate deception of the Board, occ, FDIC, FSLIC and FHLBB concerning the involvement of the BCCI Group, AGHA HASAN ABEDT, SWALEH NAQVI and GHATTH R. PHARAON in matters involving NBG, Independence and ccaH. 32. Defendant SWALEH NAQVI and his co-conspirators would deceive and cause the deception of regulators as to the amount of regulatory capital on the baoks of the National Bank of Georgia py engaging in a sham transaction which created the appearance of @ $10 million capital infusion, when in truth and in fact, as the Defendants well knew, no capital infusion was made, said shaw10 transactions occurring so that the National Bank of Georgia would obtain regulatory approval to purchase other banks. 32. When Defendant GHAITH R. PHARAON was in financial difficulty, in order to keep NBG assets under the control and influence of the BCCI Group, Defendants AGHA HASAN ABEDI and SWALEH NAQVI caused NBG to be sold to CCAH: a) by participating in negotiations in which the sale price was negotiated; b) by setting up real and sham “Loans” to CcAH shareholders, amounting to approximately $220 million, for the purchase of additional CCAH stock, thus providing CCAH capital to purchase NBG. 33. Defendants AGHA HASAN ABEDI and SWALEH NAQVI would cause loans to be made from BCCI (Overseas) to the two highest ranking officers of CCAH for their purchase of CCAH shares, under the terms of these agreements: a. The borrowers would not be held personally liable for the loans, rather the shares would be pledged to the 3ccz Group and the BCCI Group would ke limited to collecting against the CCAH shares pledged as collateral; and b, he BCCI Group would agree to find a buyer for the CCAH shares at a “nutually agreeable price; ¢. The loan and share agreements were structured such that the BCCI Group's promises to hold the borrowers harmless on the loans and to find a buyer for the CCAH stock at a "mutually agreeable price" were in separate documents -~ "side agreements"an ~~ from the loan agreements and the pledge agreements. 34. Less than 18 months after the aforementioned loans from BCCI (Overseas) to the two CCAH officers, Defendant SWALEH NAQV1 would cause the sale and transfer of the borrowers’ CCAH shares at a price resulting in a profit of millions of dollars to the borrowers. 35. Defendant GHAITH R. PHARAON, the owner of approximately 25 percent of the stock of CenTrust, would use his relationship with the BCCI Group and Defendant SWALEH NAQVI to arrange for a branch of the BCCI Group to purchase approximately $25,000,000 of the total $150,000,000 CenTrust subordinated debentures in order to mislead and deceive regulators and investors as to the true market for the CenTrust subordinated debentures. 36, Defendant GHAITH R. PHARAON would agree with the BCCL Group and Defendant SWALEH NAQVI that the BCCI Group would purchase the CenTrust subordinated debentures and that Defendant GHAITH R. PHARAON would guarantee the repurchase of the subordinated debentures at BCCI's acquisition cost, thereby eliminating market risk to BCCI and knowingly facilitating the @eception of other investors as to the true market for the cenfrust subordinated debentures. over nce _of the Cons} In furtherance of the conspiracy, and in order to effect the objects thereof, the defendants and their co-conspirators committed and caused to be committed, in the District of Columbia and elsewhere, the following overt acts, among others:Overt Acts Relating te NEG Initial Acquisition 1. On or about Octeber or November 1977, in New York, New York, AGHA HASAN ABEDI met with a shareholder of the National Bank of Georgia concerning possible United States investments in financial institutions. 2. On or about November 1977, in Washington, D.c., AGHA HASAN ABEDI, SWALEH NAQVI, and a representative of GHAITH R. PHARAON met concerning potential bank purchases, including National Bank of Georgia. 3. On or about December 27, 1977, at an unknown location, GHAITH R. PHARAON signed an agreement with a shareholder of the National Bank of Georgia to purchase the shareholder's shares (Agreement No. 1"). 4. On or about Becember 27, 1977, at an unknown location, GHAITH R. PHARAON signed an agreement with certain shareholders of the National Bank of Georgia to purchase certain shares of NBG stock (the “SPS Agreement"). 5. On or about January 5, 1978, in Hong Kong, an affiliate of the BCCT Group provided GHATTH R. PHARAON with approximately $2,438,120 for the purchase of certain NBG shares under Agreement No. 2. 6. On or about May 18, 1978, in Saudi Arabia, GHAITH R. PHARAON sent a telex to London, England, which requested his brother to contact AGHA HASAN ABEDI or SWALEH NAQVI to send §10.25 million to an account under the control of GHAITH R.13 PHARAON in Houston, Texas, of which $6 million was to be used to purchase NBG shares. 7. On or about May 18, 1978, in London, England, an employee of the BCCI Group prepared an internal memorandun instructing $10.25 million be transferred trom BCCI (Overseas) Grand Cayman branch, to an account in the name of Arabian Service Corporation, Redec Escrow Account No. 10060635 at First city National Bank in Houston, Texas. On or about May 22, 1978, the BCCI Creup transferred by wire $10.25 million from BCCI (Overseas), Grand Cayman branch, to an account under the contro] of GHAITH R. PHARAON at First City National Bank in Kouston, Texas. On or about May 30, 1978, at an unknown location, the attorney-in-fact for GHAITH R, PHARAON signed a Form F-11 filed with the Occ, which stated in part the source of the funds to be used to purchase certain shares under the SPS Agreement was to be “Pharaon's own personal funds unless Pharaon arranges financing for a portion of the purchase price” and that "{nJo such financing arrangements have yet been made." 10. On or about June 7, 1978, at an unknown location, the attorney-in-fact for GHAITH R. PHARAON signed a Form F~11 filed with the occ, which stated in part that the source of the funds to be used by GHAITH R. PHARAON to purchase certain shares, both under Agreement No. 1 and the SPS Agreement, was "Pharaon's own personal funds unless Pharaon arranges financing for a portion of the purchase price" and "[nJo such financing arrangements have14 yet been made." 11. On or about June 30, 1983, the BCCI Group caused a $5,000,000 capital contribution to NBG Financial corporation. 12. On or about July 7, 1983, an employee of the Bcct croup confirmed to a representative of GHAITH R. PHARAON that GHAITH R. PHARAON was liable for only 50% of the June 30, 1983 capital contribution described in overt Act No. 11. Sham $10 Million Transaction 13. Beginning on or about September 1980 and continuing through on or about December 1983, GHAITH R. PHARAON, through entities under his control, sought to and did acquire Georgia banks, including First Bank & Trust Company, Clayton County Bank and First Commercial Bank of Buford. 14, On or before September 23, 1980, GHATTH R. PHARAON contacted SWALEH NAQVI to discuss the acquisition of the banks. 45. On or before February 15, 1982, in response to the Federal Reserve Bank of Atlanta's requirement of an additional capital contribution to GRP, Inc. prior to approval of the acquisition of the smaller banks, an attorney for GRP, Inc. and NBG represented that an additional $10,000,000 capita? contribution would be made by GHAITH R. PHARAON. 26, On or about March 9, 1982, an employee of the National Bank of Georgia requested ancther employee of the National Bank of Georgia to have $10,000,000 wire transferred from the BCCI Group to GRP, Inc.'s account at the First National Bank of Boston, said transaction to occur on April 26, 1982.15 27. On or about April 23, 1982, in Atlanta, Georgia, the second of the employees mentioned in Overt act No. 16, with the help and assistance of two other National Bank of Georgia employees, sent a telex to SWALEH NAQVI in Karachi, Pakistan, which set forth certain financial data concerning bank acquisitions and requested funds be sent to an account under the control of GHAITH R, PHARAON so that said funds could be used to bolster NBG's assets, with a promise to return the funds five (5) days after the transaction. 18. On or about April 29, 1982, the BCCT Group caused $19,000,000 to wired into GRP Inc.'s account at First National Rank of Boston, and subsequently wired to GRP, Inc.'s account at the National Bank of Georgia. 19. 0n or about May 6, 1982, an employee of the National Bank of Georgia caused $10,000,000 to be wired from NBG in Atlanta, Georgia, through Bank of America International in New York City, to the BCCI Group in London, England. Stock Pledges by Pharaon to the BCCI Group 20, In or before May 1980, GHAITH R. PHARAON directed an employee in Houston, Texas to forward NRG shares to an affiliate of the BCCI Group in Geneva, Switzerland. 21. Beginning on or before May 23, 1980, the shares were forwarded to an affiliate of the BCCT Group on the instructions of GHAITH R. PHARAON, with the receipt of such shares being reported to SWALEH NAQVI. 22. On or about January 1, 1985, GHAITH R. PHARAON executed1s a Memorandum of Deposit of Stocks and Shares and other Marketable Securities under which GHAITH R. PHARAON pledged all outstanding shares of NBG Financial Corporation to the BCCI Group, which document, among its terms, granted the BCCI Group the right to: “exercise at its discretion (in the name of the Depositor or otherwise at any time whether before or after any demand for payment hereunder and without any further consent or authority on the part of the Depositor) in respect of the Securities or any of then any voting rights as if BCC or its nominees were a sole beneficial owner thereof." 23, On or about January 1, 1985, GHAITH R. PHARAON executed certain documents relating to the transfer of stock of the holding company for WEG. Personnel Matters 24, In or about 1979, AGHA HASAN ABEDT met with GHAITH R. PHARAON and others in London, England to introduce and recommend a new Chief Executive Officer for NBG, said person having been previously associated with BccI. 25, On or about January 1980, the person recommended by AGHA HASAN ABEDI was hired as Chief Executive Officer of NBG (Employee No. 1). 26. On or about October 15, 1982, Employee No. 1 authorized a $1,500 housing differential for another former employee of the BCCI Group, then employed by NEG (Employee No. 2) to "offset the expenses incurred for housing because of [his] being required by17 the Bank of Credit and Commerce International $.A. to relocate te Atlanta." 27. n or about October 15, 1982, Employee No. 1 authorized a $500 housing differential for another former employee of the BCCI Group, then employed by NBG (Employee No. 3) to “offset the expenses incurred for housing because of [his] heing required by the Bank of Credit and Commerce International $.A. to relocate to Atlanta." 28. On or about october 15, 1982, Employee No. 1 authorized a $500 housing differential for another former employee of the BCCI Group, then employed by NBG (Employee No. 4) to "offset the expenses incurred for housing because of [his] being required by the Bank of Credit and Commerce International S.A. to relocate to Atlanta." 29. On or about September 20, 1985, Employee No. 2 authorized a $1,000 increase, retroactive to January 1985, for mployee No. 4 to bring his salary in line with Bccr compensation policy. Americas Coordinating Committee 30. On or about April, 1985, the BCCI Group formed a group to monitor the BCCI Group's United States and Latin American operations, denominated the "Americas Coordinating Committee." 32. On or about April 24, 1985, in New York, New York, officers of the BCCI Group held a meeting of the Americas Coordinating Committee, which included among its attendees Employee Ne. 2 from the National Bank of Georgia.18 32. On or about June 2, 1985, at the BCCI Regional Caribbean offices in Miami, Florida, officers of the sccr Group held a meeting of the Americas Coordinating Committee, which included among its attendees Employee No. 2 from the National Bank of Georgia. 33. On or about July 22, 1985, in New York City, New York, employees of the BCCI Group held a meeting of the americas Coordinating Committee, which included among its attendees Employee No. 2 from the National Bank of Georgia. vel f_Sale of NBG 34. On of about September 19, 1986, Defendant SWALEH NAQVI met with a National Bank of Georgia employee in London concerning the sale of NBG to CCAH. 35. On or about December 18, 1986, in Washington, D.C., documents in the nature of an "Option Agreement" were signed under which CCAH was to pay Defendant GHAITH R. PHARAON approximately §80 million for an option to purchase NBG. 36. On or about August 19, 1987, in New York, New York, documents were signed completing the transfer of NBG to CCAK for the balance of approximately $140 million plus interest. overt Acts Relating to CCAR 37. Between on or about 1982 through 1988, Defendants AGHA HASAN ABEDI and SWALEH NAQVI did cause to be created and signed documents in the nature of loan and pledge agreements related to the purchase of CCAH stock. 38. On or about 3 date after July 25, 1986, an employee of19 the BCCI Group signed documents relating to: (1) loans from BCCI (Overseas) to two members of CCAH management for the borrowers purchase of CCAH shares at approximately $2,200 per share; (2 the borrowers! pledging the CCAH shares to BCCI (Overseas) as security for the loan; and (3) side agreements, which, among other terns, stated that the borrowers would not be held personally liable on their loans and that BCC] would agree to find a buyer for the shares at a "mutually agreeable price". 39. On or about August 14, 1987, an employee of the BCCI Group signed a set of documents, similar to those described in Overt Act No. 38 above, relating to additional loans by BCCI (Overseas) for the purchase by the borrowers of shares of CCAK and the sale of said CCAH shares; 40. On or about March 31, 1988, one of the borrowers sold 3,200 shares of CCAH stock and the other sold 1600 shares of CCAK stock for §6,800 per share in a transaction arranged by defendant SWALEH NAQVI resulting in a profit of several million dollars to the two borrowers. Overt Acts Relating to Independence sank 41. On or about January 27, 1984, in Los Angeles, california, Defendant AGHA HASAN ABEDI had a conversation with an employee of the BCCI Group working in California, concerning the purchase by the BCCI Group of a bank on the west coast of the United states. 42, On or about August 28, 1984, in California, the employee referred to in Overt Act No. 41 had a conversation with20 the then-Chairman of Independence, Encino, Califernia concerning the fact that Independence was for sale. 43. On or about November 13, 1984, the employee referred to in Overt Act No. 41 wrote letters to Defendants AGHA HASAN ABEDI and SWALEH NAQVI, in each of which he discussed the acquisition by BCCI of Independence. 44. In or about November 1984, Defendant AGHA HASAN ABEDI had a telephone conversation with the employee referred to in Overt Act No, 41 in California, in which it was discussed that Defendant GHAITH R. PHARAON was interested in purchasing Independence hinself. 45. On or about November 30, 1984, the employee of the BCCI Group referred to in overt Act No. 41 signed a "letter of intent," confirming the willingness of a then-unnamed principal to purchase all of the capital stock of Independence. 46. Between in or about December 1984 and January 1985, Defendant GHAITH R. PHARAON in his personal capacity and Defendant SWALEH NAQVI on behalf of the BCCI Group signed an Investment Advisory Agreement. 47. Between in or about November of 1984 and April of 1985, representatives, agents and/or employees of the BCCI Group had conversations with the then owners of Independence concerning the purchase of Independence. 48. In or about April 1985, an employee of the BCCI Group had conversations with employees of the First National Bank of Boston ("Bank of Boston") concerning obtaining financing foraa Defendant GHAITH R. PHARAON to be used for a portion of the purchase price for Independence sank. 49, On or about April 30, 1985, Defendant GHAITH R. PHARAON signed a stock purchase agreement with the then owners of Independence, pursuant to which Defendant GHAITH R. PHARAON agreed to purchase all of the capital stock of Independence Bank for $23,000,000.09. 50. On or about May 17, 1985, Defendant GHAITH R. PHARAON signed a memorandum agreement with Defendant IcIC Overseas, which agreement provided, among other things, tha’ a. Pharaon and IcIc have agreed to acquire 190% of Independence from the present shareholders; b. all shares vould be held in the name of Pharaon but only 15% were to be held by Pharaon as the beneficial owner; and ©. Pharaon was to hold the remaining 85% of the shares in a fiduciary capacity for ICIC. 51, On or about May 17, 1985, Defendant SWALEH NAQVI signed the memorandum agreement referred to in Overt Act No. 50 on behalf of Defendant ICI¢ overseas. 52. On or about June 10, 1985, Defendant GHATTH R. PHARACN signed a document entitled "Notice of Acquisition of controi" which was filed with the FDIC and the California State Department of Banking, which called for the following information in question number 3: "Indicate the full name of each acquiring party or transferee, the total number of shares presently held by each, the total number of shares to be purchased or22 transferred to each and the total number of shares to be held by each following completion of the proposed transaction. Indicate names of beneficial owners if shares are to be registered in another name." the response to which disclosed the only purchaser to be Defendant GHAITH R. PHARAON. 53. On or about June 11, 1985, in Los Angeles, California, Defendant CHAITH R. PHARAON met with members of the California State Banking Department, in the course of which meeting Defendant GHAITH R. PHARAON failed to disclose the existence of the agreement between Defendant TcIc Oversees and Defendant GHAITH R. PHARAON which was executed on or about May 17, 1985 and which is referred to in overt Act No. 50. 54. On or about August 30, 1985, an employee of the BCCE Group had a conversation with another employee of the BCCI Group in which the first of these employees requested a loan be made by the BCCI Group to Defendant GHAITH R. PHARAON for purposes of acquiring Independence. 55. On or about August 30, 1985, an employee of the BCCE Group sent a telex which confirmed that the deposit of $8.5 million of Defendant GHATTH R. PHARAON will be held in an account at Banque Arabe et Internationale D!Investissement (BAIT), Paris, France. 86. On or about August 29, 1965, an employee of the BCcT Group sent a telex to BAII which instructed BAIT to confirm to the FDEC and the California State Banking Department, care of23 Defendant GHATTH R. PHARAON's attorney, that Defendant GHATTH R. PHARAON had in excess of $8.4 million on deposit with BAII, which funds were to be used by Defendant GHAITH R. PHARAON towards the purchase of Independence 57. On or about September 4, 1985, BAIZ confirmed by telex to the California State Banking Department, care of Defendant CHAITH R. PHARAON's attorney, that it held in excess of $8.4 million on deposit for Defendant GHAITH R. PHARAON, which cunds Were to be used by Defendant GHAITA R. PHARAON towards the purchase of Independence. 58. On or about September 5, 1985, Defendant GHAITH R PHARAON caused to be delivered to the California State Banking Department a letter, This letter stated that enclosed was a: “Telex dated September 4, 1985 also from BAIT confirming that Pharaon has available in excess of $8.4 millicn on deposit for the portion of the purchase price not being financed.“ 89. In or about August 1985, employees of the BCCI Group had conversations with representatives of BAII concerning the issuance by BAII of a letter of credit to the Bank of Boston in the amount of $5 million. 60. On or about August 29, 1935, an employee of the BcCi Group sent a telex to BAIT instructing BAII to confirm by telex to the FDIC and the California state Banking Department, care of Defendant GHAITH R. PHARAON's attorney, that BAII had agreed to issue a stand-by letter of credit in the amount of $5 million in favor of the Bank of Boston as security for the Bank of Boston's24 loan to Defendant GHAITH R, PHARAON to purchase Independence. 61. On or about August 30, 1985, BAII sent a telex to the California state Banking Department and the FDIC, in care of Defendant GHAITH R. PHARAON's attorney, concerning the issuance by BAIT of a stand-by letter of credit in the amount of $5 million in favor of the Bank of Boston as security for the Bank of Boston loan to Defendant GHAITH R. PHARAON to purchase Independence. 62. On or about September 5, 1985, Defendant GHAITH R. PHARAON caused his attorney to deliver a letter to the California state Banking Department confirming the availability of the §5 million letter of credit to be issued by BATT. 63. On or about September 30, 1985, Defendant GHAITH R. PHARAON signed an "Acquisition Promissory Note" for $12.6 million with the Bank of Boston. 64. On or akout October 1, 1985, BAII issued a stand-by letter of credit in the amount of $5 million in favor of the Bank of Boston, which letter of credit secured the Bank of Boston loan to Defendant GHATTH R. PHARAON. 65. On or about October 1, 1985, the BCCI Group issued a $5 million counter-guarantee to BAIT. 66. On or about October 1, 1985, agents of the BCCI Group, and Defendant GHAITH R. PHARAON caused the Bank of Boston to take acts affecting the distribution of funds completing the sale of all the capital stock of Independence Bank to Defendant GHAITH R. PHARAON.25 67. On or about October 1, 1985, Defendant CHAITH R. PHARAON appointed the first of the employees of the BCCI Group referred to in Overt Act No. 54 as a Director of Independence 68. From in or about March 1986 to in or about January 1989, Defendants AGHA HASAN ABEDI and SWALEH NAQVI met with and corresponded with the Chief Executive Officer of Independence on numerous occasions regarding personnel and operational matters involving Independence. 65. On or about June 25, 1986, in Paris, France, Defendant GHALTH R. PHARAON wrote a letter to Defendant SWALEH NAQVI which stated in pertinent part: “According to {the Chief Executive Officer of Independence], and even if I established a holding co for the purpose of sheltering some of the bank's income it is unlikely that under the present capital structure the bank would greatly grow without any additional capital, In the present circumstances, and until I have worked out some kind of re-scheduling with the Redec banks, T may face some difficulties in arranging independent facilities for Independence Bk for additional capital. “Therefore I would suggest that for the tine being the 15/85 arrangement be maintained until we can determine the course we want Independence to take, and the degree of capital that needs to be made available if wa want the bank to grow, as well as the return on26 this capital, when compared to other investment opportunities. “IE after meeting with (the Chief Executive Officer of Independence} you are convinced that additional capital is required and the returns on such capital are attractive, I would be prepared to meet with you and modify the 15/85 arrangement in accordance with my earlier discussion with you and Mr. Abedi. Should this be the course to be followed it may also be necessary to have more support from BCCI in terms of management support, and international contacts. 70. On or about July 3, 1986, Defendant SWALBH NAQVI directed agents of the BCCI Group to cause BCcT Overseas (Panama) to make a loan in the amount of $12,631,000 to Defendant GHAITH R. PHARAON, which proceeds were used to repay the Bank of Boston loan to Defendant GHAI R. PHARAON referred to in Overt Act No. 66. 71. In or about July of 1987, in London, England, Defendants AGRA HASAN ABEDI and SWALEH NAQVI met with an individual concerning prospective employment with Independence. 72, On or about December 29, 1987, Defendant SWALEH NAQVI directed an employee of the BCCI Group to cause BCCI Overseas (Grand Cayman) to advance $3,500,000 to Independence. 73. On or about May 17, 1988, an employee of the BCCI Group caused a branch of the BCCI Group in Bahrain to advance $4,000,000 to Defendant GHAITH R. PHARAON, which proceeds were27 added to the capital account of Independence. 74. On or about August 7, 1989, an employee of the BCCI Group caused a branch of the BCCI Group in Bahrain to advance $10,000,000 to Defendant GHATTH R. PHARAON, which proceeds were used to repay a BAIT loan dated on or about July 5, 1989, in the amount of $10,000,000 to Defendant GHAITH R. PHARAON. vert Act: ting toe ce vings Bank Application to FHLBB for Sale of Subordinated Debentures 75. On or about April 12, 1988, Defendant GHAITH R. PHARAOM and another person caused to be filed 2 document titied Amendment No. 1 To FORM Oc" with the FHLBB. 76, Between on or about April 1, 1988, and on or about May 48, 1988, throughout the United States, Defendant GHAITH R. PHARAON and another person and various other employees and agents of CenTrust, together with underwriters, Merrill Lynch Capital Markets and Drexel Burnham Lambert, distributed a preliminary Prospectus and conducted marketing seminars relating to the sale of Cenfrust's subordinated debentures. 77. On or about May 16, 1988, Defendant GHAITH R. PHARAON and another person caused to be filed a document bearing the title "Amendment 3 to FORM o "with the FHLBB. 78. On or about May 19, 1988, Defendant GHAITH R. PHARAOW and another person caused to be filed with the FHLBE a document bearing the title "Amendment 4 to FORM 9c." 79. On or about May 19, 1988, in Washington D.c., Defendant GHAITH R. PHARAON and another person caused to be filed with the28 FHLBB a document bearing the title "OFFERING CIRCULAR" relating to subordinated debentures to be issued by CenTrust. contacts with United States Regulators 80. On or about May 3, 1986, Defendant GHAITH R. PHARAON caused a letter to be delivered to the FHLBB in Washington D.C., which stated in pertinent part that the "subordinated debt issue would add $200 million of additional regulatory capital and thus, additional protection for the FSLIC insurance fund." 81. On or about May 3, 1988, Defendant GHAITH R. PHARAON communicated by telephone from in or near Savannah, Georgia, with a FHLBB employee in Washington, D.C., concerning the CenTrust subordinated debt issue. 82. In or about May of 1988, in Washington 0.C., Defendant GHAITH R. PHARAON and another person met with employees of the FHLBB concerning the issuance by CenTrust of subordinated debentures. 8 Subordinated nvest 83. On or about May 24, 1958, Defendant GHAITH R. PHARAON and others caused to be transmitted by wire approximately $2,500,000 from Safeco Insurance Co., Seattle, Washington, to a firm in New York, New York, for the purchase of CenTrust subordinated debentures. 84, On or about May 25, 1988, Defendant GHAITH R. PHARAON and others caused to be transmitted by wire approximately $3,000,000 from Washington Mutual Savings and Loan Association, Seattle, Washington to a firm in New York, New York, for the29 purchase of Cenfrust subordinated debentures. CT_and Re} bo. ed Debentures 85. On or about May 23, 1988, in Savannah, Georgia, Defendant GHAITH R. PHARAON caused a telex to be sent from Interedec, a company controlled by Defendant GHAITH R. PHARAOK, to London, England, related to the purchase of the CenTrust subordinated debentures in which it was indicated that the beneficiary of the $25 million of the CenTrust subordinated debentures "will be BCC in Paris." 85. On or about May 24, 1988, in New York, New York and Paris, France, Defendants SWALEK NAQVI and GHATTH R. PRARAON and the BCCI Defendants caused BecI overseas (Paris), a branch of the BCC Group, to purchase approximately $25,000,000 of cenTrust subordinated debentures. 87. On or about June 24, 1988, Defendants GHATTH R. PHARAOH and SWALEH NAQVI caused to be mailed from New York, New York, to London, England, three CenTrust subordinated debenture registered certificates, labelled RU i0, RU 11 and RU 12, in the name of BCCE Paris, totalling $25,000,000. 88. On or about July 15, 1988, Defendant GHAITI R. PHARAON caused to be mailed a letter from an employee of Interedec, located in Georgia, to an employee of Cenfrust in Florida, concerning the purchase by Cenfrust of the subordinated debentures previously purchased by BCCI Overseas (Paris), a branch of the BCCI Group, in which it was stated: "[The Chairman of the Board of Cenfrust] had asked me30 to provide relevant details to you in order for Centrust to repurchase the USD 25 million Debentures from BCCI Paris on 27th July 1986 together with interest accrued up to 27th July 1988." 82. On or about July 25, 1988, defendant GHATTH R. PHARAON caused to be delivered a letter from London, England, to Richmond Hill, Georgia, which transferred the CenTrust debentures referred to in overt Act No. 87. 90. On or about guly 27, 1988, the Defendant cHATTH R. PHARAON and another caused Cenfrust to transmit by wire approximately $25,000,000 to Security Pacific International Bank in New York, New York, related to the purchase by CenTrust of the subordinated debentures previously purchased by BCCI Paris. 91. Between on or about July 1, 1988, and March 1, 1989, on several occasions, in Atlanta, Georgia, Defendant GHAITH R. PHARAON and another caused false and fraudulent statements to be nade to federal banking regulators concerning the actual level of regulatory capital of CenTrust. (Title 18, United states Code, Section 371)a1 count Two 2. The allegations contained in paragraphs 3, 4, 14, and 15 through 25, inclusive, of COUNT ONE of this Indictment ere vealleged and incorporated by reference as if fully set forth herein. 2. From in or about January 1988 to in or about July 1988, Defendants AGHA HASAN ABEDI, SWALEH NAQVI, and GHAITH R. PHARAON and others, devised and intended to devise a scheme and artifice to defraud and to obtain money and property by means of false and fraudulent pretenses, representations, and promises; 3. Tt was part of said scheme that: a) Defendant GHAITH R. PHARAON and another would seek to sell CenTrust subordinated debentures to investors; b) Defendant GHAITH R. PHARAON, who owned approximately 25 percent of the stock of CenTrust, would use his relationship with the BCCI Group and Defendant SWALEN NAQVI to arrange for a branch of the BCCI Group to purchase $25,000,000 of the CenPrust subordinated debentures in order to deceive other investors as to the true market for the CenTrust subordinated debentures; ©) Defendant GHAITH R. PHARAON and ancther would agree with the BCCI Group and Defendant SWALEH NAQVI that cenfrust would repurchase any CenTrust subordinated debentures purchased32 by the BCCt Group; 3) Defendant SWALEH NAQVI Would Girect and approve the purchase by BCCI (Overseas) Paris, of approximately $25,000,000 of CenTrust subordinated debentures; @) Defendant GHAITH R. PHARAON and another would cause Centrust Trust to repurchase said subordinated debentures from BCCI (Overseas) Paris, after approximately eight weeks, thus naking the BCCT Group whole and completing the deception of other investors as to the true market for the CenTrust subordinated debentures; £) Defendant GHATTH R. PHARAON and another would cause material misrepresentations and omissions to be made to investors. 4. On or about May 3, 1988, in the District of the Columbia and elsewhere, Defendants GHAITH R. PHARAON, SWALEH NAQVI, and AGHA HASAN ABEDI, aided and abetted by one another and the BCCI Group, for the purpose of executing the aforesaid scheme and artifice and attempting to do so, knowingly and willfully transmitted and caused to be transititted in interstate commerce by means of wire communications certain writings, signs, signals, pictures and sounds to wit: a communication by telephone between the Defendant GHAITH R. PHARAON in Savannah, Georgia and an employee of the FHLBB in Washington, D.c. (Title 18, United states Code, Sections 1343 and 2)1. The allegations in Paragraphs 1 through 25 of COUNT ONE of this Indictment are hereby re-alleged and incorporated by reference as if fully set forth herein. The Enterprise 2. At all times material to this Indictment, the BCCT Group, International Credit and Investment Company (Overseas), Limited ("Ierc overseas"), AGHA HASAN ABEDI, SWALEM NAQVI, GHAITH R, PHARAON, and others known and unknown te the Grand Jury, constituted an "enterprise" as defined in Title 18, United states Code, Section 1961(4), that is, a group of organizations and individuals associated in fact. 3. At ali times material to this Indictment, this enterprise was engaged in, and its activities affected, interstate and foreign commerce. ‘The Racketeering Conspiracy 4. Prom in or about January of 1978, to in or about. July of 1991, in the District of columbia and elsewhere, Defendants AGHA HASAN ABEDI, SWALEH NAQVI, and GHAITH R. PHARAON along with others known and unknown to the Grand Jury, being persons employed by and associated with the enterprise described in paragraph two of this Count, which enterprise was engaged in and the activities of which affected interstate and foreign34 commerce, unlawfully, willfully, and knowingly combined, conspired, confederated, and agreed together ana with each other, and with persons known and unknown to the Grand Jury, to commit an offense against the United states, to wit: to violate Title 18, United States Code, Section 1962(c), that is, to conduct and participate, directly and indirectly, in the conduct of the affairs of the enterprise through a pattern of racketeering activity. 5. It was part of the conspiracy that the Defendants and their co-conspirators would and did commit acts of racketeering activity as set forth below in paragraph 16 of this Count. It was further part of the conspiracy that: 6, Defendants vould enrich Defendants AGHA HASAN ABEDI, SWALEH NAQVI, GHAITH R. PHARAON, their associates, and the BCCI Group by taking advantage of opportunities to deceive and exploit United States financial institutions, deceive United states Federal regulatory agencies, and deceive persons and entities throughout the United states. 7. Defendants AGHA HASAN ABEDT, SWALEH NAQVE, their co- conspirators and the BCCI Group would acquire and maintain contre] and influence over National Bank of Georgia and Independence with the aid of GHAITH R. PHARAON, through deceptive stock purchases by way of hidden stock pledges, nominee agreements, nonrecourse loans, loan releases, beneficial interest agreements and outright falsehoods, fabrications and omissions in applications and reports filed with state and federal regulatory agencies.35 8. Defendants AGHA HASAN ABEDI, SWALEH NAQVI their co- conspirators and the BCCI Group would acquire and maintain control and influence over CCAH, through deceptive stock purchases by way of hidden stock pledges, nominee agreements, honrecourse loans, loan releases, beneficial interest agreements and outright falsehoods, fabrications and omiesions in applications and reports filed with state and federal regulatory agencies. 9. Defendants AGHA HASAN ABEDI, SWALEH NAQVI their co- conspirators and the BCCI Group would use ICTC overseas to facilitate deception of the Board, Occ, FDIC, FSLIC and FHLBB concerning the involvement of the BCCI Group, AGHA HASAN ABEDI, SWALEH NAQVI and GHAITH R. PHARAON in matters involving Nas, Independence and ccAK. 10. Defendant SWALEH NAQVI and his co-conspirators would deceive and cause the deception of regulators as to the amount of xegulatory capital on the books of the National Bank of Georgia by engaging in a sham transaction which created the appearance of @ $10 million capital infusion, when in truth and in fact, as the Defendants well knew, no capital infusion was made, said sham transactions occurring so that the Wational Bank of Georgia would obtain regulatory approval to purchase other banks. 11, When Defendant GHAITH R. PHARAON was in financial difficulty, in order to keep NBG assets under the control and influence of the BCCI Group, Defendants AGHA HASAN ABEDI and SWALEH NAQVI caused NBG to be sold to CCAH:36 a) by participating in negotiations in which the sale price was negotiated; b) by setting up real and sham “loans" to CCAH shareholders, amounting to approximately §220 million, for the purchase of additional CCAH stock, thus providing cCaH capital to purchase NBG. 12. Defendants AGHA HASAN ABEDT and SWALEH NAQV? would cause loans to be made from BCCI (Overseas) te the two highest ranking officers of Ccan for their purchase of CCAH shares, under the terms of these agreements: 1) The borrowers would not be held personally liable for the loans, rather the shares would be pledged to the BCCI Group and the BCCI Group would be Limited to collecting against the CCAH shares pledged as collateral; and 2) ‘The BCCI Group would agree to find a buyer for the CcAH shares at a “mutually agreeable price"; 3) The loan and share agreements were structured such that the BCCI Group's promises to hold the borrowers harmless on the loans and to find a buyer for the CCAH stock at a "mutually agreeable price" were in separate documents -- "side agreements" from the loan agreements and the pledge agreements 13. Less than 18 months after the aforementioned loans from BCCI (Overseas) to the two CCAK officers, Defendant SWALEH NAQVI would cause the sale and transfer of the borrowers! CCAH shares at a price resulting in a profit of millions of dollars to the borrowers.37 14. Defendant GHAITH R. PEARAON, the owner of approximately 25 percent of the stock of Cenfrust, would use his relationship with the BCCI Group and Defendant SWALEH NAQVI to arrange for a branch of the BCCY Group to purchase approximately $25,000,000 of the total $1$0,000,000 CenTrust subordinated debentures in order to mislead and deceive regulators and investors as to the true market for the CenTrust subordinated debentures 15. Defendant GHATTH R. PHARAON would agree with the BCcT Group and Defendant SWALEH NAQVI that the Bcct Group would purchase the CenTrust subordinated debentures and that Defendant SHAITH R. PHARAON would guarantee the repurchase of the subordinated debentures at BCCI's acquisition cost, thereby eliminating market risk to BCCI and knowingly facilitating the deception of other investors as to the true market for the Cenfrust subordinated debentures. The Pattern of Racketeering Activity 16, It was a further part of the conspiracy that each defendant agreed that they and their co-conspirators would commit two or more of the acts of racketeering set forth below in the conduct of the affairs of the enterprise involving the unlawful control, operation, and manipulation of united states financial institutions and fraud against United States Federai bank regulatory agencies, and fraud against the investing public, constituting violations of Title 18, United States Code, Sections 1341, 1343 and 1344.38 RACKETEERING ACT ONE Bin d_to_Indenende: 2 17, Between on or about January 1, 1984, and December of 1989, Defendants AGHA HASAN ABEDI, SWALEH NAQVI, and GHAITH R. PHARAON, along with the BCCI Group and IcIC Overseas, devised and intended to devise a scheme and artifice to defraud and to obtain money and property, namely, insurance protection and continued insurance protection by the FDIC, backed by funds and security of the United states, for deposits of Independence, by means of fraudulent and false pretenses, representations and promises; 18. It was part of said scheme and artifice that on or about May 17, 1985, Defendant GHAITH R. PHARAON and Defendant SWALEH NAQVI, acting in the name of ICIC Overseas, did enter into a secret agreement whereby 85% of the shares of the stock of independence, with the attendant voting rights, purportedly to be purchased in their entirety by Defendant GHAITH R. PHARAON, were instead pledged to ICTc Overseas; it was further part of said scheme that Defendant GHAITH R. PHARAON did conceal and cause to be concealed this material fact from the FDIC and other regulators through fraudulent conduct and deceit; it was further part of the scheme that the BCCI Group exercised influence ana control over the affairs of Independence Bank; 19. On or about the dates set forth below, the above Defendants transmitted and caused to be transmitted in interstate and foreign commerce, certain writings, signs, signals, pictures,39 and sounds, for the purpose of executing such scheme and artifice, in violation of Title 18, United States Cade, section 1343: Act Pate Exom ze 2 of W: a) 8/30/85 Banque Arabe et Morrison and velex Internationale Foerster d'Investissement Los Angeles, cA (*BAII") Paris, France b) 9/4/85 Banque Arabe et Morrison and Telex Internationale Foerster @'tnvestissement Los Angeles, cA ("BAIT") Paris, France el) 10/1/85 First National citibank Wire Transfer Bank of Boston New York, NY $3,066, 228.33 (hereinafter "Bank of Boston") Boston, MA ©2) 10/2/85 Bank of Boston Citibank Wire Transfer Boston, MA Wew York, NY $1,113,771.67 ©3) 10/1/85 Bank of Boston First Wisconsin Wire Transfer Boston, MA Internationa] $3,840,000.00 Bank Wew York, NY 4) 20/1/85 Bank of Boston Crocker Bank Wire Transiez Boston, MA International $3,840,000 New York, NY 5) 10/1/85 Bank of Boston Leving Trust Wire Transfer Boston, HA New York, NY $545,040.00 6) 10/1/85 Bank of Boston Barclays Bank Wire Transfer Boston, MA New York, RY $4, 584,960.00 27) 10/1/85 Bank of Boston First American Wire Transfer Boston, MA Bank $478,000.00 New York, NY 68) 10/1/85 Bank of Boston First American Wire Transfer Boston, Ha Bank $3, 022,000.00 New York, NY40 a) 10/1/85 BCCI Amer Lodhi Telex London, England ¢/o Morrison and Foerster Los Angeles, CA e) 10/2/85 Morgan Guaranty Bank of Boston Wire Transfer New York, NY Boston, HA $7,900,000 f£) 4/2/88 Independence Bank Ghaith Pharaon ‘Telex Encino, CA Georgia 3) 5/17/88 Bankamerica Independence Wire Transfer international Bank $4,000,000 New York, NY Encino, CA (Title 18, United States Code, Sections 1343 and 2) RACKETEERING ACT TWO Mail Fraud in connection with the National Bank of Georgia 20. Between on or about January 1, 1978, and December of 1987, Defendants AGHA HASAN ABEDI, SWALEH NAQVI, and GHAITH R. PHARAOK, and others including the BCCI Group, devised and intended to devise a scheme and artifice to defraud and to obtain money and property, namely, insurance protection and continued insurance protection by the FDIC, backed by funds and security of the United States, for deposits of the National Bank of Georgia, by means of fraudulent and false pretenses, representations and promises; 21. It was part of said scheme and artifice that on or before January 1, 1985, GHAITH R. PHARAON and the BCCI Group entered into an arrangement Xept secret from the regulators whereby the BCCI Group obtained 50% ownership of the National Bank cf Georgia; it was further part of said scheme that GHAITH R. PHARAON did conceal and cause to be41 concealed this material fact from the occ, the FOIC and other regulators through fraudulent conduct and deceit; it was further part of the scheme that the BCCI Group exercised influence and control over the affairs of the National Bank of Georgia 22. On or about the dates set forth below, the above Defendants and for the purpose of executing and attempting to execute the scheme and artifice, knowingly did cause to be delivered by the United states Postal Service various mail matter: Ast pate of Erom to Description Mailing a) 5/30/78 [unknown] NBG offer to Shareholders Purchase NBG in Alabama stock and elsewhere throughout the United States b) 6/7/78 Houston, TX Office of the Form F-11 Conptroller of the Currency, Washington, D.c. ©) 1/30/80 Houston, Tx NBG offer to Shareholders — Purchase NBG in Georgia stock and elsewhere throughout, the United States a) 12/21/ Atlanta, GA William Letter 81 Floyd, Esq., Atlanta, GA’ e) 2/27/82 Atlanta, GA Federal Letter Reserve Bank, Atlanta, GA42 f) 5/3/82 Atlanta, GA Federal Letter Reserve Bank, Atianta, GA 9) 5/20/82 Atlanta, GA NBG Notice of Shareholders Approval of Plan located in of Acquisition Georgia and and Agreement of through the Merger United states (Title 18, United States Code, Sections 1341 and 2) RACKETEERING ACT THREE uw tion wit! f. 23. On or about between January of 1983 and December of 1989, the Defendants AGHA HASAN ABEDI and SWALEH NAQVI and others known and unknown including the BCCI Group and ICIC overseas, devised and intended to devise a scheme and artifice to defraud and to obtain money and property, namely, insurance protection and continued insurance protection by the FDIC, backed by funds and security of the United States, for deposits of the First American Banks, by means of Fraudulent and false pretenses, representations and promises. 24. It was part of said scheme that between on or about 1983 and on or about 1989, on several occasions, the BCCI Group secretly acquired ownership of CCAH stock through various means, including, among other things, financing and directing the purchase of the stock by others, pursuant to various agreements or arrangements, such es pledge agreements, memoranda of deposits and powers of attorneys, whereby actual control of the stock would be transferred to the BCCI Group and ICIC Overseas, and the BCCI Group and [CIC Overseas would43 have no recourse against the personal assets of the purported buyer, and causing said secret ownership to be concealed from the FRS. 28, For the purpose of executing said scheme, the Defendants, their coconspirators and their agents, did on several occasions, the precise dates not presently known, transmit and cause to be transmitted in interstate and foreign commerce, certain writings, signs, signals, pictures, and sounds, to wit, wire transfers from the BCCI Group and its affiliates to financial institutions in the United states for purposes of purchasing CCAH stock. 26, Por the purpose of executing said scheme, the Defendants, their co-conspirators and their agents, did on the following specific dates, transmit and cause to be transmitted in interstate and foreign commerce, certain writings, signs, signals, pictures, and sounds, for purposes of facilitating the purchase by CCAM of NBC: Date Wire From feo September 2, 1986 Telefax NBG Swaleh Naqvi Atlanta, GA BCCI London, UK duly a, 1987 Telefax clifford & Warnke Law Firm in Washington, D.C. Atlanta, Georgia July 9, 1987 Telephone Attorney Clifford & Warnke Atlanta, GA Washington, D.C. August 7, 1987 Telefax Clifford & Warnke BCCI Washington, D.C. London, UK August 17, 1987 Telefax BCCI Clifford & Warnke London, UK Washington, DC (In violation of 18 United states Code, section 1343)44 RACKETEERING ACTS FOUR THROUGH SIX fail ec! Racketeering Act Four 27. ‘The allegations contained in Paragraphs 1 through 3, inclusive, of COUNT TWO are realleged and incorporated by reference as though fully set forth herein, 28. On or about May 25, 198%, Defendants AGHA HASAN ABEDI, SWALEH NAQVI and GHATTH R. PHARAON, and the BCCI Group, aided and abetted by one another, for the purpose of executing the aforesaid scheme and artifice to defraud and attempting to do so, knowingly and willfully transmitted and caused to be transmitted in interstate commerce by means of wire communications certain writings, signs, signals, pictures and sounds, namely, a wire transfer of approximately $3,000,000 of funds from Washington Mutual Savings and Loan Association, Seattle, Washington, to a firm in New York, New York, for the purchase of Cenfrust subordinated debentures. (Title 18, United States Code, Sections 1343 and 2) wring Act 23. The allegations contained in Paragraphs 1 through 3, inclusive, of COUNT THO are realleged and incorporated by reference as though fully set forth herein. 30, On or ahout the dates set forth below, the above Defendants transmitted and caused to be transmitted in interstate and foreign commerce, certain writings, signs, signals, pictures, and sounds, for the purpose of executing such scheme and artifice, in violation of Title 18, United States Code, section 1343:45 Act Date From To Nature of Wire a) 5/3/88 GHATTH PHARAON FHLBB Regulator Telephone Call Georgia Washington, D.C. b) 5/23/88 BCCI Group Interedec Telex London, Savannah, GA Englang ¢) 5/24/88 Citibank BCCE Overseas Wire Transfer New York, N¥ (Paris) approximately Paris, France $25,000,000 4) 7/27/88 — CenTrust Security Pacific Wire Transfer Miami, FL International Bank approximately New York, NY $25,000,000 (Title 18, United states code, Sections 1343 and 2) Racketeering Act Six 31. The allegations contained in Pazagraphs 1 through 3, inclusive, of COUNT TWO are realleged and incorporated by reference as though fully set forth herein. 32. On or about May 25, 1988, in the District of the District of Columbia and elsewhere, Defendants AGHA HASAN ABEDT, SWALEH NAQVI and GHAITH R. PHARAON, and the BCCI Group, aided and abetted by one another, for the purpose of executing the aforesaid scheme and artifice to defraud and attempting to do so, knowingly and willfully transmitted and caused to be transmitted in interstate commerce by means of wire communications certain writings, signs, signals, pictures and sounds, to wit: wire transfer of approximately $2,500,000 of funds from Safeco Insurance Co., Seattle, Washington, and a firm in New York, New York, for the purchase of CenTrust subordinated debentures.46 debentures. (Title 18, United states Code, Sections 1343 and 2 QVERT ACTS IN FUR'THERANCE OF THE CONSPTRACY 33. In furtherance of the conspiracy, and in order to effect the objects thereof, the defendants and their co- conspirators committed and caused to be committed, in the District of Columbia and elsewhere, the following overt acts among others: NATION. HK_OF 34, The allegations contained in overt Acts paragraphs 1 through 33, inclusive, of COUNT ONE of this Indictment are realleged and incorporated by reference as if fully set forth herein. SALE OF NATIONAL BANK OF GEORGIA TO CCAH 35. The allegations contained in overt Acts paragraphs 34 through 36, inclusive, of COUNT ONE of this Indictment are realleged and incorporated by reference as if fully set forth herein. ACTS RELATING TO Coa 36. The allegations contained in Overt Acts paragraphs 37 through 40, inclusive, of COUNT ONE of this Indictment are realleged and incorporated by reference as if fully set forth herein. ACTS RELATING TO_INDEPEND! 37. The allegations contained in Overt Acts paragraphs 41 through 74, inclusive, of COUNT ONE of this Indictment area7 realleged and incorporated by reference as if fully set forth herein. wn NT) SAVIN K 38. The allegations contained in overt Acts paragraphs 75 through 91, inclusive, of COUNT ONE of this Indictment are realleged and incorporated by reference as if fully set forth herein. (Title 18, United states code, Sections §1962(a) and 2)48 FORFEITURE The Grand Jury further charges: 1. ‘The allegations contained in COUNT THREE of this Indictment are hereby realleged and incorporated by reference herein, for the purpose of alleging forfeitures pursuant to the provisions of Title 18, United states Code, Section 1963. 2. The Defendants AGHA HASAN ABEDI, SWALEH NAQVI, and GHAITH R. PHARAON have property constituting, and derived from, proceeds which they obtained directly and indirectly, from racketeering activity in violation of Title 18, United states Code, Section 1962, thereby making such property, or an amount of cash equivalent thereto, forfeitable to the United States of America pursuant to Title 18, United States Code, Section 1963(a)(3). Said properties consist of any and all proceeds the Defendants received as a result of the racketeering activity alleged in Racketeering Acts One through Six of Count Three (Title 18, United States Code, Section 1963.) Dheack 1 dock FOREPERSON i ee 7 Lt, DOW, Comme n- 4 ‘A, : 1 gay ‘s. sterHens G. ALLEN carver, JR. —4'%/) United States Attorney for Principal Deputy Chief c the District of Columbia Praud Section criminal Division United States Department of Justice