Five remanded over alleged USD 1bn illegal transfers

Colombo Chief Magistrate Asanga S. Bodaragama today (20) remanded a businessman and four bank officials, including a manager at a leading commercial bank in the country, until the 3rd of next month after they were arrested by the Financial Crimes Investigation Division in connection with an incident involving sending USD 1 billion abroad and causing a loss to the state alongside alleged master swindler Jeffery Mohamed, who set up 36 fake companies under the guise of importing goods.

The Magistrate also ordered the Financial Crimes Investigation Division of the Criminal Investigation Department to present a summary of evidence report to the court regarding the bank officials involved in the incident in accordance with the relevant acts.

The suspects were produced before court under charges including causing a loss to the bank and the state by sending over USD 1 billion abroad on 199 occasions via telegraphic transfers through 36 fake companies established using the names of eight individuals by the main suspect in the case, Jeffery Mohamed.

Producing the suspects before court, the Attorney General stated that this was an occasion where participants in a major financial crime in the country were arrested and brought to court.

A request was also made to remand the suspects as a complex and sensitive investigation was underway into the suspects who committed a large-scale fraud against the country while breaching the trust of the bank where they were employed.

Investigating officers also informed the court that steps were being taken to hand over the matter to the Bribery Commission for investigation as facts revealed that the four bank officials had solicited a bribe from the first suspect in the incident.

Investigating officers further submitted to court that additional suspects were connected to the incident and that investigations regarding them were ongoing.

Investigating officers additionally informed the court that action was being taken to file indictments against the first suspect in the incident in the Colombo High Court under the Poisons, Opium and Dangerous Drugs Ordinance and the Money Laundering Act, and that the suspect deposited over Rs. 6.5 million in bank accounts earned through drug trafficking.

The Criminal Investigation Department stated that the first suspect committed the financial fraud while operating a business institution, and following production before the Negombo Magistrate's Court over the drug trafficking incident, the suspect was remanded until the 2nd of next month.

It was further stated that the suspects transacted with the accused named Jeffery Mohamed, a party to a large-scale drug trafficking operation, and that investigations into illegal earnings were underway as the suspects connected with the trafficker met the trafficker every Friday to obtain benefits and opened personal accounts to deposit Rs. 300,000 each.