Azerbaijan, Baku, Oct. 4 /Trend D. Khatinoglu, A.Gurbanova/
Iran has arrested 35 suspects over $2.8 billion bank corruption case and the investigation is underway, IRNA reported quoting general prosecutor Mohseni Ejei as saying.
Ejei noted the bank corruption case started in 2007 by Amir Mansour Arya Investment Company, headed by Amir Mansour Khosravi, and progressed in 2010 after some banks, including Sadarat and Melli Bank, issued loans for the company.
According to Javan Daily, Amir Mansour Khosravi owns 38 factories, most of which are steel factories. Khosravi had registered a company with 200 billion rials ($20 million) five years ago. Khosravi had bought 230 acres of land on Kish Island and hundreds acres of land near Kashanak at the price of 16 rials (0.16 cent) per meter.
Ejei confirmed that a $2.8 billion bank fraud involving the company, whose assets worth $4.2 billion were seized and bank accounts were blocked.
The government has confiscated $1 billion of 2.8 billion fraud so far.
Iranian officials say that the case involved the use of fraudulent documents to obtain credit at Amir Mansour Arya investment company, one of the country's top financial institutions, used at the time to purchase assets such as state-owned companies.
The case is described as Iran's biggest case of embezzlement ever.
Iran has arrested 35 suspects over Bank Saderat's $2.8 bln corruption case. The suspects are also accused of converting a letter of credit issued by Bank Saderat's branch in the Khuzestan province to cash in Bank Melli's office in Kish city.
Chief Mahmoud-Reza Khavari of Bank Melli, Head Mohammad Jahromi of Bank Saderat, and Head of the private Bank Saman Valiullah Zarabiyeh resigned after embezzlement case.