• Register
Return to: Home > News > Former Deloitte Middle East managing partner brought into LCB terrorist money laundering case

Former Deloitte Middle East managing partner brought into LCB terrorist money laundering case

The Dubai International Finance Centre Courts, Court of Appeal (DIFCC) has added former Deloitte Middle East managing partner El Fadl to a case against Deloitte Middle East in relation to its audits of the Lebanese Canadian Bank which closed in 2011.

Criminality at the Lebanese Canadian Bank was uncovered in an investigation by the US FBI and Drug Enforcement Agency (DEA), which found the bank and its management played a ‘key role’ in facilitating money laundering Hezbollah-controlled organisations.

Pension investment fund Nest Lebanon and other claimants were 24% shareholders in Lebanese Canadian Bank when it closed and brought a case against Deloitte Middle East for negligence and deceit in its audit of the bank.

The claimants allege that Deloitte Middle East and El Fadl breached their duties as auditors and that they failed to uncover or report any money laundering and suspicious activity at the bank. It is alleged that El Fadl and Deloitte Middle East, over a period of several years, issued audit reports that were not accurate and misrepresented the reality.

Deloitte Middle East attempted to avoid the claim against it on technical grounds, but in February 2018 the DIFCC ruled against Deloitte Middle East’s attempt to strike out the claim. In November 2018 the DIFCC ruled the claim could be brought in the DIFCC applying principles of Lebanese law

El Fadl also initially attempted to avoid the claim against him, arguing the court had no jurisdiction over him. The claimants then applied to add him to the claim under the court’s procedural rules, which the court granted.

The DIFFC said that the claimants should have the opportunity to sue El Fadl as ‘he is the central character in the case made against DTME’ and because he was ‘the individual responsible for the audits as the relevant partner’.

Top Content

    MSI joins AGN and DFK in Global Connect

    A year after AGN International and DFK International launched Global Connect, multi-disciplinary association MSI has joined the group.

    read more

    Views from the Eurozone

    With Brexit looming, populist governments gaining footholds in a number of countries and movements such as the Yellow Jacket protests in France, 2018 was anything but a quite year for the eurozone. Here leaders report to the IAB on their markets.

    read more

    Eastern promise and how to find it

    With China rising as a global power, Jonathan Minter spoke with ShineWing’s Zhang Ke and Marco Carlei at the World Congress of Accountants 2018 in Sydney, to discuss the cultural challenges that occur when Chinese networks look beyond their border, and the dividends available for those who overcome them.

    read more

    The UK: uncertain waves rule Britannia

    The UK’s accountancy profession is currently in a period of much uncertainty. The Competition and Markets Authority (CMA) has released its review into the listed audit market which could cause the biggest shake-up the profession has seen in years, the Kingman Review has described the Financial Reporting Council (FRC) as not being fit for purpose and called for it to be replaced. All the while the country remains in a deadlock on Brexit negotiations.

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.