{"id":13562,"date":"2019-11-08T18:50:37","date_gmt":"2019-11-08T17:50:37","guid":{"rendered":"https:\/\/iranfreedom.org\/en\/?p=13562"},"modified":"2021-01-06T18:30:05","modified_gmt":"2021-01-06T17:30:05","slug":"40-years-of-embezzlement-in-iran-the-largest-cases","status":"publish","type":"post","link":"https:\/\/iranfreedom.org\/en\/articles\/2019\/11\/40-years-of-embezzlement-in-iran-the-largest-cases\/13562\/","title":{"rendered":"40 years of embezzlement in Iran, the largest cases"},"content":{"rendered":"\n

Embezzlement in Iran, the largest cases of embezzlement in the past 40 years<\/p>\n\n\n\n

40 years ago, the Iranian people overthrew the monarchic dictatorship ruling their country to permanently eradicate the repression of the people and widespread corruption in Iran and build a democracy-based country free from oppression and corruption.<\/p>\n\n\n\n

But since the mullahs abducted the Iranian people\u2019s revolution, they have\ndestroyed the Iranian people\u2019s hopes for democracy.<\/p>\n\n\n\n

They first imprisoned Iranian society by suppressing parties and opposition\nmovements and women and implementing reactionary laws in the Iranian society. Then,\nby dragging Iran into an eight-year war, they spent the people\u2019s fortunes on\nthe war. The regime itself has estimated the war to have cost more than $1 trillion\nin material damages.<\/p>\n\n\n\n

After the war, the mullahs introduced new ways of embezzling money and\nwealth of the people in Iran. On the one hand, for the sake of their own\nself-interest, they stole from the pockets of the Iranian people, and on the\nother hand, they spent a large portion of Iran\u2019s oil wealth on terrorism and to\nfund terrorist groups and organizations.<\/p>\n\n\n\n

Within the <\/a><\/a>mullahs\u2019 rule, <\/a><\/a><\/a>embezzlement<\/a> has become so institutionalized that that Iranian authorities have coined the term \u201cSultan\u201d to refer to major embezzlers. In recent years, Iran has had sultans of sugar, coins, currency and bitumen. Most of these sultans are either former regime officials or from families or relatives of ministers or senior authorities.<\/p>\n\n\n\n

As long as this regime and its lawlessness stand, there will be\nembezzlement and robbery and astronomical wages, because robbery and\nembezzlement are embedded in the culture of this system, and its officials\ncompete against each other to steal a bigger share of the people\u2019s wealth.<\/p>\n\n\n\n

And we still know very little about the embezzlements that happen in the transfer of billions of dollars to the Lebanese Hezbollah<\/a>, the Assad regime in Syria, Iraq\u2019s Hashed al-Sha\u2019abi (Popular Mobilization Forces), the Houthis of Yemen, the Taliban in Afghanistan and the Venezuelan regime.<\/p>\n\n\n\n

This report is a brief look at some of the biggest corruption cases in the\nmullahs\u2019 era. It covers the thefts and corruption that have been leaked to the\nmedia during the internal regime\u2019s conflict, which is just a fraction of what\nhas happened in Iran.<\/p>\n\n\n\n

The figures\nmentioned in the report are all from official sources, from the regime\u2019s own\nnewspapers and public confessions, the judiciary and parliamentarians.<\/p>\n\n\n\n

Embezzlement in Iran in the 1990s <\/strong><\/p>\n\n\n\n

\"40
Fazel Khodadad, a regime-linked merchant <\/figcaption><\/figure><\/div>\n\n\n\n

The first major case of embezzlement in Iran dates back to 1995, in which\nFazel Khodadad, a regime-linked merchant, and Morteza Rafiqdoust, brother of\nMohsen Rafiqdoust, a former IRGC commander and former regime official, embezzled\n123 billion tomans ($820 million) from the Bank-e Saderat (Bank of Export).<\/p>\n\n\n\n

Then in 2001, during infighting between regime president Mohammad Khatami\nand supreme leader Ali Khamenei, the regime\u2019s judiciary revealed part of the embezzlements\nof the Tehran municipality, which amounted to 1.4 billion tomans.<\/p>\n\n\n\n

At the time, the U.S. dollar was being exchanged at 792 tomans, which means\nthe embezzlement case was $1.76 million.<\/p>\n\n\n\n

Embezzlement in Iran in the 2000s <\/strong><\/p>\n\n\n\n

\"40
Shahram Jazayeri, 28, the youngest embezzlerin Iran. <\/figcaption><\/figure><\/div>\n\n\n\n

In November 2003, Shahram\nJazayeri, 28, became the youngest known face of embezzlement in Iran.<\/p>\n\n\n\n

His case was one of the most\ncontroversial at the time because, strangely, not only had he given bribes to MPs\nand ministers, but also to many other high-profile officials, including Mehdi\nKarroubi and his political party, the National Trust Party; several companies\ninside and outside the country; and several Friday prayers leaders. He had even\nsent a 150-million toman check to office of the supreme leader.<\/p>\n\n\n\n

The exact statistics of\nShahram Jazayeri\u2019s embezzlement were never announced. But if we take into\naccount two debts to the banks that were $48.6 million and $97.2 million, and\nthe 150 million tomans to Khamenei\u2019s office, the total amount will be $146.2\nmillion.<\/p>\n\n\n\n

Embezzlement in Iran\nin the 2010s <\/strong><\/p>\n\n\n\n

\"40
Mah Afarid Amir Khosravi and Mahmoud Reza Khavari former director of Bank-e Meli (National Bank). <\/figcaption><\/figure><\/div>\n\n\n\n

The first case of embezzlement\nthat was revealed in the Iranian banking system goes back to August 2011, which\ninvolved the embezzlement of 3 trillion tomans in the banking system by Mah Afarid\nAmir Khosravi and Mahmoud Reza Khavari, then director of Bank-e Meli (National\nBank).<\/p>\n\n\n\n

At the time, the U.S. dollar\u2019s exchange rate was 1,100 Toman, which means $2.27\nbillion dollars was embezzled.<\/p>\n\n\n\n

Saeed Mortazavi\u2019s embezzlement <\/strong><\/p>\n\n\n\n

\"40
former prosecutor Saeed Mortazavi <\/figcaption><\/figure><\/div>\n\n\n\n

In 2012, in one case, former prosecutor Saeed Mortazavi transferred a total\nof 82 billion Japanese yen with several cheques, the equivalent of 3.250 trillion\ntomans at that time. In another case, he had signed an agreement with Babak\nZanjani, a businessman with close ties to the regime, to sell Social Security Organization\nand 137 companies and subsidiaries to Zanjani for 503 million euros. With the\ndollar being exchanged at 3,440 tomans, the total amount of embezzled money was $994.762 million.<\/p>\n\n\n\n

Embezzlement by former first Vice President Mohammad Reza Rahimi <\/strong><\/p>\n\n\n\n

\"40
Iran\u2019s former first Vice President Mohammad Reza Rahimi<\/figcaption><\/figure><\/div>\n\n\n\n

In January 2014, a few\nmonths after the end of the tenth government, headed by Mahmoud Ahmadinejad, his\nfirst deputy (Mohammad Reza Rahimi) was arrested for embezzlement. But the\nregime never announced the actual figures of embezzlements.<\/p>\n\n\n\n

Embezzlement by Babak Zanjani <\/strong><\/p>\n\n\n\n

\"40
Babak Zanjani, a businessman with close ties to the regime <\/figcaption><\/figure><\/div>\n\n\n\n

In January 2014, Zanjani was\narrested. His arrest was linked to a major oil corruption case.<\/p>\n\n\n\n

The embezzlement by Zanjani\namounted to $2 billion, which according to the Ministry of Petroleum, amounts\nto $4 billion when including damages. At 4,500 tomans per dollar, it amounts to\n18 trillion tomans.<\/p>\n\n\n\n

Of course, Babak Zanjani\u2019s\ncase is not the only example of embezzlement and robbery in Iran\u2019s oil industry.\nIn 2015, news broke that oil rigs purchased by the National Iranian Oil company\nhad disappeared!<\/p>\n\n\n\n

At that time, an oil rig had\nbeen purchased by offshore installation companies at $87 million, but it never\nentered Iran despite depositing all the money into an intermediary company.<\/p>\n\n\n\n

After a while, it was revealed that another rig had been\nlost, meaning that the contract for their purchase had been closed but not\ndelivered.\nIn\ntotal, the two rigs cost $124 million.<\/p>\n\n\n\n

In 2017 a new case of embezzlement of 100 billion tomans was\nannounced by the oil company and it is stated that a person who worked in the\nMinistry of Oil for 30 years had embezzled about 100 billion tomans in the\nministry of oil and had left the country three hours after his corruption was\nrevealed.<\/p>\n\n\n\n

At 3,700 tomans per dollar\nit amounts to 27.27 million dollars.<\/p>\n\n\n\n

Exposing embezzlement and corruption at the Foundation of Martyrs and Veterans Affairs- 2013<\/strong><\/p>\n\n\n\n

The corruption case in Foundation\nof Martyrs and Veterans Affairs was initially estimated to be 15 billion tomans,\nbut its main dimensions were later determined as follows:<\/p>\n\n\n\n

Embezzlement of 170 billion tomans\nfrom the national wealth, giving an 8-trillion toman loan without any guarantee\nand with collusion, and a money laundering scam against a Dubai bank\u2019s currency\nexchange company worth 433 million dirhams.<\/p>\n\n\n\n

At 3,200 tomans per dollar,\nit amounts to $2.53 billion.<\/p>\n\n\n\n

Corruption in teachers fund 2016<\/strong><\/strong><\/p>\n\n\n\n

The declared amount of\ncorruption in Teachers Fund and the Bank-e Sarmaye (Capital Bank) amounted to 3.5\nbillion tomans but surveys later revealed that more than $8 trillion tomans had\nbeen loaned (doubtful loan) by Capital Bank \u2013 whose majority stake belongs to\nthe Teachers Fund and the 4 trillion tomans of the fund\u2019s assets have also been\neliminated between 2007 to 2013.<\/p>\n\n\n\n

One of the main defendants in the case fled the\ncountry with about 500 billion tomans in debt and the embezzled property never\nreturned.<\/p>\n\n\n\n

At 3,748 tomans per dollar it amounts to $2.55\nbillion dollars.<\/p>\n\n\n\n

Embezzlement in Iran\u2019s banks<\/strong><\/p>\n\n\n\n

\"40
Abbas Jafari Dolatabadi, the spokesman for the Iran\u2019s regime judiciary <\/figcaption><\/figure><\/div>\n\n\n\n

In November 2016, Abbas Jafari Dolatabadi, the spokesman for the judiciary<\/a>, announced a 1.2-trillion toman embezzlement case in Bank-e Meli (National Bank) and Bank-e Melat (People\u2019s Bank).<\/p>\n\n\n\n

At 3748 tomans per dollar it\namounts to $320.17 million.<\/p>\n\n\n\n

Embezzlement by Astronomical\nwages in Ministries and Government Offices<\/strong><\/p>\n\n\n\n

In the third year of the first term of Hassan\nRouhani\u2019s presidency (2016), some media outlets published several wage bills of\n20 to 50 million tomans.<\/p>\n\n\n\n

Release and disclosure of these bills was\ninitially limited to Iran\u2019s Central Insurance, National Development Fund and\nWorkers\u2019 Welfare Bank. But the wave of revelations about astronomical wage\nbills became more widespread and expanded to reach some military institutions.<\/p>\n\n\n\n

Investigations\nlater showed that only 397 people were able to embezzle 23.3 billion tomans\nusing astronomical salaries.<\/p>\n\n\n\n

At 3,748 tomans per dollar\nit amounts to $6.3 billion.<\/p>\n\n\n\n

Astronomical Properties and\nCorruption in Tehran Municipality in 2017<\/strong><\/p>\n\n\n\n

The point of the story was to hand over\nproperties to certain individuals at prices well below their actual value.<\/p>\n\n\n\n

45 persons were\ninvolved in the case, and it was found that 200 apartments, villas and land of\nthe Tehran municipality valued at 22 trillion tomans, were handed over to 45\npeople at a very low price.<\/p>\n\n\n\n

At 4,500 tomans per dollar it amounts to $444.44 million.<\/p>\n\n\n\n

Embezzlement in Iran\u2019s Petrochemical Industry in 2018<\/strong><\/p>\n\n\n\n

In March 2018, 97 embezzlement cases were discovered in the petrochemicals\nsector. 14 defendants involved in this $7-billion fraud case.<\/p>\n\n\n\n

\"\"
Marjan Sheikh al-Islami Al-Agha, CEO of Deniz & Hetra Trading Co <\/figcaption><\/figure><\/div>\n\n\n\n

The most\nfamous person in this case is Marjan Sheikh al-Islami Al-Agha, CEO of Deniz\n& Hetra Trading Co, who escaped to Turkey and then to Canada in July of 2017.<\/p>\n\n\n\n

she\nembezzled millions of dollars through contracts she had with subsidiaries Khatam\nal-Anbia garrison, which are affiliated to the Revolutionary Guards. She lives\nin Canada now.<\/p>\n\n\n\n

Embezzlement in Iran ,<\/strong> Embezzlement in the automobile industry<\/strong> in 2019<\/p>\n\n\n\n

\"\"
Abbas Irvani, a regime-linked investor <\/figcaption><\/figure><\/div>\n\n\n\n

In the first\nhalf of 2018, the issue of embezzlement of 4 trillion tomans in the automobile\nindustry made the headlines.\nAbbas Irvani, a regime-linked\ninvestor, had embezzled about 4 trillion tomans in the automobile industry.<\/p>\n\n\n\n

Abbas Irvani\nis the managing director of Ozam Holding, which comprises 12 part- manufacturing\nfactories.<\/p>\n\n\n\n

Creating a\nvast network of corrupt and bribery communications, he has sold Chinese parts\nto automakers in the name of domestic production, earning 400 billion tomans annually.<\/p>\n\n\n\n

At 4,500 tomans per dollar it amounts to $888.888 million.<\/p>\n\n\n\n

The total embezzled money so far is about $30.055\nbillion.<\/p>\n<\/body><\/html>\n","protected":false},"excerpt":{"rendered":"

Embezzlement in Iran, the largest cases of embezzlement in the past 40 years 40 years ago, the Iranian people overthrew the monarchic dictatorship ruling their country to permanently eradicate the repression of the people and widespread corruption in Iran and build a democracy-based country free from oppression and corruption. But since the mullahs abducted the […]<\/p>\n","protected":false},"author":4,"featured_media":13581,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"pgc_sgb_lightbox_settings":"","footnotes":""},"categories":[17],"tags":[548,35,125],"class_list":["post-13562","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles","tag-embezzlement","tag-iran","tag-iranian-regime"],"acf":[],"yoast_head":"\n40 years of embezzlement in Iran, the largest cases - Iran Freedom<\/title>\n<meta name=\"description\" content=\"embezzlement in Iran, this report is a brief look at some of the biggest corruption and embezzlement cases in the mullahs' era.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/iranfreedom.org\/en\/articles\/2019\/11\/40-years-of-embezzlement-in-iran-the-largest-cases\/13562\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"40 years of embezzlement in Iran, the largest cases - 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