Afghanistan Prosecutes Leaders Of Kabul Bank Fraud

An Afghanistan court has convicted 21 people involved in fraud at Kabul Bank. The Bank was declared insolvent in 2010, and it has since been revealed that the institution served as little more than a Ponzi scheme. The bank’s purpose was to enrich well connected customers at the expense of depositors. 92 percent of the bank’s loans went to just 19 individuals. The total amount of these loans was $861 million. The sum amounts to around five percent of the entire Gross Domestic Product of Afghanistan. One of the banks most prominent lender was Mahmood Karzai, the brother of Afghanistan’s President….