Former Pakistani Bank Chief Faces Extradition from U.S. to Pakistan

The former president of one of Pakistan’s largest banks faces extradition to Pakistan under an 80-year-old treaty to face charges of corruption in a multi-million fraud case.

Mr. Hamesh Khan has denied any wrongdoing and contends he will continue to fight efforts to extradite him to his native country, which he left in 2008.

The treaty between the United States and Britain was the basis for Mr. Khan’s arrest last December by the U.S. Marshals Service in Washington, D.C. This treaty carried over to Pakistan when it and India became independent from Britain.

Pakistan’s National Accountability Bureau (NAB) and the U.S. Attorney for the Eastern District of Virginia, have charged Mr. Khan with forgery and fraud against the Bank of Punjab. In addition, he is accused of leaving the country while restricted.

Sheik Muhammad Afzal, director of Haris Steel Industries in Lahore, Pakistan, provided sworn statements to the NAB that Mr. Khan was a co-conspirator in a scheme, through which Mr. Afzal borrowed $10 million from the Bank of Punjab by opening of over two dozen loan accounts with false identities and worthless collateral.

Mr. Khan has stated that he never authorized these loans to Mr. Afzal, but rather that he referred the case to the NAB and took action against bank employees who allegedly aided in the scheme. He also contends that he informed authorities that Mr. Afzal should be prevented from leaving the country.

In December U.S. Marshals took Mr. Khan into custody. Since that time, government attorneys relying on affidavits and charges filed in Pakistan, the U.S. Attorney’s Office  has opposed both Mr. Khan’s requests for conditional release and his request for more time to gather evidence to defend himself.

A U.S. Magistrate Judge in Virginia has ordered Mr. Khan’s continued detention.

According to some sources, internal bank documents submitted to the court in Pakistan prove that thsse loans were extended to Haris Steel on the approval of the bank’s central credit committee and the board of directors without Mr. Khan’s approval.

Douglas McNabb and other members of the firm practice and write extensively on matters involving Federal Criminal Defense, Interpol Litigation, International Extradition and OFAC Litigation.

The author of this blog is Douglas McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.

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