| For immediate release |
|
The Federal Reserve Board announced today the issuance
of its Final Decision and Final Order of Prohibition and
Assessment of Civil Money Penalty in the matter of Ghaith R.
Pharaon, a former BCCI insider.
The Board assessed a $37 million fine against Pharaon, and permanently barred him from the U.S. banking industry due to his illegal activities. The Board's final decision adopted the recommended decision of the administrative law judge who presided at a nineteen-day administrative hearing conducted in 1995 by attorneys from the Board and the Federal Reserve Bank of New York. The Board found that Pharaon acted illegally as a secret nominee for BCCI when he acquired the Independence Bank of Encino, California in 1985. The Independence Bank of Encino failed in January 1992. Pharaon, who is a resident of Saudi Arabia, is the subject of criminal indictments issued by the U.S. Department of Justice and the New York County District Attorney. He participated in the Board's administrative hearing through his counsel but has not returned to the United States to personally contest federal and state criminal charges. Pharaon has the right to appeal the Board's final decision in a federal appellate court. A copy of the Board's final decision, with the accompanying order, is attached. |
| Order (1.48 MB PDF) |