Pak shipping magnate sentenced in BCCI fraud

for home page: Considered a key accused in Britain's largest fraud, Abbas Gokal was on Thursday jailed for 14 years for masterminding a massive swindle involving $ 1.2 billion in loans from the Bank of Credit and Commerce International. The bank collapsed in July 1991.

Former Pakistani shipping magnate Abbas Gokal was on Thursday jailed for 14 years for what is believed to be the world's biggest-ever fraud.

Gokal, 61, was sentenced at the Old Bailey for masterminding a massive swindle involving $ 1.2 billion in loans from the Bank of Credit and Commerce International (BCCI).

The former chairman of the Gulf group, the biggest single borrower from the BCCI, was convicted by a jury last month of conspiracy to account falsely and conspiracy to defraud at the end of a six-month trial.

Gokal used the borrowed money to fund a lavish lifestyle, holiday homes in London and around the world, suites in the best hotels, Rolls Royces, a private jet and exotic holidays, the court heard.

The judge told Gokal on Thursday: ''You have been convicted on two separate counts of dishonesty of the most serious and far-reaching kind.'' Gokal, he said, was an intelligent, sophisticated and unscrupulous man who put the interests of himself and his family above all else.

The judge added, ''You have shown not the slightest apology or remorse for these massive frauds, or for the damage and loss that your conspiracies have caused to many thousands of innocent people.''

He also ordered Gokal to pay just under 3 million pounds from his personal assets. If he fails to pay that sum within two years, he will have to serve a further three years' imprisonment.

When BCCI collapsed in July 1991, Gokal and his two brothers owed the bank $ 1.2 billion, the court was told. He was arrested at Frankfurt airport as he made a stopover on his way to the United States from Karachi and subsequently extradited to Britain.

The trial, Britain's largest fraud case, lasted 122 days.

The collapse of BCCI spelled financial disaster for the bank's depositors. One local council lost 23 million pounds, another council was owed 3.5 million pounds and a third 4.5 million pounds.

Numerous private individuals and small businesses also lost money including a British father saving for a bone marrow operation for his son. In all, about 140,000 customers were hit by the fraud. Many will now be eligible for some form of compensation.

BCCI, which had 24 branches in Britain, was one of the largest private banks in the world and operated in 69 countries. An estimated 77 per cent of its capital belonged to the ruler of Abu Dhabi.

In December 1996, the first creditors received payments worth 24.5 per cent of their losses. Another 10 per cent of their losses is to be paid out under a new $ 1.35 billion agreement.

DPA