Army Intelligence Questions Ezzedine Over Mysterious Investments, Possible Foreign “Ambush”
Shiite Businessman Salah Ezzedine was reportedly transferred from Roumieh prison to the headquarters of the Lebanese army intelligence after initial investigation showed that the financial losses from his investments were less than the amount of cash given to the financier.
Pan-Arab daily al-Hayat on Monday quoted judicial and security sources as saying the army intelligence will now investigate the fate of the surplus money he had and money transfers and investments in several countries, including Algeria, China, Brazil and Morocco.
According to the newspaper, Ezzedine is now making puzzling confessions about the amount of savings given to him by people, including from Qatari, Kuwaiti and Iraqi nationalities.
Al-Hayat added that the financier made limited financial transactions via two Lebanese banks and the amount does not make up 2% of the savings entrusted with him.
The sources said the army intelligence will investigate whether there was embezzlement or Ezzedine had huge financial losses as a result of bad investments in oil, gas and iron. A third possibility, according to the sources, is a security and financial "ambush" by foreign parties, a clear reference to Israel.
Ezzedine has been charged with fraud and is being called the "Lebanese Bernie Madoff" in local newspapers. Bankers say it is the biggest fraud of its kind this country has ever seen.
Hundreds of Lebanese sold land or drained their retirement savings and handed over hundreds of millions of dollars to Ezzedine whose investment company promised as much as 40 per cent in annual returns.
Ezzedine and his partner, Youssef Faour, have been arrested on suspicion of cheating investors out of hundreds of millions of dollars – perhaps up to $1 billion, prosecutors say. Earlier this month, they were charged with fraudulent embezzlement, a crime punishable by 15 years in prison. Alleged victims included well-off Shiites but also smaller investors who sold land or pulled out savings to bundle the cash and give it to Ezzedine.
The 47-year-old Ezzedine was well-known for his religious works and charity in the southern port city of Tyre and surrounding Shiite villages. He owns the Dar Al-Hadi Publishing House, one of Lebanon”s most prominent producers of Shiite religious books.
Among his charitable works was largely financing a giant mosque in the center of his hometown of Maaroub. A nearby municipal stadium was also financed by Ezzedine and was named "Stadium of the Resistance and Liberation Martyrs."