Businessman Umar Farooq acquitted in money-laundering cases

LONDON/DUBAI: A Lahore judicial magistrate has cleared businessman Umar Farooq Zahoor in two cases of money laundering and fraud registered against him on the complaint of his former wife Sophia Mirza with help from former accountability czar Shahzad Akbar who had managed to get the PTI cabinet approval for these cases.

Magistrate Ghulam Murtaza Virk acquitted Zahoor and quashed two First Information Reports (FIRs) after the Federal Investigation Agency (FIA) informed the court that its investigations had established that the accused was not involved in fraud, money laundering and corruption.

Both cases were started in early June 2020 after Mirza approached the FIA Lahore’s Corporate Circle allegedly with Shahzad Akbar’s help, who got the cabinet to approve investigations over allegations of fraud and money laundering of around Rs 16 billion by Zahoor and his brother-in-law Saleem Ahmad.

Mirza had alleged that Zahoor committed a bank fraud of $89.2m in Norway in 2010 and another in Bern, Switzerland, in 2004. Akbar took Mirza’s complaints to the cabinet and told it that Zahoor should be investigated. Immediately after the federal cabinet approved the summary, FIA Lahore Chief Dr Rizwan (late) started action against Zahoor. His name was placed on the Exit Control List (ECL), non-bailable warrants were obtained from court without fulfilling legal requirements, and on the basis of the warrants, his passport and CNIC were blacklisted and red notices were issued through the Interpol by the National Crime Bureau (NCB) Pakistan for arresting Zahoor.

Sophia Mirza used her name as Khushbakht Mirza to conceal her identity and the fact that Zahoor was her former husband and both were involved in a court dispute over the custody of their two teen daughters. Zahoor has publicly alleged that Sophia and her accomplices tried to extort money from him and when he refused, they started cases against him using their connections in the PTI government.

The FIA told the court that it issued notices and letters to the Norwegian Police Liaison Officer at Islamabad for collection of relevant evidence, but no positive response has been shown by them.

The judge noted that the alleged offence was committed in 2010 and that case had already been closed, but still the FIA registered this case in 2020 while treating the case as a predicate offence of money laundering.

The FIA told the court that during the course of investigations, it was brought on the record that Zahoor not only denied the allegations but also produced a letter from the Norway Police, confirming that the said inquiry was closed due to lack of evidence and also produced another document of the Oslo Police to the public prosecutor with the recommendation of dismissal of the case.

The FIA found that Sheikh Saleem Ahmed was a prominent businessman who had sent money to Pakistan through banking channels and no evidence could be brought on the record that Zahoor was beneficiary of the said funds transferred by Ahmed in Pakistan as Zahoor never owned or controlled any immovable properties in Pakistan before and after the Nordea fraud.

The judge ruled that on the basis of the FIA investigation report, the FIR stands dismissed.

The FIA told the court that the other case was also recommended for closure as the case was previously investigated in 2005 due to lack of evidence and the complainant didn’t pursue his case and refused to cooperate with Pakistani authorities, but the NAB continued investigations till 2013 and then closed the case after finding no evidence of fraud or money laundering.

The judge noted in his order that he minutely perused the file of the FIA case, which showed that “no incriminating material could be brought on record during investigation and inquiry” and therefore Zahoor was acquitted.

Zahoor welcomed the cancellation of both FIRs and his acquittal. He said: “I have maintained all along that these cases were based on revenge and registered against me and my brother-in-law Sheikh Saleem Ahmed by Shahzad Akbar and Sophia Mirza. Allegations of money-laundering and fraud were false, but I was victimised by Shahzad Akbar to please Sophia Mirza and Pakistani taxpayers’ money was used against me and every attempt was made by them to blackmail and extort money from me. I am thankful that the court has cancelled the FIRs against me and ended the façade.”