Court confirms bail of actor Nadia Hussain in fraud case

A sessions court on Wednesday confirmed interim pre-arrest bail granted to actor and model Nadia Hussain in a multi-million embezzlement case.

Her husband Atif Mohammad Khan, former chief executive officer of Bank Alfalah Securities, and others have been booked by the Federal Investigation Agency for alleged large-scale corporate financial fraud, criminal misconduct, and misappropriation of company funds during his tenure from July 2015 to December 2023.

However, the court dismissed the bail application of former chief financial officers of the company, Faisal Mahmood Sheikh and Imtiaz Ahmed Channa, and revoked the interim bail granted to them earlier.

Additional Sessions Judge (South) Ihsan Ali Malik announced his order reserved on the bail pleas of the model and two others after hearing arguments from both sides. Recording the reason for accepting the model's bail plea, the judge observed that the entire thrust of the allegations appeared to be centered on the conduct of her husband Atif and others working in the company. The evidence available so far did not show her role in the management, control, or manipulation of the company's affairs, he said. There is no document to show her authorisation consent, or participation in the alleged fraudulent transactions, he added.

The judge noted that mere association by virtue of marriage or receipt of funds into her account without a clear nexus demonstrating her active participation in the commission of the alleged offences would not be sufficient to deny bail at this stage, particularly when no direct evidence had yet surfaced suggesting that she was complicit in the alleged fraudulent transactions, or had knowledge of the criminal intent behind the transfer of such funds.

He said that Ms Hussain had already joined the investigation and recorded her statement, adding that there was no allegation of non-cooperation with the investigating agency.

About two other suspects, the judge said they failed to make out a case for pre-arrest interim bail and dismissed their bail applications. Following the pronouncement of the order, they managed to flee the courtroom to evade their arrest.

Hussain's lawyer Muhammad Farooq contended that his client, the wife of suspect Atif Muhammad Khan, was innocent and falsely implicated in the present case with malafide intention and ulterior motives for the sole purpose of harassment, criminal intimidation and maltreatment. She was issued a call-up notice, which appeared to ostensibly coerce her husband into confessing to an alleged offence which he had not committed.

According to the FIR, the FIA Corporate Crime Circle Karachi initiated an inquiry on the complaint of Aasim Wajid Jawad, the chairman of Board of Directors of Al Falah Securities Pvt Ltd, against Atif and others on allegations of "corporate financial fraud by way of criminal misconduct, criminal breach of trust, abuse of fiduciary authority, falsification of accounts and dishonest misappropriation and utilization of company funds for wrongful gains".

It claimed that as per a report of the SECP Domain Expert, Additional Joint Director Adnan Ahmed, the former CEO engaged in his personal trading at the expense of the company's funds.

The FIA said that the analysis of Atif's trading ledger during his tenure as CEO from July 2015 to December 2023 and statement of his bank accounts revealed that he received Rs1.404 billion from the bank accounts of Al-Falah CLSA Securities Pvt Ltd and returned only Rs1.324 billion.

"Hence, he not only utilized these company's funds for financing personal trades but also routed the same systematically to conceal his debit balance by way of manipulating the company's ledger thereby falsifying company's account.

At each withdrawal date, his trading account was in negative balance, meaning he owed money to the company, yet he continued his spree of withdrawing company funds and embezzled Rs80 million (approx.) as per company accounts. While his debit balance stands at Rs539 million indicating that this amount is payable to the Company by Atif Mohammad Khan," it alleged.