Alleged fraud, money-laundering cases: FIA summons Jahangir Tareen, son on 9th

LAHORE: Federal Investigation Agency (FIA) has summoned Jahangir Khan Tareen and his son Ali Khan Tareen on April 9 to investigate the duo in alleged fraud and money-laundering cases.

It has been learnt that a questionnaire has also been sent to Jahangir Khan Tareen comprising five questions. Father and son have been asked to bring filled questionnaire on their date of appearance before the FIA investigation team.

As per cases against Jahangir Tareen and Ali Khan Tareen, the FIA had registered two separate cases against father, son duo over the charges of allegedly committing fraud and money-laundering worth Rs3.14 billion. The FIA had registered cases against the father, son duo under the PPC Sections 406 (criminal breach of trust), 420 (cheating of public shareholders) and 109 of the Pakistan Penal Code (PPC), read with Sections 3/4 of the Anti-Money Laundering Act.

According to the FIR against Tareen family, the FIA stated that during the course of inquiry, a fraudulent and premeditated scheme of misappropriation of public shareholders’ money by Jahangir Khan Tareen has surfaced whereby JDW (a Public Ltd listed company-CEO Jahangir Khan Tareen) fraudulently transferred Rs3.14 billion to an associated private company, Farooqi Pulp Mills Ltd Gujrat (FPML), owned by his son and close relatives. “The material disclosure that FMPL was declared “not a going-concern (especially since FY- 2011/12) and that its operations had been practically shut down with multiple failed trial-runs, was intentionally withheld/concealed from public shareholders of JDW which amounts to criminal breach of trust (406 PPC) of public-shareholders’ money over which Jahangir Khan Tareen had fiduciary control as CEO,” the FIR stated.

“A corporate fraud of Rs3.6 billion was committed by JDW through over-valued purchase of associated company JK Farming Systems Ltd and booking losses through it, a corporate fraud of Rs3.1 billion was committed by JDW through investment in Farooqi Pulp Ltd and booking impairment losses through it, inexplicable transfer of Rs2.5 billion by JDW through non-arm’s cash transfers to various sister entities via Amir Warsi cash boy, inexplicable transfer of Rs7 billion was committed by JDW to Dherki Sugar Mills (non-arm’s cash transfers) without true and full disclosure in the financial statement,” the FIA claimed. It is pertinent to mention that father and son had secured an interim bail in the abovementioned cases.