Kabul Bank’s Golden Age

Sherkhan Farnood, Kabul Bank's former CEO. Photo is used with special permission from PokerNews.com

“…by June 2006 …the bank now had over 165,000 customers, 440 employees, and eight branches. It had established Internet and mobile banking, was a principal agent in Afghanistan for Western Union, completed its first Automated Teller Machine (ATM) transaction…”

How They Robbed Kabul Bank

CEO Khaliullah Fruzi (left) speaks with fellow shareholder, Mahmoud Karzai (right). (Q Photo)

…Johnson advised Sherkhan to split the large loans into smaller ones and to create shell companies –referred to as “fictitious” companies in the media- that would receive the loans. Shell companies are legal entities, since they exist on paper, but have no actual business operations, except perhaps to serve as a conduit for money transfers. The shell companies hid the borrower’s true identity.