Ezzedine charged in Lebanon's 'Madoff' case

Beirut: Lebanese prosecutors charged businessman Salah Ezzedine with embezzlement over the alleged defrauding of investors in a Bernard Madoff-style Ponzi scheme, the state-run National News Agency reported on Sunday.

Both Ezzedine and his associate Youssef Faour, who have been in custody for about two weeks, were charged on Saturday with bounced checks, loan-sharking, fraud and violation of the country's financial laws, the Beirut-based news agency reported, citing the state prosecutor's office.

Five other people were also charged in absentia.

Ezzedine, a businessman who owns Dar Al Hadi Publishing House, may have defrauded investors of hundreds of millions of dollars, according to local media reports.

State Prosecutor Saeed Mirza has disclosed little information as the investigation is under way.

The As Safir newspaper, citing unidentified judicial officials, has reported that losses do not exceed $500 million and that $180 million of that amount belongs to an unidentified Qatari investor.

Ezzedine, who turned himself in to the authorities almost two weeks ago, "was using people's money with the promise of high and unrealistic returns," Major General Ashraf Reefi, head of Lebanon's internal security forces, said in a September 3 interview with Bloomberg News.

"The investigation is ongoing and any number that is suggested at the moment is presumptuous and not accurate," Reefi said.

Lebanese banks have "no exposure" to Ezzedine's Ponzi- style scheme, Lebanon's Central Bank Governor Riad Salameh said.

"The investigation is ongoing," Salameh told Bloomberg News in a September 5 interview. "It has nothing to do with the finance or banking industry. He had his own investors, and it's a private matter that's outside of the banking industry."
State Prosecutor Mirza told As Safir that a number of lawsuits have been filed against Ezzedine who, if found guilty, could be imprisoned for as long as seven years.