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10 - PEOPLE/(N-S)/David L. Paul.md
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---
tags: ["Person", "Real Estate Developer", "Banker"]
category: "BCCI Scandal"
tags:
- Person
- BCCI
- CIA
summary: "Paul put CenTrust on a significant growth curve using brokered deposits, which he funneled into high-risk real estate loans, junk bonds, and offbeat investments."
---
David L. Paul was a real estate developer and owner of [[CenTrust Savings Bank]] of [[Miami]].[^1]
### Business and Financial Activities
Paul put CenTrust on a significant growth curve using brokered deposits, which he funneled into high-risk real estate loans, junk bonds, and offbeat investments.[^2] He built a gleaming postmodernist skyscraper for CenTrust, which cost $180 million and featured marble, gold-plated bathroom fixtures, and a $13 million Peter Paul Rubens painting.[^3] He also spent $7 million on a ninety-five-foot yacht with a marble fireplace.[^4]
Paul, along with [[Ghaith Pharaon]] and [[Agha Hasan Abedi]], engineered a sham purchase of CenTrust debentures. Pharaon, acting as a front for [[Bank of Credit and Commerce International|BCCI]], bought $24,668,750 of CenTrust's bonds in 1987. Paul secretly repurchased these bonds less than a year later, and Pharaon received a commission.[^5] This transaction allowed CenTrust to satisfy regulators and remain open for an additional year, costing U.S. taxpayers an estimated $2 billion when it was finally closed.[^6]
Paul, along with [[Ghaith R. Pharaon]] and [[Agha Hasan Abedi]], engineered a sham purchase of CenTrust debentures. Pharaon, acting as a front for [[Bank of Credit and Commerce International|BCCI]], bought $24,668,750 of CenTrust's bonds in 1987. Paul secretly repurchased these bonds less than a year later, and Pharaon received a commission.[^5] This transaction allowed CenTrust to satisfy regulators and remain open for an additional year, costing U.S. taxpayers an estimated $2 billion when it was finally closed.[^6]
### Political Connections and Legal Issues
Paul had extensive political contacts, giving $300,000 to Democratic politicians and raising more.[^7] He was appointed financial chairman of the Democratic Senatorial Campaign Committee in 1987 by Senator [[John Kerry]].[^8] His personal calendar showed frequent meetings with numerous senators and other key political figures.[^9]
In 1992, Paul and Pharaon were indicted together by the [[Justice Department]] in Miami for the bond-swap conspiracy.[^10] His business practices and connections were scrutinized during the BCCI scandal, highlighting the intertwined nature of finance and politics.
In 1992, Paul and Pharaon were indicted together by the [[Department of Justice]] in Miami for the bond-swap conspiracy.[^10] His business practices and connections were scrutinized during the BCCI scandal, highlighting the intertwined nature of finance and politics.
### Footnotes