24 lines
1.6 KiB
Markdown
24 lines
1.6 KiB
Markdown
---
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tags: ["Organization", "Bank", "BCCI"]
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category: "Private Organization"
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summary: "Independence Bank of Encino was a financial institution illegally acquired by the Bank of Credit and Commerce International.[^1]"
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end: 1992
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location: "Encino, California, USA"
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---
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Independence Bank of Encino was a financial institution illegally acquired by the [[Bank of Credit and Commerce International|BCCI]].[^1]
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### Acquisition by BCCI
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BCCI illegally acquired Independence Bank of Encino in October 1985 for close to $23 million, using [[Ghaith R. Pharaon]] as a front man.[^1] The true nature of the transaction was concealed when [[Swaleh Naqvi]] secretly funneled money to Pharaon through the Parisian [[Bancque Arabe et Investissement]].[^2]
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Pharaon quickly installed BCCI personnel, including [[Kemal Shoaih]], as president.[^2] Independence Bank of Encino shortly ran out of capital and had to be rescued in 1991 with funds seized from BCCI.[^2]
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### Legal Issues
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Independence Bank of Encino was one of the three prominent U.S. banking institutions that the [[Federal Reserve Board]] fined BCCI $200 million for illegally acquiring control.[^1] It was also part of the indictment against BCCI and [[Agha Hasan Abedi]] in November 1991.[^3]
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### Footnotes
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[^1]: Beaty, Jonathan and Gwynne, S. C. *The Outlaw Bank: A Wild Ride into the Secret Heart of BCCI*. New York: Random House, 1993, p. 12-14
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[^2]: Beaty, Jonathan and Gwynne, S. C. *The Outlaw Bank: A Wild Ride into the Secret Heart of BCCI*. New York: Random House, 1993, p. 211-212
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[^3]: Beaty, Jonathan and Gwynne, S. C. *The Outlaw Bank: A Wild Ride into the Secret Heart of BCCI*. New York: Random House, 1993, p. 383.
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