Privinvest official seeks to quash all charges – AIM report

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Privinvest official seeks to quash all charges – AIM report

8:56 CAT | 26 Aug 2019

File photo: Brooklyn Eagle

Jean Boustani, a chief sales executive for the Abu Dhabi-based Privinvest group, and one of those at the heart of Mozambique’s “hidden debts” scandal, on Thursday protested his innocence of all the charges brought against him by the United States justice authorities, according to a report carried by the Portuguese news agency, Lusa.

Boustani, who is a Lebanese citizen, is accused of conspiracy to commit money laundering, wire fraud and securities fraud. He has been in a New York prison since January. The authorities have refused to grant him bail, because he is regarded as a flight risk.

He is believed to be a key player in the corrupt scheme whereby three fraudulent Mozambican companies (Ematum, Proindicus and MAM) obtained loans of over two billion US dollars from the banks Credit Suisse and VTB of Russia. Privinvest then sold the companies boats and other assets at vastly inflated prices. Boustani also used some of the loan money – at least 200 million dollars, according to the US prosecutors – to pay bribes and kickbacks.

On Thursday, Boustani’s lawyers moved a motion to dismiss the charges, and another to suppress evidence that forms part of the prosecution case.

Key to the defence argument is that Boustani should not be tried in New York because his activities took place in Europe. The prosecution, however, has claimed US jurisdiction in the matter, partly because US banks were allegedly used to launder the bribes, and partly because American investors purchased some of the debt (notably the bonds issued under the 850 million dollar loan to Ematum).

Boustani’s defence also objected to the interception of electronic communications by the prosecutors. The investigators say they obtained a million pages of documents, including bank transactions, emails, and transcripts of phone calls. Boustani’s lawyers say that some of this is personal and has nothing to do with the case.

Judge William Kuntz, of the Brooklyn Federal Court, gave the defence and prosecution teams four weeks to review the motion to dismiss.

Source: AIM