Chief of the Lebanon Central Bank is Accused Of Concealing Fraud By French Prosecutors

The previously unreported accusation of using forged account statements is contained in documents sent to Salameh by French judicial authorities in advance of a May 16 hearing in France.

During this hearing, French prosecutors plan to pursue preliminary charges and officially label him as a suspect.

Salameh declined to comment on allegations that he used forged documents. He has repeatedly denied allegations of fraud and money laundering, claiming he is being used as a scapegoat for Lebanon's 2019 economic crisis.

An attorney for Salameh stated earlier this month that his client had not yet decided whether or not he would travel to France on May 16 to attend the hearing.

As part of a joint investigation with their counterparts in Lebanon and at least four other European nations, French prosecutors suspect that Salameh, 72, and his brother Raja conspired to divert more than $300 million in public funds, a portion of which was used to purchase properties across Europe.

Riad and Raja Salameh have denied misappropriating government funds.

French and other European investigators who interrogated Salameh in Beirut last month believe the majority of the governor's fortune is derived from public funds he purportedly misappropriated.

As part of his response to the allegations, Salameh sent French prosecutors a 65-page memo provided by the chairman of Lebanon's AM Bank, Marwan Kheireddine.

The document viewed by Reuters contains a series of bank statements that, according to one of Salameh's attorneys, demonstrate how the governor's savings increased from $15 million in 1993 to over $150 million in 2019 "as he capitalized on interests."

According to judicial documents seen by Reuters, however, French investigators have concluded that the bank statements were forged.

French prosecutors state in court documents that Salameh "used fake records of bank accounts at AM Bank...provided by Marwan Kheireddine, to fraudulently justify the origin of his properties or revenues."

Thierry Marembert, Kheireddine's attorney, stated that his client denied misconduct.

According to French court documents, following Salameh's interrogation in Beirut, French prosecutors wrote that "Riad Salameh cannot justify the various loans and investments that allowed him to increase his wealth by at least 250 million euros during this period."

Salameh has stated that he amassed his fortune through prudent administration of the resources he accumulated during his career as an investment banker.

Kheireddine was questioned in France at the beginning of this month on suspicion of involvement in a criminal organization and aggravated money laundering. The financier was forbidden from leaving the country, and his passport was seized.