https://tribune.com.pk/story/2398112/money-laundering-case-against-tareen-dismissed

Sugar baron Jahangir Khan Tareen and his son, Ali Tareen, finally got relief after a local court on Friday dismissed the money laundering case against them as the Federal Investigation Agency (FIA) cited a lack of ‘incriminating evidence’.

The orders in the case – involving the alleged laundering of over Rs2 billion – were passed by the judicial magistrate in light of the report submitted by the agency.

The investigation officer (IO) of FIA stated that, after conducting an inquiry, no allegations of money laundering were proven and that all the transactions were carried out in accordance with the laws of the Securities and Exchange Commission of Pakistan (SECP).

The officer said since it was essentially an investment case, the relevant forum was a civil court. He further added that the accused could provide documentary evidence for all transactions in question, and no evidence of transactions in the form of dollars was found.

The court, after the IO’s report, ordered the quashing of the First Information Report (FIR) against the father-son due.

According to the FIRs dated March 22, 2021, two separate cases were registered against the Tareens under sections 406 (criminal breach of trust), 420 (cheating of public shareholders) and 109 of the Pakistan Penal Code (PPC), read with sections 3/4 of the Anti Money Laundering Act.

One of the complaints stated that the sugar baron fraudulently misappropriated shareholder's money after his company — JDW group — transferred Rs3.14 billion to an associated private company identified as Farooqi Pulp Private Limited (FPML). The FIR stated that the private company is owned by his sons and close relatives.

"The transfers, especially after FY 2011-2012, were patently fraudulent investments which ultimately translated into personal gains for the family member of the JDW CEO," the FIR said.

It said that during this period, Tareen, his son and other family member purchased cash (US$) from the open market in Lahore in a "structured manner".

"Subsequently, in 2016, Ali Khan Tareen remitted approximately US$7.4 Million to the United Kingdom for purchasing properties which makes them liable for Anti-Money Laundering investigation," it said.

The FIA stated that Tareen, his son, son-in-law Waleed Akbar Faruki and Shahid Akbar Faruki beneficially controlled FPML and personally benefitted from this scheme.

In the second FIR, the investigation agency said "voluminous withdrawals amounting to at least Rs2.2 billion were fraudulently and dishonestly made through a trusted cash rider." It noted that Amir Waris, employed as a cashier at JDW's Corporate Head Office, deposited large amounts into Tareen's and his family's personal and business accounts.

"This modus operandi of cash-based misappropriation and money laundering was employed to break the onwards money trail of deposits into personal and business accounts of the accused Tareen and family," it said.