Executives Sentenced for Kabul Bank Fraud

An Afghan special tribunal convicted and sentenced two former executives and 19 others for roles in the fraud that led to the collapse in 2010 of Afghanistan's largest private bank, but in a surprise decision threw out the most serious charges, The Wall Street Journal reported. Former Kabul Bank Chairman Sherkhan Farnood and former Chief Executive Khalilullah Ferozi were convicted of fraud at the bank and given five-year prison sentences, the court said Tuesday. The men had faced possible sentences of up to 20 years under the original charges, which included embezzlement and money laundering. By dropping the most serious charges, the special tribunal didn't activate legal provisions that would have enabled public efforts to reclaim more than $800 million in bank funds that the court said the two former executives owe, Western diplomats said. The court didn't explain why the charges were dropped. The 19 other defendants were sentenced to prison terms of between two years and five years on charges that included misusing authority and failing to report irregularities. Read more. (Subscription required.)