Loan-fraud ring forged deeds at bank branch in Babil

Shafaq News- Baghdad

Iraq’s Federal Integrity Commission said on Wednesday it had broken up an 11-member ring that forged loan applications at a branch of the Real Estate Bank in Babil province, south of Baghdad, causing more than half a billion dinars in losses to public funds.

The ring included six bank employees and five loan brokers, the commission said in a statement, adding that an investigation team from its Babil office, made up of investigators, auditors, and legal staff, uncovered the scheme while reviewing transactions at the branch.

The forgeries centered on two state lending programs, a deposit-backed housing loan and a central bank credit initiative, according to the commission. It said the team found tampering in 56 case files, along with forged property deeds, falsified sale records, and altered classifications of the properties used as collateral.

Members of the ring lifted liens on properties using fake repayment receipts, recorded installments as transferred without collecting them, and reused the same properties to obtain further loans under the central bank program, the commission said. The group also secured improper exemptions, manipulated payment cards and receipts, and demanded money from borrowers who had already settled their debts.

Investigators searched the suspects' homes and seized loan records, payment cards, official stamps, cash, and gold, the commission said, putting the confirmed loss to public funds at about 543 million dinars (about $414.3K) so far.

Arrest warrants were issued under Articles 240 and 316 of the penal code, which cover fraud and abuse of public office. Five employees and two brokers have been detained, and the commission said warrants for the remaining suspects were being carried out.