INTERPOL issues Red Corner Notice against banking fraudster Karki

INTERPOL issues Red Corner Notice against banking fraudster Karki

Upon the request of the Central Investigation Bureau (CIB) of Nepal Police, the INTERPOL has issued a Red Corner Notice against Pawan Kumar Karki, a convicted banking fraudster, in connection with committing fraud of Rs 3.6 billion between 2008 to 2012.

CIB officials said that the INTERPOL headquarters in France issued the Red Corner Notice against Karki on the request of the Bureau on January 7. The move comes after the Kathmandu District Court issued an arrest warrant last December. Karki has been absconding ever since he was convicted of the crime.

“A process has begun to bring the absconding Karki back home or to file a case against him in the respective hideout country,” said DIG Hemanta Malla, chief of the Bureau.

Karki, who is a former managing director of Capital Merchant and Finance Company, is said to be hiding in Texas of the United States of America after embezzling cash amount of several innocent depositors.

Police investigators said that Karki had lured hundreds of victims to invest in more than 42 fake business firms and companies.
The fraudster, who is said to be operating departmental stores, has also invested in real estate business, gas stations among others in the USA with the money embezzled in Nepal.

After the Red Corner Notice was issued, the CIB has also intensified investigation on the means and medium of the embezzled money transferred from Nepal to the USA. Police reports claim that the money was transferred via hundi, an illegal means of transferring money.

“Few clues and suspects involved in the money transfer are under police scanner but the result is yet to come out,” DIG Malla said.

Earlier, the INTERPOL had also issued a Diffusion Notice against Karki soon after the Patan Appellate Court’s verdict against him in 2014, but the police failed to bring Karki back after the authorities in the USA refused to extradite him citing absence of extradition treaty between Nepal and the USA. The American authorities had then clarified that there was no legal base to hand over any citizen living in their territory legally.

The appellate court had convicted Karki of providing loans without good collateral. Following Karki’s involvement in the financial crimes, the enforcement agencies so far have imprisoned his father-in-law Shambhu Bahadur KC, a former managing director of a finance company, along with other two people. Karki, who was CEO of the company during 2002 to 2006, has taken all of his family members to the USA along with him. His wife, who had reached the USA under the DV lottery scheme, has already acquired permanent residency (PR) of the USA.

Source: MyRepublica