The Bahrain Chamber of Dispute Resolution (BCDR) issued a verdict in favour of Bank Alkhair against Falah Nasser Hamad Al-Falah, a former employee of the Bank, and its former Chief Executive, Majid Al-Refai. The BCDR ordered Al-Falah and Al-Refai to jointly and severally pay the Bank approximately $1.7 million for misappropriation of Bank funds and unauthorized activity during Al-Refai’s tenure as Chief Executive Officer of the Bank.
This is the fifth ruling to date issued against the former CEO. On the 26th of September 2012, the High Criminal Court of Bahrain found Majid Al-Refai guilty of money laundering, fraud, illegally soliciting donations without prior licensing from Bahraini, and was sentenced to 5 years in prison and fined BD40000. On the 26th of July 2012, the Criminal Court of Bahrain convicted Majid Al-Refai of embezzlement; misappropriation of Bank funds; and obstructing shareholders from accessing Bank records, and sentenced him to 4 years in prison.
In March 2012, the Bahrain Chamber of Dispute Resolution dismissed a claim by Majid Al-Refai for compensation of BD1 million for his termination from the position of Chief Executive Officer of the Bank. In May 2012, Bahrain’s Supreme Civil Court also dismissed a claim brought by a group of shareholders affiliated with the former CEO, requesting the nullification of the General Assembly’s resolution, issued in October 2010, to remove Majid Al-Refai from the Bank’s Board of Directors and to authorize the Board to take legal action against Al-Refai. Furthermore, Interpol has a warrant out for Al-Refai’s arrest.