Bahamas : Bahamian investment fund faces winding up over alleged 1.6 billion dollar diversion

According to Eyewitness News, the petition to wind up FAEX Fund Ltd., which is incorporated in the Bahamas as a SMART Fund, was brought before the Supreme Court. The action was initiated by the liquidator of the failed Brazilian institution, who alleges that about 1.6 billion dollars was diverted from the institution and its subsidiary companies into a corporate network controlled by the Bahamian entity.

Brazilian bank scandal

The Tribune reports that the Bahamian vehicle is positioned at the head of an intricate money laundering web. This network was allegedly utilized to misappropriate 1.618 billion dollars, in an affair characterized as the largest banking scandal ever recorded in Brazil.