---
category: BCCI Scandal
summary: Paul put CenTrust on a significant growth curve using brokered deposits,
  which he funneled into high-risk real estate loans, junk bonds, and offbeat investments.
tags:
- Person
- BCCI
- CIA
---

David L. Paul was a real estate developer and owner of [CenTrust Savings Bank](/organizations/centrust-savings-bank/) of [Miami](/places/miami/).[^1]

### Business and Financial Activities

Paul put CenTrust on a significant growth curve using brokered deposits, which he funneled into high-risk real estate loans, junk bonds, and offbeat investments.[^2] He built a gleaming postmodernist skyscraper for CenTrust, which cost $180 million and featured marble, gold-plated bathroom fixtures, and a $13 million Peter Paul Rubens painting.[^3] He also spent $7 million on a ninety-five-foot yacht with a marble fireplace.[^4]

Paul, along with [Ghaith R. Pharaon](/people/ghaith-r-pharaon/) and [Agha Hasan Abedi](/people/agha-hasan-abedi/), engineered a sham purchase of CenTrust debentures. Pharaon, acting as a front for [BCCI](/organizations/bank-of-credit-and-commerce-international/), bought $24,668,750 of CenTrust's bonds in 1987. Paul secretly repurchased these bonds less than a year later, and Pharaon received a commission.[^5] This transaction allowed CenTrust to satisfy regulators and remain open for an additional year, costing U.S. taxpayers an estimated $2 billion when it was finally closed.[^6]

### Political Connections and Legal Issues

Paul had extensive political contacts, giving $300,000 to Democratic politicians and raising more.[^7] He was appointed financial chairman of the Democratic Senatorial Campaign Committee in 1987 by Senator [John Kerry](/people/john-kerry/).[^8] His personal calendar showed frequent meetings with numerous senators and other key political figures.[^9]

In 1992, Paul and Pharaon were indicted together by the [Department of Justice](/organizations/department-of-justice/) in Miami for the bond-swap conspiracy.[^10] His business practices and connections were scrutinized during the BCCI scandal, highlighting the intertwined nature of finance and politics.

[^1]: Beaty, Jonathan and Gwynne, S. C. *The Outlaw Bank: A Wild Ride into the Secret Heart of BCCI*. New York: Random House, 1993, p. 10.
[^2]: Beaty, Jonathan and Gwynne, S. C. *The Outlaw Bank: A Wild Ride into the Secret Heart of BCCI*. New York: Random House, 1993, p. 218.
[^3]: Beaty, Jonathan and Gwynne, S. C. *The Outlaw Bank: A Wild Ride into the Secret Heart of BCCI*. New York: Random House, 1993, p. 218.
[^4]: Beaty, Jonathan and Gwynne, S. C. *The Outlaw Bank: A Wild Ride into the Secret Heart of BCCI*. New York: Random House, 1993, p. 218.
[^5]: Beaty, Jonathan and Gwynne, S. C. *The Outlaw Bank: A Wild Ride into the Secret Heart of BCCI*. New York: Random House, 1993, p. 220.
[^6]: Beaty, Jonathan and Gwynne, S. C. *The Outlaw Bank: A Wild Ride into the Secret Heart of BCCI*. New York: Random House, 1993, p. 85.
[^7]: Beaty, Jonathan and Gwynne, S. C. *The Outlaw Bank: A Wild Ride into the Secret Heart of BCCI*. New York: Random House, 1993, p. 218.
[^8]: Beaty, Jonathan and Gwynne, S. C. *The Outlaw Bank: A Wild Ride into the Secret Heart of BCCI*. New York: Random House, 1993, p. 218.
[^9]: Beaty, Jonathan and Gwynne, S. C. *The Outlaw Bank: A Wild Ride into the Secret Heart of BCCI*. New York: Random House, 1993, p. 221.
[^10]: Beaty, Jonathan and Gwynne, S. C. *The Outlaw Bank: A Wild Ride into the Secret Heart of BCCI*. New York: Random House, 1993, p. 221.