--- born: 1940-09-07 category: BCCI Scandal died: 2017-01-06 location: Riyadh, Saudi Arabia summary: Pharaon launched himself into the construction business in Saudi Arabia in 1965, founding Saudi Arabian Research and Development Corporation (REDEC). tags: - Person - BCCI --- Ghaith R. Pharaon was a flamboyant [BCCI](/organizations/bank-of-credit-and-commerce-international/) front man and a Saudi financier.[^1] He acquired Georgia National Bank and [Independence Bank of Encino](/organizations/independence-bank-of-encino/), and was a shareholder in Attock Oil, BCCI, and [CenTrust Savings Bank](/organizations/centrust-savings-bank/).[^2] ### Business Ventures and BCCI Involvement Pharaon launched himself into the construction business in [Saudi Arabia](/places/saudi-arabia/) in 1965, founding Saudi Arabian Research and Development Corporation (REDEC). REDEC grew to have revenues exceeding $1 billion and employed 17,000 people by 1979.[^3] Pharaon owned pharmaceutical companies, steel-fabricating plants, and water-bottling plants, and was involved in joint ventures with companies like South Korean Daelim and Ralph M. Parsons Company.[^4] Pharaon was recruited by [Agha Hasan Abedi](/people/agha-hasan-abedi/) and used as a front for BCCI to acquire entities that were difficult for BCCI to obtain directly, including the National Bank of Georgia and Independence Bank.[^5] He was listed as BCCI's single largest shareholder by 1985, holding 16 percent of the company, though this was a sham achieved through Abedi's circular loan scheme.[^6] He was involved in the sham purchase of CenTrust debentures, acting as a front for BCCI, which allowed CenTrust to remain open longer, costing U.S. taxpayers an estimated $2 billion.[^7] Pharaon and Abedi also teamed up to purchase Hercules, Inc., a munitions manufacturer.[^8] ### Political Connections and Legal Issues Pharaon had extensive political connections, including with [Jimmy Carter](/people/jimmy-carter/), to whose charitable organizations he made donations.[^9] He was involved in lobbying efforts to keep CenTrust afloat, meeting with figures like M. Danny Wall, then the nation's top thrift regulator.[^10] Pharaon was indicted by the [Department of Justice](/organizations/department-of-justice/) in 1992 for his role in the bond-swap conspiracy related to CenTrust and the secret ownership of [Independence Bank of Encino](/organizations/independence-bank-of-encino/).[^11] He is described as fleeing from several indictments in the United States and is under investigation in [Argentina](/places/argentina/).[^12] [^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. 11. [^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. 11. [^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. 205. [^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. 205. [^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. 43. [^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. 211. [^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. 220. [^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. 220. [^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. 202. [^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. 85. [^11]: 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. [^12]: Beaty, Jonathan and Gwynne, S. C. *The Outlaw Bank: A Wild Ride into the Secret Heart of BCCI*. New York: Random House, 1993, p. 394.