Two American citizens of Lebanese origin Hassan and Mehdi Awdi were sentenced to ten years in jail each, without parole, in a fraud case at the railway messenger company CFR Mesagerie. The sentence however is not final and can be further appealed. Two others got jail sentences: Istambouly Bassam got five years in jail, and Ioan Badeanu, three years.

Four companies were also found responsible in this fraud case, and the court ordered these companies, Supremo Media, Southern Cross Parklane, Monalisa Investments and Network Press Concept to pay cash damages on account of VAT, and in kind compensation. The in kind compensation includes several land plots near Bucharest.

The Awdi brothers were prosecuted by Romanian anti-corruption unit DIICOT in 2012 for having defrauded CFR Mesagerie. They were previously investigated for an alleged EUR 35.5 million fraud at the formerly state – owned Rodipet.

Prosecutors found that Mehdi Awdi, Iordan Baneasau and Bassam Istanbouly, all with management positions at CFR Mesagerie SA and at other firms, were involved in embezzlement, tax evasion and money laundry. Under their leadership, the company, which had been privatized, failed to pay its taxes, and sold some of its assets at low prices to their own companies.

Prosecutors showed that the three, together with Hassan Awdi, intended – and managed to bankrupt CFR Mesagerie also by signing fictitious contracts for services which were never provided. They also failed to comply with the obligations in the privatization contract. The authorities discovered that the group of four managed to transfer assets worth some RON 4.4 million – or some EUR 1 million, and caused a considerable prejudice to the state budget.

The same Awdi brothers are investigated in the similar fraud and bankruptcy of former state – owned Rodipet, another messenger company bought under a privatization contract.

editor@romania-insider.com