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...company, which is headed by former Defense Secretary Clark Clifford and his law partner Robert Altman. Clifford and Altman, who served as attorneys for B.C.C.I. throughout the 1980s, have denied knowing it owned First American. The other two secretly owned banks were the National Bank of Georgia, which Ghaith Pharaon, a Saudi tycoon and B.C.C.I. front man, acquired from Carter Administration official Bert Lance, and Miami's CenTrust Savings. Pharaon used B.C.C.I. funds to become a partner of financier David Paul, who built CenTrust into a giant house of cards before it collapsed last year at a cost to taxpayers...

Author: /time Magazine | Title: Scandals: Cashing In on Blue Chips | 8/12/1991 | See Source »

Even as countries strove to pierce the veil of deceit and corruption that shrouds B.C.C.I., fresh disclosures of the bank's influence peddling came to light. TIME has learned that Pharaon helped keep CenTrust open for a year longer than its bankrupt condition warranted after acquiring a total of 1.5 million CenTrust shares, or more than 5% of the S&L's stock, in 1988 and 1989. CenTrust was so shaky by late 1988 that regulators for the Federal Home Loan Bank Board in Atlanta had decided to shut it down...

Author: /time Magazine | Title: Scandals: Cashing In on Blue Chips | 8/12/1991 | See Source »

Farther south, the government of Argentina last week gave B.C.C.I. 48 hours / to pack up and leave the country. Authorities were particularly worried by the appearance of links between President Carlos Saul Menem and Saudi billionaire Ghaith Pharaon, a B.C.C.I. front man who is building a Hyatt Hotel in Buenos Aires and is a friend of Javier Gonzalez Fraga, the former president of Argentina's central bank. "We already know that the next scandal is going to tie President Menem with Ghaith Pharaon," an official said...

Author: /time Magazine | Title: Corruption: Feeling the Heat | 8/5/1991 | See Source »

...B.C.C.I. debacle even rubbed off on the U.N. and its Secretary-General, Javier Perez de Cuellar. The U.N. sullenly confirmed reports that Perez de Cuellar twice took trips in 1986 and 1987 on planes owned by Pharaon. The diplomat has said he was unaware at the time of problems at B.C.C.I...

Author: /time Magazine | Title: Corruption: Feeling the Heat | 8/5/1991 | See Source »

...regulators discovered recently that such loans had enabled B.C.C.I. to buy clandestine control in three American banks: First American Bankshares in Washington, National Bank of Georgia (later purchased by First American) and Independence Bank of Encino, Calif. The latter two were bought officially by Abedi's front man, Ghaith Pharaon, the putative Saudi tycoon who received an ) estimated $500 million in B.C.C.I. loans in the 1970s and '80s. Those loans were secured only by shares of stock in the companies Pharaon purchased, which meant that they were never to be repaid...

Author: /time Magazine | Title: B.C.C.I.: The Dirtiest Bank of All | 7/29/1991 | See Source »

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