The Hallmark Scandal
Introduction
Hallmark is the recent largest banking scam in Bangladesh, which occurred due to regulatory inefficiency of commercial banking sectors. It is a pointer to the fact that if you do not tighten the regulatory belt of the banks, serious problems could creep in. Source suggests, this particular business house is assumed to have resorted to fraudulent loan. A fraudulent loan is one in which the borrower is a business entity controlled by a dishonest bank officer or an accomplice; the “borrower” then declares bankruptcy or vanishes and the money is gone. The borrower may even be a non-existent entity and the loan merely an artifice to conceal a theft of a large sum of money from the bank. This can also be seen as a component within mortgage fraud. However, it is being assumed that Hallmark has embezzled an awesome amount of TK 300-400 billion through fake and factious documents from a particular branch of Sonali Bank at Ruposhi Bangla Hotel.
Ruposhi Bangla Hotel branch of Sonali Bank responsible for illegally disbursing a loan of Tk 2,686.14 crore to Hallmark Group .Shonali Bank’s Ruposhi Bangla Hotel’s branch showing fake documents from the bank. The forgery of the Hall Mark Group in the Ruposhi Bangla Branch of Sonali Bank was going on for two years now and the illegalities were first detected in three branches by a GM in January 2012. The recommended inspection although orally approved by the MD in January could not be started until April allegedly due to resistance of a DMD. The manager of Ruposhi Bangla branch was to be transferred in the normal process two years ago but stayed on until recently to perhaps facilitate the Hall-Mark Group forgery; his extension could not have been without the explicit consent of the top management of Sonali Bank. Whatever plea may be cited, top management of Sonali Bank is primarily and mainly responsible for the Hallmark Fraud. If it was under duress from its Board or the powerful politicians, an MD or DMD worth her
Hallmark is the recent largest banking scam in Bangladesh, which occurred due to regulatory inefficiency of commercial banking sectors. It is a pointer to the fact that if you do not tighten the regulatory belt of the banks, serious problems could creep in. Source suggests, this particular business house is assumed to have resorted to fraudulent loan. A fraudulent loan is one in which the borrower is a business entity controlled by a dishonest bank officer or an accomplice; the “borrower” then declares bankruptcy or vanishes and the money is gone. The borrower may even be a non-existent entity and the loan merely an artifice to conceal a theft of a large sum of money from the bank. This can also be seen as a component within mortgage fraud. However, it is being assumed that Hallmark has embezzled an awesome amount of TK 300-400 billion through fake and factious documents from a particular branch of Sonali Bank at Ruposhi Bangla Hotel.
Ruposhi Bangla Hotel branch of Sonali Bank responsible for illegally disbursing a loan of Tk 2,686.14 crore to Hallmark Group .Shonali Bank’s Ruposhi Bangla Hotel’s branch showing fake documents from the bank. The forgery of the Hall Mark Group in the Ruposhi Bangla Branch of Sonali Bank was going on for two years now and the illegalities were first detected in three branches by a GM in January 2012. The recommended inspection although orally approved by the MD in January could not be started until April allegedly due to resistance of a DMD. The manager of Ruposhi Bangla branch was to be transferred in the normal process two years ago but stayed on until recently to perhaps facilitate the Hall-Mark Group forgery; his extension could not have been without the explicit consent of the top management of Sonali Bank. Whatever plea may be cited, top management of Sonali Bank is primarily and mainly responsible for the Hallmark Fraud. If it was under duress from its Board or the powerful politicians, an MD or DMD worth her