Saudi Firm Sues Malibu Man For $9B For Failed Mideast Bank

LOS ANGELES (CBS/AP) — A Saudi Arabian company has filed a $9.2 billion lawsuit against a local man who they claim perpetrated one of the largest scams in history.

Malibu resident Glenn Stewart is accused of working a vast fraud through a now-collapsed bank in Bahrain after he took out over $10 billion in loans as the CEO of The International Banking Corp.

The suit alleges that Stewart falsely claimed the prominent Algosaibi company controlled what essentially was a phony bank.

The Saudi Arabian company Ahmad Hamad Algosaibi & Brothers (AHAB) filed the lawsuit against him Monday in a federal court in Los Angeles.

The five claims asserted by AHAB charge that Stewart,  a U.S. citizen, assisted Maan Al Sanea in securing and misappropriating billions of dollars in borrowing much of which was in AHAB’s name or obtained using forged guarantees in AHAB’s name.

The bank collapsed in 2009.

Stewart faces criminal charges in Bahrain but fled the country last year.

There is no Malibu phone listing for Stewart and an email seeking comment Wednesday wasn’t immediately returned.

(TM and © Copyright 2010 CBS Local Media, a division of CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2010 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)


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