When Dallas real estate investor Raheel Bhai pleaded guilty to wire fraud in March, his father was accused of helping his son steal millions of dollars of lender funds.
Now the father, Ismail Essa Bhai, is speaking out to deny those allegations, Bisnow reported.
Benefit Street Partners, a New York-based lender defrauded by Raheel Bhai, is suing the elder Bhai, alleging that he orchestrated a “shell game” that aided his son’s embezzlement and made millions of dollars disappear before leaving the country.
Ismail Bhai’s attorneys, Ravji and Weldon Moore III, have pushed back, saying there’s no evidence that he was involved in his son’s crimes. They say Benefit Street was in the wrong by procuring documents used against him.
“Ismail has never been indicted, has never been investigated, he has no restrictions,” Ravji told the outlet. “He’s living here as a free citizen of the United States. There’s no criminal investigation, none of this is going on, and that’s why Ismail denied the allegations that individuals have raised against him in the adversary proceeding.”
Raheel Bhai’s scheme unfolded with the falsification and forgery of over 75 documents, used to secure a $149 million loan from Benefit Street under the pretext of refinancing a Walgreens property portfolio. Raheel claimed the funds would be used to bolster a real estate investment trust tied to his company, IBF Properties.
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After admitting to funneling almost $22 million of the loan to a front company, Raheel Bhai and his family traveled to the United Arab Emirates and then Pakistan as the fraud came to light. Co-conspirator Di Hao Zhang allegedly converted more than $5 million of the loan to cryptocurrency to help them leave, but charges against him have been dropped.
Ismail Bhai’s attorneys claimed that their travel was due to a family funeral and that they’ve returned to the country.
Raheel Bhai awaits his sentencing. He faces a maximum prison term of 20 years and a $250,000 fine.
—Quinn Donoghue