Economy

Mahtani’s Mystery Shareholder in Michigan

mahtani-money-laundering-page-1In the months leading up to the election of President Michael Sata, the controversial Indian multimillionaire Rajan Mahtani was being investigated for money laundering with assistance from the U.S. government for having made mysterious dividend payments to a woman living in Livonia, Michigan – a suburb of the city of Detroit.

The woman in question receiving tens of thousands of dollars in dividend payments from Mahtani’s Finsbury Investments Limited was not an investor or representative of a financial institution, but rather works as a real estate agent and notary.

According to documents obtained by Zambia Reports, Mahtani’s mystery shareholder is named Erika L. Droste, and is the beneficiary of account # 682-080-1733 at Comerica Bank. Over a period of time, Mahtani through Finsbury paid out more than $32,500 to this woman, prompting Zambia’s Drug Enforcement Commission (DEC) to suspect that these transactions formed part of an alleged money laundering network overseen by Mahtani.

Attempts to contact Ms. Droste were unsuccessful at the time of publication, though her publicly listed profile at Remerica Integrity Realtors states that she specializes in “representing clients in the purchases and sales of single-family residences, relocation, new construction, condominiums, vacant land and commercial development properties.” Droste maintains an office located at 16172 Middlebelt Road, Livonia, Michigan, 48154.

According to the document obtained by Zambia Reports, “the investigation has revealed that Dr. Mahtani accrued a total sum of approximately US$20 million as FBZL dividends, some of which he later transferred to foreign jurisdictions. Based on this activity, Dr. Mahtani has been accused of being in possession of more than 25% beneficiary interest in voting shares of FBZL without prior authorisation from the Bank of Zambia, contrary to Zambia’s Banking and Financial Services Act, as well as money laundering in violation of Zambia’s Prohibition and Prevention of Money Laundering Act.”

It is unknown what the result was of the DEC’s interviews with Ms. Droste facilitated by the Assistant United States Attorney (AUSA), or even if the investigation was able to take place before President Sata was elected, putting an end to the Mahtani matter. Among the other shareholders in Finance Bank potentially involved in the money laundering investigation is Credit Suisse – though their 40% shareholding is disputed as a disguised loan rather than a true strategic stake.

A confidential source has promised to release the full U.S. court documents on the money laundering investigation against Mahtani, which are expected to be published soon.

These revelations add more fuel to the fire of a string of controversies for the Ndola-based banker, including the alleged theft of the Zambezi Portland Cement company through forgery and fraud, shady tactics against the owners of the Radisson Blu hotel in Lusaka, and the continued illegal operation of Finance Bank. Most recently, Mahtani was again dragged into a dispute involving the Director of Public Prosecutions Mutembo Nchito, who was found to have lied before a parliamentary select committee, promising not to be involved in any case involving Mahtani. Instead, Nchito immediately dismissed two cases against Mahtani, resulting in the forgiveness of more than $4.2 million in debt from Mahtani.

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13 Comments

  1. BVrains

    Just JAIL this bastard! He has stolen enough of Zambias money!

    Are we just leaving him free to steal MORE?

    • Chipolopolo

      Mahtani is busy double dealing and has secured his future with HH. He is funding HH in a big way.

      • Njoro

        Zambians are crying babies. Jealous of a successful businessman. All stupid Presidents used him, used his money and goodwill and left him in the cold. Blaming him for their mismanagement of the economy. All his good work of creating jobs, church benevolence, charity and bringing investors is unappreciated.

  2. Advocate

    Jonas Stolzfus is a crook who created a myriad of trusts to hide money laundering and holding of Finance Bank shares above 25% by Mahtani, Mary Schultz (his sister) and Mr. Schultz (his brother in law, a fake reverend). All are on watchlist of relevant authorities in the USA, Canada and Great Britain. Cases are on hold as DEC did not pursue after Sata came to power but will be revived and information provided once Sata is gone.

  3. Mutale

    Finance Bank employees shall keep their eyes and ears open. Mahtani’s henchman Barkat Ali is busy transferring money since the days of PF are numbered. Share the information with online media.

  4. Stan

    Farting Indian’s days are numbered. More he luanders his image through Zambian Watchdog, more he is exposed. He is digging deeper by bribing Zambian Watchdog. If HH does not distance himself from this mwenye, he will lose votes of hundreds of thousands who have been conned, duped and deprived by Mahtani.

    • Hitler

      It’s really amazing seeing the comments turned off on Zambian Watchdog on every article of Mahtani. I suspect he owns Zambian Watchdog!!

  5. CraveJ

    Even a layman can read that these transactions are nothing but illegal transfers of money to crooked middlemen. A beneficiary has multiple accounts to which purported small amounts (up to $10,000) are transferred to avoid the automatic raise of redflag for reporting by the recipient bank and investigation by the federal authorities.

  6. CraveJ

    Credit Suisse was represented by Mahtani’s Indian brothers from the UK. Ask Mrs. Craven about the deal. She is the company secretary of Finance Bank and all Mahtani group companies. She ran away from Zambia when DEC was looking for her and refused to cooperate. She is back in Zambia and is involved in washing of Zambezi Portland cement from the back of Rajan Lekraj Mahtani. She and late Malama pasted fake board resolution on the minutes book of Zambezi Portland Cement. Grill her and truth will come out.

  7. MusaM

    @njoro, are You blaming Presidents of Zambia for his problems?

  8. Salomina

    Look at all this corruption in Zambia, and tell me that this is a better govt??? Time to remove PF, jail Mahtani, and restore sanity to our beloved nation.

  9. Chalo Mwimba

    I still think sata is the best president. He is eating and doing work. I don’t mind. The face of Zambia has changed infrastructure wise even he get a small kick back is fine. He has restored dignity to zambians n put their interests before that of foreigners who milk Zambia

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