Home Share market Fareast Islami Life Scandal: Former Chairman Nazrul Islam Confesses to Massive Embezzlement

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Fareast Islami Life Scandal: Former Chairman Nazrul Islam Confesses to Massive Embezzlement

“Faith as a Facade: How the Company Exploited Religion to Collect Billions in Premiums”

Hossain Ahmed & Nurun Nboi Sohel

In a dramatic turn in one of Bangladesh’s largest insurance scandals, Fareast Islami Life Insurance Limited’s former chairman Md. Nazrul Islam has given a confessional statement under Section 164 of the Code of Criminal Procedure, admitting to massive financial irregularities, embezzlement, and money laundering.

Nazrul Islam appeared before the Chief Metropolitan Magistrate (CMM) Court of Dhaka on October 27, 2025, where he detailed how he and his associates siphoned off millions from policyholders’ funds.

A Web of Illicit Deals and Hidden Fortunes

In his deposition, Nazrul Islam revealed that he and his family are U.S. citizens and that in 2015 they purchased a house in Wellington, USA, for USD 550,000, using funds illegally obtained from Bangladesh.

He admitted that during the 2014 purchase of land at 36 Topkhana Road, Dhaka—in the name of Fareast Islami Life Insurance—Tk 28 crore was illicitly shared among insiders. Of that, Nazrul personally received Tk 6 crore, later transferring Tk 10 crore to his own account and Tk 9.5 crore to his wife’s account. These funds, he confessed, were laundered abroad.

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Linking the Bigger Players

The former chairman also implicated M.A. Khalek, the company’s founder director, and his son Shahriar Khaled in a vast scheme of corporate plunder. According to his statement, Khalek and his close associates formed 11 shell companies—including Prime Financial Securities, PFI Securities, Primeasia University, and Primeasia Foundation—through which they embezzled around Tk 591 crore. Nazrul admitted to being a participant in these operations.

He further described how the group manipulated corporate networks within Fareast Islami Securities, Fareast Islami Properties, and CVC Finance to funnel money under the guise of property investment and business expansion.

Extravagant Lifestyle and Hidden Wealth

Nazrul Islam’s testimony painted a portrait of lavish living built on illicit wealth. He claimed ownership of over Tk 200 crore in declared and undeclared assets, including:

“Puthul House,” a luxury triplex in Baridhara, rented to foreign nationals.
Multiple high-end flats in Gulshan, DOHS Baridhara, Nikunja, and Bashundhara Residential Area.
Jointly owned commercial property worth Tk 18 crore at Bhulta Gausia (“Prime Shop”).
Agricultural land in Sirajdikhan.

He also admitted to being a member of 14 elite clubs, including Dhaka Boat Club, Dhaka Club, and Gulshan Club, paying significant membership fees from unaccounted funds.

The Fall of a Power Player

Nazrul confessed that during his tenure, the company’s financial transactions “were not transparent.” He acknowledged that large-scale misappropriation occurred under his leadership in collusion with M.A. Khalek and others, adding that he personally benefited from the embezzled funds.

Investigators from the Anti-Corruption Commission (ACC) described his confession as a major breakthrough in an ongoing probe into systemic corruption at Fareast Islami Life Insurance.

Arrest and Legal Action

Nazrul Islam was arrested by the ACC on October 23, 2025, from Dhaka’s Bangshal area. Following his arrest, he was produced before the court, where the ACC sought seven days’ remand. The Dhaka Metropolitan Senior Special Judge Sabbir Foyez later granted a five-day remand.

The case accuses Nazrul and others of misappropriating Tk 45 crore through fraudulent land purchases. According to the ACC’s statement, Nazrul and his wife, Taslima Islam, jointly received Tk 19.5 crore in illegal payments. They now face charges under the Penal Code, the Prevention of Corruption Act, and the Money Laundering Prevention Act.

A Decade of Deception

The confession corroborates earlier audit findings suggesting that more than Tk 2,100 crore was embezzled from Fareast Islami Life Insurance between 2010 and 2020. Investigations by both the ACC and the Insurance Development and Regulatory Authority (IDRA) had previously identified massive irregularities, including fake investments, inflated land purchases, and siphoning of policyholders’ money.

Once a trusted name in Shariah-based life insurance, the company’s reputation has been severely tarnished. Claim settlement ratios have fallen below 10 percent in recent years, and policyholders continue to struggle for payment.

The Road Ahead

With Nazrul Islam’s confession, investigators believe the case has entered a decisive stage. Further interrogation of implicated individuals, including M.A. Khalek and his associates, is expected to follow.

The ACC has indicated that it will move to seize assets linked to the misappropriated funds, both at home and abroad.

For thousands of policyholders and investors, however, justice will only be complete when their lost savings are recovered—and when corporate accountability finally reaches the top echelons of Bangladesh’s financial sector.

সোর্স : ব্যাংক বীমা অর্থনিউজ

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