Egyptian Billionaire’s Secret Swiss Bank Accounts: Insider Trading Allegations in Mubarak-Era Scandal
Reporters: Ahmed Atef & Ahmed Elshamy
Swiss Leaks Exposes Egyptian Businessman Yasser Mallawany
February 2015: Over 100,000 financial documents from HSBC Switzerland were released, revealing illicit activities including money laundering and tax evasion. Among the clients unmasked were over 1,400 Egyptians with deposits worth $3.5 billion. Yasser Suleiman Hisham Mallawany, a 55-year-old Egyptian and former National Democratic Party (NDP) member, was among those named.
Mallawany, the CEO of EFG Hermes Holding Company, had controlled four accounts in HSBC Switzerland from 2004 to 2007, during which his deposits reached over $760,000.
The Al Watany Bank Scandal
2001: The world of Egyptian business was rocked by the Al Watany Bank scandal, where insider trading was suspected. Mallawany was identified as the mastermind behind the scheme, using separate companies affiliated with Hermes Holding to manipulate Al Watany Bank’s shares.
April 2011: During a hearing, Mubarak’s son, Alaa, admitted his involvement in the scandal. The investigation against Mallawany then began.
Manipulating the Egyptian Stock Exchange
During Mallawany’s tenure at Al Watany Bank, crucial files documenting the scandal failed to reach the courtroom. Despite being a public sector servant, Mallawany did not disclose these accounts, which violated mandatory financial disclosures.
Collaboration with Strategic Investors
Colonel Tareq Marzouq, director of a special unit at the General Directorate for Investigations, confirmed Mallawany’s central role in the scandal. Using separate companies affiliated with Hermes Holding, Mallawany and his associates made hefty profits from manipulating Al Watany Bank shares in collaboration with strategic investors.
Charges Against Mallawany
Mallawany, along with several others, including Gamal Mubarak and Alaa Mubarak, was accused of insider trading and illicit profiting by the public prosecution.
Case Files
The case files documented collaborative efforts to bypass insider trading laws and exploit confidential information for profits.
Business Interests
The Al Watany Bank scandal was only the tip of the iceberg. Investigations revealed that Mallawany’s business interests extended far beyond stock manipulation. Among these businesses were:
- SCI MELLO
- MELLO YACHTS
- Commercial International Investment Company
- Picco Modern Company for Agriculture
- Juhayna Food Industries
- Horus Food & Agribusiness Management
- Wings Imperial for Hotels
- Palm Hills Development Company
- Shehab Maritime & Oil Services Co.
- Several Lebanese companies, including Hermes CL Holding and Lebanese Credit Libanais.
Ongoing Investigations
Mallawany and his legal team declined to comment on the scandal and the disclosed documents. The investigation is ongoing, shedding light onto the complex relationships of money and power that characterized the Mubarak-era in Egypt.
This exposé was made possible with the support of Arab Reporters for Investigative Journalism (ARIJ) and coaching from Hamoud al-Mahmoud.