Title: Azerbaijan’s Ex-Bank Chief Jahangir Haijyev Sentenced to 15 Years Over $3B Bank Fraud

Background

In a high-profile case, a Azerbaijani court sentenced former International Bank of Azerbaijan (IBA) head Jahangir Haijyev to 15 years in prison and a fine of 63.08 million manat ($39.2 million) for his alleged role in a multibillion-dollar bank fraud scheme.

Details of the Case

• Haijyev, who once headed the country’s largest bank—majority owned by the state, resigned last year before a probe was initiated into the bank’s management.
• According to the prosecution, Haijyev and his associates misappropriated up to $3 billion from IBA through questionable loans and offshore transactions, violating bank regulations and risk management rules.

Suspicious Transactions

• Several transactions raised red flags, including:
  • Loans extended to businesses connected to bank management members.
  • Some loans were routed to offshore companies overseas.
  • Loans were illegally approved in the names of unsuspecting low-ranking staff.

Alleged Misappropriated Funds

• The Finance Ministry reportedly estimated the total misappropriated funds could be as much as 5 billion manat ($3 billion).
• Prosecutors disputed the figure, calling it an overestimation.

Accusations Against Haijyev

• Haijyev faced charges of fraud, abuse of power, and misappropriation of funds.
• He pleaded not guilty and vowed to appeal the ruling, denying any wrongdoing and insisting that the investigations were biased.

Involvement of Haijyev’s Family

• Haijyev’s wife, Zamina, is also wanted by Azerbaijani authorities in connection to the case.

Sentences for Other Accused Individuals

• In addition to Haijyev, seven other individuals stood trial.
• The most severe sentences were given to:
  • Factories director Azad Javadov: 10 years and 11 months.
  • Security company head Ibrahim Huseynov: 6 years 5 months.
• Bank official Yusif Alekberov received a sentence of 7 years 6 months, and four other bank employees received suspended sentences.

Reactions

• Attorneys for the defendants protested the verdict, alleging that investigations lacked transparency and objectivity.
• However, the court found enough evidence to convict the accused, stating the gravity of the crime and the scale of funds misappropriated warranted lengthy prison terms and hefty fines.