Sheikh Claims $80M from Barclays

Sheikh's $80 million Claim Against Barclays

Full story : Sheikh's Claim Against Barclays

Claims made by a member of the royal family in Qatar concerning an alleged $80 million fraud at Barclays could surface up again as Barclays tries to raise funds from Qatar.

According to the Sunday Times a billionaire sheikh, from Qatar's Al Thani family, is claiming that Barclays were negligent in allowing one of the sheikh’s employees to help himself to around 4 million euros a month from an account in Marbella.

The allegations are that this took place from December 2001 to early 2003, and it is thought that the sheikh will be increasing pressure to have the claim settles as the QIA prepares to acquire a stake in Barclays..

Expectation are that the bank will announce plans to raise $8 billion from a number of outside investors, including the QIA, Temasek, Sumitomo Mitsui Financial Group and the China Development Bank.

The QIA appears to be so far unaware of the alleged fraud, although if they read the papers it is hard to see why this would be the case.

According to the sheikh a former employee, Gerald Gouallier, fraudulently set up a joint account at the Marbella branch of Barclays Bank, using documents that he had not signed.

The bank did not demand any proof of identity and did not require his presence at any signing process.

Gouallier moved cash between the fraudlent account and a genuine account. 29 million euros was withdrawn, and an additional 20 million euros were transferred to other accounts.

The sheikh says Barclays never contacted him about the huge amounts invlved even though he was supposed to be a co-signatory.

The sheikh alleges gross negligence by Barclays saying that they did not adhere to standard money-laundering regulations.

The sheikh also claims that a manager at the Marbella branch was involved in the alleged fraud.

Gouallier and the manager are being investigated by police in Spain.

Spanish police support the sheikh’s statement that his signature was forged.

The sheikh says that he is still owed about €42m.

Barclays have refused to comment on the case, so I will too.