Pair Accused of Bilking Saudis of $35 Million
HOUSTON — Two former Saudi Arabian officials have been charged with defrauding their government of at least $35 million in Saudi educational funds, federal officials announced today.
A 25-count indictment alleges the two used money earmarked for the educational and living expenses of Saudi students in the United States to buy companies and real estate and make other investments in the United States and overseas, according to Assistant U.S. Atty. Mitchell Lansden.
Lansden said those indicted were Sohbi Y. Alharthi, Saudi Arabia’s educational attache in the United States between 1979 and 1985, and Abdulaziz I. Salamah, who served as Alharthi’s assistant.
During Alharthi’s tenure, about $1 billion in Saudi government funds flowed through the Houston-based educational mission to assist about 8,700 Saudi students in the United States, Lansden said. Alharthi is now living in Saudi Arabia, while Salamah’s whereabouts are unknown, Lansden said.
While students’ expenses were paid, various schemes were used by the two men to overbill their government, siphoning excess money to their use, Lansden said.
The U.S. and Saudi governments have been consulting on how to proceed with the case, he said.
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