Report: Afghan President Karzai's older brother could face tax evasion indictment

Report: Afghan President Karzai's older brother could face tax evasion indictment

2010-10-15 22:16:23 GMT+7 (ICT)

WASHINGTON, D.C. (BNO NEWS) -- Afghan President Hamid Karzai's older brother could soon be facing a tax evasion indictment in the United States, according to a media report on Friday.

The Washington Post cited an unidentified U.S. official as saying that prosecutors are considering an indictment against Mahmoud Karzai in relation to an alleged $64,000 tax evasion.

Mahmoud Karzai, who is a U.S. citizen, is part of a corruption probe handled by federal prosecutors in the Southern District of New York. Besides the tax evasion charges, he could also face charges of racketeering and/or extortion.

The tax evasion charges follow reports that Mahmoud Karzai made at least $800,000 by buying and reselling a villa in Dubai through a loan from the Kabul Bank. However, Mahmoud Karzai was one of the third biggest shareholders in the bank that nearly collapsed in September after a run by depositors.

Mahmoud Karzai continues to deny any wrongdoing, however. "I know myself. I'm very clean," he told The Washington Post. "Whatever was due, I paid it," he added, stating he recently paid the U.S. government $301,000 to cover capital-gains.

The case could rise further tensions between the U.S. government and President Karzai, who has complained of corruption allegation by the U.S. against people close to him.

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