The Bahrain Chamber of Dispute Resolution (BCDR) has issued a verdict in favor of Bank Alkhair, an Islamic wholesale investment bank, against former CEO Majed Al-Refai.

The BCDR ordered Al-Refai to repay a $2 million loan he had taken during his tenure as CEO, which despite numerous requests remained unpaid, and to compensate the bank for all legal fees and costs.

The latest ruling against Al-Refai follows several other criminal cases involving Al-Refai and associates, which have all been ruled in favor of the bank.

On Sept. 29, 2013, the Supreme Criminal Court of Appeal sentenced Al-Refai and his Canadian associate Robert Little each to one year in prison for forging the bank’s articles of association.

Al-Refai and his associate forged the bank’s articles of association by granting Al-Refai the power to prevent the bank’s shareholders from making any amendment that alters his authorities and privileges as the CEO.

Commenting on the latest ruling, Chairman Yousef Al-Shelash, said: “Following the discovery of Al-Refai’s illegal activities in 2010, we have done everything in our power to bring him to justice and maintain Bank Alkhair’s profitability and commitment to its shareholders, as well as clearly demonstrate through the Bahraini courts that any and all illegal activities were isolated to Al-Refai’s tenure.”

The chairman said: “We continue to see a significant improvement in the bank’s capital markets and investment banking deal flow, as well as a potential merger with a major retail bank in Bahrain.”

He added: “We anticipate further rulings from the courts in the bank’s favor against Al-Refai and his cohorts, and have every faith that justice will be served.”

Bank Alkhair’s board of directors approved the revocation of Al-Refai’s powers as CEO in July 2010, and immediately commissioned a full investigation into his activities.

Independent advisory firms Price Waterhouse Coopers and Ernst & Young, as well as renowned law firm Latham & Watkins, revealed a series of fraudulent and illegal activities conducted by Al-Refai. Consequently, Al-Refai was terminated from his position in August 2010.

The following month, September 2010, Bank Alkhair filed a criminal complaint against Al-Refai to the General Prosecutor of Bahrain.

In September 2013, the Supreme Criminal Appeals Court sentenced Al-Refai and his Canadian associate Robert Little each to one year in prison for forging the bank’s articles of association.

Al-Refai is currently facing fines totaling BD151,000 ($400,530) and 18 years in jail for embezzlement, money laundering and fraud among other charges.

There were also three civil rulings by the BCDR all in favor of the bank.