The Criminal Investigation Department (CID) of the police filed a case against the online-based travel agency ‘Flight Expert’ (FEBD) for money laundering amounting to BDT 346.93, alleging that the company accepted advance payments from hundreds of customers and sub-agents for air tickets but failed to provide them.
Based on information obtained from an investigation by the CID’s Financial Crime Unit, a case has been filed against seven individuals at the Motijheel Police Station in the capital. The accused are: FEBD Managing Director and Flight Expert CEO Salman Bin Rashid Shah Sayem, President MA Rashid Shah Shamrat, Directors Amir Hamza Rashid Shah Nayeem, AKM Shahdat Hossain and Abdul Gani Mehedi, Head of Finance Md Sakib Hossain, and Soma International Services proprietor Mutaher Hussain.
Flight Expert began its online air ticket sales operations in 2016, according to a CID press release. Subsequently, the company started providing various travel services, including hotel bookings, and Hajj and Umrah packages. Despite receiving registration as a joint-stock company under the name FEBD in 2019, the firm conducted business operations and banking transactions using both the names ‘Flight Expert’ and ‘FEBD’.
The investigation further revealed that the company sold tickets through both B2B and B2C methods. By announcing abnormal discounts at various times, they collected huge amounts of advance payments from various sub-agents and general customers across the country. But without providing the scheduled tickets, the company’s Managing Director, Salman Bin Rashid Shah Sayem, left the country on August 1 of last year.
CID’s investigation found that the money deposited in various bank accounts operated under the name FEBD was subsequently transferred to various bank accounts of Flight Expert. Preliminary evidence also suggests attempts were made to conceal the source, ownership and nature of the illegally acquired assets through the transfer, withdrawal and conversion of the company’s funds into the accounts of various individuals and entities.
The investigation further revealed that even after the managing director left the country, several of the company’s directors and the head of finance withdrew and transferred significant sums of money from various bank accounts. Evidence of misappropriation of funds acquired through fraud was found through these transactions.
Despite Flight Expert collecting tickets through various IATA-approved travel agencies, in many cases, tickets were not provided even after receiving the full payment from customers. In some instances, cases of receiving payments from multiple sources against the same ticket were also identified.
According to the press release, CID’s investigation has primarily shown that around BDT 346.93 was misappropriated through fraud and subsequently laundered through various banking transactions involving the transfer, handover and conversion of funds.