Mahmoud Reza Khavari

Mahmoud Reza Khavari
Born	(1952-05-26) May 26, 1952 Khorramabad, Iran
Occupation(s)	Banker, entrepreneur
Years active	–2011
Known for	Chairman of Bank Melli Iran; accused in 2011 Iranian embezzlement scandal

Mahmoud Reza Khavari (; born May 26, 1952) is an Iranian ex-banker, entrepreneur, and fugitive accused of embezzlement linked to the 2011 Iranian embezzlement scandal. Since 2012, Iranian authorities have sought his arrest, with an Interpol red notice issued against him.

Khavari held the position of chairman at Bank Melli Iran until September 2011 and previously served as chairman of the board at Bank Sepah from December 2003 through March 2005.

After acquiring Canadian citizenship in 2005, Khavari fled to Canada in 2011 to evade legal proceedings in Iran. He currently lives in Canada and has not been prosecuted there.

Early life and education

Born in Khorramabad, located in western Iran, Mahmoud Reza Khavari completed his undergraduate studies in law at the University of Tehran and earned a master's degree from Shahid Beheshti University. He is a father to two sons—Ardavan (also known as Ardy Khavari) and Khashayar (Khash Khavari)—and a daughter named Parandis Khavari. Ardavan is recognized as a successful businessman based in Toronto, where the family owns multiple dining establishments.

Career

Khavari’s professional journey began at the Bank of Industry and Mine, where he was responsible for overseeing complaints. During President Rafsanjani’s administration, he joined the board of Sepah Bank and later assumed its leadership under President Khatami. In 2010, during President Mahmoud Ahmadinejad’s term, Khavari was appointed as chairman and managing director of Bank Melli Iran, the largest banking institution in Iran. At his appointment ceremony, Finance Minister Shamseddin Hosseini commended Khavari as "wise and pious," highlighting the thorough vetting process involved in his selection.

Although Khavari has used the title "Dr. Khavari" in official correspondence, he does not possess a doctoral degree.

2011 Iranian embezzlement scandal

In 2011, amid accusations related to a $2.6 billion embezzlement scandal in Iran, Khavari stepped down from his roles as chairman and managing director of Bank Melli. The scandal centered on the use of counterfeit documents to unlawfully acquire privatized state assets—including major state-owned enterprises—with Bank Melli allegedly facilitating illicit financial transactions. Prior to submitting his resignation via fax to Iranian officials, Khavari traveled to the United Kingdom for a meeting with Lloyds Bank.

In his letter of resignation, Khavari attributed the fraudulent activities to another bank and indicated that he was resigning "to respect public opinion," as reported by Bloomberg. By late September 2011, he had relocated to Canada, where he had been a citizen since 2005. Property records in Toronto reveal that Khavari has held real estate investments since 2001, including a mortgage valued at $615,000 in North York and ownership interests in Soaring Properties. To shield these assets from potential seizure, he transferred multimillion-dollar properties to relatives and provided loans to his sons for additional real estate purchases.

Despite numerous extradition requests from Iranian authorities, Canadian officials have declined to surrender Khavari, who faces the possibility of capital punishment if convicted in Iran. In 2011, Canadian Member of Parliament Irwin Cotler urged an inquiry into the circumstances surrounding Khavari’s acquisition of Canadian citizenship.

Between 2012 and 2016, Khavari and his family invested over $12.1 million in Toronto real estate while holding nearly $11 million in mortgages across various entities. Several organizations connected to Khavari—including Bank Sepah and Bank Melli—have been subject to UN Security Council sanctions since 2007 that limit their access to international financial systems.

Avi Jorisch, a former official with the U.S. Treasury Department, suggested that Khavari may have breached Canadian sanctions by engaging with designated institutions and could be liable for asset freezes under Canada’s Anti-Terrorism Act and Criminal Code. Nevertheless, as of 2016, no formal investigations or asset freezes had been initiated against him within Canada.

Whereabouts

In July 2012, The New York Times revealed that Canada refused to extradite him to Iran, citing the lack of a formal extradition treaty between the two nations. By February 2014, Iran's Fars News Agency reported that the chief of Iranian Interpol mentioned Canadian Interpol had indicated he might have escaped to a country in Latin America or the Caribbean; however, this information remained unconfirmed. Iranian law enforcement authorities rejected claims suggesting he had left Canadian territory. In March 2015, Tasnim News Agency conveyed that Iranian officials had verified his presence within Canada and highlighted that Canadian officials had transferred his case to the judicial system.

Published works

• The Book of Banking Law Consisting of Legal and Legitimate Analysis of Banking Operations and Transactions (issued by the Banking Training Center, Iran)
• "Committed Crimes on Aircraft and Hijacking" (essay)
• "Press Crimes" (article)
• Investigation into the Cause of Suspension of Punishment in Iran and EU Countries Laws (whitepaper)

See also

• Mahafarid Amir Khosravi, Iranian businessman executed for his role in an embezzlement scandal