Reports are emerging from Iran that the authorities have detained several suspects in an alleged US$2.6 billion letter of credit (L/C) fraud.

However, there is some conjecture that the authorities' actions may be politically motivated.

Alleged scam

The Iranian authorities say they have uncovered a suspected financial scam in which forged L/Cs were used to purchase assets.

Fake L/Cs were allegedly even used to purchase the Khuzestan Steel Company, one of the largest steel producers in Iran.

Suspect

According to the hard-line Kayhan newspaper, one of the architects of the scam is billionaire tycoon, Amir-Mansour Arya.

Some reports say bank officials were also involved in the scam and that several financial institutions, including Bank Saderat, had loaned money against the forged L/Cs.

Political motivations

The authorities have now frozen Arya's assets and effectively barred him from doing business.

Kayhan says that Arya is close to Esfandiar Rahim Mashaei who, in turn, is close Iran's President Mahmoud Ahmadinejad.

Crackdown

But Kayhan often reflects the views of Iran's ruling hard-line clerics, who are currently pitted against Ahmadinejad.

Several of the Iranian president's allies have been arrested recently in what appears to be a politically motivated crackdown by the hard-liners.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.