A Pakistani trader allegedly used false documents to fraudulently obtain letters of credit (L/Cs) that helped him perpetrate a multi-million US dollar chrome ore export fraud.

Karachi-based Syed Zeeshan Afzal Bilgrami, the owner of Danzo Traders, allegedly defrauded a Chinese company of 115 million Pakistani Rupees (Rs115 million - US$415 million).

Misrepresentation of goods

The case was triggered by a complaint filed by Corin Chen, a representative of Jiangsu Provincial Foreign Trade Corporation, a major Chinese firm with interests in commodity trading, import and export trading and logistics operations.

The complaint alleges that Bilgrami signed an agreement in January 2024 to export 1,500 metric tonnes of chrome ore, a vital industrial input that is processed to produce ferrochrome, an alloy of chromium and iron. Ferrochrome is then used as a key ingredient in the production of stainless steel.

In February 2024, Danzo Traders shipped 60 containers, ostensibly containing chrome ore, from Karachi Port to Xingang Port, China. But on inspection, the shipment was found to contain just soil, gravel, and stones instead of the promised chrome ore.

Fraud and forged documents

Investigators allege that Bilgrami committed multiple fraudulent acts. They say that even before the shipment reached China, he executed an L/C held in his company's bank account.

To obtain the L/C , the businessman allegedly submitted forged inspection certificates, along with fake quality and weight documents, with the intention of deceiving the bank and the importer.

Prosecutors have charged Bilgrami with offences related to forgery, the use of forged documents, fraud and banking deception.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.