In 1992, a Jordanian court tried and convicted Chalabi in absentia for bank fraud in connection with the collapse of a Petra Bank, an institution he established in the late 1980s with the help of members of the Jordanian royal family. After quickly becoming one of the country’s leading banks, it collapsed in 1990 with millions missing in deposits. He fled the country days after Jordanian authorities took control of the bank.
An audit commissioned by Jordan months later found Petra Bank had overstated its assets by more than $300 million.
Chalabi was sentenced to 22 years of hard labor in prison and ordered to pay back $230 million of the bank’s funds the court said he embezzled, a sentence he never served.
He repeatedly denied the charges, and filed a suit in the U.S. against the Jordanian government, claiming the ruling was politically motivated. King Abdullah II of Jordan eventually pardoned Chalabi after he assumed the post of deputy prime minister of Iraq.
In recent years, Chalabi focused his efforts on budget talks and working to expose fraud within the government. He also lent support to the 2011 uprising in Bahrain led by that country’s Shiite majority against its Sunni monarchy.
His Baghdad home was a testament to one of his passions — art collecting — with paintings lining the hallways and exotic sculptures decorating each room. As recently as a month ago, he regularly attended events at the Baghdad National Theatre and other music and art venues.
He is survived by his wife Leila Osseiran, the daughter of the prominent Lebanese politician Adil Osseiran, and their four children, including Tamara Chalabi, a well-known author.
