Nonprofit, Board Member On The Hook For $1M In Bankruptcy Case Tied To Disgraced Dallas CRE Investor
An international philanthropic organization and a Dallas-area member of its board have been named in bankruptcy court proceedings brought by the father of a disgraced commercial real estate investor.
Aga Khan Foundation and the leader of its U.S. giving program, Farrukh Valliani, allegedly received transfers of close to $1M in proceeds from a loan obtained by Raheel Bhai, a Dallas-based hotelier who has since pleaded guilty to fraud, according to court documents.
Shortly after Raheel Bhai’s plea deal, lender Benefit Street Partners sued his father, Ismail Bhai. Ismail Bhai has since filed for bankruptcy, declaring estimated liabilities of between $100M and $500M.
But in court documents, Benefit Street alleged the move was all part of the Bhai family’s plan to defraud lenders.
The saga kicked off when Benefit Street Partners issued a $149M loan to Raheel Bhai’s company, IBF Properties, in April 2022. Raheel Bhai claimed the proceeds would be used to refinance a 24-property Walgreens portfolio so IBF could launch a public offering for a new real estate investment trust.
Instead, the money was siphoned off to several shell companies, including EPI Commercial Finance. A dramatic cover-up involving bags of destroyed evidence, empty jewelry boxes, counterfeit money and a sudden trip to Pakistan ensued, according to Raheel Bhai's plea.
At least $625K of the money held by EPI was then transferred to the Aga Khan Foundation, according to new bankruptcy documents. Another $350K was allegedly transferred to Valliani.
AKF is a nonprofit subsidiary of the Aga Khan Development Network, a web of private nondenominational development agencies founded by the Aga Khan. The foundation provides access to educational, health and financial services in remote areas of Asia and Africa.
Valliani, who is a telecommunications professional and resident of Irving, is a devout member of the Shia Imami Ismaili Muslim faith, which is led by the Aga Khan, according to a Dallas Morning News profile. He has been the national leader for AKF USA’s Planned and Legacy Giving Program since December 2019, according to the nonprofit’s website.
Neither Valliani nor representatives from the AKF responded to Bisnow’s requests for comment.
A bankruptcy trustee assigned to the Bhai case is asking the court to enter a judgment against AKF and Valliani to recoup the funds. Ismail Bhai has maintained that his debt with Benefit Street will be settled prior to his civil trial, which has been set for the week of May 20.
Meanwhile, attorney Weldon Moore III has asked to be dismissed from Ismail Bhai’s legal team due to a lack of payment, court documents show. Moore didn't respond to Bisnow’s request for comment.
