The Bahrain Chamber of Dispute Resolution (BCDR) has issued a verdict in favour of Bank Alkhair against Falah Nasser Hamad Al Falah, a former employee of the bank, and its former chief executive Majid Al Refai, said a report.

Founded in 2004 and headquartered in Bahrain, Bank Alkhair is an Islamic wholesale bank, with an international presence in Saudi Arabia, Malaysia and Turkey.

The BCDR ordered Al Falah and Al Refai to jointly and severally pay the bank about $1.7 million for misappropriation of bank funds and unauthorised activity during Al Refai's tenure as chief executive, said a report in the Gulf Daily News, our sister publication.

This is the fifth ruling to date issued against the former chief executive, the report stated.

On September 26, the High Criminal Court in the kingdom found Al Refai guilty of money laundering, fraud, illegally soliciting donations without prior licensing from Bahrain. He was sentenced to five years in prison and fined BD40,000 ($104,611), it added.

On July 26, the Criminal Court convicted Al Refai of embezzlement, misappropriation of bank funds and obstructing shareholders from accessing bank records and sentenced him to four years in prison.

In March 2012, the BCDR dismissed a claim by Al Refai for compensation of BD1 million for his termination from the position of chief executive of the bank.

In May, Bahrain's Supreme Civil Court also dismissed a claim brought by a group of shareholders affiliated with the former chief executive, requesting the nullification of the general assembly's resolution, issued in October to remove Al Refai from the bank's board and authorise it take legal action against him.

Interpol has a warrant out for Al Refai's arrest, the report added.-TradeArabia News Service