Federal and state authorities in the U.S. are investigating two Pakistani-American businessmen, Syed Rashid Ali and Muhammad Tahir Javed, along with their associates, for alleged money laundering, wire fraud, and tax evasion.
The probe focuses on the use of suspicious company structures to launder funds, according to officials. Two Texas-based companies, Riceland Investment Group LP and Mecca Farms Group LLC, are central to the investigation, with authorities suspecting they were used to evade taxes and conceal illicit funds.
Originally founded by Syed Rashid Ali, Riceland Investment Group became embroiled in controversy when it partnered in 2015 with Mecca Farms Group, owned by former advisor to Pakistan’s interim prime minister, Muhammad Tahir Javed. This partnership gave Javed full ownership of Riceland and 51% control of Mecca Farms. U.S. investigators claim the transactions between the two companies appear to be part of a broader scheme, as both Syed Rashid Ali and Javed have past criminal convictions, including involvement in a $35 million COVID-19 relief fraud case.
The investigation has expanded to include allegations of murder in Pakistan, implicating Javed in the 2008 killing of a relative. Javed, who denies these charges, allegedly made a plea deal to avoid prosecution under Pakistani law. His career has been riddled with scandals, including his removal from a government position in Pakistan due to a concealed U.S. felony conviction.
The financial aspects of the case revolve around Javed’s agreement to purchase a 55% stake in Mecca Farms for $2.46 million, though investigators claim he failed to pay the full amount. Authorities also suspect this deal was a cover-up for the COVID-19 relief fraud scandal. In that case, several individuals, including Ali and Javed, were charged with falsifying Paycheck Protection Program (PPP) loan applications, leading to fraudulent loans totaling $18 million.
The investigation into the two businessmen extends to their alleged involvement in insurance fraud and suspicious political campaign donations during Javed’s 2018 run for Congress. Investigators are also examining Javed’s ties to a real estate fraud case involving a Pakistani Super League team, Lahore Qalandars, where Javed’s company failed to honor contractual agreements.
U.S. and Pakistani authorities continue to collaborate on these investigations, while Javed and Ali maintain their innocence and vow to fight the charges.
