Saudi firm sues American over alleged $10B fraud

LOS ANGELES (AP) — A company that claims it was the victim of one of the largest frauds in history has filed a $9.2 billion lawsuit in Los Angeles federal court.

Pacific Palisades resident Glenn Stewart is accused of working a vast fraud through a now-collapsed bank in Bahrain. The Saudi Arabian company Algosaibi and Bros. sued him Monday.

The lawsuit claims that Stewart took out more than $10 billion in loans while he was CEO of The International Banking Corp. while falsely claiming the prominent Algosaibi company controlled it.

The bank collapsed in 2009.

Stewart faces criminal charges in Bahrain but fled the country last year.

He denies the allegations and told The Associated Press on Wednesday that the Algosaibi family knew about the loans and received all the money.