Forensic Analysis Sheds New Light on Kuwaiti Funds Related to the “Army Fund” Case

Zurich, Switzerland — (ARAB NEWSWIRE) — Swiss East Affairs GmbH, a leading investigations and intelligence consultancy based in Zurich, has completed a detailed forensic financial analysis report — commissioned and authorized by a prominent Kuwaiti law firm — concerning the source of funds in the high-profile Kuwaiti “Army Fund” case. The report also partially relates to the U.S. Department of Justice (DOJ) high-profile civil forfeiture case involving American businessman Victorino “Victor” Noval (Docket No. 2:20‑cv‑06314).

Swiss East Affairs investigated the source of funds in the Kuwaiti “Army Fund” case, in which several prominent political figures and several military officers in the State of Kuwait were accused of misappropriating public funds. The forensic investigation revealed that the bank accounts involved in the “Army Fund” case were linked to bank accounts related to the U.S. forfeiture case, through which transfers were made to Victorino “Victor” Noval. Noval has been accused of laundering tens of millions of dollars allegedly misappropriated from the Kuwaiti Ministry of Defense.

The investigation conducted by Swiss East Affairs revealed that the funds tied to the “Army Fund” case — and to the acquisition of luxury real estate and assets in California, including the prominent 157-acre estate known as “The Mountain” in Beverly Hills — originated not from officially declared state accounts, but from long-standing Retail Fixed Deposit structures held in the name of Kuwait’s Military Attaché Office in London at Ahli United Bank (UK) PLC and National Bank of Kuwait (International) PLC.

These deposits — traced back to at least 2001 — were neither reported in Kuwait’s Ministry of Defense budgets nor subject to standard financial oversight. Instead, they were managed through discretionary arrangements characteristic of private wealth structures controlled by politically exposed persons (PEPs), rather than by state institutions.

“Our forensic work established that these funds, though referred by the Kuwait authorities to be institutional accounts and public funds, functioned as private banking instruments,” said Dr. Andrea Galli, lead investigator at Swiss East Affairs GmbH. “The legal and financial characteristics of these accounts — specifically, their classification as Retail Fixed Deposits — strongly indicate that they were structured and treated as privately owned, off-the-books assets.”

In 2023, the Kuwaiti court overseeing the “Army Fund” case convicted Sheikh Jaber Mubarak Al-Hamad Al-Sabah, former Kuwaiti Prime Minister and Minister of Defense, Khaled Jarrah Al-Sabah, former Minister of Defense, and several other military officers of financial misconduct involving military funds.

Simultaneously, the DOJ alleges that more than USD 104 million was embezzled by senior Kuwaiti officials and funneled into the United States between 2012 and 2015, where the funds were used by Noval and associated entities to acquire high-value assets.

The analysis by Swiss East Affairs, however, introduces critical context that will lead to reframe the legal understanding of the funds’ origin and ownership. The forensic reconstruction in both the “Army Fund” case and the U.S. forfeiture case tracks specific transfers originating from covert military accounts in London and Paris. These funds passed through opaque, classified account structures, with no evidence indicating they were publicly owned or declared.

The evidence in the forensic report by Swiss East Affairs shows that these funds may never have legally belonged to the Kuwaiti state — potentially undermining key claims in the “Army Fund” and DOJ cases. These findings became particularly relevant during settlement negotiations in early 2025, which led to a partial resolution between the U.S. government, the State of Kuwait, and Victor Noval regarding the forfeiture of certain assets.

Swiss East Affairs confirms that its forensic analysis has been submitted — via legal counsel on behalf of its clients — to the UK Central Authority, and may contribute to ongoing civil and criminal proceedings. The firm’s work includes the reconstruction of over 23 cross-border financial transfers, totaling more than GBP 70 million, all originating from secret military-related accounts ultimately tied to the “Army Fund” and U.S. forfeiture cases.

“While legal culpability remains a matter for the courts, our findings raise profound questions about financial governance, sovereign asset accountability, and the intersection of state secrecy with private ownership,” Dr. Galli added.

This raises a fundamental and still unresolved question: Who was the ultimate beneficial owner of these funds? Bank records and informal witness accounts suggest the deposits may have represented private wealth accumulated or safeguarded on behalf of a senior Kuwaiti royal figure. Notably, some sources attribute the origin of these accounts to the late Emir of Kuwait.

Swiss East Affairs GmbH continues to cooperate with relevant authorities to support judicial inquiries into the origin, structure, and legality of the disputed international assets.

Media Contact:
Dr. Andrea Galli
Swiss East Affairs GmbH
Stüssistrasse 28, CH-8006 Zurich
E-mail: andrea.galli@swiss-east-affairs.ch
Tel.: +41 43 537 80 10

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