Following the completion of his five-year term, Azad Cavadov, former Executive Director of the Azerbaijan Deposit Insurance Fund (ADIF), has been dismissed from his position.

His departure comes amid a series of serious allegations raised by former banking officials and anonymous insiders, who claim widespread abuse of authority, financial misconduct, and large-scale asset misappropriation during the period when ADIF acted as liquidator of multiple failed banks.

Selective Prosecution and Alleged Cover-Ups

Sources familiar with the liquidation processes claim that ADIF identified criminal conduct by several banking executives but allegedly pursued legal action selectively. According to these claims, cases involving individuals considered politically or personally connected were suppressed, while others were referred to anti-corruption authorities.

Whistleblower Letter: Claims of Organized Financial Misconduct

An anonymous former bank executive submitted a detailed letter alleging that Mr. Cavadov oversaw or benefited from schemes involving the diversion of loan funds, abuse of official powers, and the misappropriation of assets belonging to failed financial institutions.

The whistleblower claims that companies allegedly linked to members of Mr. Cavadov’s family operated in parallel with liquidation activities and benefited from insider access to banking assets and transactions. One such firm, according to the source, was managed by relatives and allegedly accumulated significant financial gains through preferential arrangements.

Network of Associates

The letter further claims that a network of relatives and associates — including individuals connected to financial institutions such as AccessBank — coordinated activities involving banking operations and asset transfers. These activities allegedly included the placement of large sums in foreign bank accounts under third-party names.

Property and Asset Allegations

Among the specific allegations are claims that movable and immovable assets belonging to liquidated banks were unlawfully appropriated under the guise of transfers, gifts, or internal arrangements. The whistleblower cites luxury vehicles and real estate assets allegedly removed from bank ownership without compensation.

Treatment of Bank Employees and Depositors

Former banking staff reportedly accuse the former ADIF leadership of violating official procedures, mistreating employees of liquidated banks, and authorizing unofficial payments to certain depositors in exchange for cash bribes. Legal facilitation of these actions is alleged to have been handled by designated intermediaries.

Private Meetings and Decision-Making

Sources claim that key operational decisions were made during private gatherings at a residence allegedly linked to Mr. Cavadov, where strategic discussions regarding liquidation assets and financial arrangements reportedly took place.

Entities and Family Connections

Azad Cavadov’s daughter, Shifahi – alleged involvement in managing Finex Leasing (BOKT)

Azad Cavadov’s nephew, Iskandar – allegedly served as the executive director of Finex Leasing

Ramiz (family relation, alleged drug user) – allegedly coordinated with law enforcement officials to manipulate bank operations

Afet – wife of Azad Cavadov, alleged to have managed foreign currency operations in a bank

Tamerlan – second son-in-law, alleged head of microloans at AccessBank

Sebuhi Rufet and Nurlan – alleged members of Tamerlan’s team

Family-Related Developments and Security Concerns

The whistleblower also references the killing of Mr. Cavadov’s brother in Moscow, describing the circumstances as suspicious and suggesting — without providing proof — possible financial motives connected to internal disputes over funds.

Real Estate and Wealth Accumulation Claims

According to the allegations, extensive real estate holdings — including multiple villas and land plots — were registered under relatives’ names. The total value of assets allegedly controlled through indirect ownership structures is claimed to reach tens of millions of dollars.

Previous Banking Career and Professional Conflicts

The whistleblower also asserts that Mr. Cavadov previously left the Azerbaijan International Bank following professional irregularities and later maintained strained relations with former chairman Jahangir Hajiyev.

Financial Decisions During Bank Liquidations

Another major claim concerns the payment of nearly one billion Azerbaijani manat in uninsured deposits allegedly authorized outside official procedures, reportedly in exchange for illicit payments.

Evidence and Further Disclosures

The anonymous source states that documentary evidence — including property records and large-scale loan documentation — will be provided in future disclosures.

Misappropriation of Assets

According to the whistleblower:

Luxury vehicles allegedly appropriated from banks included:

Mercedes S-Class (2016), registration 10-AA-165, Bank Standard

Lexus 570 LX, Bank Standard

Mercedes E-Class, registration 99-AF-310, from a failed bank

Real estate allegedly registered in family members’ names in Mardakan and Shuvalan, as well as central Baku properties

Large sums reportedly transferred to European bank accounts under relatives’ names, exceeding $100 million

Bank Misconduct

The whistleblower claims that during liquidation of 11 banks (Royalbank, Bank of Azerbaijan, Qafqaz Inkişaf Bank, Texnikabank, Kredobank, Dekabank, Parabank, Zaminbank, Atrabank) ADIF allegedly:

Paid insured deposits without proper documentation

Paid non-insured deposits amounting to approximately 1 billion AZN after receiving bribes

Misused liquidation authority to benefit family members and associates

Weekly private meetings reportedly took place at Azad Cavadov’s property in Goradil, allegedly to plan and coordinate bank asset mismanagement

Employees allegedly pressured and treated harshly if they did not comply with instructions

Additional Context

The whistleblower claims that Azad Cavadov’s brother, Suleyman Cavadov, was killed in Moscow, with alleged financial motives linked to misappropriated funds

Vehicles reportedly used by family members and Azad Cavadov include Hyundai Grandeur, Toyota 90-AH-266, and others for personal security purposes

Supporting Evidence

The whistleblower indicates that they possess supporting documents, including:

Bank statements and loan documents

Asset ownership records

Property registration deeds

Detailed transaction logs