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Court Orders French Trader to Be Jailed
International |
2008/02/08 07:05
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A French trader was ordered to be jailed Friday while investigations continue into the billions in losses he allegedly caused at Societe Generale bank. A probe into the case broadened as well, with police taking into custody a brokerage employee who reportedly had been in contact with Jerome Kerviel, the 31-year-old futures trader. Prosecutors sought to jail Kerviel to keep him from contacting accomplices, if he had any, and from jeopardizing what promises to be a long and complex investigation. Judges allowed Kerviel to go free last month after his lawyer argued he did not pose a flight risk. It was unclear if Kerveil had been taken into custody Friday. News that police had arrested a second person, an employee at a brokerage arm of Societe Generale, again raised questions about whether Kerviel acted alone. Societe Generale, one of France's biggest banks, has said Kerviel did not appear to have accomplices when he made massive unauthorized bets on European futures markets that the bank said cost it more than $7 billion to unwind. The daily newspaper Le Monde reported Friday, however, that the bank has turned over new evidence, including a message sent to Kerviel through the bank's computer system by the broker now in custody. The message, sent Nov. 30, read: "You have done nothing illegal in terms of the law," the newspaper reported. The employee from brokerage Newedge, a 50-50 joint venture between Societe Generale and bank Calyon, was taken into custody Thursday and was still being held Friday, according to a judiciary official who asked not to be identified because of the sensitivity of the case. Societe Generale spokeswoman Joelle Rosello confirmed the employee was in custody. "We are cooperating closely with police," she said. Le Monde said Kerviel passed some trades through the brokerage, and that police suspect that the brokerage employee was aware of Kerviel's activities. It said the brokerage was searched Thursday. Societe Generale announced Jan. 24 that it lost 4.82 billion euros ($7.09 billion) cleaning up Kerviel's unauthorized transactions. It said Kerviel overstepped his authority and bet 50 billion euros ($73 billion) -- more than the market value of the entire bank -- on futures in European equity markets. It also said he did not appear to have profited personally from the trades. Since the scandal become public, Societe Generale has faced speculation that it could be bought out or broken up, and about how Kerviel's activities went unnoticed or ignored. Investigating judges have filed preliminary charges against Kerviel for forgery, breach of trust and unauthorized computer activity. |
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Russian court refuses to release sick oil boss
International |
2008/02/07 04:19
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| A Russian court refused bail on Wednesday to a jailed oil executive who is gravely ill with AIDS, the latest ruling in a case that has put Russia in breach of an order from the European Court of Human Rights. Vasily Alexanian, 36, has said he will die unless he is transferred from his Moscow prison to a specialist hospital, and the Strasbourg-based European court has given three separate instructions to the Russian authorities to move him.
Alexanian is a former vice-president of Yukos, an oil company whose founder, Mikhail Khodorkovsky, was imprisoned in what was widely seen as a Kremlin campaign to punish the businessman for his political ambitions. A judge at Moscow's Simonovsky district court ordered that Alexanian's trial for fraud and tax evasion be suspended while he receives treatment. It was the first admission by a court that he is gravely ill. But the court rejected a request for him to be released on bail, saying he was a flight risk and could receive the treatment he needed in the sanatorium at the Sailor's Rest prison in Moscow where he is being held. 'They are not giving me any treatment in there,' Alexanian told reporters from his metal cage in a corner of the courtroom. 'There is no guarantee they will give me access to a specialist clinic. All they are doing is adjourning the trial. That is all. Nothing else.' Alexanian's lawyers say his condition has left him partially blind, suffering from cancer of the lymph nodes and with suspected tuberculosis. |
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Russian Court Keeps Sick Ex-Yukos Exec Jailed
International |
2008/02/06 04:32
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| A Russian court suspended the trial of an ailing former executive of the dismantled oil giant Yukos on Wednesday but refused to release him from jail to be treated for AIDS-related cancer and tuberculosis. Lawyers for Vasily Aleksanian, a former lawyer for jailed oil tycoon Mikhail Khodorkovsky and a former vice president of Yukos, had asked the court to allow him to be treated in a hospital. The Simonovsky District Court ruled that Aleksanian should be treated in a Moscow jail because he could flee or pressure witnesses if released. Authorities' refusal to allow hospital treatment for Aleksanian has sparked criticism that the company and some of its former executives are the victims of a Kremlin revenge campaign. Khodorkovsky was sentenced to eight years in prison for fraud and tax evasion, a sentence widely seen as the Kremlin's revenge for his political ambitions and funding of opposition parties. Yukos, once Russia's largest oil producer and regarded as one of the country's best-run companies, was sold off in auctions ordered by the state to pay off billions of dollars in back tax claims. Aleksanian is charged with embezzling funds and shares in Yukos subsidiary Tomskneft worth $490 million, charges he denies. Khodorkovsky accused officials of trying to extract incriminating, false confessions from Aleksanian and denying him treatment until he cooperates. Khodorkovsky launched a hunger strike on Jan. 30 to protest authorities' refusal to give Aleksanian proper AIDS medication. The prosecution had raised no objections to suspending Aleksanian's trial, but insisted Aleksanian must remain in custody. Aleksanian who looked tired and haggard, was visibly angry when he heard the court's verdict. His lawyer, Yelena Lvova, said he could not get proper treatment in custody and the Moscow-based group For Human Rights denounced the ruling as a "demonstration of the government's inexorable cruelty." |
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Judge rejects Navy request for sonar training exemption
International |
2008/02/05 01:08
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| Russia's Supreme Court on Tuesday threw out an appeal by Kremlin critic Mikhail Kasyanov against his disqualification from next month's presidential election. Election chiefs said last month Kasyanov could not run because signatures he submitted in support of his bid were forged. He accused the Kremlin of barring him to slant the vote in favor of front-runner Dmitry Medvedev. Kasyanov, a former prime minister, had no chance of winning the March 2 election but his removal from the ballot has fuelled criticism that the Kremlin will brook little real opposition. In a judgment after a one-day hearing, the Supreme Court said it had decided to leave the Central Election Commission decision to bar Kasyanov unchanged and to reject an appeal submitted by his lawyers. Yelena Dikun, a spokeswoman for Kasyanov said: "The Central Election Commission ignored the views of citizens ... and now the Supreme Court, which is part of the same system, has also ignored the views of citizens." Russian President Vladimir Putin is constitutionally barred from seeking a third consecutive term. He has endorsed Medvedev, a 42-year-old first deputy prime minister, to replace him. |
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Korean Big Law Firm Under Tax Audit
International |
2008/02/04 02:20
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The Korean National Tax Service has launched an audit of the country's largest law firm, Kim & Chang, over tips that the firm may have avoided paying taxes, tax officials said Monday.
NTS officials played down the probe, but some industry sources raised speculation that the audit is related to ongoing investigations into Samsung Group or Lone Star Funds.
"We've received information that some lawyers of Kim & Chang engaged in dubious activities to dodge taxes," an NTS official said. "`We are looking into their income from recent court cases and checking whether they reported the right amount in the right way."
It is the first time for the NTS to audit the law firm since 1997. Law firms are required to undergo an audit every two years, but the office had skipped the ones for Kim & Chang as the firm had received awards for fulfilling its obligations to pay taxes.
NTS officials said the audit is not a regular one.
"We began the audit because there were reports alleging that the firm had avoided taxes," the official said.
Kim & Chang, based in Seoul, is the largest law firm in South Korea with some 450 lawyers, accountants and patent and trademark attorneys. It represented Lone Star when it acquired Korea Exchange Bank in August 2003.
It also has provided services to Samsung. Late last year, lawyer Kim Yong-chul, former director of the legal department of Samsung Group, alleged that Kim & Chang actively participated in fabricating facts for the trial of Samsung Chairman Lee Kun-hee on charges of illegally transferring his wealth to his son through an illicit convertible bonds deal.
A number of ranking officials served or are serving as advisors to the law firm. They include Prime Minister-designate Han Seung-soo, Prime Minister Han Deok-soo and former NTS head Seo Young-taik. |
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China Upholds Death for Ant Fraudster
International |
2008/02/03 07:23
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| A court in northeastern China upheld a death sentence Monday against a businessman accused of bilking investors in a would-be ant-breeding scheme, state media reported. The Liaoning Provincial Higher People's Court turned down an appeal from Wang Zhendong, who was convicted of fraud and sentenced to death last February, the official Xinhua News Agency reported. Wang, chairman of Yingkou Donghua Trading Group Co., had promised returns of up to 60 percent for investors who purchased ant-breeding kits from two companies he ran. The insects were to be used in traditional medicinal wines, herbal remedies and aphrodisiacs. Authorities, concerned about social unrest, have come down hard on fake investments and pyramid schemes, although Wang's sentence was harsh even by Chinese standards. Communist leaders have sought to make examples out of businessmen and officials accused of fraud and corruption, and last year executed the former head of its food and drug watchdog for approving untested medicine in exchange for cash. Wang attracted more than 10,000 investors between 2002 and June 2005, when investigators shut down his companies. The closure of his business set off a panic among small-time players who saw their life savings disappear overnight. Investigators put the size of the fraud at $416 million. Only $1.28 million was recovered. Fifteen managers of the company were also fined and sentenced to prison terms ranging from five to 10 years. |
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Record profits prompt calls for windfall tax against Shell
International |
2008/01/31 02:58
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Calls for a windfall tax on oil companies have been reignited after Royal Dutch Shell posted record UK company profits of almost £14 billion. The Unite union said profits in the industry were "obscene" and urged the Government to take action, especially because of rising energy prices. Royal Dutch Shell reported a surplus of 27.6 billion US dollars (£13.9bn) in 2007, equivalent to £1.5 million an hour and 9% higher than a year ago. It benefited from rising crude oil prices of more than 90 US dollars, a factor which also left motorists with average petrol costs of more than £1 a litre. Unite joint general secretary Tony Woodley said: "Shell shareholders are doing very nicely whilst the rest of us, the stakeholders, are paying the price and struggling. He added: "This Government took the brave step of putting a windfall tax on the greedy privatised utilities to fund the New Deal. With pensions injustices still to be addressed, fortune should favour the brave again and the greedy oil companies should be asked to contribute for the common good." Shell rejected the windfall tax calls, arguing that the profits figure is almost matched by the amount of money it spends on securing new energy sources. Most of its haul comes from exploration and production, rather than UK forecourts. Chief executive Jeroen van der Veer said: "If you get additional taxation, in the end it means you can invest less. The money has to come from somewhere and over time it will impact on our production." The oil firms, including Shell, insist they already pay high levels of tax to the Treasury. In 2005, Chancellor Gordon Brown increased a North Sea tax on energy companies from the 10% he introduced in 2002 to 20%. Independent charity the RAC Foundation said anger over rising petrol costs needed to be directed towards the Government, adding that a flexible fuel duty would compensate for varying crude prices. |
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