A Hong Kong court on Friday sentenced a former senior banker at Morgan Stanley to seven years in jail-the heaviest punishment it can impose - in the city's largest insider dealing case.
Du Jun was convicted on 10 charges for buying 87 million Hong Kong dollars (Bt379 million)worth of shares in Citic Resources when he was advising the firm on oil-field acquisitions in Kazakhstan and northeastern China.
He made a profit of more than $30 million from selling some of the shares in 2007, after the announcement of the acquisitions sent the share value up.
In sentencing, District Court Judge Andrew Chan said: "The scale was unprecedented. This case is the biggest I have come across so far."
The judge said Du was motivated by "sheer greed" and had "seriously undermined the integrity of the financial markets."
He noted that the 41-year-old had been warned twice by his superior against trading the shares, but he refused to listen to the advice.
Judge Chan sentenced Du to seven years and three months and imposed a fine of $23.32 million.
But the prison term had to be reduced to seven years as it was the maximum penalty the District Court can impose.
The judge also ordered that Du be prevented from dealing in secutiries and taking up directorship positions in listed companies for a period of five years.
The Securities and Futures Commission (SFC), the city's financial regulator, hailed the outcome of the case as the biggest deterrent against market misconduct crimes.
"The sentence is the strongest possible message to anyone tempted to commit insider dealing offences in the future," Mark Steward, the regulator's head of enforcement, said outside court.
David Webb, a shareholders activist and a former non-executive director of the Hong Kong Stock Exchange, said he expected the SFC to bring forward more insider dealing prosecutions in the near future.
"To build an effective deterrent against insider dealing, you need a track record of successful prosecutions," he said.
The conviction was thenth secured by the SFC on insider dealing since July last year and the fourth that resulted in jail terms.
The judge said Du was motivated by sheer greed and had seriously undermined the integrity of the financial markets.
Monday, September 21, 2009
NEWIN TO ATTEND COURT FOR VERDICT TOMORROW
Newin Chidchob, a core leader of the Bhum Jai Party, said yesterday he would go to court tomorrow to hear the verdict of the rubber-saplings case, which involves 44 defendants, including former ministers in the Thaksin Cabinet.
The Supreme Court's Criminal Division for Political Office Holders is scheduled to hand down its verdict on the case at 2pm tomorrow. The court postponed reading its ruling on August 17, when a high-profile defendant, former commerce minister Adisai Bodharamik, was absent, saying he was on a medical trip to the US. Other defendants among the 44 are former deputy prime minister Somkid Jatusripitak and deputy finance minister Varathep Ratanakorn.
The media has reported that the court will definitely issue its verdict tomorrow even though some defendants are not expected to turn up.
Newin said he had been staying at his Bangkok home and had not run away to the provinces or absconded from the country.
Newin and another core leader of the coalition Bhum Jai Thai Party, Sora-at Klingprathum, would definitely show up at the court, a source said. "They will not run away because if they do, they will have to keep running for the rest of their life,'' the source said.
All top Bhum Jai Thai Party leaders will also be present at the court to give their leaders moral support.
However, Newin's supporters - known as the blue shirts - will not mobilise at the court. If Newin and Sora-at are acquitted, the party cannot yet celebrate because both face a number of other graft cases, including the two-and three-digit lotteries, the source said.
The Supreme Court's Criminal Division for Political Office Holders is scheduled to hand down its verdict on the case at 2pm tomorrow. The court postponed reading its ruling on August 17, when a high-profile defendant, former commerce minister Adisai Bodharamik, was absent, saying he was on a medical trip to the US. Other defendants among the 44 are former deputy prime minister Somkid Jatusripitak and deputy finance minister Varathep Ratanakorn.
The media has reported that the court will definitely issue its verdict tomorrow even though some defendants are not expected to turn up.
Newin said he had been staying at his Bangkok home and had not run away to the provinces or absconded from the country.
Newin and another core leader of the coalition Bhum Jai Thai Party, Sora-at Klingprathum, would definitely show up at the court, a source said. "They will not run away because if they do, they will have to keep running for the rest of their life,'' the source said.
All top Bhum Jai Thai Party leaders will also be present at the court to give their leaders moral support.
However, Newin's supporters - known as the blue shirts - will not mobilise at the court. If Newin and Sora-at are acquitted, the party cannot yet celebrate because both face a number of other graft cases, including the two-and three-digit lotteries, the source said.
Piyawat takes heat over forest claims
The Justice Ministry has ordered a disciplinary investigation against a senior member of the Department of Special Investigation for criticising his superior over alleged interference in massive forest encroachment in Chiang Rai's Sok Kok forest reserve.
Deputy permanent secretary for justice Charnchao Chaiyanukij, who oversees the DSI, said he had asked DSI chief Thawee Sodsong to set up a disciplinary panel to investigate Piyawat Kingkate,head of the special crime division.
Mr Charnchao said he ordered the probe as he did not want to see any DSI officials who were at odds with their bosses disclosing information regarding rifts in the agency to the public.
Pol Col Piyawat earlier decided to withdraw from an inquiry into alleged massive forest encroachment in Sop Kok forest reserve, claiming interference.
He alleged that Pol Col Thawee was compromising the investigation.
Pol Col Piyawat then lodged a complaint with the National Anti-Corruption Commission accusing the DSI chief of negligence of duty.
DSI deputy director-general Narat Sawettanand, in his capacity as spokesman for the agency, yesterday criticised Pol Col Piyawat for his remarks against the DSI chief.
He said the DSI had not stalled the case as alleged. It had ordered the investigation team to further investigate the case as some issues were not clear.
The probe team had been asked to investigate whether encroachment areas were in a forest reserve or in Sor Por Kor agricultural land reform areas.
But Pol Col Piyawat's team had not followed the order. Instead, Pol Col Piyawat submitted a letter to the DSI claiming its order was illegitimate.
The team has yet to send the probe report to the DSI, said the spokesman.
The DSI may set up a new team to investigate forest encroachment in the Sop Kok forest reserve after the investigation team pulled out of the case.
He said the DSI chief had not ordered investigators to press criminal charges against the only witness in the encroachment case as alleged.
Pol Col Piyawat yesterday said attempts were being made to intimidate the only witness in the case.
The witness provided statements that he saw people accused of land encroachment surveying the forest reserve.
But a group of men had recently tried to force the witness to reverse his statements, said Pol Col Piyawat. The witness had been asked to frame his investigation team, he added.
He accused the DSI chief of trying to stall the case despite a conclusion by state agencies that the alleged encroached areas were part of the forest reserve.
More than 900 rai of the protected forest has been encroached upon, allegedly by former government officials and close aides of a local politician.
Deputy permanent secretary for justice Charnchao Chaiyanukij, who oversees the DSI, said he had asked DSI chief Thawee Sodsong to set up a disciplinary panel to investigate Piyawat Kingkate,head of the special crime division.
Mr Charnchao said he ordered the probe as he did not want to see any DSI officials who were at odds with their bosses disclosing information regarding rifts in the agency to the public.
Pol Col Piyawat earlier decided to withdraw from an inquiry into alleged massive forest encroachment in Sop Kok forest reserve, claiming interference.
He alleged that Pol Col Thawee was compromising the investigation.
Pol Col Piyawat then lodged a complaint with the National Anti-Corruption Commission accusing the DSI chief of negligence of duty.
DSI deputy director-general Narat Sawettanand, in his capacity as spokesman for the agency, yesterday criticised Pol Col Piyawat for his remarks against the DSI chief.
He said the DSI had not stalled the case as alleged. It had ordered the investigation team to further investigate the case as some issues were not clear.
The probe team had been asked to investigate whether encroachment areas were in a forest reserve or in Sor Por Kor agricultural land reform areas.
But Pol Col Piyawat's team had not followed the order. Instead, Pol Col Piyawat submitted a letter to the DSI claiming its order was illegitimate.
The team has yet to send the probe report to the DSI, said the spokesman.
The DSI may set up a new team to investigate forest encroachment in the Sop Kok forest reserve after the investigation team pulled out of the case.
He said the DSI chief had not ordered investigators to press criminal charges against the only witness in the encroachment case as alleged.
Pol Col Piyawat yesterday said attempts were being made to intimidate the only witness in the case.
The witness provided statements that he saw people accused of land encroachment surveying the forest reserve.
But a group of men had recently tried to force the witness to reverse his statements, said Pol Col Piyawat. The witness had been asked to frame his investigation team, he added.
He accused the DSI chief of trying to stall the case despite a conclusion by state agencies that the alleged encroached areas were part of the forest reserve.
More than 900 rai of the protected forest has been encroached upon, allegedly by former government officials and close aides of a local politician.
Guilty ruling for Oraphin
The Supreme Court's Criminal Division for Holders of Political Positions has disqualified Nakhon Sawan senator Oraphin Mansin and banned her from holding political posts for five years.
The court handed down the verdict against Oraphin who was found to have submitted a false assets declaration to the National Anti-Corruption Commission (NACC) concealing a debt of 172 million baht.
The false assets declaration also incurred a criminal charge for which she was given a two-month jail term. But the sentence was reduced to a one-year suspended jail term and she was also fined 4,000 baht.
Oraphin failed to report to the NACC a debt of 172 million baht after she assumed her Senate post in March 2008.
She claimed she had forgotten about the debt. She explained the debt was accumulated from guaranteeing a loan for her former husband.
The Central Bankruptcy Court also declared Oraphin bankrupt on May 6,2008.
The court ruled that Oraphin immediately lost her senator status after the court delivered its verdict.
The court is also scheduled to rule on alleged false assets declaration submission cases against Yongyuth Tiyapairat,former natural resources and environment minister, on Sept 28, and against Sombat Uthaisang, former deputy interior minister, on Sept 25.
Both were ministers in the Thaksin Shinawatra administrations.
The court handed down the verdict against Oraphin who was found to have submitted a false assets declaration to the National Anti-Corruption Commission (NACC) concealing a debt of 172 million baht.
The false assets declaration also incurred a criminal charge for which she was given a two-month jail term. But the sentence was reduced to a one-year suspended jail term and she was also fined 4,000 baht.
Oraphin failed to report to the NACC a debt of 172 million baht after she assumed her Senate post in March 2008.
She claimed she had forgotten about the debt. She explained the debt was accumulated from guaranteeing a loan for her former husband.
The Central Bankruptcy Court also declared Oraphin bankrupt on May 6,2008.
The court ruled that Oraphin immediately lost her senator status after the court delivered its verdict.
The court is also scheduled to rule on alleged false assets declaration submission cases against Yongyuth Tiyapairat,former natural resources and environment minister, on Sept 28, and against Sombat Uthaisang, former deputy interior minister, on Sept 25.
Both were ministers in the Thaksin Shinawatra administrations.
Tuesday, September 15, 2009
US verdict puts onus on NACC
Yesterday a jury appointed by a Los Angeles court found Gerald and Patricia Green guilty of paying over US$1.8 million (about 72 million baht at the time) in bribes to the governor of the Tourism Authority of Thailand (TAT), in exchange for a lucrative contract to host the Bangkok International Film Festival (BKK IFF) from 2002 to 2006.
With this verdict, there can be no more excuses or delays from the Thai anti-graft agency in launching an investigation into Juthamas Siriwan, the former TAT governor who granted the film festival deals, along with other contracts worth more than $10 million, to the Greens during those scandalous years.
The National Anti-Corruption Committee (NACC)is scheduled to meet today to discuss the case. The swift and decisive trial of the Greens by the US court means any further procrastination by the NACC in questioning the involvement of Ms Juthamas would greatly tarnish the authority of the local anti-graft body.
This much is obvious: Someone in the TAT received kickback money from the Greens. It would be a gross lapse of duty if the NACC fails to find out who.
In fact, the official inquiry into Ms Juthamas' role has been long overdue. The Greens were arrested by the FBI in December 2007 to face charges of conspiracy,bribing a foreign official and money laundering. The FBI affidavit clearly states that the Greens, who ran the LA-based Film Festival Management Inc,"bribed a senior Thai official of the Tourism Authority of Thailand for the award of a contract to run a state-funded international film festival held annually in Bangkok".
The affidavit doesn't name names, but it states that Mr Green, now 75, had a close relationship with "the Governor". All meetings between Mr Green and "The Governor", the report says, were held behind closed doors: even Mr Green's wife Patricia wasn't allowed in.The report details the payment of "commission money"to "the Governor's daughter".
A day after the Greens' arrest in December 2007, Ms Juthamas resigned from Puea Pandin Party and pulled out of the Dec 23 general election. She has, however,continued to deny any wrongdoing from the beginning.
During Ms Juthamas' tenure as TAT governor, the BKK IFF, a movie event funded by taxpayers' money,was allocated a spectacular budget of 200 million baht.Mr Green's company was in charge of film selection and inviting celebrities, but during those years the BKK IFF was disparaged by critics and international journalists as an inflated and unnecessarily expensive circus that had no real concerns for local audiences or the Thai film industry. It also raised the question of whether a tourism board was the best agency to manage a movie festival.
When Ms Juthamas stepped down in mid-2007, the contracts with Mr Green's firm were cancelled and the TAT assigned the Federation of National Film Associations and Thai Film Directors Association to organise the festival. The budget has dropped to around 45 million baht. This year the festival will run from Sept 24 to 30, and although it remains a league away from the major film festivals in Asia, the last two editions of the BKK IFF were modest in nature and the event has regained a degree of dignity and level-headedness.
In any case, the name BKK IFF has been blemished.The bribery scandal is arguably the most shameful incident in the history of Thailand's entertainment sector. Money changed hands. Laws were broken. The American court has made a show of justice. Now the NACC must do the same.
With this verdict, there can be no more excuses or delays from the Thai anti-graft agency in launching an investigation into Juthamas Siriwan, the former TAT governor who granted the film festival deals, along with other contracts worth more than $10 million, to the Greens during those scandalous years.
The National Anti-Corruption Committee (NACC)is scheduled to meet today to discuss the case. The swift and decisive trial of the Greens by the US court means any further procrastination by the NACC in questioning the involvement of Ms Juthamas would greatly tarnish the authority of the local anti-graft body.
This much is obvious: Someone in the TAT received kickback money from the Greens. It would be a gross lapse of duty if the NACC fails to find out who.
In fact, the official inquiry into Ms Juthamas' role has been long overdue. The Greens were arrested by the FBI in December 2007 to face charges of conspiracy,bribing a foreign official and money laundering. The FBI affidavit clearly states that the Greens, who ran the LA-based Film Festival Management Inc,"bribed a senior Thai official of the Tourism Authority of Thailand for the award of a contract to run a state-funded international film festival held annually in Bangkok".
The affidavit doesn't name names, but it states that Mr Green, now 75, had a close relationship with "the Governor". All meetings between Mr Green and "The Governor", the report says, were held behind closed doors: even Mr Green's wife Patricia wasn't allowed in.The report details the payment of "commission money"to "the Governor's daughter".
A day after the Greens' arrest in December 2007, Ms Juthamas resigned from Puea Pandin Party and pulled out of the Dec 23 general election. She has, however,continued to deny any wrongdoing from the beginning.
During Ms Juthamas' tenure as TAT governor, the BKK IFF, a movie event funded by taxpayers' money,was allocated a spectacular budget of 200 million baht.Mr Green's company was in charge of film selection and inviting celebrities, but during those years the BKK IFF was disparaged by critics and international journalists as an inflated and unnecessarily expensive circus that had no real concerns for local audiences or the Thai film industry. It also raised the question of whether a tourism board was the best agency to manage a movie festival.
When Ms Juthamas stepped down in mid-2007, the contracts with Mr Green's firm were cancelled and the TAT assigned the Federation of National Film Associations and Thai Film Directors Association to organise the festival. The budget has dropped to around 45 million baht. This year the festival will run from Sept 24 to 30, and although it remains a league away from the major film festivals in Asia, the last two editions of the BKK IFF were modest in nature and the event has regained a degree of dignity and level-headedness.
In any case, the name BKK IFF has been blemished.The bribery scandal is arguably the most shameful incident in the history of Thailand's entertainment sector. Money changed hands. Laws were broken. The American court has made a show of justice. Now the NACC must do the same.
Monday, September 14, 2009
PM GREETED WITH ABUSE AND FERMENTED FISH ON TRIP NORTH
Prime Minister Abhisit Vejjajiva was yesterday welcomed to Lop Buri province with bags of fermented fish and a barrage of shoes thrown by red shirt protesters.
During the visit to Tha Wung district, his motorcade was confronted by a group of about 100 red shirts who successfully broke through a perimeter of about 500 policemen and soldiers.
They waved placards and made vulgar speeches against the prime minister.
When Mr Abhisit's motorcade was leaving the district office, protesters hurled objects including bags of soft drinks, plastic cups, bags containing fermented fish and shoes. The red shirts' disruption of the prime minister's trip was seen as a prelude to a planned rally next Saturday.
Mr Abhisit, who had held talks yesterday with the new acting police chief, Thani Somboonsap, about the Sept 19 rallies, said the cabinet would invoke the Internal Security Act (ISA) on Tuesday to handle the rally.
The government's ability to rely on the police to control next week's protests has been thrown into question after Mr Abhisit forced the national police chief, Patcharawat Wongsuwon, from his job.
The United Front for Democracy against Dictatorship (UDD) leader Chatuporn Prompan yesterday shrugged off the government's plan to enforce the ISA, saying the the UDD would continue to hold the rally even if the government invoked the law.
They will exercise their right to rally without weapons under Article 63 of the constitution, he added.
On Saturday, the third anniversary of the 2006 coup, red shirts are to hold a rally at the Royal Plaza before moving to the Si Sao Theves residence of Privy Council president Gen Prem Tinsulanonda.
The rally would end at about midnight, he said.
Mr Chatuporn said he is also discussing with other UDD leaders the possibility of leading protesters to the office of the National Anti-Corruption Commission (NACC) to "test police security measures" there.
Security has been beefed up at the NACC office in the wake of Friday's bomb attack at the former house of commissioner Vicha Mahakhun.
The bomb attack is believed to be linked to the NACC's decision to bring charges against those involved in the Oct 7 crackdown last year, including Pol Gen Patcharawat, on anti-government demonstrators.
During the visit to Tha Wung district, his motorcade was confronted by a group of about 100 red shirts who successfully broke through a perimeter of about 500 policemen and soldiers.
They waved placards and made vulgar speeches against the prime minister.
When Mr Abhisit's motorcade was leaving the district office, protesters hurled objects including bags of soft drinks, plastic cups, bags containing fermented fish and shoes. The red shirts' disruption of the prime minister's trip was seen as a prelude to a planned rally next Saturday.
Mr Abhisit, who had held talks yesterday with the new acting police chief, Thani Somboonsap, about the Sept 19 rallies, said the cabinet would invoke the Internal Security Act (ISA) on Tuesday to handle the rally.
The government's ability to rely on the police to control next week's protests has been thrown into question after Mr Abhisit forced the national police chief, Patcharawat Wongsuwon, from his job.
The United Front for Democracy against Dictatorship (UDD) leader Chatuporn Prompan yesterday shrugged off the government's plan to enforce the ISA, saying the the UDD would continue to hold the rally even if the government invoked the law.
They will exercise their right to rally without weapons under Article 63 of the constitution, he added.
On Saturday, the third anniversary of the 2006 coup, red shirts are to hold a rally at the Royal Plaza before moving to the Si Sao Theves residence of Privy Council president Gen Prem Tinsulanonda.
The rally would end at about midnight, he said.
Mr Chatuporn said he is also discussing with other UDD leaders the possibility of leading protesters to the office of the National Anti-Corruption Commission (NACC) to "test police security measures" there.
Security has been beefed up at the NACC office in the wake of Friday's bomb attack at the former house of commissioner Vicha Mahakhun.
The bomb attack is believed to be linked to the NACC's decision to bring charges against those involved in the Oct 7 crackdown last year, including Pol Gen Patcharawat, on anti-government demonstrators.
Sunday, September 13, 2009
Public prosecutors "must boost credibility"
The Department of Special Investigation's (DSI) director-general Thawee Sodsong yesterday urged public prosecutors to build their credibility so their indictments against special case suspects would be accepted by foreign law enforcement officers.
Speaking at a seminar on empowering public prosecutors investigating special cases, Pol Col Thawee said the prosecutors must work strictly by the book to ensure accuracy in each individual case's investigation process.
Otherwise, members of the public and also foreign law enforcement officers would lose their trust in public prosecutors' performance.
According to Pol Col Thawee, by far the weakest points in DSI investigations into special cases are insufficient evidence and the fact that influential figures, such as politicians, try to influence the outcome of the investigations they are carrying out.
Over the past six years since the DSI was set up it has handled 567 cases. Of that total, the DSI has worked with the Office of the Attorney-General in the investigation of 287 cases. Among them, 109 cases have been indicted in court, and the court has already handed down verdicts for 102 cases. Pol Col Thawee said he was satisfied with the statistics.
Speaking at a seminar on empowering public prosecutors investigating special cases, Pol Col Thawee said the prosecutors must work strictly by the book to ensure accuracy in each individual case's investigation process.
Otherwise, members of the public and also foreign law enforcement officers would lose their trust in public prosecutors' performance.
According to Pol Col Thawee, by far the weakest points in DSI investigations into special cases are insufficient evidence and the fact that influential figures, such as politicians, try to influence the outcome of the investigations they are carrying out.
Over the past six years since the DSI was set up it has handled 567 cases. Of that total, the DSI has worked with the Office of the Attorney-General in the investigation of 287 cases. Among them, 109 cases have been indicted in court, and the court has already handed down verdicts for 102 cases. Pol Col Thawee said he was satisfied with the statistics.
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