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CEO Jailed!
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scotty
Senior |
22-Mar-2006 11:11
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Only fined $335K ??? I thought he should at least be fined $1million ++ for making so many people suffer !! Former CEO of China Aviation Oil (Singapore) sentenced to four years, three months in jail SINGAPORE (AP) -- The former chief executive of China Aviation Oil (Singapore) Ltd. was sentenced to four years and three months in jail and fined 335,000 Singapore dollars (US$207,150; ?170,740) on Tuesday for his role in the Beijing-backed jet fuel trader's near-collapse in 2004. The sentencing came one week after Chen Jiulin pleaded guilty in a Singapore court to six charges, including issuing false financial statements, failing to inform the Singapore Exchange of CAO's losses, getting CAO's parent company to commit insider trading, and conspiring to cheat Deutsche Bank AG, which handled the sale of a block of CAO shares in 2004. Subordinate Court judge Wong Keen Onn said Chen, 44, played a principal role in the offenses. Chen had "persistently engaged in a series of elaborate and illegal practices" to circumvent Singapore's corporate laws and regulations, Wong said. "His actions ... were not a one-off incident committed at the spur of the moment. Rather, they were well-thought and premeditated," Wong said. Wong said Chen's sentence is intended as a deterrent to white collar crime. Chen, a Chinese citizen, will not be jailed until April 11 as the court allowed him time to organize his personal affairs, but his bail was increased by S$800,000 (US$494,390; ?407,540) to S$2.8 million (US$1.7 million; ?1.4 million). He also was ordered to surrender his passport. The financial scandal was the biggest to hit Singapore since 1995 when rogue trader Nick Leeson lost US$1.3 billion betting on Nikkei stock futures and caused the collapse of Britain's 233-year-old Barings Investment Bank. Leeson was sentenced to six-and-a-half years in jail. China Aviation Oil (Singapore) sought protection from creditors in late 2004 after revealing US$550 million in derivatives trading losses that had been concealed from investors. Chen resigned as chief executive earlier this month after being suspended since Nov. 2004. Under a plea bargaining process, he admitted guilt in six of 15 charges. Three Beijing-based directors of China Aviation Oil have been fined a total of 700,000 Singapore dollars (US$430,000; ?361,000) for their role in the scandal. In February, CAO's former chief financial officer, Peter Lim, was sentenced to two years in jail and fined S$150,000 (US$92,000; ?77,000) after pleading guilty to conspiring to cheat and releasing false financial statements. Earlier this month, the company's shareholders voted in a new board of directors and approved a restructuring plan to pave the way for a resumption of trading in its shares by the end of March. |
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