Manipulation, Fraud, Scam, Insider Trading etc.

[winston]

Former Reebok execs arrested in $160-mln fraud

Police have arrested five former senior executives of Reebok India for allegedly defrauding the sportswear company of about $160 million over a number of years, police said on Thursday.

The company's former managing director, chief operating officer and three general managers were arrested on Wednesday on accusations of forging records, stealing goods and creating ghost distributors across India to defraud Reebok.

The accused had "allegedly been systematically cheating the company for over five years. They had set up their own company within Reebok to steal the merchandise", senior police officer B. Singh told AFP.

The scam came to light when Reebok's parent company, the German sports giant Adidas, found discrepancies in the annual accounts and filed a criminal complaint with police in Gurgaon, a booming satellite city outside Delhi.

Adidas estimates the fraud cost the company about 8.7 billion rupees ($160 million).

In March, the company dismissed the managing director Subhinder Singh and chief operating officer Vishnu Bhagat and accused them of falsifying sales records and passing off genuine goods as defective products.

The three general managers who have been arrested allegedly rented four warehouses and used these to store goods and claimed they were supplied to genuine dealers, police said.

The executives have denied the charges.

Earlier this year, Adidas in Germany warned that 2012 earnings were likely to be hit by the discovery of "commercial irregularities" at its Indian Reebok subsidiary.

Adidas announced in May plans to reduce by one-third the number of its 800 Reebok stores in India as part of a restructuring strategy for the brand.

Adidas purchased US competitor Reebok in 2005 for $3.8 billion but only merged the Indian operations of the two brands last year.


Source:AFP Asian Edition

[winston]

12 Chinese enterprises included in World Bank blacklist

From Xinhua Net, a report from New-century Academy on Transnational Corporations revealed that the World Bank has released a blacklist including enterprises suspicious of fraud and bribery , which are prohibited in a certain period of time undertake the projects funded by the World Bank.

The list comprises of 12 Chinese enterprises, including CHINA STATE CON (03311.HK)'s parent China State Construction, CHINA COMM CONS (01800.HK), etc.

Source: AAStocks Financial News

[winston]

Arrests sought in scrap scam by Winnie Chong and Mary Ann Benitez

Philippine police have asked Interpol to arrest a Hong Kong national and two Singaporeans for their alleged involvement in a 10-year scam, in which a syndicate shipped junk instead of scrap metal for which buyers paid millions of US dollars.

Hong Kong police refused to comment last night.

The syndicate is allegedly headed by Singaporean Ah Chai Teo, alias Aceteo, who skipped the country in February this year, according to director of the police Criminal Investigation and Detection Group, Samuel Pagdilao.

Also named as syndicate heads are a Hongkonger, Lim Hoi-chung, who allegedly left the Philippines last Tuesday, and another Singaporean, Chen Qwee Khai, who left the country on January 9.

Police also named mainlander Chen Zhiquiang and five Filipino cohorts, including a retired police officer.

Pagdilao said the syndicate sold large amounts of scrap metal to foreign buyers but would later replace the scrap with garbage, rocks, and concrete, according to the Philippine Daily Inquirer newspaper.

One of the victims, Taiwan businessman Lin Shangyin, said he ordered about US$2.4 million (HK$18.7 million) for 346 tonnes of copper wire from one of the syndicate fronts in February last year.

During shipping, the wire was unloaded and replaced with "rocks, concrete and garbage."

Pagdilao said the government has frozen 150 personal and corporate bank accounts in 20 banks.

He said they were able to trace the money trail with the help of the banks and the Anti- Money Laundering Council.

Law Yiu-chuen, chairman of the Hong Kong General Association of Recycling Business, said an increasing number of containers holding junk instead of scrap metal , have been found in Hong Kong in recent years.


Source: The Standard HK

[winston]

Criminal Charge Against Jefferies Trader Should Have Wall Street Quaking (Update2) By Antoine Gara

NEW YORK (TheStreet) -- Imagine a scenario in which the government attempts to aid the free-falling housing market by way of a $22 billion investment, and Wall Street traders see an opportunity to boost their million-dollar bonuses using deceptive trading tactics at a cost to their clients.

That's the charge brought by the Securities and Exchange Commission and the U.S. attorney on Monday against former Jefferies (JEF_) Managing Director Jesse Litvak, who is alleged to have committed fraud by misleading clients about the trading prices of complex mortgage securities during a taxpayer-supported program aimed at reviving the ailing housing market.

Litvak's offense, according to the SEC's complaint, was that the trader lied to his counterparties about the price and demand of mortgage-backed securities traded between 2009 and 2011, when the government was trying to revive a key engine of the housing market through the U.S. Department of Treasury's taxpayer-supported Public-Private Investment Program ("PPIP").

The sucker on the other side of Litvak's trade was often the U.S. taxpayer, according to the SEC's complaint

http://www.thestreet.com/story/11825442 ... L_atb_html

[behappyalways]

'Flash crash' trader described as 'legend' by former colleague
http://www.telegraph.co.uk/news/uknews/ ... eague.html

[behappyalways]

2019.02.09【文茜世界周報】新創神話破滅？美矽谷最大生技獨角獸被控詐欺
https://www.youtube.com/watch?v=_NYu992 ... -pKgdwMSAU

[winston]

Citi fires eight Hong Kong traders after review finds misconduct: sources

Principal trade refers to a brokerage acting as the counterparty to settle deals with clients, instead of just broking a securities transaction between different parties.

Last week, the regulator banned UBS from leading IPOs in the city for a year, while fining it and rivals, including Morgan Stanley, a combined US$100 million for due diligence failures on a series of stock listings

Source: Business Times

https://www.businesstimes.com.sg/bankin ... ct-sources

[behappyalways]

Former Theranos CEO Holmes exploring 'mental disease' defence in Silicon Valley criminal fraud trial
https://www.theedgesingapore.com/news/t ... inal-fraud

[behappyalways]

Public toilet in China built deliberately on soft sand to trap tourists’ vehicles
https://www.youtube.com/watch?v=HSDdPAYl41E

[behappyalways]

It always amazed me how this guy could lie so naturally....

2020.09.19【文茜世界周報】新冠疫苗「十月驚奇」　川普堅持選前施打引發論戰
https://www.youtube.com/watch?v=fgF46cJlwnw