INDIAN FORMER STATE MINISTER INVESTIGATED ON SUSPICION OF GRAFT

A former state chief minister is accused by Indian authorities of siphoning off an estimated US$423 million dollars of state funds. The money was reportedly generated by kickbacks from the granting of mining leases and an electrification project across Jharkhand province. Some of the money was allegedly channelled out of India to the UAE. He was reported to have used the money to buy himself mines in Africa and properties across Asia. Two of the politicians closest associates are also under investigation.

UK SERIOUS FRAUD OFFICE LAUNCH PROBE INTO HEDGE FUND

The UK Serious Fraud Office has launched a formal criminal investigation into a $500 million London hedge fund following complaints from investors and a referral by the City’s chief regulator. The fund is operated from the Cayman Islands and the master fund, which was served by two further feeder funds, was reportedly forced into liquidation in May 2008 after it was unable to meet investors’ redemption demands.

Trevor Baines (UID 763121) was sentenced to six years in prison for money laundering. Baines was found guilty of money laundering and false accounting following a five week trial at the Court of General Gaol Delivery. His wife Wendy Baines (UID 1133445) was found guilty of false accounting and was sentenced to nine months in prison, suspended for two years. Baines in 2001 reportedly arranged the transfer of $175 million from four Swiss banks to accounts in Douglas. The money had been amassed by Roys Poyiadjis (UID 70529), the fraudulent former senior executive of American software firm AremisSoft. Poyiadjis, will be sentenced in January 2010.

MEXICO ARRESTS MEMBERS OF MONEY LAUNDERING RING

Mexican authorities have reportedly detained a large-scale drug trafficker and leader of the 'Valencia' drug ring, as well as nine of his associates. They allegedly laundered around $37 million for a drug cartel. Prosecutors seized 37 bank accounts and four properties in the case.

MAJORCA BASED FINANCIER INVESTIGATED BY SFO

A UK citizen living on the Spanish island of Majorca has come under the spotlight from the UK Serious Fraud Office, which has launched a probe into his investment company. The probe comes after investors raised questions regarding the whereabouts of approximately £20 million of their funds. Investors are reportedly situated in Spain, the UK, France and the USA.

INDIVIDUAL GUILTY IN US$50 MILLION PONZI SCHEME

Benny Lee Judah (UID 1167013) has pleaded guilty to money laundering and the sale of unregistered securities in a Ponzi scheme reported to have defrauded investors out of US$50 million. Judah has also been ordered to pay $48.4 million in restitution. Previously in 2001 the SEC filed a complaint against Judah alleging that he and his company sold $32 million in unregistered securities. He reportedly settled this case.

A Vice President of a Virginia engineering company has pled guilty to conspiring to pay bribes to Panamanian government officials from an agency charged with maintaining that nation's waterways, and making false statements to the US Government. The object of the conspiracy was to obtain a lucrative government contract for the defendant's company. More than $200,000 was illegally paid to Panamanian officials, including a high-ranking elected executive official of the Republic of Panama. …read more

The High Court in Belfast has granted an interim order freezing assets held by an individual and his wife from south Armagh. This individual was reportedly a former active member of the IRA. The UK Serious and Organised Crime Agency (SOCA) alleged his properties were the result of laundering the proceeds of mortgage fraud, tax evasion and benefit fraud. In addition a freeze was also issued against ten people connected to him.

AFGHANISTAN LAUNCH ANTI-CORRUPTION UNIT

Afghan officials have launched a new anti-corruption unit following international pressure to clean up the government following a fraud-tainted presidential election. Reportedly this is the third formal launch of a unit designed to put a halt to rampant graft and bribery. U.S. Secretary of State Hillary Rodham Clinton recently stated that the United States will not provide any civilian aid to Afghanistan without a way to hold ministries accountable for how funds are used.

UAE INSTRUCTS INSURANCE COMPANIES TO STEP UP AML ENFORCEMENT

The UAE Government has requested that companies in the insurance sector enforce Anti Money Laundering measures and warned that those who fail to comply with its move to combat financial crimes would be held accountable. Instructions and measures stipulated in the UAE law would be applicable to all insurance companies, including foreign companies operating in the UAE.

EVENTS

Alerting all compliance professionals situated in the United Kingdom World-Check is hosting a UK Bribery Act and FCPA Seminar in Central London, on 9 December 2009. More details, including the venue, speakers and topics are available on our website. Please book early to avoid disappointment.

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Delivered by experts in their respective fields World-Check Seminars offer compliance professionals across all industries the opportunity to get insight into topical and relevant issues.

World-Check financial crime consultant Kenneth Rijock has featured a number of alerts to lower or raise country risk in his From a Different Angle column. If you are interested in finding out more about country risk you can read about our jurisdictional risk index Country-Check on the website by clicking here or alternatively visit Country-Check for a more comprehensive overview.

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