Scandals fraud and losses in the financial markets
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May 2nd's FT.com carried an article "HSBC THWARTS ATTEMPTED £70.5M FRAUD", reporting on the latest bank to be hit by attempted fraud. Euromoney's 'HSBC calls in police for €90 million fraud investigation', published 30 April, was the first to report this story.
Have a look at euromoney.com's summary of previous financial frauds and scandals.
2008: HSBC 90 million in estimated losses Two operations staff members suspected of fraud Jagmeet Channa, 25, has been charged with conspiracy to defraud, money laundering and abusing a position of trust. He has been remanded to appear at Southwark Crown court on June 25. Another man, 27, has also been arrested and a further two men, 33 and 38 remain on police bail in connection with the enquiry.
<> 2008: Société Générale Jérôme Kerviel 4.9 billion in estimated losses
2008: Credit Suisse £1.4 billion Intentional "pricing errors" by a small number of traders involved in complex investments linked to the mortgage market.
2006: Amaranth Advisors more than $6bn in losses Largely due to bad natural gas contracts The rogue trader: Brian Hunter, an energy trader who tried to manipulate gas futures contracts on the NYMEX.
2005: Tyco International US conglomerate $10bn in estimated losses Dennis Kozlowski, former chief executive, and Mark Swartz, the former finance chief, were convicted and jailed for up to 25 years.
2005: Mizuho Japanese bank £128m in losses A broker sold 599,999 more shares in telecoms company J-Com than he wanted to by typing incorrect details into a computer. Instead of selling a single share for 600,000 yen (about £3,000) he instead paid 1 yen for 600,000 shares.
2003: Allfirst Financial Subsidiary of Allied Irish Banks $691m in trading losses The rogue trader: John Rusnak Sentenced to seven and a half years in prison
2003: Parmalat Dairy corporation 14bn in debts, eight times greater than it claimed when filed for bankrupcy. Calisto Tanzi, head of Parmalat was involved in a series of financial and accounting frauds. In 2005 it was charged with market-rigging.
2002: WorldCom American telecommunications firm $3.8bn of fraudulent assets Filed for bankruptcy after a routine audit by KPMG discovered the fraudalent assets; further investigation by the US Securities and Exchange Commission revealed Worldcom had inflated its total assets by around $11bn. Bernie Ebbers, ex-WorldCom chief executive received a 25-year sentence.
2001: Enron US energy giant $144.9 million in numerous concealed debts and financial irregularities; the biggest ever biggest bankruptcy case for a bluechip company. Jeffrey Skilling, Enrons former chief executive was sentenced to 24 years and four months in prison; Kenneth Lay, Enrons former chairman, was found guilty but died of a heart attack in 2006 and avoided jail.
1996: Sumitomo, Japanese trading house $2.6bn in losses One of its traders had been manipulating the copper price The rogue trader: Yasuo Hamanaka sentenced to eight years in jail in 1998, but was released in 2005.
1995: Barings Bank £827m in losses Largely attributed to futures contract speculation and fudged financial records by trader The rogue trader: Nick Leeson, jailed until 1999.
1994 Kidder, Peabody & Co., owned by General Electric $210 in losses Trading fraud involving US Treasury bond strips, from 1990-1994. After the scheme was discovered, over $300 million in fraudulently booked trading profits were reversed. The rogue trader: Joe Jett. NASD and the SEC ruled Jett did not committ securities fraud, but the SEC charged Jett with a record-keeping violation.