Credit Suisse Sues REI Agro in Singapore Over Alleged Loan Fraud for non-existent trades of the staple using a web of sham rice-trading companies in Singapore and Hong Kong

http://www.bloomberg.com/news/print/2015-01-20/credit-suisse-sues-rei-agro-in-singapore-over-alleged-loan-fraud.html

Credit Suisse Sues REI Agro in Singapore Over Alleged Loan Fraud

By Andrea Tan – Jan 19, 2015

Credit Suisse Group AG (CSGN) sued REI Agro Ltd. (REIA) in Singapore claiming the Indian basmati rice producer and 16 related companies conspired to get loans for non-existent trades of the staple. REI Agro founders Sandip and Sanjay Jhunjhunwala used a web of sham rice-trading companies in Singapore and Hong Kong to support a 2012 $115.5 million loan agreement by REI Agro’s Dubai-based Ammalay Commoditiess JLT, according to a lawsuit in the Singapore High Court. Continue reading

Weavering Hedge Fund Founder Magnus Peterson Found Guilty of Fraud, Forgery, False Accounting and Fradulent Trading; The fund’s entire net worth was found to consist of interest-rate swaps where the counterparty was a company based in the British Virgin Islands controlled by Peterson himself

http://www.wsj.com/articles/weavering-hedge-fund-founder-found-guilty-of-fraud-1421697445

Weavering Hedge Fund Founder Found Guilty of Fraud: Jury Finds Swedish Financier Guilty on 8 Counts

LAURENCE FLETCHER

Jan. 19, 2015 2:57 p.m. ET

The conviction of hedge fund manager Magnus Peterson on Monday marks a winning end to a long-running probe by the U.K.’s Serious Fraud Office. In the U.K.’s first prominent hedge fund manager conviction since the credit crisis, a jury found the Swedish financier who ran Weavering Macro Fund guilty on eight counts of fraud, forgery, false accounting and fraudulent trading. Continue reading

Does Religion Mitigate Accounting Tunneling of Corporate Wealth? Evidence from Chinese Buddhism

http://eds.a.ebscohost.com.libproxy.smu.edu.sg/ehost/pdfviewer/pdfviewer?sid=1b6f6267-58d0-4f12-869e-add96ec6cd0f%40sessionmgr4005&vid=0&hid=4210

Does Religion Mitigate Tunneling? Evidence from Chinese Buddhism

Du, Xingqiang1 xqdu@xmu.edu.cn

Journal of Business Ethics. Dec2014, Vol. 125 Issue 2, p299-327. 29p. 14 Charts, 1 Map.

Abstract:

In the Chinese stock market, controlling shareholders often use inter-corporate loans to expropriate a great amount of cash from listed firms, through a process called ‘tunneling.’ Using a sample of 10,170 firm-year observations from the Chinese stock market for the period of 2001-2010, I examine whether and how Buddhism, China’s most influential religion, can mitigate tunneling. In particular, using firm-level Buddhism data, measured as the number of Buddhist monasteries within a certain radius around Chinese listed firms’ registered addresses, this study provides strong evidence that Buddhism intensity is significantly negatively associated with tunneling. This finding is consistent with the view that Buddhism has important influence on corporate behavior and can serve as a set of social norms and/or an alternative mechanism to mitigate controlling shareholders’ unethical tunneling behavior. In addition, my findings also reveal that the negative association between Buddhism intensity and tunneling is attenuated for firms that have high analyst coverage. The results are robust to various measures of Buddhism intensity and a variety of sensitivity tests.

Ownership structure in the local Asian companies needs to be balanced for limiting the domination of family stakes in order to help check the alleged practices of manipulating their operational and financial activities through Real Earnings Management (REM)

http://www.thefinancialexpress-bd.com/2015/01/19/76604

Ownership structure in local cos needs to be balanced

FE Report

19 January 2015

The Financial Express (Bangladesh)

Bangladesh, Jan. 19 — Ownership structure in the local companies needs to be balanced for limiting the domination of family stakes in order to help check the alleged practices of manipulating their operational and financial activities through Real Earnings Management (REM), a researcher said.

Referring findings of a study report on such an issue in Japan, an expert came up with the observation at an international conference on “Accounting for Capital Governance” Sunday. Dr Mohammed Mehadi Masud Mazumder, assistant professor of the Department of Accounting and Information Systems (AIS), Dhaka University, presented the study on “Real Activity-based Earnings Management in Japan: Examining the Roles of Sophisticated Investors” at a session of the conference. Continue reading