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| CAO Chief Executive Found Guilty of 6 Charges |
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The former chief executive of "I find the accused guilty of all six charges," Judge Wong Keen Onn told the court. At the start of his trial earlier yesterday, Chen, 44, pleaded guilty to charges related to his tenure at China Aviation Oil (CAO), which left the firm nearly bankrupt with debts of US$550 million after speculative trades in oil derivatives went badly wrong. Chen, a Chinese national who in 2003 was voted one of 40 "new Asian leaders" by the World Economic Forum, initially faced 15 counts of forgery and cheating. A court document said he pleaded guilty to making false or misleading financial statements, in breach of directorial duties, under the Companies Act. He also pleaded guilty to his failure to inform the Singapore Stock Exchange of the company's losses, conspiring to cheat Deutsche Bank, and procuring the parent firm, China Aviation Oil Holding Co, to commit insider trading. Prosecutors said the other nine charges will be taken into consideration for sentencing. The trial is to resume today in the city state, with Chen's lawyers continuing to argue for a mitigation of his sentence. Michael Hwang, his chief counsel, argued Chen relied on the expertise of CAO's traders and that his actions were done in the best interests of the shareholders. "Chen never at any time derived any personal financial gain from the CAO crisis," Hwang told the court. Chen is currently on bail. Judge Wong said he will try to sentence him "as soon as possible." The six charges carry individual penalties ranging from up to a year in jail to a maximum of seven years' jail time. They also carry financial penalties of up to US$154,000. Dressed in a blue shirt and pants, but with no tie or jacket, Chen was silent during proceedings except to say "yes" in acknowledgement of his pleas. CAO announced last week that it had accepted Chen's recent resignation. Other CAO officials have already been convicted for their roles in the scandal. ( |
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