Three executives of a British steel trading business were jailed over a $500 million trade finance fraud scheme.
(Bloomberg) — Three executives of a British steel trading business were jailed over a $500 million trade finance fraud scheme.
Nasser Alaghband, chief executive officer of Balli Steel Plc, who had plead guilty and did not stand trial, was sentenced to six-and-a-half years in prison at Southwark Crown Court on Tuesday.
Melis Erda and Louise Worsell, managing director and treasurer respectively at a Balli Group Plc unit, were found guilty by a jury on multiple counts of fraud, were both sentenced to more than three years in jail. They were also given a six year ban from being company directors.
Read more: UK SFO Convicts Steel Bosses in $500 Million Trade Finance Fraud
Prosecutors for the UK Serious Fraud Office had accused the three of plotting to trick trade finance banks, including Cooperatieve Rabobank UA, to get loans by providing fake shipping documents and forged signatures on false sales contracts.
Balli Steel traded steel globally using short-term loans to fund its deals. An investigation by the SFO was triggered when the company collapsed in 2013 with a debt of around $500 million owed to more than 20 banks.
“Using a Cayman Islands address, a fax machine, and a stream of blatant lies, these three individuals plied their criminal trade to defraud banks out of half a billion dollars,” Lisa Osofsky, SFO director, said after the sentencing.
Lawyers for the three did not immediately respond to a request for comment.
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