French judges seek arrest of Equatorial Guinea leader's son

 

Two French judges sought an international arrest warrant for the son of Equatorial Guinea's President Teodoro Obiang Nguema on money laundering charges, a judicial source said on Tuesday. The two judges, Roger Le Loire and Rene Grouman, consider there are grounds to suspect that Teodorin Obiang, who is agriculture minister in the small, oil-rich central African country, acquired real estate in France by fraudulent means. The warrant will not be released until a prosecutor has reviewed the request and decides whether to proceed. Teodorin is frequently seen enjoying an extravagant lifestyle abroad with multi-million dollar mansions, jets and yachts. Billboards in the capital Malabo seek to show him at work and in touch with the people, but diplomats and analysts cite his playboy lifestyle as a cause for concern. The French judges, who have been handling the case since 2010 on the basis of "concealment of embezzled public funds," suspect that the properties were purchased with public money from Equatorial Guinea. The judges had previously sought permission from the government of Equatorial Guinea to question Teodorin, but that request was rejected, Olivier Pardo, lawyer for the oil producing nation, told Reuters in Paris. "Unless one wishes to violate the sovereignty of the State of Equatorial Guinea and harm relations between France and Equatorial Guinea, it is absurd to want to launch an arrest warrant," he said. As part of the investigation, French police raided a building belonging to Equatorial Guinea in a wealthy area of Paris in February. After three days they removed art works and fine wines worth several million euros. The building was valued at about 150 million euros and investigators say it housed a nightclub and hairdressers, which suggested it was not being used as a diplomatic residence. Anti-corruption organisation Transparency International had filed the original legal complaint against Teodorin Obiang. On March 1, Teodorin filed for defamation against Daniel Lebegue, the president of the French arm of Transparency, denying he had embezzled funds. President Teodoro Obiang has ruled the former Spanish colony for more than three decades, making him the longest-serving African leader following the demise of Libya's Muammar Gaddafi, with rights groups labelling his regime one of the world's most corrupt. The country produces about 240,000 barrels of oil per day. In January, Teodorin asked a U.S. court to dismiss attempts by the Obama administration to seize some $71 million worth of his assets, denying charges that they were obtained with allegedly corrupt funds taken from his country. He argued he had not violated U.S. or Equatorial Guinea law and called the corruption allegations "character assassination" against him and his country. Equatorial Guinea in October said it wanted to appoint Teodorin as its deputy permanent delegate at U.N. cultural agency UNESCO in Paris, a position that would give him diplomatic status in France. Until now the agency has not received any official documentation to proceed further with that request.

JetBlue plane in emergency landing after captain's apparent breakdown

The captain of a JetBlue plane screamed "They're going to take us down!" and rambled about al-Qaida as passengers pinned him to the floor while another pilot took charge to make an emergency landing. An off-duty airline captain who was a passenger on the flight entered the cockpit, locked the door and landed in Amarillo, Texas, the airline said in a statement. JetBlue Airways said the original pilot on flight 191 from New York's John F Kennedy international airport had been taken to hospital after suffering a "medical situation" on board. The captain had earlier stormed through his plane rambling about a bomb and threats from Iraq until passengers on the Las Vegas-bound flight tackled him just outside the cockpit, passengers said. He had seemed disoriented, jittery and constantly sipped water when he first marched through the cabin, then began to rant about threats linked to Iran, Iraq and Afghanistan after crew members tried to calm him down. "They're going to take us down! They're taking us down! Say the Lord's prayer!" the captain screamed, according to passenger Tony Antolino. Josh Redick, who was sitting near the middle of the plane, said the captain seemed "irate" and was "spouting off about Afghanistan and souls and al-Qaida". Gabriel Schonzeit, who was sitting in the third row, told the Amarillo Globe-News: "He started screaming about al-Qaida and possibly a bomb on the plane and Iraq and Iran and about how we were all going down." "A group of us just jumped up instinctually and grabbed him and put him to the ground," Antolino said after arriving in Las Vegas later Tuesday. "Clearly he had an emotional or mental type of breakdown." Antolino, a security executive, said he and three others pinned down the captain as he ran for the cockpit door and sat on him for about 20 minutes until the plane landed at Rick Husband Amarillo international airport at 10am. Shane Helton, 39, who was seeing off his son at Amarillo airport, said: "They pulled one guy out on a stretcher and put him in an ambulance." The flight had left New York around 7am and was in the air for three and a half hours before landing in Texas. The passengers completed their journey to Las Vegas several hours later on another flight. The FBI was co-ordinating an investigation with the police, the FAA and the Transportation Safety Administration, said FBI spokeswoman Lydia Maese in Dallas. She declined to comment on arrests. Earlier this month an American Airlines flight attendant took over the public address system on a flight bound for Chicago and spoke for 15 minutes about 9/11 and the safety of their plane, saying: "I'm not responsible for this plane crashing," passengers said. She was wrestled into a seat while the plane was grounded at Dallas-Fort Worth international airport. The attendant was taken to hospital. In 2008 an Air Canada co-pilot was forcibly removed from a Toronto to London flight, restrained and sedated after having a mental breakdown. A flight attendant with flying experience helped the pilot make an emergency landing in Ireland. None of the 146 passengers and nine crew members on board were injured. In August 2010 JetBlue flight attendant Steven Slater pulled the emergency chute on a flight from Pittsburgh after it landed at John F Kennedy international airport. He went on the public address system, swore at a passenger, grabbed a beer and slid down the tarmac. He was sentenced to probation, counselling and substance abuse treatment for attempted criminal mischief. An aviation expert remembered only two or three cases in 40 years where a pilot had become mentally incapacitated during a flight. John Cox, an aviation safety consultant and former airline pilot, said incidents in which pilots become mentally incapacitated during a flight were "pretty rare". He said he could only recall two or three other examples in the more than 40 years he has been following commercial aviation. Airlines and the FAA strongly encouraged pilots to assert themselves if they thought safety was being jeopardised, even if it meant contradicting a captain's orders, Cox said. Aviation safety experts had studied several cases where first officers deferred to more experienced captains with tragic results. In Tuesday's case the FAA is likely to review the unidentified captain's medical certificate, which must be renewed every six months to a year.

Cannabis: Legal high

 

CANNABOOST plant food is one of the best selling products at the Hydroexpress hydroponics store in Stirchley, a working-class part of Birmingham. The small shop, its windows filled with graffiti-style posters, also sells fertilisers with names like “Nirvana” and “Bud Candy”, alongside strong lights and giant rolls of tin foil to line greenhouses. In one corner, a couple of juicy-looking tomato plants grow in a demonstration set-up. But the youth behind the counter guesses that his customers are “not all growing tomatoes”. Birmingham now has 58 hydroponics shops, up from 42 just a year ago. Whether aided by the latest plant-growing technology or not, cannabis production is soaring. According to the Association of Chief Police Officers, the number of cannabis factories detected each year increased from around 800 in 2004 to 7,000 in 2010. Birmingham is one of the most fertile areas; West Midlands Police, which set up a Cannabis Disposal Unit in 2010 to tackle the problem, dismantled more than 500 factories last year. Your correspondent visited one recently closed by police; the gardener was a cocaine-addicted woman growing a few plants in a spare room in the hope of earning a cut. Other set-ups have been found in tents in the bedrooms of high-rise council flats and in the lofts of terraced family houses. Many growers are simply feeding their own habits. As one officer on the West Midlands Police drugs team says, “It’s becoming the most popular cottage industry in the country.” In this section A big splash with little cash Falling flat Earning a hearing The worst job in the world Constituency of the world Mother tongue Money for old metal »Legal high A rock and a hard place The Notting Hill budget Reprints Related topics United Kingdom Birmingham, England Small growers are squeezing out both importers and the well-connected, often Vietnamese, gangs that once dominated domestic production. The big cannabis factories set up by the latter, with their telltale heat hazes, are fairly easy to spot. Smaller operations are often uncovered only when the electric lights start fires, or when local teenagers mount a burglary. The police and the courts can neither keep up with the surge in small-scale production, nor are they desperately keen to do so. Last month the government published new sentencing guidelines that advised judges to treat small cultivators less strictly. Attitudes to smokers are softening, too. The reclassification of cannabis in 2009, from class C to the more stringent class B, was oddly accompanied by a more liberal approach to policing consumption. Users caught on the street are rarely arrested; rather, they are issued “cannabis cautions” (a reprimand which doesn’t appear on a criminal record) or fined. In Brixton, a south London neighbourhood, an open-air cannabis market exists within ten minutes’ walk of the underground station. The dealers are frequently moved on but they soon regroup elsewhere. As one dealer admits, his competitors are a bigger hassle than the police. “They get to fightin’, over money and things,” he says in a deep Caribbean drawl. Violence is far more likely to get a dealer into legal trouble than business. Strangely, this lackadaisical approach is not encouraging people to take up the reefer habit. According to the European Monitoring Centre for Drugs and Drug Addiction, the proportion of people who admit to having used cannabis in Britain has fallen more quickly than in any other European country over the past few years. Just 6.8% of adults told another survey that they used cannabis in 2010, down from 10.9% eight years earlier. The herb is now ubiquitous and effectively tolerated—and, perhaps as a result, not all that alluring.

Cat-Sized Rats Invade Florida

 

Cat-sized rats are causing trouble in the Florida keys. A pack of Gambian giant pouched rats have been breeding in the keys despite officials’ efforts to eradicate them. NBC Miami reports that Officials are worried about the vermin making it over to the mainland, saying that the hungry species could wipe out crops and upset the delicate ecological balance in Florida. Scort Hardin, the exotic species coordinator for Florida’s Fish and Wildlife Conservation Commission, said: “We thought we had them whipped as of 2009…. In the early part of 2011, a resident e-mailed me and said he saw one of the rats. We were skeptical but went back and talked to people and [saw] there were rats that we missed.” Hardin believes that there are less than two dozen giant rats roaming Grassy Key where they were trapped during multiple efforts last year. The Wildlife Conservation Commission will set out once again this July in an attempt to trap the Gambian giant pouched rats. Hardin told Keys Net: “I would not imagine there’s more than another couple of dozen at most. We’ve caught them all within a half-mile of each other… We think they have not moved far but they clearly reproduced.” MSNBC reports that the cat-sized rats were introduced to the island by a local rat breeder more than a decade ago. The rats have moved into the wild where they are now breeding and wreaking havoc on the ecosystem.

Whitney Houston full autopsy report to offer more details

Whitney Houston’s full autopsy report may offer more clues about whether the singer suffered a heart attack before her drowning death, officials said Friday. The full report, which is expected to be released in a few weeks, may include test results and physical descriptions of the singer’s heart that will show whether she suffered a heart attack, Assistant Chief Coroner Ed Winter said. The report is being compiled and Winter said he did not have access to its findings, which might show whether there were any obvious signs such as discoloration of her heart that would suggest Houston had a heart attack before slipping underwater in a bathtub at the Beverly Hilton Hotel on Feb. 11. Houston’s death has been ruled an accidental drowning, with heart disease and cocaine use listed as contributing factors. The report also will include detailed toxicology results that will show how much cocaine and its byproducts were in Houston’s system when she died. Coroner’s officials said Thursday that the results showed the singer used cocaine shortly before her death, and there were indications of chronic use. Beverly Hills police detectives will use the full coroner’s report to complete their investigative file, which is not expected to be publicly released. The department has said there were no signs of foul play in connection with Houston’s death. Houston’s death on the eve of the Grammy Awards stunned the music industry and fans worldwide. The singer had battled addiction for years, but friends and family have said she appeared committed to making a comeback in the months before her death.

Pakistani Taliban training Frenchmen

Pakistani intelligence officials say dozens of French Muslims have been training with the Taliban in northwest Pakistan. The officials said on Saturday they were investigating whether Mohamed Merah, a Frenchman of Algerian descent suspected of killing seven people in southern France, had been part of this group. Merah traveled to Pakistan in 2011 and said he trained with al-Qaida in Waziristan. He was killed in a gunfight with police Thursday in the French city of Toulouse. The officials said 85 Frenchmen have been training with the Pakistani Taliban in the North Waziristan tribal area for the past three years. Most have dual nationality with France and North African countries. The officials spoke on condition of anonymity because they were not authorized to talk to the media.

TWO men who have been arrested by detectives investigating the murder of crime boss Eamon 'The Don' Dunne are senior lieutenants of crime lord Christy Kinahan.

 The mobsters were picked up by armed gardai during a dawn raid at a property in the north inner city and are currently in custody at Store Street Garda Station. Sources do not believe that either is the gunman who actually killed Dunne in the gangland murder in a Cabra pub in April 2010 but they believe that the pair played a key role in organising the hit. The Herald can today reveal that gardai also planned to arrest the young criminal who they believe shot Dunne but he "has gone to ground." The north inner city gunman is a close associate of the two related men who are in garda custody today. Selling One of those arrested -- aged in his late 20s -- was mentioned by Spanish authorities in the four-page European Arrest Warrant they used to extradite 'Fat' Freddie Thompson to Spain last year. The warrant asserts explosive details about the criminal's role within the multi-million euro Christy Kinahan drugs organisation. This man, who comes from a flats complex in the city, was previously arrested by Spanish police as part of Operation Shovel -- the massive probe against Kinahan's organisation which revealed that his mob were selling shipments of drugs worth a staggering €1m every two months. The 'Fat' Freddie warrant alleges that the arrested criminal is a "member of this organisation in Ireland". The warrant claims that the criminal travelled to Malaga on May 7, 2010, to meet Christy Kinahan's son Daniel to discuss a major drugs shipment into Ireland. "Daniel was supposedly going to finance part of the shipment. A surveillance operation was launched in Malaga Airport and officers saw Ross Browning, another one of the persons under investigation, arrive at the airport," the warrant alleges. The Herald has previously revealed that Browning (28) was named in the warrant, which claims he was a driver for the Kinahan drugs organisation. Browning, from the north inner city, is a close associate of the men arrested yesterday. In January 2001, a 30-year-old, who is in custody today, was involved with Browning in the robbery of over £IR13,000 from a a Securicor van driver. Both men later received suspended sentences. Gardai believe the shocking murder of Dunne was sanctioned by Christy Kinahan who felt that the reckless behaviour of the gang boss was getting out of control. 'Dapper Don' Kinahan -- who is serving the last days of a jail sentence for money laundering in Belgium -- is regarded as the biggest drugs trafficker in the history of the Irish State.

Two police officers were injured in a shoot-out in Toulouse on Wednesday with a gunman claiming links to al Qaeda

Two police officers were injured in a shoot-out in Toulouse on Wednesday with a gunman claiming links to al Qaeda and who is believed to responsible for the killing of four people at a Jewish school and three soldiers in southwest France. Interior Minister Claude Gueant said that the 24-year-old man had made several visits to Afghanistan and Pakistan and had said that he was acting out of revenge for France’s military involvement overseas. “He claims to be a mujahideen and to belong to al Qaeda,” Gueant told journalists at the scene of the siege. “He wanted revenge for the Palestinian children and he also wanted to take revenge on the French army because of its foreign interventions,” Gueant said. Heavily armed police in bullet-proof vests and helmets cordoned off the residential area where the raid was taking place, in a suburb a few kilometres from the Ozar Hatorah Jewish school where Monday’s shootings took place. Reuters witnesses at the scene heard several shots at about 04:40 a.m. British time. Gueant said that police were also talking to the brother of the gunman, who is a French citizen from Toulouse. Police sources told Reuters that a man had been arrested earlier on Wednesday at a separate location in connection with the killings. The gunman’s mother had also been brought to the scene of the siege in a northern suburb of Toulouse to help with negotiations, Gueant said. “Negotiations with the suspect are ongoing, gunfire has been exchanged,” the minister said. He said that France’s President Nicolas Sarkozy had been informed of the situation at 03:00 a.m. (02:00 a.m. British time), when the raid began. Authorities believe that the gunman in Monday’s school shooting is the same person responsible for killing three soldiers of North African origin in two shootings last week in Toulouse and the nearby town of Montauban. The same Colt 45 handgun was used in all three attacks and in each case the gunman arrived on a Yamaha scooter with his face hidden by a motorcycle helmet. The killings come just five weeks before the first round of France’s presidential elections in which immigration and Islam have been major themes as Sarkozy seeks to win over voters from far-right leader Marine Le Pen.

Shoot-Out In Raid Sees Police Injured

 

French police are engaged in a siege with a man they are reportedly "confident" was responsible for the killings of seven people in the south west of the country. Two elite officers reportedly suffered minor injuries during a shoot-out with suspects in the ongoing pre-dawn raid in the Croix-Daurade district of the city of Toulouse. AFP news agency - which said up to six shots were heard in the raid - is reporting that police believe the gunman responsible for three attacks that killed three children, a rabbi and three soldiers is inside the target building. Four people were killed during the shootings at Ozar Hatorah school A source linked to the probe also told the news agency that a man claiming to be linked to al Qaeda was holed up in the building. The agency said the suspect being sought was 24 and had previously travelled to the border area between Pakistan and Afghanistan, which has been known to house al Qaeda safehouses. French news channel BFM TV said the suspects were linked to an Islamist group which it identified as Forsane Alizza. Sky News' Robert Nisbet, in Toulouse, said: "We know that someone is inside the building. It could one person, it could be more than one person. "I understand this is a relatively poor suburb of Toulouse. Obviously, there is an intense pressure on French police to solve this crime." The killings atOzar Hatorah Jewish school on Monday followed the shootings of four soldiers - three of them fatal - in two attacks over the previous eight days. All three of the soldiers killed were of North African descent. All of the attacks were apparently carried out by an assailant using the same gun and scooter. The victim's backgrounds had led to fears the killer was specifically targeting members of minority communities. Chief prosecutor in Paris, Francois Molins, who is monitoring the investigation in Toulouse, had warned there could well be more killings. "At this stage, everything is being done to identify, find and stop the perpetrator, of these three killings as fast as possible," he said. "In these exceptional circumstances, I think it is obvious that we are up against an extremely determined individual, who knows he's being hunted, who could strike again."

Second arrest after man killed at Herbie Hide's home

 

A second person has been arrested on suspicion of murdering a man at the Norwich home of former boxing world heavyweight champion Herbie Hide. Tafadzwa Kahn, 25, of St Giles Street, Norwich, died from a stab wound at the house in Long Lane, Bawburgh, on Sunday morning. An 18-year-old man from the Norwich area was arrested on Tuesday. The first person arrested, a 16-year-old boy, remains in custody in Wymondham Police Investigation Centre. Detectives said the stabbing followed an argument at a party in the house. 'High visibility patrols' The property remains sealed while a forensic examination is carried out. Police said they would continue to provide high visibility reassurance patrols in the area. More than 100 people were at the party at the time of the stabbing. Police said earlier they were "fairly certain" Mr Hide was not on the premises at the time of the stabbing. Mr Hide told the BBC on Monday: "The reality of this right now is a man is dead. Imagine this - a lady was told her son has gone. Imagine that." A spokesman said a post-mortem examination found the cause of death was a stab wound to the body. Mr Hide and his family have relocated while investigations at the house continue. Mr Hide won the WBO (World Boxing Organisation) heavyweight title for the first time in 1994, beating American Michael Bentt, but lost it to another American, Riddick Bowe, the following year. He regained the title in 1997 and made two successful defences before losing to Vitali Klitschko in 1999.

Azhar Ahmed to stand trial over Facebook post about dead soldiers

Azhar Ahmed, 19, appeared at Dewsbury magistrates' court charged under the Communications Act 2003 with sending a message that was grossly offensive on March 8. In court a racially-aggravated public order charge was withdrawn, but Mr Ahmed, from Ravensthorpe, West Yorkshire, denied the new charge. Police and demonstrators outside Dewsbury Magistrates Court (Picture: PA) He has been bailed and is due to stand trial at Huddersfield magistrates' court on July 3. There was a large police presence outside court as 50 far-right protesters staged noisy demonstrations when he arrived and left. Mr Ahmed's court appearance came as the bodies of the six soldiers killed in Afghanistan on March 6 were repatriated to RAF Brize Norton in Oxfordshire. Demonstrators shouted when Azhar Ahmed arrived and left court (Picture: PA) They died when their Warrior vehicle was struck by an improvised explosive device in Lashkar Gah in the deadliest single attack on British forces since 2001. Sergeant Nigel Coupe, 33, of 1st Battalion The Duke of Lancaster's Regiment was killed alongside Corporal Jake Hartley, 20, Private Anthony Frampton, 20, Private Christopher Kershaw, 19, Private Daniel Wade, 20, and Private Daniel Wilford, 21, all of 3rd Battalion the Yorkshire Regiment.

Harry Potter Star Jamie Waylett Jailed For Two Years For Violent Disorder In London Riots

Actor Jamie Waylett, who starred in the Harry Potter films, has been jailed for two years for being part of a violent mob during last summer's London riots. The 22-year-old, who played Hogwarts bully Vincent Crabbe in six of the films, was found guilty of violent disorder by a jury at London's Wood Green Crown Court. The actor, who had already admitted swigging from a stolen bottle of Champagne during the rioting, was cleared of intending to destroy or damage property with a petrol bomb he was pictured holding. He already has a previous conviction for cannabis possession. Waylett of Hillfield Road, northwest London, was with a gang of at least four people who went into Chalk Farm on August 8, the third night of violence in the capital. He was captured on CCTV at various points during the evening, often with his hood over his head. Buildings on fire in Tottenham during the riots Judge Simon Carr sentenced the actor to two years for violent disorder and 12 months for handling stolen goods, to run concurrently. Jailing him, the judge said: "A considerable amount has been said about what happened over those few days. Anyone watching the footage in this case can only imagine the mayhem that took place on the streets. "You chose to go out on to the streets on what was the third day of the violence. "You were pictured on a number of occasions with a bottle full of petrol with a rag as a wick. "I accept entirely the jury's verdict that you did not throw or have any intention of throwing it, but merely being in possession of it would have been terrifying to anyone who saw you." Waylett will be eligible for parole after serving a year in jail. The star, who had a shaved head and a goatee beard, wore a white shirt with an open collar and a dark suit to hear the sentencing. He nodded to the public gallery as he was led down to the cells.

A GANG of “guns for hire” who spread lawless violence in a spate of gun and grenade attacks across Merseyside were today starting life behind bars.

 

The five were the “go to” men for gangsters across the area as they carried out attacks on underworld rivals.

But their spree saw innocent people caught in the middle as indiscriminate shootings and grenade attacks escalated.

At the top of the tree sat Tony Downes and Kirk Bradley, a “thick as thieves” pair of career criminals from Huyton, and Gary Wilson, who used his ill-gotten gains to buy himself a plush seafront Southport home.

Bradley and Downes, both 26, never got their hands dirty – Downes was directing operations from his cell in HMP Liverpool and was said to be the group’s “chief executive” by a judge yesterday.

Instead their underlings, “trusted and active lieutenants” Craig Riley and Joseph Farrell, were given “jobs” to carry out and would farm some tasks out to younger crooks wanting to make a name for themselves.

On their instructions, the young thugs would be given guns or explosives and an address or a specific individual to target.

They threw grenades into a room where a woman babysitting her seven-year-old grandson was sleeping and shot people in the legs and stomach, leaving them with life-changing injuries.

Their “modus operandi” saw them use the same guns over and over again – two guns linked to the group were used in 16 different shootings – and carry out their attacks on scrambler bikes, ideal for a quick getaway.

Police slammed the gang as “parasites, the worst kind of mercenary” after bringing them to justice.

A covert police operation was launched to snare those linked to more than 20 incidents over two years.

As the net closed on them, officers took an arsenal of weapons off the streets.

At Woolwich Crown Court yesterday the “chapter” in the ongoing fight against gun crime was brought to a close by high court judge Mr Justice Henriques when he sentenced each of the gang to life imprisonment.

Only Farrell, Wilson and Riley were actually in the dock at Woolwich yesterday.

Downes and Bradley escaped from a prison van in Manchester last summer as they were being brought to court in Liverpool.

Their escape caused their trial, which was in its 11th week at the time, to collapse and a retrial at maximum-security Woolwich was ordered.

But the day after they were convicted in their absence, Downes was picked up after eight months of freedom.

US soldier has killed 16 Afghan civilians, including nine children,

A US soldier has killed 16 Afghan civilians, including nine children, after entering their homes in Kandahar. Sky sources said the Afghan victims also included women and elderly men. Minister of Border and Tribal Affairs Asadullah Khalid, who is investigating the incident, said the soldier entered three homes, killing 11 people in the first one. The Nato-led International Security Assistance Force (Isaf) coalition confirmed the incident but did not release the number of killed or injured. Sky defence reporter Mark Stone said: "Details are still sketchy and various death tolls have emerged. "It appears to be an isolated incident and the soldier is believed to have been a staff sergeant." Isaf Deputy Commander Lt Gen Adrian Bradshaw said: "I wish to convey my profound regrets and dismay at the actions apparently taken by one coalition member in Kandahar province. "I cannot explain the motivation behind such callous acts, but they were in no way part of authorised ISAF military activity." According to the Panjwai district governor office, seven people died and up to 17 injured were injured in the rampage. The injured have been treated for their wounds at Nato medical facilities. Protests were held over the Koran-burning incident The US embassy in Kabul attempted to quell expected Afghan unrest by also issuing an apology. It said: "We deplore any attack by a member of the US armed forces against innocent civilians, and denounce all violence against civilians. "We assure the people of Afghanistan that the individual or individuals responsible for this act will be identified and brought to justice." The diplomatic response comes after weeks of tense relations between US forces and their Afghan hosts following the burning of Korans and other religious materials at an American base. Although US officials apologised and said the burning was an accident, the incident sparked violent protests and attacks. Britain also pulled out civilian advisers from buildings in Kabul as protests spread. Six American soldiers have been killed in attacks by their Afghan colleagues since the Koran burnings came to light.

United States service member walked out of a military base in a rural district of southern Afghanistan on Sunday and opened fire on three nearby houses, killing at least 15 civilians

 

United States service member walked out of a military base in a rural district of southern Afghanistan on Sunday and opened fire on three nearby houses, killing at least 15 civilians, local villagers and provincial officials said. Related Security Fears Lead Groups to Rethink Work in Afghanistan (March 11, 2012) U.S. and Afghanistan Agree on Prisoner Transfer as Part of Long-Term Agreement (March 10, 2012) Afghan Officer Sought in Killing of 9 Colleagues (March 9, 2012) Connect With Us on Twitter Follow @nytimesworld for international breaking news and headlines. Twitter List: Reporters and Editors Readers’ Comments Share your thoughts. Post a Comment » Read All Comments (1) » The shooting risks further inciting anti-American sentiment in Afghanistan and troubling a relationship that had already been brought to a new low by the burning of Korans at an American military base last month. The American embassy in Afghanistan quickly issued a statement on Sunday urging calm. The NATO-led coalition said in a statement on Sunday that a United States service member had been detained after an incident in Kandahar Province, in the south of the country, and that a number of civilians had been killed. Villagers in Belandi in the Panjway district of Kandahar, where the shooting took place, said the service member had attacked three houses, killing 11 people in one house and four in a second home. Five other villagers were wounded, they said. Panjway, a rural suburb of Kandahar, was traditionally a Taliban stronghold. It was a focus of the United States surge in 2010 and was the scene of heavy fighting. The governor of Kandahar Province, Tooryalai Wesa, condemned the shooting, although he could not immediately confirm the number of people killed. A coalition spokesman in Kabul, Capt. Justin Brockhoff, said that it was not clear what had led to the incident. He said the civilians wounded in the shooting were taken to a coalition hospital where they were being treated. One of the houses attacked in the village belonged to a tribal elder, according to a person from the village. “We don’t know why he killed people,” said the villager, Aminullah, who like many Afghans goes by a single name. Aminullah said the soldier was alone. “There was no fighting or attacks.” In the statement, the United States military raced to head off Afghan outrage. “This is a deeply regrettable incident and we extend our thoughts and concerns to the families involved,” the statement said. It went on to say that American forces, in cooperation with the Afghan authorities, would investigate the incident. In its comments, the American Embassy also sought to ease tensions, offering “its deepest condolences to the families of the victims of today’s tragic shooting.” “We are saddened by this violent act against our Afghan friends,” the statement said. In a separate incident, four Afghans were killed and three wounded on Friday when coalition helicopters apparently hunting Taliban insurgents fired instead on villagers in Kapisa province in eastern Afghanistan, according to Abdul Hakim Akhondzada, governor of Tagab district in Kapisa. Last month, the burning of the Korans touched off nationwide rioting and increased the targeting of American troops, resulting in at least 29 Afghans dead and 6 American soldiers killed. The results of the official military inquiry into the Koran burnings are still awaited, including any decision on what kind of disciplinary action may be faced by the American service members identified as being directly linked to the incident. The upheaval provoked by the Koran burnings put a temporary halt to cooperation between the Afghans and Americans, and disrupted planning for the military withdrawal. But relations seemed somewhat back on track after the two governments on Friday broke an impasse on a long-term strategic partnership deal by agreeing for the Afghans to assume control of the main coalition prison in six months. In another incident in January, American officials had to contend with the fallout from a video that showed four United States Marines urinating on the corpses of what appeared to be the corpses of three Taliban members. In 2010, a rogue group of American soldiers, whose members patrolled roads and small villages, also near Kandahar, killed three Afghan civilians for sport in a series of crimes. The soldier accused of being the ringleader of the group was convicted of three counts of murder by an American military panel in November.

Allen Stanford was convicted on Tuesday of running a $7 billion Ponzi scheme, a verdict that caps a riches-to-rags trajectory for the former Texas financier and Caribbean playboy.

Aaron M. Sprecher/Bloomberg News

 

 

It was a vindication for the U.S. government, which closed down Stanford's financial empire in February 2009 but had failed for years to address signs that the business was built on air. The Stanford case was the biggest investment fraud since Bernard Madoff's.

Stanford was found guilty on 13 counts of a 14-count criminal indictment, including fraud, conspiracy and obstructing an investigation by the U.S. Securities and Exchange Commission. He was found not guilty on one count of wire fraud. The charges carry a possible prison sentence of nearly 20 years.

As Stanford, 61, was led out of the courtroom after the verdict, he touched his fist to his heart and looked at the bench where his mother and two daughters sat. He has been jailed since his June 2009 arrest.

"We're disappointed in the outcome," said Stanford's defense attorney Ali Fazel. "We do expect an appeal." He said he expects sentencing in several months.

The verdict came less than a day after the Houston federal jury said it could not reach a decision, and U.S. District Judge David Hittner instructed jurors to keep deliberating.

Still, the verdict may prove only a moral victory for Stanford's victims. Most have received none of the money back they invested in Stanford's certificates of deposit.

"For all the investors I think there is a sense of relief that they weren't just fools," said Cassie Wilkinson, a Houston investor in Stanford funds who attended the six-week trial. "There was a jury of 12 people who found the same thing - that we were just conned."

Stanford's unraveling was one of the most closely watched fraud cases since Madoff's. Madoff, 73, pleaded guilty in 2009 to orchestrating what prosecutors have called a $64.8 billion Ponzi scheme. He is serving a 150-year prison sentence.

The guilty verdict did not end the case. The jury of eight men and four women, including a pawn shop operator and a retired hairdresser, returned to the courtroom on Tuesday afternoon to consider the government's demand that more than $300 million in assets tied to Stanford be forfeited.

The money, which has been frozen, is held in more than 30 bank accounts in Geneva, the United Kingdom and Canada in the names of Stanford and other entities, according to the government. Stanford, wearing a navy blue suit, also was back in the courtroom to hear the testimony in the forfeiture case.

"Every single dollar that the U.S. is seeking to forfeit is CD depositor money that stems from Mr. Stanford's crimes and belongs to the victims of his crimes," prosecutor Andrew Warren said in opening statements.

'PERSONAL ATM'

Stanford's personal fortune was once valued at $2.2 billion.

At trial, prosecutors told how he repeatedly raided the bank he owned in Antigua, Stanford International Bank, using it as his "personal ATM."

He bought a castle in Florida for one of his girlfriends and his oldest daughter lived in a million-dollar condominium in Houston. He wore custom-made suits, lived in luxury homes and on a yacht in the Caribbean and bankrolled a $20 million prize for an international cricket tournament.

The government's star witness, former Stanford aide James Davis, testified that he and Stanford faked documents and made up financial reports to calm investors and fool regulators. They funneled millions of dollars from Stanford International Bank to a secret Swiss bank account that Stanford tapped for his personal use, Davis testified.

Davis, 63, has pleaded guilty to three criminal counts.

Stanford's lawyers portrayed their client as a visionary who was not involved in his firm's daily activities. They blamed Davis for any fraud and argued that Stanford's businesses were viable until the government shut down Stanford Financial Group in Houston in February 2009. Left with no money, Stanford was declared indigent by the court and his defense was paid for with public funds.

Wendell Odom, a criminal defense attorney in Houston who observed much of the trial, said Stanford's attorneys did a good job of discrediting Davis by getting him to admit to being a liar. But they failed to develop an alternative theme for the jury. "There was just too much evidence," he said.

BRAIN INJURY

While in jail awaiting trial, Stanford was beaten by another inmate, leaving him with a brain injury and broken bones in his face. He then became addicted to an anti-anxiety medication. His lawyers argued that those events caused him to lose his memory, making him incompetent to stand trial.

After eight months at a prison hospital in North Carolina, he was deemed competent to stand trial. Before his trial began on January 23, Stanford's lawyers said their client wanted to tell his story to the jury, raising the possibility that he would take the stand. Ultimately, he did not testify.

Stanford grew up in Mexia, Texas. He studied finance at Baylor University, where Davis, who later become chief financial officer of Stanford Financial Group, was his roommate.

In the 1980s, Stanford bought up real estate in Houston with his father, later selling it at a profit. In 1986, he opened an offshore bank on the Caribbean island of Montserrat and, after banking regulations there tightened, he moved his operation to Antigua.

The bank specialized in aggressively selling certificates of deposit to wealthy people, his former employees testified at the trial. They targeted clients in Latin America, especially Venezuela, and oil company workers with fat pensions who lived along the U.S. Gulf Coast.

In Antigua, he became a philanthropist and sponsor of cricket, the national sport, and was known as "Sir Allen" after being knighted there in 2006. By 2008, Stanford made No. 205 on Forbes magazine's list of the wealthiest Americans.

But questions surfaced about how Stanford International Bank's CDs could persistently pay above market rates. By February 2009, investors were trying to withdraw their money and, on February 17 of that year, the government descended on his headquarters in Houston and shut it down.

Antigua stripped him of his knighthood and seized his local assets.

How Wall Street Bankers Use Seamless To Feast On Free Lobster, Steak, And Beer

A former Morgan Stanley banker recently described his weekend food-ordering ritual at the height of the recession. While pulling Saturday hours, for example, he'd log onto the bank's account on Seamless, the online food-ordering service, and redeem his meal allowance--plus a few allowances from phantom coworkers who weren't actually in the office, allowing him to eat well above his pay grade. Sure, someone could have cross-checked actual office attendence with the online orders, but is such effort worth the investment bank's time? "If people weren't around, it was totally acceptable to take their allowance, and pool it together when you ordered," the banker recalls. "Almost every weekend I was at the office, I'd have a $90 dinner of steak, lobster, mac & cheese, and calamari." Until several years ago, corporate giants like Morgan Stanley made up roughly 85% of Seamless's customer base. That figure has now tipped in favor of individual consumers, but enterprise clients still represent a significant (and growing) part of the New York-based company's revenue--companies offer Seamless as a benefit to those who typically work long or late hours. But for employees of these roughly 3,500 corporate Seamless customers, the benefit represents a huge opportunity to game the system. And no one has worked the system for financial gain better than Wall Street hustlers. "Abuse of the system was rampant," recalls another former Morgan Stanley staffer. "I added up how much I ordered in my first year: It was more than $3,000 of food." Here's how it works. Typically, junior professionals are allotted about $25 per meal at the office. But there are tricks to leverage this cash on Seamless. If employees want to order dinner, for example, they have to stay until 8 p.m. "But you could still order for a 7 p.m. delivery at 6 p.m., then call the restaurant directly and tell them to bring it right away," one employee says. "So I'd finish work around 6:30 p.m., hit the company gym, and then grab my sushi--spicy tuna rolls--on the way out." A Seamless Scam How Gordon Gekko Orders On Seamless 1// Top Seamless Fiend According to Seamless' statistics, the highest ordering corporate user placed more than 2,600 orders in 2011, or more than 7 meals per day. 2// Top Cuisine By Industry Employees Investment Bankers: Sushi; Educators: Pizza 3// Top Ordering Patterns Corporate dinner-orders in New York's Financial District peak at 8 p.m. In Midtown, corporate orders peak at 7 p.m. Corporate dinner-orders are higher, on average, from 4-5 p.m. and lower between 8 p.m. and 9 p.m. Ordering groceries on Seamless was--and likely still is--another practice. (Representatives at Goldman Sachs and Morgan Stanley have not responded to requests for comment.) One employee, who lived by Morgan Stanley's Midtown offices, would even remote into her office computer from her apartment, place an order on Seamless, and then call the restaurant and change the delivery address to her apartment. The lobster-loving Morgan Stanley banker's take on that old switcheroo? "Classic." Another trick: Since employees aren't allowed to order beer or alcohol on the system, it's not uncommon to pool money together, place a large order for random items, then call the store and request that they bring beer instead. "We definitely get a lot of random orders," says Seamless CEO Jonathan Zabusky. "Once in a while, I'll sit on the customer-care desk, just to get a feel on the pulse of what's going on. You see these orders come through, and you're like, 'Why are 20 rolls of toilet paper going to 200 Vesey Street [the World Financial Center]? What the hell?'" One former employee at Morgan Stanley said he wasn't sure how pervasive the "switch-for-beer order" was at the investment bank, but said he personally pulled the move several times. "Wow, I feel so lame now because when I'd order from Seamless, I'd just get dinner," says one former Goldman Sachs employee. "I never heard of anyone else pulling a fast one [like that], but that doesn't mean it never happened." The daily Seamless stipend is considered sacred for employees, and any abuse of the system appears generally overlooked by higher-ups. When Lehman Brothers went under, for instance, Morgan Stanley lowered the Seamless limit from $30 to $25, much to the anger of workers. "People went nuts," recalls a former employee. "Every so often there were these fireside chats with [Morgan Stanley CEO] John Mack 'Da Knife' and a collection of analysts. One of the women on the call asked Mack to raise the limit to $30 again. Mack, not really having paid much attention to expenses, was surprised to hear it had been reduced. Concerned, he asked her why she needed $30 instead of just $25. She said that with the new reduction, 'I can't order my Perrier anymore.'" The next day, as legend has it, there was an entire case of Perrier on her desk--courtesy of John Mack. "What a baller," an employee says. Zabusky is sure abuse exists on Seamless, but says it's not likely that widespread. "I think it's pretty funny," the Seamless chief chuckles. "I mean, I know it probably frustrates a CFO at Goldman, who is giving these guys $25 to order while they work on deals, and they're ordering toilet paper and jars of mayonnaise and all this other stuff. But in the overall scope, it's probably pretty small." Small as the abuses might be in terms of Seamless's bottom line, there's no doubt it has a big impact on the morale of employees, who seem to take pride in manipulating money one way or another. According to Seamless's statistics, for example, the highest ordering corporate user placed more than 2,600 orders in 2011. "There's nothing grosser or more magnificent than eating $25 of delivered Taco Bell under the fluorescent, sober lights of an office building," says one employee. "Do you have any idea how much baja sauce you can get for that money?"

San Diego tax preparer for the wealthy accused of ordering hit on 2 witnesses in fraud trail

 former Internal Revenue Service agent whose tax preparation business catered to a wealthy clientele is accused of ordering at least two former customers killed as they prepared to testify against him on fraud charges. Federal prosecutors say the targets were key witnesses against Steven Martinez, 50, who was charged last year with stealing $11 million by preparing bogus tax returns for his customers. 0 Comments Weigh InCorrections? Personal Post Martinez’s limousine driver — Norman Russell Thellmann, 64 — was charged Monday with conspiracy to tamper with witnesses. Prosecutors allege he was ordered to deliver money to a hit man who was promised $100,000 for the two killings. Martinez did not enter a plea during his initial court appearance Monday on a charge of witness tampering. A federal magistrate judge ordered him held without bail. “I find it almost impossible to believe,” said David Demergian, his attorney. Martinez, an IRS agent from 1988 to 1992, faces a pretrial hearing March 19 on federal fraud charges and was free on bail until his arrest last week. An FBI agent’s affidavit says Martinez gave a former employee documents on four people about two weeks ago, including photos of one target from the wealthy suburb of Rancho Santa Fe and another target’s condominium in the upscale La Jolla area of San Diego. Martinez recommended the former employee use two different pistols for the killings and get a silencer, according to the affidavit. The former employee contacted the FBI, which recorded a meeting Thursday in which Martinez allegedly gave additional instructions like how to break into the La Jolla condominium. The targets were identified as 86-year-old Monique Siegel of La Jolla and Marianne Harmon of Rancho Santa Fe. The fraud complaint alleges that Martinez told customers to deposit their taxes into one of his bank accounts, promising to forward the money to state and federal authorities. He stated lower income on their tax returns without telling them, allowing him to pocket $11 million. The complaint identifies victims only by their initials. One “M.H.” had an income of $20.7 million in 2006 but Martinez filed a tax return for $2.1 million. One “M.S.” earned $200,046 in 2006 but Martinez’s return reported $32,900. Another customer who earned $12.2 million in 2005 reported income at $1.6 million, according to the complaint. The same customer earned $11 million in 2006, also reported as $1.6 million. Demergian, his attorney, said the fraud case was “certainly very defensible.” “He had a very dedicated loyal clientele,” Demergian said. “He was very successful.” Thellmann, who was arrested Friday night, told the FBI that Martinez sold him a limousine about three years ago and hired him as a chauffeur. He said Martinez told him to give $40,000 to a person who would call him with code. Thellmann denied he knew the money was to pay a hitman. FBI agents found $42,400 cash in a cereal box at his home.

Ponzi fraud: two men found guilty of involvement in £115m UK scam

Two men have been convicted of involvement in the UK's largest Ponzi fraud, which saw hundreds of people – among them the former cricketer Darren Gough and the actor Frances de la Tour – lose £115m. John Anderson, 46, and Kenneth Peacock, 43 were found guilty of unauthorised regulated activity at Southwark crown court in London on Monday, but were cleared of one count each of fraud. The jury is still deliberating over allegations that they deceived investors. The scheme's mastermind, Kautilya Pruthi, 41, of Wandsworth, London, has pleaded guilty to the fraud and is due to be sentenced later this week. Ponzi frauds – which take their name from the Italian conman Charles Ponzi, who was particularly fond of employing the scheme – use cash from new investors to pay returns to existing investors and depend on a constant stream of new investors to fund the payouts. The court heard that Gough and the actor and singer Jerome Flynn are each thought to have lost up to £1m in the fraud, which also duped De la Tour. Victims handed over their cash to Pruthi, who promised them safe investments with returns of up to 13%. Instead, he spent their money on entertaining women, paying his daughter's private school fees and chartering helicopters. He also bought a private jet and built a car collection that included three Bentleys, a Lamborghini, two Ferraris, two Mercedes, a Rolls Royce, a Jaguar and a Maserati. "Mr Pruthi is believed to be the UKs most successful Ponzi fraudster," said David Aaronberg QC, prosecuting. "He obtained some £38m from investors and caused contractual losses of over £115m." Aaronberg added: "He enjoyed the company of women and was generous in the payments he made to a number of female friends, for whom he bought cars as presents, in total giving them £373,149." Indian-born Pruthi came to the UK in 2004 having been deported to his homeland after serving a sentence for faking documents in the US. Jurors heard that on coming to the country, Pruthi was quickly able to pose as "a wealthy individual". After setting up his company, Business Consulting International, said Aaronberg, Pruthi accepted deposits and "orchestrated a large-scale and sophisticated collective investment scheme". He would send personally tailored emails claiming he could offer up to 13% returns on 12-month investments because the scheme was available to a limited clientele. But in reality, said the prosecutor, he was "robbing Peter to pay Paul". Pruthi, who was not registered with or authorised by the FSA, admitted four counts of obtaining money transfers by deception, one of participating in a fraudulent business, one of unauthorised regulated activity and one count of converting and removing criminal property. Peacock, of West Hampstead, north London, and Anderson, of Surrey, are alleged to have acted as "aggregators" who pooled funds from third parties and then passed them on to Pruthi, who had duped them into the fraud at the outset. Eventually the scheme collapsed as there were not enough new investors to bring in the money needed to keep the old investors happy. "The scale of this scheme was vast and the losses were immense; several investors lost their homes, others have been declared bankrupt," said Aaronberg. "The monies which Pruthi received were generally not invested anywhere, neither in the UK nor abroad." According to the prosecution, of the £38,631,792 Pruthi obtained, £28m was used to pay back other investors, while £10m was siphoned off for Pruthi's "lavish lifestyle".

Deadlocked Stanford Fraud Trial Jury Told to Keep Deliberating

 

The judge in R. Allen Stanford’s fraud trial ordered the jury to return to deliberations after the panel sent a note saying it couldn’t reach a unanimous verdict in its fourth day of reviewing the evidence. The eight men and four women on the jury told U.S. District Judge David Hittner in Houston yesterday they were “unable to reach a verdict on each of the 14 counts,” the judge said, reading their note to attorneys for both sides. Enlarge image R. Allen Stanford, accused of leading a $7 billion investment fraud scheme, gestures as he exits the Bob Casey Federal Courthouse in Houston, Texas. Photographer: F. Carter Smith/Bloomberg Hittner instructed jurors to “continue your deliberations in this case,” telling them the trial has been costly in terms of both time and money, that the lawyers were unlikely going to be able to put on a better trial and that another jury was unlikely to be more conscientious. “It is your duty to agree upon a verdict if you can do so, without surrendering your conscientious opinion,’” Hittner told them. Stanford, 61, is accused of leading a $7 billion international fraud scheme involving the sale of certificates of deposit issued by his Antigua-based bank. He faces as long as 20 years in prison if found guilty of the most severe charges, mail fraud and wire fraud. The financier maintains he is not guilty. After the jury returned to deliberations, lead prosecutor Gregg Costa told the judge the jury’s note could be construed as meaning it couldn’t agree on any one of the 14 counts against Stanford or upon all of the counts. ‘We’ll See’ While acknowledging the possibility of having to accept a partial verdict, Hitter said, “We’ll see what comes out next.” When Hittner instructed the jurors to “take all the time you may feel necessary” to reach a verdict, one of the jurors grimaced. The jury left for the day yesterday after being told to resume deliberations. Jury selection in the case began Jan. 23 and the panel heard five weeks of evidence. The government presented testimony at from investors who bought the allegedly fraudulent CDs as well as from the executives who helped sell them. The witnesses included government officials and former Stanford Group Co. Chief Financial Officer James M. Davis, who pleaded guilty to fraud-related charges in 2009 and testified for five days against Stanford. Davis, whose relationship with Stanford traces back to when they were Baylor University roommates, told the jury he knew the boss was committing fraud and didn’t stop it. The defense presented former Stanford employees who said they saw no evidence of fraud at the company. Some offered testimony in support of the defense’s contention that Stanford was an absentee visionary who left the details of running his operation to Davis. Stanford didn’t testify during the trial.

Mandela faces fraud charges

The liquidators of Aurora Empowerment Systems, which is accused of asset-stripping bankrupt Pamodzi Gold, will lay charges of fraud this week against Nelson Mandela’s grandson Zondwa, and Ahmed Amod, an attorney for the company. The liquidators are also said to be planning to lay charges this week against Aurora chairman Khulubuse Zuma and possibly other directors under section 424 of the Companies Act, under which directors can be held personally liable for company debts. The charges follow a threat by the liquidators to lay charges of perjury against Thulani Ngubane, a director of Aurora, after he gave evidence at an inquiry.

Spanish tax authorities are cracking down on tax offenders

Hacienda has announced it will be keeping a close eye on fiscal engineering from e-commerce firms trading on the Internet. The Agencia Tributaría will also be keeping a close watch on sportsmen and women and artists. A new anti-fraud plan also includes alerts for contraband tobacco and the Secretary of State for Hacienda, Miguel Ferra, says they expect to recover 8.171 billion more from the measures. Hacienda has been told it cannot take on staff but it can substitute one in ten of the retirees. The number of inspections on elite sportsmen will go up by 14%, there will be greater control on house rental and undeclared businesses, using evidence of electrical consumption. Hacienda is also looking more closely at people who declare themselves insolvent when they are not, when they hide their assets. The use of preventative embargoes is to be extended, and offenders who fail to pay their debts to the fiscal face prison. Hacienda has established also new agreements with fiscal authorities in Switzerland, Andorra, Pánama, Bahamas and the Dutch Antilles.

How HMRC finally caught Nasir Khan

 

Nasir Khan had a successful accessories business, a jet-set lifestyle and reputation as a pillar of the community. But all that vanished in December when he was jailed for his part in a £250m VAT fraud. Jasper Jackson discovers how a 10-year investigation by HMRC led to his downfall At the start of 2001, Nasir Khan was the owner and managing director of a moderately successful accessories business called The Accessory People, which had an annual turnover of £13 million. By the end of that year, however, he was knee-deep in a £250 million VAT fraud involving the import and export of mobile phones. Khan’s journey from businessman to criminal finally ended at Southwark Crown Court fi ve days before Christmas last year, when he became the 15th member of a pan European criminal gang to be jailed for the fraud. Khan got nine years behind bars for money laundering in the last of six trials that resulted in the 14 other defendants being convicted of defrauding the public purse. The gang was sentenced to a total of almost 100 years in prison. The convictions were the culmination of a 10-year investigation by HM Revenue and Customs (HMRC) into a complex web of criminal activity linked to Khan and his associates that encompassed more than 200 companies in the UK, Spain and Holland and bank accounts holding millions of pounds tucked away in Hong Kong, Dubai and Pakistan. Among those convicted for their role in the scam were a drug smuggler, a former used car salesman and a fish and chip shop owner. According to HMRC, Khan and his 14 associates launched their fraudulent operation in June 2001 as the market for mobile accessories went into decline. The fraudsters embarked on a complex version of ‘missing trader’ VAT fraud known as ‘carousel fraud’ because it involves goods passing into and out of a country through a string of companies. The fraudsters would set up a UK company to import goods from the EU, on which it didn’t pay VAT. It would then sell them on to another company in the UK, charging VAT on the sale that should have been paid to HMRC. The second company would in turn sell on the goods to an intermediary controlled by the gang, in order to put distance between the original company and the end of the chain. This process would be repeated a number of times through so-called ‘buffer’ companies in order to disguise the fraud. Eventually, a UK-based firm in the chain would sell the goods to another EU firm outside the UK without charging VAT. Because the fi rm exporting the handsets had paid VAT when buying from firms further back in the chain, it was entitled to collect a refund from HMRC. However, the UK company at the very beginning of the chain would disappear without ever paying the VAT it had made on the first sale and other firms along the chain would also, covering the tracks of the fraudsters in the process. In some cases, the goods themselves would only notionally have the value that was being paid for them, with freight companies brought into the fold to provide seemingly legitimate records of transportation. The process would carry on indefinitely, with the goods that left the country later being reintroduced to the UK. Khan’s firm, The Accessory People (TAP), was one of the buffer firms involved in the scam, and he made huge sums of money helping to launder the proceeds of the carousel fraud. In the space of just two years, between 2001 and 2003, TAP’s turnover rose from £13 million to £219 million. Khan became hugely rich as a result, buying luxury apartments in the Putney Wharf and Chelsea Harbour developments on the Thames in London, as well as properties in Spain and Gibraltar. He also bought a luxury boat. Khan even donated £34,000 to Crimestoppers under the name Nasa Khan. Khan has now had £15 million of his assets frozen as HMRC tries to recoup some of the money lost to the fraud.

Mexico Arrests Boss of La Mano con Ojos Gang

 

Mexican authorities have arrested the La Mano con Ojos (The Hand with Eyes) drug gang’s reputed leader, who confessed to ordering the murders of 10 people. The arrest of Marco Antonio Hernandez Garcia was made near the Villa Olimpica neighborhood of southern Mexico City, the capital’s district attorney, Jesus Rodriguez, told reporters. Hernandez Garcia, alias “El Comandante,” who was detained Thursday along with bodyguard Gustavo Moreno Diaz, confessed to ordering the killings of 10 people “whose bodies were mutilated – some incinerated – and abandoned in different parts of the capital,” Rodriguez said. The victims, all decapitated and found with threatening messages alongside them, were suspected rivals involved in the local drug trade, the DA said. The suspect told authorities that he took over leadership of La Mano con Ojos after the arrest last August of Oscar Oswaldo Garcia Montoya, alias “El Compayito,” who confessed to participating directly in 300 homicides and ordering 600 others. La Mano con Ojos operates mainly in the central state of Mexico, which surrounds Mexico City, and is known for using extreme violence against its victims, most of whom have been decapitated. The Mexico City DA’s office will ask a judge to order Hernandez Garcia and Moreno Diaz held in preventive detention for their alleged responsibility in the multiple homicides. Clashes pitting drug cartels against each other and the security forces have claimed more than 50,000 lives in Mexico – according to media tallies – since December 2006, when President Felipe Calderon took office and militarized the struggle against the drug gangs.

Free at last: Longest-serving farang at 'Bangkok Hilton' is checking out

 

Like most prisons, Bang Kwang Central reeks of decay. But the fetidness of the "Bangkok Hilton", as it is known by inmates, is more indicative of the soul of the place than the damp edifices that contain the men. Built in the 1930s to hold 3500, the maximum security prison in Thailand's biggest city now houses about 8000 inmates, who have been sentenced to more than 25 years each, as well as hundreds awaiting the outcome of their pending appeals, or execution. Leg irons provide a means of status identification: new inmates wear theirs for the first three months, whereas those on death row have their shackles permanently welded on. Fates are determined by will or whim -- a royal birthday here, a public holiday there. The stroke of a monarch's pen determines who shall live, die or be released. And in the interim both the panacea for and consequence of not knowing is insanity: the inmate's survival guide. At the time of his arrest for heroin trafficking, South African Alexander (Shani) Krebs was 34 years old. Initially condemned to death, his sentence was commuted to 100 then 40 years. He has not spent a nano-second in a democratic South Africa, having been arrested a day before the elections in 1994. Over the years he earned the tragic reputation of being the longest-serving farang, or foreigner, in Bang Kwang. But on December 5 Thailand's monarch, King Bhumibol Adulyadej, benevolently issued an amnesty of sorts, courtesy of his birthday, to all farangs convicted of drug offences. In Thailand the seventh cycle, or 84th birthday, is a significant milestone for the monarchy and special celebrations are organised for the entire year. For the foreign inmates it means that one-sixth of their sentences has been reduced. For prisoners incarcerated since 1994, like Krebs, it signals an early release. Although most of the 11 convicted South African drug mules in Thailand have been incarcerated for more than 15 years, it is unclear who else will be released with Krebs. And South Africa's department of international relations and co-operation is not providing answers. What is certain, according to his family, is that Krebs will be released on April 22 -- eerily, almost 18 years to the day of his arrest. On Facebook, where a 751-strong support group was established in 2008, Krebs's friends have been relentlessly posting messages of support and daily marking the countdown. "Shani, only 56 days to go ... every day gets brighter. x," writes Sue. "Support our friend in the last steps to victory," says Erwin. There are psychedelic artworks and photo-shopped collages of Krebs on an aeroplane, Krebs giving the thumbs-up, Krebs reunited with his family in Johannesburg. "We wanted Shani to see how much he has been missed and how his loved ones are literally counting the days till he returns," said his sister, Joan Sacks. Since 1994 she has campaigned tirelessly for his release and kept him updated through letters and the occasional five-minute phone calls permitted by the Bang Kwang authorities. Sacks has also set up a website through which prints of his paintings -- Krebs became an accomplished artist during his incarceration -- can be bought. Arrested in Thailand Meeting him in 2009, through a double layer of bars, wire and glass, was akin to staring at the portrait of Dorian Gray. His curly hair had remained youthfully long, his body ripped and his face -- from a distance, at least -- seemed protected from the ravages of age that cleave creases, folds and furrows into the rest of us. He was 49 years old. Krebs wore a crisp white T-shirt and immaculately pressed blue trousers. He had been up most of the night, he said, copiously preparing notes for our first interview. He was charming and cheerful. He refused to divulge details of his incarceration -- the agonising months in solitary confinement, the daily drudge of prison life, the creeping despair that all he might ever do in his life was time. He made no mention of the sweat-soaked bodies crammed into cells measuring six metres by four metres, forced to sleep spoon-like, or the pungency of the open sewerage system, or the cesspool of disease that is Bang Kwang.

INDONESIAN authorities claim an Australian man arrested this week allegedly carrying 1.1kg of hashish inside his body was couriering for an international drug network.

 

INDONESIAN authorities claim an Australian man arrested this week allegedly carrying 1.1kg of hashish inside his body was couriering for an international drug network. Because the amount exceeds 1kg, Edward Norman Myatt, 54, could face the death penalty if convicted of importing the drug, said I Made Wijaya, chief of Customs at Bali's Ngurah Rai international airport. "We believe he is a courier," Mr Wijaya yesterday told a press conference at which the Ballarat-born suspect was exhibited along with the drugs. "He is covering up information on the network in Indonesia." Speaking later in Denpasar, Gories Mere, chief of the national counter-narcotics agency BNN, said international drug syndicates were supplying illegal drugs into Bali. The trade had been in methamphetamines, Mr Gories said, but now the type of drugs being trafficked was changing. Mr Myatt was taken into custody at the airport on Monday afternoon after arriving from New Delhi via Bangkok. Mr Myatt was under surveillance by 40 officers when the Thai Airways flight landed because his movements had already attracted attention, Mr Wijaya said. Customs officers searched his baggage and clothing at the airport without finding any evidence of drugs, but remained suspicious. Mr Myatt was taken from the airport for a CT scan at a Kuta medical centre, but momentarily escaped the car when stopped in traffic and dived into a swamp near the roadway, Mr Wijaya said. The suspect was quickly caught and the scan later showed "suspicious objects" in his stomach. Mr Wijaya said 71 capsules containing hashish and one with crystal methamphetamines were recovered from Myatt's body over the following four days. The total weight, including packaging, was 1.11kg. The estimated street value of the hashish was Rp661.8 million (about $67,750). Under Section 113 of the Narcotics Law, Mr Wijaya said, "the suspect faces maximum penalty of death" or a prison term between five and 20 years. Mr Myatt, who was carrying Australian and British passports, had an April 4 return ticket to New Delhi. He had visited Bali five times previously. A Customs source said later that Mr Myatt was thought to have been working in Britain recently, but he had changed details of his story several times during questioning. Eleven of the 12 Australians now imprisoned at Bali's Kerobokan jail are serving lengthy terms for drug trafficking. They include Gold Coast woman Schapelle Corby and the Bali Nine heroin smuggling convicts. Two of the Bali Nine, Andrew Chan and Myuran Sukumaran, have been sentenced to death and their last resort is an appeal for presidential clemency to Susilo Bambang Yudhoyono. Sydney man Michael Sacatides was arrested at Ngurah Rai on October 1, 2010, with 1.7kg of methamphetamines concealed in his luggage. Sacatides was last year sentenced to 18 years' jail.