Welcome to the September edition of Mishcon's Culture vs Corruption Diary. Its aim is to provide businesses and their advisors with a snapshot of what has been happening in the world of corruption in the last month...
Jockey and trainer charged with breaking rules
The British Horseracing Authority has charged Scottish Grand National winner Richie McGrath and former trainer Kate Walton with breaching the rules of racing in a corruption case that involves nearly 60 races between 2009-2012. Mr McGrath and Ms Walton are accused alongside 5 others with handing out insider information for betting purposes. Mr McGrath is also charged with failing to ride a horse "on its merits" so as to deliberately lose a race.
Daily Telegraph, 18 September 2014
Fish fraud discovered
Which? has found that one in six pieces of fish in fish and chip shops has been fraudulently replaced by a cheaper fish. Cod was commonly replaced with haddock, and haddock with whiting.
The Guardian, 13 September 2014
Delroy Facey, a former Bolton player, has been charged with conspiracy to commit bribery by the National Crime Agency. He is accused of attempting to influence the outcome of a match so others could profit through betting on the result.
The Guardian, 2 September 2014
Matthew Martoma given nine-year sentence
Former SAC Capital portfolio manager Matthew Martoma has been sentenced to nine years in prison for insider trading and ordered to pay $9.3m. Mr Mortoma has been convicted of two counts of securities fraud and one of conspiracy relating to confidential information about a drugs trial. It is one of the longest sentences awarded in the US for insider trading.
Financial Times, 9 September 2014
FIFA financial watchdog member temporarily removed
Canover Watson, a vice-president of FIFA's financial watchdog, was arrested by Cayman Island police on suspicion of corruption and money-laundering. He has been temporarily removed from his role pending the investigation; FIFA claim this is purely a routine procedure.
16 September 2014
Jewish author faces fraud over property restitution claim
Stephan Templ, the Jewish author of a book on Nazi thefts from Austrian Jews, is appealing a 2013 conviction for a fraudulent 2005 claim for restitution regarding his mother's part-ownership of a private sanatorium confiscated by the Nazis. The 2013 indictment claims Mr Templ omitted to name his estranged aunt in his mother's restitution claim, thereby attempting to gain unlawful enrichment. His lawyers are appealing to the Austrian Procurator General on the basis that the Austrian state, rather than the disinherited aunt, is claiming to be the injured party in Mr Templ's fraud.
The Independent, 8 September 2014
Head of India's Central Bureau of Investigation accused of corruption
Ranjit Sinha has been accused of malpractice and corruption by two Indian non-governmental organisations, who have asked the Supreme Court to launch an enquiry. Amongst other offences, Mr Sinha is accused of influencing investigations in 2G spectrum licence auctions, and the allocation of coal assets to mining companies. Lawyers representing the NGOs claim that Mr Sinha met with individuals involved in these investigations. Though no charges have yet been brought, the Supreme Court has asked Mr Sinha to explain his position.
The Independent, 15 September 2014
Yahoo and Baker & McKenzie face Mexican corruption claim
Bakers and its client Yahoo have been accused of corrupting the Mexican legal system to ensure the reversal of a 2011 case which ordered Yahoo to pay $2.7bn in damages to Mexican companies Worldwide Directories and Ideas Interactive for failing to honour contracts. A case has begun in New York claiming that Yahoo and Bakers instructed a senior Mexican judge to fraudulently overturn on appeal the $2.7bn award, reducing it to $172,000 damages and awarding $3m to Yahoo in a counterclaim.
Legal Week, 15 September 2014
Soco accused of DRC bribery
Anti-corruption activists making a documentary for Global Witness claim that London-based oil company Soco International has been involved in corrupt practices during its studies into the feasibility of drilling for oil in Lake Edward in Virunga, a Unesco world heritage site. Local employees of Soco were reportedly filmed offering bribes to park officials and organising pro-drilling demonstrations. Soco state that Global Watch have so far failed to provide them with evidence.
The Independent, 4 September 2014