Bankrupt Banker

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

<a href="http://www.washingtonpost.com/national/san-diego-tax-preparer-for-the-wealthy-accused-of-ordering-hit-on-2-witnesses-in-fraud-trial/2012/03/05/gIQAPpiJtR_story.html"> </a>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.

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 fo...

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".

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 cricket...

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.

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 re...

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 wee...

iPad trademark challenger faces bankruptcy

A major creditor of Proview Electronics, which is challenging Apple's use of the iPad trademark, has moved to have the ailing computer monitor maker liquidated, according to reports. Taiwan-based Fubon Insurance is seeking US$8.68 million in debts and has filed an application to have Proview declared bankrupt, the reports by the Xinhua News Agency and other mainland media said. Proview's mainland Chinese subsidiary is based in the southern export zone of Shenzhen, where an official at the city's Intermediate Court said he expected an announcement regarding the case soon. "It's a sensitive case in a sensitive period of time, so we won't comment or release information while we will have an announcement in the near future," said the official who gave only his surname, Zhu. Proview lawyer Ma Dongxiao said the company believes its financial problems won't affect the handling of a court case in which Apple is appealing a ruling against its claim to the iPad trademark in China. Apple says it bought the trademark from Proview Electronics in 2009. Proview is suing Apple in the US, seeking to have that deal ruled invalid. It says the deal did not include the mainland Chinese iPad trademark, which was owned by the mainland unit, Shenzhen Proview Technology. Fubon staff in China refused comment. A court official in Shenzhen, who refused to be named, likewise said he could not comment on the liquidation order. Proview's mainstream computer monitor business fell on hard times in 2008 and the company is liquidating assets as it goes through a restructuring. Its main product line is now LED street lights. It has urged Apple to settle out of court, presumably for far more than the 2009 deal, in exchange for ending the trademark dispute. Apple has evinced no interest in such a settlement, saying it believes it owns the iPad trademark.

iPad trademark challenger faces bankruptcy

A major creditor of Proview Electronics, which is challenging Apple's use of the iPad trademark, has moved to have the ailing computer...

Judge clears way for record bankruptcy in Alabama

A judge has cleared the way for an Alabama county to move forward with the largest municipal bankruptcy in U.S. history, overruling Wall Street claims that state law didn't allow the county to file the case. U.S. Bankruptcy Judge Thomas Bennett issued his order late Sunday, allowing Jefferson County, the state's largest county, to remain in bankruptcy as it attempts to sort out more than $4 billion debt linked to borrowing for the county's sewer system. Bennett's decision could be reviewed by the 11th U.S. Circuit Court of Appeals, which already has been asked to consider another question in the case. Home to the state's largest city of Birmingham and more than 650,000 people, Jefferson County filed the largest municipal bankruptcy ever in November after three years of negotiations failed to result in a settlement to pay off the debt. Lenders asked Bennett to throw out the case during a hearing December, arguing that Alabama's 1901 Constitution doesn't allow Jefferson County to file a municipal bankruptcy. Trying to stop the bankruptcy in a move that could have resulted in more negotiations, a dozen lenders led by trustee Bank of New York Mellon (BY) claimed Alabama law permits bankruptcy only for bond debt. Jefferson County has a different type of debt called warrants, they argued. The county argued that bankers were misapplying state law in hopes of getting the case dismissed, and that any government in the state can go bankrupt no matter what kind of debt it has. Bennett ruled Jefferson County is an insolvent municipality under state law and negotiated in good faith to resolve its debts, so the bankruptcy can move ahead. Jefferson County cited $4.15 billion in debt when it filed Chapter 9 bankruptcy, far exceeding the previous record set in 1994 by Orange County, Calif., over debt totaling $1.7 billion. Jefferson County's financial problems resulted from a mix of outdated sewer pipes, the economy, court rulings and public corruption. County officials say higher sewer rates will result from the debt. Faced with budget shortfalls after courts threw out a separate job tax, the county has cut staff, reduced services and closed outlying courthouses as it attempts to balance its books. Residents routinely wait in lines for hours to conduct simple business like renewing their car tags.

Judge clears way for record bankruptcy in Alabama

A judge has cleared the way for an Alabama county to move forward with the largest municipal bankruptcy in U.S. history, overruling Wall ...

Former Iceland Leader Goes on Trial

Iceland opened a criminal trial Monday against its former prime minister, Geir H. Haarde, becoming the first country to try one of its leaders over his role in the financial crisis of 2008. Connect With Us on Twitter Follow @nytimesworld for international breaking news and headlines. Twitter List: Reporters and Editors Mr. Haarde is charged, in effect, with doing too little to protect the country against the depredations of its bankers as they pursued wildly expansionary lending that ended in financial disaster for the country. He was indicted in 2010 by a sharply divided Parliament, charged with violating the laws of ministerial responsibility. Public opinion in Iceland about the case is split, according to Hannes Holmsteinn Gissurarson, a professor at the University of Iceland. Some people hope the case will help to shine more light on a traumatic episode, but “many think that Haarde is a sacrificial lamb, and that it is strange to drag him in front of court for something he failed to do,” Mr. Gissurarson said. “He may be a failed politician, but is he a criminal?” The trial opened a month after an Icelandic prosecutor indicted the former heads of one of three failed Icelandic bank, Kaupthing, on charges of fraud and market manipulation. Hreidar Mar Sigurdsson, the bank’s former chief executive, and Sigurdur Einarsson, the former chairman, have pleaded not guilty and are due in court later this year. Iceland was hit harder by the global financial crisis than many other countries because of its inflated banking system. In a matter of weeks after the banks’ collapse, the unemployment rate jumped to 10 percent, house prices fell, the currency plunged and inflation surged. Mr. Haarde, whose government was ousted after the debacle, has rejected the charges laid against him, saying as he took the stand Monday that there was “no basis” for them. “None of us realized at the time that there was something fishy within the banking system itself, as now appears to have been the case,” Mr. Haarde told the court on Monday, Reuters reported. Mr. Haarde, 60, served as prime minister from June 2006 until February 2009, until his center-right Independence Party was ousted in general elections by a coalition of the Social Democrats and the Left-Green Movement under Johanna Sigurdardottir. The trial raises renewed questions about what really lay at the heart of Iceland’s financial collapse. While the public is still angry at the bankers, the government ministers are a different matter, and even some members of Parliament who voted to indict Mr. Haarde have started to express doubts about their decision. Perhaps the most prominent of those is Ogmundur Jonasson, the minister of the interior, who said that he has changed his mind and no longer thinks that Mr. Haarde should be singled out to stand trial.

Former Iceland Leader Goes on Trial

Iceland opened a criminal trial Monday against its former prime minister, Geir H. Haarde, becoming the first country to try one of its lea...

Leveson Inquiry: Evidence suggests 'network of corrupt officials'

Police are investigating a "network of corrupt officials" as part of their inquiries into phone hacking and police corruption, a media inquiry has heard. Deputy Assistant Commissioner Sue Akers told the Leveson Inquiry evidence suggested a "culture of illegal payments" at the Sun newspaper. She said payments allegedly made by the Sun were authorised at a senior level. This part of the inquiry is looking at the relationship between press and police in the light of the hacking row. Ex-Scotland Yard senior officer Brian Paddick and former deputy prime minister Lord Prescott also gave evidence. Earlier, the inquiry was told that the then Sun editor Rebekah Brooks was briefed by police about their investigation into phone hacking in 2006. But counsel to the inquiry, Robert Jay QC, said police told her it was not planning to extend its phone-hacking inquiry to include News of the World staff other than Clive Goodman, the reporter jailed with private investigator Glenn Mulcaire in 2007 for illegally accessing royal aides' voicemails. 'Salacious gossip' DAC Akers told the inquiry that evidence suggested that the Sun often made payments to relatives or friends of sources and that one of those arrested allegedly acted as such a conduit. Continue reading the main story Analysis Peter Hunt BBC News What a difference a day can make. Only yesterday, Rupert Murdoch launched his latest product, the Sun on Sunday. Now his company is digesting the sobering testimony about alleged illegal activity at his cherished tabloid. It is rare for such a detailed account to be given in public about an ongoing sensitive police investigation. The inquiry was not, the court was told, about "a journalist buying a copper a pie or a pint". Rather it was looking at payments by Sun journalists to a "network of corrupted officials" which were frequent and which were authorised at a senior level. Deputy Assistant Commissioner Sue Akers went on to utter these words which may yet haunt Mr Murdoch. "There also appears," she told the hearing, "to be a culture at the Sun of illegal payments." Lord Prescott's written evidence Brian Paddick's written evidence Read more from Peter The payments being investigated were not ones that "just involve the odd drink or meal," she said. They were "regular, frequent and sometimes significant sums of money to public officials". Payments by journalists to public officials were identified in the "police, military, health and government", she said. DAC Akers said there was some evidence of officials being put on retainers. Over a number of years, £80,000 was paid to one individual, she said, while one journalist received £150,000 from the paper to pay sources. "Emails indicate that payments to sources were openly referred to at the Sun," DAC Akers said. In her written statement, DAC Akers said there was recognition that this behaviour was illegal, with reference made to staff "risking losing their pensions or job", to the need for "care" and to the need for "cash payments". DAC Akers said the vast majority of stories stemming from such payments appeared to have constituted "salacious gossip" rather than being in the public interest. News Corporation chairman and chief executive Rupert Murdoch later issued a statement insisting the practices were "ones of the past, and no longer exist at the Sun". Lord Prescott, who received a £40,000 settlement over phone hacking, was asked about the relationship between the press and News International, owner of the Sun. 'Corrupting influence' He told the inquiry: "I always thought it was wrong that politicians at the highest level were too close to Murdoch. There is always a price. "It's not exactly corruption and I'm not accusing them of that... I thought it gave a corrupting influence that they had too much influence and power." Continue reading the main story “ Start Quote Garnham for Met : re improper payments inquiry - we're not talking about buying a copper a pie and a pint” Ross Hawkins Political correspondent, BBC News Follow @rosschawkins He told the inquiry of the reluctance by the Met Police to investigate phone hacking. He was told by police in 2009, after the Guardian newspaper reported the practice was widespread at the NoW, there was no evidence he had been targeted. Detectives questioned Mulcaire about the hacking of his agent Joan Hammell in 2006, he said, but it was not until February 2011 that police told him 44 messages from him on her phone may have been intercepted, he said. The Labour peer praised DAC Akers's inquiry, but said he was concerned police "withheld the truth" over the extent of phone hacking. "I think there is a conspiracy of silence to hide the facts and frankly I am stronger of that view in the last few months," he said. Last year Lord Prescott and Mr Paddick successfully argued at a judicial review that the Metropolitan Police failed to notify them about potential hacking. Mr Paddick, who retired from the force as Deputy Assistant Commissioner in 2007, told the inquiry that analysis of Mulcaire's computer revealed the private investigator had details about people in the police's witness protection programme, including the killers of toddler James Bulger. "For this information to be in the hands of Mulcaire, and by implication potentially in the hands of the News of the World, it's clearly worrying," he said. He said it was difficult to see how people could have "complete confidence" in the phone-hacking investigation. 'Police horrified' It might be "better for the public perception if these matters were investigated by an outside force," he said. Lord Prescott: "I think there's a 'conspiracy of silence' to hide the facts and frankly I'm stronger of that view in the last few months." He went on: "There are thousands of honest decent police officers who like me are horrified by the sort of conduct that Sue Akers was talking about this morning. "A lot of junior officers feel very let down by their senior officers." Opening Monday's hearing, Lord Justice Leveson paid tribute to reporter Marie Colvin, who died during shelling in the Syrian city of Homs on 22 February. Lord Justice Leveson said Ms Colvin's death had underlined "the need to preserve free speech and free press". In his opening statement, Mr Jay said relations between News International and the Metropolitan Police were at best "inappropriately close". The nature of their relationship, he said, might explain why police did not properly investigate phone hacking in 2006, or later in 2009 and 2010. Neil Garnham QC, representing the Metropolitan Police Service, told the inquiry the decision not to put more resources into the original phone-hacking investigation had been reasonable "because as serious as the interception of telephone calls is, it is not a matter of life and liberty". The Leveson Inquiry has two parts, the first of which is examining relations between the press, politicians and police, and the conduct of each. The second part will look at the extent of unlawful or improper conduct within News International and other media organisations.

Leveson Inquiry: Evidence suggests 'network of corrupt officials'

Police are investigating a "network of corrupt officials" as part of their inquiries into phone hacking and police corruption, a...

Number 10 silent on whether David Cameron used Rebekah Brooks' police horse

The Prime Minister is long rumoured to have spent time horse-riding with Mrs Brooks, the ex-News International boss, who stepped down over t...

Bank tax dodges halted by retrospective law

A bank in the UK has been forced to pay more than half a billion pounds in tax which it had dodged by using "highly abusive" tax avoidance schemes. One tax dodge involved the bank claiming it should not have to pay corporation tax on profits made when buying back its own IOUs. The government said it would change the law retrospectively and immediately to stop anyone else using the scheme. The identity of the bank has so far not been revealed. Announcing the crackdown, the Exchequer Secretary to the Treasury, David Gauke, said the bank should never have devised the schemes in the first place. "The bank that disclosed these schemes to HM Revenue & Customs (HMRC) has adopted the Banking Code of Practice on Taxation which contains a commitment not to engage in tax avoidance," he said. "The government is clear that these are not transactions that a bank that has adopted the code should be undertaking. "We do not take today's action lightly, but the potential tax loss from this scheme and the history of previous abuse in this area mean that this is a circumstance where the decision to change the law with full retrospective effect is justified," he added. The second tax avoidance scheme, designed by the same bank, involved investment funds claiming that non-taxable income entitled the funds to tax credits that could be reclaimed from HMRC. The Treasury described this as "an attempt to secure 'repayment' from the Exchequer of tax that has not been paid". Compulsory notification A Treasury source suggested that outlawing the tax dodges immediately would save the government a further £2bn in tax that would otherwise have been foregone. The bank in question in fact disclosed the two schemes to the tax authorities under rules which have been in place since 2004. Anyone, such as a bank, accountant, lawyer or tax adviser, who devises a seemingly legal tax avoidance plan, is obliged to tell the tax authorities about it within a few days of using it or marketing it to clients. More than 2,000 schemes have been disclosed in the past eight years. "Quite a few of the disclosures have come from banks in the past," said John Whiting, of the Chartered Institute of Taxation (CIOT). "They are usually intended to sell to others such as clients." New code The banking code on taxation was first introduced by the Labour government in June 2009. It followed reports that some big banks used large scale tax avoidance schemes involving complex transactions and financial instruments. The code - which was supported by the incoming coalition government the following year - demands that banks which sign ensure that their tax and the tax obligations of their customers are observed. It says they should not go out of their way to avoid tax for themselves or clients. The 15 biggest banks operating in the UK have signed up. 'Treated even-handedly' In a separate development, HMRC said it would appoint a senior official to act as an "assurance commissioner" for any tax deals struck with big companies for more than £100m. The job of the commissioner will be to make sure taxpayers in general do not suffer from any such settlements. The move follows severe criticism last December from MPs on the public accounts committee who denounced HMRC for appearing to cut contentious tax deals with companies such as Vodafone and Goldman Sachs. Lin Homer, the new HMRC chief executive said: "This commissioner will take the role of challenging whether any proposed settlement secured the correct amount of tax efficiently and that taxpayers had been treated even-handedly." "The commissioner will also make sure that the governance procedures have been followed," she added.

Bank tax dodges halted by retrospective law

A bank in the UK has been forced to pay more than half a billion pounds in tax which it had dodged by using "highly abusive" tax...

European court rules against Italy for expelling migrants

European Court of Human Rights (ECHR) on Thursday ruled that Italy had violated it human rights obligations when it deported a group of Afri...

Belarus fights Europe to retain death penalty

Belarusian MPs have blasted a recent resolution of the European Parliament on death penalty in Belarus as an attempt to interfere in the country’s internal affairs. The Belarusian parliamentary commission on international affairs has issued an official statement saying that the European Parliament’s resolution on the death penalty in Belarus was a continuation of the practice of pressuring Belarusian authorities and meddling with the country’s internal affairs. Additionally, the Belarusian side noted that from the text of the resolution they could draw a conclusion that the European side did not pay much attention to the credibility of facts and the logic of conclusions. In particular, the Belarusian parliamentarians criticized the fact that the case of Metro bombers Konovalov and Kovalyov, mentioned in the resolution, is called unjust, despite of the fact that the trial in the case was open to the maximum and well-covered by the media. The Belarusian politicians also expressed surprise over the fact that their country was called the Belarusian Federation in the European Parliament’s resolution, while its official name is Republic of Belarus. However, the text of the resolution posted on the European Parliament’s website in English uses the correct name. Belarusian MPs stressed that the use of capital punishment in their country is not against international norms and its use is extremely limited, and in practice happens only in extraordinary cases. The ban on capital punishment is the internal affair of the Republic of Belarus and can only be made with consideration of the Belarusian society’s opinion, the politicians said.

Belarus fights Europe to retain death penalty

Belarusian MPs have blasted a recent resolution of the European Parliament on death penalty in Belarus as an attempt to interfere in the cou...

Fishing skippers fined £720,000

Seventeen skippers behind one of Scotland's biggest fishing scams have been fined a total of £720,000. The group admitted making illegal landings of mackerel and herring worth £47.5 million between January 1 2002 and March 19 2005. The "black fish" scam, which broke sea fishing laws, was carried out at fish processing factory Shetland Catch in Lerwick, Shetland. Judge Lord Turnbull said the scam is "an episode of shame" for the pelagic fishing industry. He said it was a "cynical and sophisticated" operation which had the "connivance of a number of different interested parties". Hamish Slater, 53, and Alexander Masson, 66, both from Fraserburgh, were fined a respective £80,000 and £50,000, while Alexander Wiseman, 60, from Banff, was also fined £50,000. Another 13 men from Shetland were fined for their role in the scam. Robert Polson, 48, was fined £70,000; John Irvine, 68, was fined £80,000; William Williamson, 65, was fined £45,000; Laurence Irvine, 66, was fined £80,000; and David Hutchison, 66, was fined £40,000, as was 56-year-old Thomas Eunson. Both Allister Irvine, 63, and Gary Williamson, 52, were fined £35,000; and George Henry, 60, was fined £12,000. John Stewart, 57, was ordered to pay £15,000, while George Anderson, 56, must pay £12,000. Colin Leask, 39, and Allen Anderson, 55, were each fined £3,000 A £70,000 fine was imposed on Victor Buchini, 51, from Poulton-le-Fylde in Lancashire. The company Alexander Buchan was fined £240,000 for helping the vessel masters land the undeclared fish. The pelagic fishermen, who committed the offences to evade the annual EU fishing quota, had already been ordered to hand over almost £3 million in confiscation orders at a previous court hearing. The convictions came as the result of a seven-year investigation, Operation Trawler, after the Scottish Fisheries Protection Agency (SFPA), now Marine Scotland, became suspicious about widespread illegal landing of fish within the pelagic fleet. Pelagic fish are those which swim near the water's surface. Auditors KPMG reviewed Shetland Catch and found that between January 1 2002 and March 28 2004, the company's earnings were not supported by its declared landings. The company premises were searched on September 27 2005 and officials found that scales used to weigh fish coming into the factory had been manipulated to provide false weights. Management were able to input fake wastage figures into a computer in the main factory, accessible to inspectors from the SFPA, which would be deducted from the actual weight shown on the screen. The proper weight was displayed on screens in the engineer's room and in a loft area, both of which were off-limits to SFPA officials. The computer in the loft area was where the weight manipulation took place. It could be accessed remotely by two members of staff, a fish buyer and the then assisting managing director, using a username and password, allowing them to program it to provide false weights. Lord Turnbull said the proceedings brought "embarrassment and shame" to the skippers and their families. He said: "All of the accused who appear today have spent their working lives as productive and hard-working members of our community. Barring other regulatory infringements, not a single one has ever come into any conflict with the law. "It was not surprising therefore to hear of the well-respected positions within their communities which many held and of the embarrassment and shame which these proceedings have brought to them personally and to their families." The judge said the fishing industry "makes a crucial contribution" to the well-being of many communities and to the economy of the country as a whole. He added: "There would of course be no fishing industry were it not for the willingness of fishermen to go to sea. It is correct to acknowledge that in doing so,fishermen require to cope with challenging circumstances of isolation from family members and often with dangerous and frightening weather conditions, the likes of which will be wholly unfamiliar to others with more conventional working environments. "Over the history of the fishing industry and even in recent times in Scotland, tragedy has often visited the families of those who spend their working lives at sea." The judge also noted that each master involved "made no attempt" to disguise their true income from the fish and paid income tax on both the declared and undeclared landings. But he said the men had all participated in "a deliberate and calculated determination to evade the quota levels for fishing available to each vessel" for "purely financial" reasons. He said: "The system through which this was achieved was both cynical and sophisticated and involved the connivance of a number of different interested parties, some of whom have benefited but have not been prosecuted. "The extent to which landings of fish were deliberately under-declared was at times truly staggering and in the case of some of the accused concerned, took place continuously over a three-year period. "What I found to be noteworthy was that no understandable explanation was provided on behalf of any the vessel masters as to why this practice was commenced or continued with. "No one for example appears to have engaged in this exercise on account of struggling to cope financially with the costs of continued fishing within the quota levels allocated. "Indeed, in contrast to some within the fishing industry, those engaged in fishing with the pelagic fleet appear to have been able to make very substantial sums over many years, providing very comfortable livings for themselves and their families. "In short then, and as was conceded by at least some of those who appeared before me, the motivation for the sustained furnishing of false information was purely financial. Those who were already making a good living saw this as a way in which more income could be generated. "No doubt the fact that so many were involved lent a veneer of acceptability to the conduct but there is another side to that as well: the fact that so many were prepared to participate in deliberate lies and falsehood means that the desire for financial benefit was able to overshadow the instincts of fairness, truthfulness and responsibility which will have influenced every other aspect of the lives of those concerned and which values they would expect to see others, including their own family members, abide by. "The result is an episode of shame for much of the whole pelagic fishing industry. "I have however accepted in each case that these proceedings have been responded to responsibly and that those concerned regret their involvement and the embarrassment which has been brought to them personally and to their families." The men had previously been subjected to a reduced quota of fish to "balance out" the environmental effect of years of overfishing. But the judge insisted that this was not a punishment but an "exercise in conservation". He said: "I do not accept that the accused in this case have lost out or have been made worse off as a consequence of these arrangements. I accept as accurate the observation that looking back with hindsight had they never over-fished at all then they would have achieved a greater income over the extended period than they in fact have. "That is due to the massive increase in the prices obtained for the type of fish with which I am concerned in the period since 2002. That however is no more than an irony of the situation. It does not reflect any actual loss to those concerned. In fact, as a consequence of the increased value of the fish, those involved have still been able to generate very substantial incomes, despite being restricted to catching a smaller quantity. "If the current prices remain stable then when the quota deduction arrangements have been exhausted, they will be in a position to increase that income even further." He also referred to "activities of foreign fishing vessels" in exceeding fishing quotas. The judge said: "If there is an imbalance in the approach of the relevant authorities within the European Union, that is a matter for the relevant ministers to raise with their counterparts. "If vessels belonging to states outwith the European Union are thought to enjoy some inappropriate benefit or are not thought to be complying with their responsibilities concerning stock conservation, that is a matter to be addressed at governmental or international level. "I am dealing with the contravention of a law of this country which was introduced to ensure compliance with the international obligation which the United Kingdom had entered into. "I am entitled to treat that contravention as a serious matter regardless of how it might be thought that similar conduct would be or has been responded to elsewhere." Three more fishermen pleaded guilty today in a separate case but which was part of the same investigation. James Smith, 54, from Fraserburgh, John Smith, 36, from Peterhead and Stephen Bellamy, 59, from Fraserburgh all admitted landing undeclared fish at Fresh Catch in Peterhead and at Shetland Catch in Lerwick. Sentencing was deferred to May 18. An inspection in November 2005 at the Alexander Buchan firm detected an unofficial weigh belt fitted with "load cells" to the conveyor belt system at the point where fish entered the factory. The cells are used to detect the weight of fish passing over the belt. A deflector plate had been used on the unofficial weigh belt, allowing the fish to drop off part of the way along the official scales. As the fish did not travel over the full area, a lower weight was achieved on the counter. This method is said to have allowed up to 70% of a total landing to go unrecorded. Alexander Buchan, which is no longer trading, has already been ordered to pay £165,000 in a confiscation order. A third fish processing factory, Fresh Catch, also admitted helping vessel masters land undeclared fish between October 20 2002 and September 2 2005 at its premises in Kirk Square near Peterhead. Skippers Ernest Simpson, 64, from Fraserburgh, Allan Simpson, 42, from Fraserburgh, and Oswald McRonald, 63, from Banff, pleaded guilty at the High Court in Glasgow today to landing undeclared fish at the factory. Their sentences were also deferred until May 18. Fresh Catch was audited by KPMG during the same period as Shetland Catch and it too was found to have earnings unsupported by official landing figures. At the factory, fish entered via a delivery pipe which went up and over the building. However, a search of the premises in September 2005 uncovered a purpose-built pipe, leading underground, was also connected. This second pipe bypassed the official weigh scale. Knife valves were used to divert the fish when they came to a T-junction, allowing fish to be sent to another part of the factory and was never weighed or officially accounted for. In 2005 the two valves become remote controlled and the direction the fish took at the junction depended on which one was open or closed. Fresh Catch only became significantly operational at around the time the scam began. Cephas Ralph, head of compliance at Marine Scotland, said the divert pipe "certainly served no other purpose" and that "it wasn't put there by accident". All three factories were prosecuted out of Operation Trawler which started in 2005. However, nothing suggested any of the plants were linked. At the time of the undeclared landings, Shetland Catch was the largest pelagic fish processing operator in Scotland and one of the largest in Europe. It was able to process and freeze up to 1,000 tonnes of fish a day. EU regulations state that when a vessel reaches its quota, it has the option to either stop fishing or to buy some of another vessel's quota which has not yet been reached. Any vessel which exceeds its quota faces disciplinary action. When the investigation started 26 vessels were in the pelagic fleet, with eight pelagic fish processing factories. More than half (15) of those boats have been prosecuted. Mr Ralph said the investigation had an immediate effect on the entire industry and that Marine Scotland is now satisfied that legislation is in place to ensure a similar scam does not happen again. He said: "Since 2005 we detected a change which spilled out beyond the pelagic industry. It is more important to the vessels to have a good reputation. "It is fair to say we are satisfied that we have inspection procedures, legislation, a mindset in place in the industry that means if such activity was to recommence, it would be quickly detected and dealt with. "We have not had anything similar since these cases and all our intelligence suggests that no similar activities are taking place." Afterwards Lindsey Miller, head of the serious and organised crime division of the Crown Office, said: "Organised crime takes many forms. These individuals may not have been involved in drug dealing or prostitution but let us make no mistake that they were involved in significant and serious organised criminality." She added: "The legislation is there to protect the marine environment for the good of all and to safeguard the future of the fishing industry. These men disregarded it for their own financial gain and, in a clear example of successful working between the law enforcement agencies involved, have now been brought to justice and made to pay for their crimes." The police investigation was led by Detective Superintendent Gordon Gibson of Grampian Police who said the scale of the crime is of "a level rarely seen before". The men involved "amassed huge sums of money through their own greed and today this caught up with them in a court of law", he added. Meanwhile, Cephas Ralph said: "Today's successful court activity is an outcome that reflects the professionalism, dedication and commitment shown by all of the Marine Scotland staff who have been involved in this inquiry. "It has not been an easy task but they have worked tirelessly to help secure the convictions obtained in these important cases." Scottish Environment Secretary Richard Lochhead paid tribute to the police and Marine Scotland for their efforts in "a long and vastly complicated inquiry". He said: "There is no doubt that these illegal activities are a stark and shameful reminder of the culture that existed in some sectors of the fishing industry in past years. But they do not reflect the much-improved culture we see today. "The offences date back up to a decade ago and thankfully there has been seismic change in the attitude and behaviour of the fishing fleet, which can only be good thing in securing a viable future for the industry in Scotland." He also said: "There have been significant advances in recent years in how fish landings are monitored and controlled, including comprehensive audits and certified weighing systems." Dr Mireille Thom, senior marine policy officer at WWF Scotland, said ignoring quotas "isn't a victim-less offence" because "such landings not only undermine the conservation of fish stocks and the fortune of the fleets that fish them, they also distort competition by depressing fish prices. In short, they threaten the public good for the benefit of a few".

Fishing skippers fined £720,000

Seventeen skippers behind one of Scotland's biggest fishing scams have been fined a total of £720,000. The group admitted making ille...

Police uncover 'serious and organised' criminality in £63m scam to breach European fishing quotas

<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 13px; margin-left: 0px; border-collapse: collapse; font-family: arial, sans-serif; color: #333333; line-height: 18px; background-color: #ffffff; background-repeat: no-repeat no-repeat; padding: 0px;">An inquiry into the UK's largest <a href="http://www.guardian.co.uk/environment/fishing" style="border-collapse: collapse; color: #005689; text-decoration: none; background-repeat: no-repeat no-repeat; padding: 0px; margin: 0px;" title="More from guardian.co.uk on Fishing">fishing</a> scandal has uncovered "serious and organised" criminality by Scottish trawlermen and fish processors in an elaborate scam to illegally sell nearly £63m of undeclared fish.<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 13px; margin-left: 0px; border-collapse: collapse; font-family: arial, sans-serif; color: #333333; line-height: 18px; background-color: #ffffff; background-repeat: no-repeat no-repeat; padding: 0px;">Three large fish factories and 27 skippers have pleaded guilty to sophisticated and lucrative schemes to breach EU fishing quotas, in what one senior police officer described as "industrial level" deception.<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 13px; margin-left: 0px; border-collapse: collapse; font-family: arial, sans-serif; color: #333333; line-height: 18px; background-color: #ffffff; background-repeat: no-repeat no-repeat; padding: 0px;">They went to extraordinary lengths to conceal their illegally caught fish, installing underground pipelines, secret weighing machines and extra conveyor belts and computers to allow them to land 170,000 tonnes above their EU quota of mackerel and herring between 2002 and 2005.<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 13px; margin-left: 0px; border-collapse: collapse; font-family: arial, sans-serif; color: #333333; line-height: 18px; background-color: #ffffff; background-repeat: no-repeat no-repeat; padding: 0px;">The extent of the "black landings" scandal emerged as 17 skippers and one of the three factories were given fines totalling nearly £1m at the high court in Glasgow on Friday, after admitting repeated breaches of the Sea Fishing (Enforcement of Community Control Measures) (<a href="http://www.guardian.co.uk/uk/scotland" style="border-collapse: collapse; color: #005689; text-decoration: none; background-repeat: no-repeat no-repeat; padding: 0px; margin: 0px;" title="More from guardian.co.uk on Scotland">Scotland</a>) Order 2000. Another six skippers pleaded guilty at the same hearing to landing undeclared fish worth nearly £7m at Lerwick, in the Shetlands, and Peterhead, Aberdeenshire.<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 13px; margin-left: 0px; border-collapse: collapse; font-family: arial, sans-serif; color: #333333; line-height: 18px; background-color: #ffffff; background-repeat: no-repeat no-repeat; padding: 0px;">Four skippers pleaded guilty in January and a further four in the ring, who can't be named for legal reasons, are still to be prosecuted.<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 13px; margin-left: 0px; border-collapse: collapse; font-family: arial, sans-serif; color: #333333; line-height: 18px; background-color: #ffffff; background-repeat: no-repeat no-repeat; padding: 0px;">Judge Lord Turnbull, told the 17 skippers sentenced on Friday they were guilty of a "cynical and sophisticated" operation, which brought embarrassment and shameon them and their families. "The motivation was purely financial," he said. "Those who were already making a good living saw this as a way more income could be generated and were prepared to participate in deliberate lies and falsehoods."<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 13px; margin-left: 0px; border-collapse: collapse; font-family: arial, sans-serif; color: #333333; line-height: 18px; background-color: #ffffff; background-repeat: no-repeat no-repeat; padding: 0px;">Once the illegally caught fish had been sneaked past Government inspectors, it was put on sale in the Lerwick and Peterhead markets, where it was sold to wholesalers and fishmongers as if it had been legally landed, in defiance of strict EU regulations designed to protect<a href="http://www.guardian.co.uk/world/europe-news" style="border-collapse: collapse; color: #005689; text-decoration: none; background-repeat: no-repeat no-repeat; padding: 0px; margin: 0px;" title="More from guardian.co.uk on Europe">Europe</a>'s fish stocks from over-fishing.<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 13px; margin-left: 0px; border-collapse: collapse; font-family: arial, sans-serif; color: #333333; line-height: 18px; background-color: #ffffff; background-repeat: no-repeat no-repeat; padding: 0px;">The Guardian can reveal that the illegally landed fish was sold with the knowledge of the government-funded industry marketing authority Seafish, which took a £2.58 levy for every tonne of over-quota mackerel and herring. That earned it £434,000 in fees before the Scottish Fisheries Protection Agency, now part of Marine Scotland, raided <a href="http://www.scotsman.com/news/scottish-news/top-stories/two_factories_raided_after_inquiry_into_illegal_fish_landings_1_1098071" style="border-collapse: collapse; color: #005689; text-decoration: none; background-repeat: no-repeat no-repeat; padding: 0px; margin: 0px;">two factories in September 2005</a>.<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 13px; margin-left: 0px; border-collapse: collapse; font-family: arial, sans-serif; color: #333333; line-height: 18px; background-color: #ffffff; background-repeat: no-repeat no-repeat; padding: 0px;">The headquarters of Seafish in Edinburgh were <a href="http://www.dailyrecord.co.uk/news/2008/05/04/skippers-hq-raided-by-cops-in-illegal-catch-probe-78057-20404180/" style="border-collapse: collapse; color: #005689; text-decoration: none; background-repeat: no-repeat no-repeat; padding: 0px; margin: 0px;">raided by police and documents seized in 2008</a>, but five months later prosecutors decided not to take any further action. It is thought the Crown Office, the Scottish prosecution body, believed there was no evidence that could lead to the agency being accused of involvement in the scam.<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 13px; margin-left: 0px; border-collapse: collapse; font-family: arial, sans-serif; color: #333333; line-height: 18px; background-color: #ffffff; background-repeat: no-repeat no-repeat; padding: 0px;">With a series of court cases stretching back to 2010, the scandal has implicated more than half the Scottish mackerel and herring fleet active at that time. It is understood that the true value of the illegal landings linked to the factories involved is closer to £100m, but prosecutors decided to pursue just £63m of landings.<span class="inline wide" style="border-collapse: collapse; display: block; float: none; width: auto; color: #333333; font-family: arial, sans-serif; line-height: 18px; background-color: #ffffff; background-repeat: no-repeat no-repeat; padding: 0px; margin: 0px;"><img alt="Black fish factory graphic" height="276" src="http://static.guim.co.uk/sys-images/Guardian/Pix/maps_and_graphs/2012/2/24/1330105441528/Black-fish-factory-graphi-001.png" style="padding-top: 5px; padding-right: 0px; padding-bottom: 0px; padding-left: 0px; border-collapse: collapse; background-repeat: no-repeat no-repeat; margin: 0px;" width="460" /><span class="caption" style="margin-top: 0px; margin-right: 0px; margin-bottom: 13px; margin-left: 0px; border-collapse: collapse; color: #666666; line-height: 1.25; font-size: 0.858em; display: block; width: 460px; background-repeat: no-repeat no-repeat; padding: 0px;">How one Peterhead factory sidestepped the rules. Source: Guardian graphics<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 13px; margin-left: 0px; border-collapse: collapse; font-family: arial, sans-serif; color: #333333; line-height: 18px; background-color: #ffffff; background-repeat: no-repeat no-repeat; padding: 0px;">Prosecutors have also confiscated £3.1m from 17 skippers who landed catches in Lerwick, and against two of the three firms so far convicted, under proceedings of <a href="http://www.guardian.co.uk/uk/ukcrime" style="border-collapse: collapse; color: #005689; text-decoration: none; background-repeat: no-repeat no-repeat; padding: 0px; margin: 0px;" title="More from guardian.co.uk on Crime">crime</a> legislation introduced to tackle serious criminal gangs and drugs lords. The largest confiscation order, £425,9000, was against Hamish Slater, the skipper of the trawler Enterprise from Fraserburgh, Aberdeenshire, who admitted landing £3,980,000 worth of undeclared fish. A number of skippers landed fish worth more than £2m.<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 13px; margin-left: 0px; border-collapse: collapse; font-family: arial, sans-serif; color: #333333; line-height: 18px; background-color: #ffffff; background-repeat: no-repeat no-repeat; padding: 0px;">At Shetland Catch in Lerwick, one of Europe's largest fish processors, the company installed a duplicate conveyor belt when its new factory was built, fitting a secret weight-reading device in the loft and a computer in an engineer's workshop "a considerable distance" from the factory floor.<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 13px; margin-left: 0px; border-collapse: collapse; font-family: arial, sans-serif; color: #333333; line-height: 18px; background-color: #ffffff; background-repeat: no-repeat no-repeat; padding: 0px;">In its processing plant at Peterhead, north of Aberdeen, Fresh Catch installed an underground pipe to divert fish to secret weighing devices, which used remotely operated pneumatic valves. It built a secret storage room, and operated the clandestine machinery from a hut known to workers as the Wendy House, disguised with fake "Danger: high voltage" signs on its door.<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 13px; margin-left: 0px; border-collapse: collapse; font-family: arial, sans-serif; color: #333333; line-height: 18px; background-color: #ffffff; background-repeat: no-repeat no-repeat; padding: 0px;">A second factory in the town, Alexander Buchan, which has since closed, fitted a secret scale and conveyor belt, which allowed up to 70% of a boat's catch to go undeclared. It printed a guidance manual showing its staff how to handle undeclared landings, and its staff misled trading standards officers about its purpose.<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 13px; margin-left: 0px; border-collapse: collapse; font-family: arial, sans-serif; color: #333333; line-height: 18px; background-color: #ffffff; background-repeat: no-repeat no-repeat; padding: 0px;">Detective Superintendent Gordon Gibson, of Grampian police, the senior investigating officer in Operation Trawler, said: "Make no bones about it: it was serious, it was organised and it was criminal. The element of preparation involved was significant, given the methods and means that all these individuals went to.<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 13px; margin-left: 0px; border-collapse: collapse; font-family: arial, sans-serif; color: #333333; line-height: 18px; background-color: #ffffff; background-repeat: no-repeat no-repeat; padding: 0px;">"Was I surprised? Absolutely. I was surprised at the levels they had gone to disguise their criminal conduct."<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 13px; margin-left: 0px; border-collapse: collapse; font-family: arial, sans-serif; color: #333333; line-height: 18px; background-color: #ffffff; background-repeat: no-repeat no-repeat; padding: 0px;">An industry source admitted: "This wasn't casual or by accident. It was organised, it was systematic, it was deception. No one disagrees with that."<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 13px; margin-left: 0px; border-collapse: collapse; font-family: arial, sans-serif; color: #333333; line-height: 18px; background-color: #ffffff; background-repeat: no-repeat no-repeat; padding: 0px;">In a further penalty, which is thought to have cost the convicted skippers millions, the European commission cut the quotas soon after the scandal was reported to Brussels by the UK government in 2005, calling it a "quota payback".<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 13px; margin-left: 0px; border-collapse: collapse; font-family: arial, sans-serif; color: #333333; line-height: 18px; background-color: #ffffff; background-repeat: no-repeat no-repeat; padding: 0px;">Although none of the trawlermen have been banned from fishing, their quotas were cut by more than 116,000 tonnes of mackerel and nearly 47,000 tonnes of herring over a seven-year period. That payback will end next year.<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 13px; margin-left: 0px; border-collapse: collapse; font-family: arial, sans-serif; color: #333333; line-height: 18px; background-color: #ffffff; background-repeat: no-repeat no-repeat; padding: 0px;">One source with detailed knowledge of the case said this had damaging consequences for skippers and crews involved, as the market value of mackerel and herring since 2005 had been as much as double the price 10 years ago.<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 13px; margin-left: 0px; border-collapse: collapse; font-family: arial, sans-serif; color: #333333; line-height: 18px; background-color: #ffffff; background-repeat: no-repeat no-repeat; padding: 0px;">The convictions follow a complex, 10-year investigation involving forensic accountants from KPMG, who analysed the paperwork for thousands of landings, a core team of 25 detectives and support staff from Grampian and Northern police, four British sea fishery officers with Marine Scotland, the Home Office Holmes police computer system, money laundering experts with the Scottish Crime and Drug Enforcement Agency, and specialist prosecutors at the Crown Office.<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 13px; margin-left: 0px; border-collapse: collapse; font-family: arial, sans-serif; color: #333333; line-height: 18px; background-color: #ffffff; background-repeat: no-repeat no-repeat; padding: 0px;">Operation Trawler has brought to an end a practice which was once endemic in the British fishing industry, but has been made extremely difficult by hi-tech monitoring and tracking of every registered trawler at sea, and much tighter controls on landings at processing firms.<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 13px; margin-left: 0px; border-collapse: collapse; font-family: arial, sans-serif; color: #333333; line-height: 18px; background-color: #ffffff; background-repeat: no-repeat no-repeat; padding: 0px;">The skippers and firms involved have refused to discuss their convictions; Shetland Catch is still facing confiscation proceedings. But sources with detailed knowledge of the scandal have admitted the practice was widespread within the pelagic fishing industry. Lawyers for one of the convicted men, George Anderson, 55, from Whalsay, Shetland, claimed this year that he evaded the controls because he believed that discarding under-sized fish was "repugnant".<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 13px; margin-left: 0px; border-collapse: collapse; font-family: arial, sans-serif; color: #333333; line-height: 18px; background-color: #ffffff; background-repeat: no-repeat no-repeat; padding: 0px;">"Black landings" are still common practice across the EU, and prosecutions still take place. In Lerwick and Peterhead, some insist that the undeclared landings, which helped many of the skippers and their crews enjoy comparatively luxurious lifestyles, were well-known within the industry and among regulators.<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 13px; margin-left: 0px; border-collapse: collapse; font-family: arial, sans-serif; color: #333333; line-height: 18px; background-color: #ffffff; background-repeat: no-repeat no-repeat; padding: 0px;">Asked about its knowledge of the illegal landings, Seafish told the Guardian it was legally required to take the levy, and insisted it had tipped off the authorities to the over-quota landings. However, one source said that the issue was discussed in board meetings, "but the Seafish line was that we weren't a fishery protection agency, our job was to take a levy on every tonne landed."<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 13px; margin-left: 0px; border-collapse: collapse; font-family: arial, sans-serif; color: #333333; line-height: 18px; background-color: #ffffff; background-repeat: no-repeat no-repeat; padding: 0px;">He added: "They were totally aware they were getting a levy on quota and over-quota fish."<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 13px; margin-left: 0px; border-collapse: collapse; font-family: arial, sans-serif; color: #333333; line-height: 18px; background-color: #ffffff; background-repeat: no-repeat no-repeat; padding: 0px;">The source denied it was serious and organised crime: the skippers involved paid income tax and business taxes alongside the Seafish levy on all their illegal landings, largely because the over-quota fish was sold in the fish markets as if it were legally declared. Fraud charges were dropped by prosecutors at an early stage, he said.<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 13px; margin-left: 0px; border-collapse: collapse; font-family: arial, sans-serif; color: #333333; line-height: 18px; background-color: #ffffff; background-repeat: no-repeat no-repeat; padding: 0px;">But he added: "There is nobody defending this. It was morally wrong; it was ecologically wrong and sustainably wrong. There is no excuse.<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 13px; margin-left: 0px; border-collapse: collapse; font-family: arial, sans-serif; color: #333333; line-height: 18px; background-color: #ffffff; background-repeat: no-repeat no-repeat; padding: 0px;">"A lot of the skippers are saying, 'What we did wasn't right; it was wrong. We really want to draw a line under this and move forward.'"<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 13px; margin-left: 0px; border-collapse: collapse; font-family: arial, sans-serif; color: #333333; line-height: 18px; background-color: #ffffff; background-repeat: no-repeat no-repeat; padding: 0px;">He said the scandal had the effect of transforming Scotland's pelagic fishing industry into one of the most sustainable in the world: after the raids, the mackerel and herring fleet introduced very strict monitoring and quota management. Since 2008, its fisheries have won a prized Marine Stewardship Council eco-label, and are now the largest in Europe with MSC certification.<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 13px; margin-left: 0px; border-collapse: collapse; font-family: arial, sans-serif; color: #333333; line-height: 18px; background-color: #ffffff; background-repeat: no-repeat no-repeat; padding: 0px;">But the "black landings" scandal is coming back to haunt the industry. It is expected to lose its MSC accreditation later this year after a bitter dispute with the Faroe Islands and Iceland: both countries have claimed much larger mackerel quotas than is sustainable for the north-east Atlantic stocks, in breach of MSC rules. The Faroese in particular believe the over-quota prosecutions puts the Scottish industry's credibility in severe doubt.<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 13px; margin-left: 0px; border-collapse: collapse; font-family: arial, sans-serif; color: #333333; line-height: 18px; background-color: #ffffff; background-repeat: no-repeat no-repeat; padding: 0px;">"It's not a proud moment for what is a very proud industry," one senior figure conceded.<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 13px; margin-left: 0px; border-collapse: collapse; font-family: arial, sans-serif; color: #333333; line-height: 18px; background-color: #ffffff; background-repeat: no-repeat no-repeat; padding: 0px;">Richard Lochhead, the Scottish agriculture secretary, said the convicted were guilty of appalling behaviour. "These illegal activities are a stark and shameful reminder of the culture that existed in some sectors of the fishing industry in past years," he said.<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 13px; margin-left: 0px; border-collapse: collapse; font-family: arial, sans-serif; color: #333333; line-height: 18px; background-color: #ffffff; background-repeat: no-repeat no-repeat; padding: 0px;">"Thankfully, there has been seismic change in the attitude and behaviour of the fishing fleet, which can only be good thing in securing a viable future for the industry."<p style="margin-top: 0px; margin-right: 0px; margin-bottom: 13px; margin-left: 0px; border-collapse: collapse; font-family: arial, sans-serif; color: #333333; line-height: 18px; background-color: #ffffff; background-repeat: no-repeat no-repeat; padding: 0px;">Dr Mireille Thom, a senior marine policy officer for the conservation group WWF Scotland, said: "Deliberately ignoring quota rules by landing 'black fish' isn't a victimless offence. Such landings not only undermine the conservation of fish stocks and the fortune of the fleets that fish them, they also distort competition by depressing fish prices. In short, they threaten the public good for the benefit of a few."

Police uncover 'serious and organised' criminality in £63m scam to breach European fishing quotas

An inquiry into the UK's largest fishing scandal has uncovered "serious and organised" criminality by Scottish trawlermen an...

One in seven Cambridge students 'has sold drugs to help pay their way through university'

One in seven Cambridge students is dealing drugs to help pay their way through university, according to a survey. It found many claim th...

EU clampdown on unregulated financial advisers in Spain

The European Commission is to consider setting up an ombudsman to help expat victims reclaim against unregistered financial firms. It comes after a local pressure group, that represents over 1,000 victims, sent a dossier of information to Brussels. The Costa del Sol Action Group demanded action against the advisers who, it claims, have lost their clients over €120 million (£102 million). “It is good news as something has to be done about this bunch of rogues,” said group founder David Klein. “The current Spanish regulatory system is totally inadequate and ineffective. Dealing with the authorities is a constant game of ping-pong. Anyone can come to Spain and be a financial adviser; they could have been selling fish before they came here for all anyone knows." This situation could soon be coming to an end, after the European Commission confirmed it was to begin "a preliminary investigation of the problem". Foreign Office plans evacuation of expats 18 Dec 2011 It has asked for more information and the action group has called on all victims to write to the European Parliament outlining their experience. “This problem is causing untold stress and heartache in the expatriate community and it cannot be allowed to continue,” explained Klein. The European Commission is to study how investors would be able to make an official complaint against Independent Financial Advisers (IFAs). At present, there is no effective means for victims to make a complaint against product providers who work with unregistered IFAs. The group was also highly critical of the local media for its willingness to accept adverts from unregulated financial firms in a bid to maximise advertising revenue. To highlight the problem, the group included testimonials by members who were allegedly defrauded by one specialist investment brokerage, which it claims is "not regulated or registered". It said the company was able to trade, "collecting unsuspecting clients who are soon relieved of their money". One Costa del Sol-based financial adviser, Richard Alexander, said he was pleased with the EU’s response. “Bring on the review,” he said. “I have seen too many sad stories of people being turned over, badly advised or grossly over-charged by unregulated independent financial advisors in Spain. "It is entirely possible to provide professional, quality advice without the client losing out.”

EU clampdown on unregulated financial advisers in Spain

The European Commission is to consider setting up an ombudsman to help expat victims reclaim against unregistered financial firms. It come...

Murdoch slashes price for new Sunday tabloid

Rupert Murdoch on Thursday fired the opening shot in his battle to reclaim Britain's Sunday newspaper market by announcing his newly launched publication would be half the price of his previous title. The 80-year-old tycoon took to microblogging website Twitter to reveal: "Regular Sunday price for The Sun only 50p -- and Saturday's Sun going down to 50p too! Great news for readers and the economy." Murdoch's News of the World -- the Sunday tabloid which shut seven months ago over the phone-hacking scandal -- cost one pound ($1.57, 1.18 euros), the same cover price as rivals the Sunday Mirror and The People. The 50 percent price cut announced for The Sun on Sunday, which will hit the stands this weekend, signals the Australian-born businessman's hunger to once again own the top-selling Sunday newspaper. The News of the World dominated the country's Sunday market with sales averaging 2.67 million when Murdoch took the decision to close it in July last year. Publisher News International said the US-based mogul would be in London to oversee the launch this Sunday and confirmed that the editor of the weekday paper, Dominic Mohan, would also edit the Sun on Sunday. Murdoch flew in to Britain last week to announce the creation of the new paper and to promise demoralised staff he would stand by them despite the arrest of senior Sun journalists over bribery allegations.

Murdoch slashes price for new Sunday tabloid

Rupert Murdoch on Thursday fired the opening shot in his battle to reclaim Britain's Sunday newspaper market by announcing his newly l...

Labour suspends MP Eric Joyce after Commons 'assault'

Labour MP Eric Joyce has been suspended from the party after he was arrested over allegations of an assault in a House of Commons bar. Police were called after reports of a disturbance on Wednesday night. Mr Joyce, 51, remains MP for Falkirk but cannot take the Labour whip until the police investigation ends. Speaker John Bercow has said he takes the matter "very seriously". The Conservative MP for Pudsey Stuart Andrew has alleged he was assaulted. The BBC understands officers involved in the investigation returned to the Commons on Thursday evening. The disturbance is believed to have happened in the Strangers Bar, which is reserved for MPs and their guests. Mr Andrew was in the bar following a Commons event organised by his Conservative colleague Andrew Percy, for the Speaker of the Canadian Parliament. 'Extremely serious' A Scotland Yard spokesman said: "We were called at approximately 10.50pm last night to reports of a disturbance at a bar within the House of Commons. "A man aged in his 50s was arrested by officers on suspicion of assault. He remains in custody in a central London police station. Inquiries are continuing." A Labour Party spokesman said: "This is an extremely serious incident. We have suspended Eric Joyce pending the results of the police investigation." In the Commons, Speaker John Bercow said: "Members will be aware of reports of a serious incident in the House last night. I have been informed by the Serjeant at Arms that the honourable member for Falkirk has been detained in police custody. "The matter is being investigated. I take this matter very seriously, as do the House authorities." Mr Joyce was elected in a by-election in December 2000 and has served as a parliamentary private secretary (PPS) to a number of government ministers since 2003. He was PPS to the then defence secretary Bob Ainsworth until 2009, and prior to that had been a parliamentary aide to John Hutton, Mike O'Brien and Margaret Hodge.

Labour suspends MP Eric Joyce after Commons 'assault'

Labour MP Eric Joyce has been suspended from the party after he was arrested over allegations of an assault in a House of Commons bar. Po...

The Royal Bank of Scotland's chief executive and chairman may both have given up their bonuses but the state-owned bank will today unveil plans to lavish up to £785m on its workforce

The Royal Bank of Scotland's chief executive and chairman may both have given up their bonuses but the state-owned bank will today unveil plans to lavish up to £785m on its workforce, including £400m to its investment bankers.  Stephen Hester, chief executive, turned down a payout of nearly £1m in shares while the chairman Sir Philip Hampton passed on £1.4m. But their nods to public outrage, over bonuses being paid to people who work for a bank that called on £45bn of public funds to keep it afloat and is expected to announce losses of as much as £2bn, have not been reflected among their senior colleagues. While the full details of payments to other executives will not become clear until the bank issues its annual report later this year, John Hourican, head of global banking and markets, could receive as much as £5m, despite overseeing the redundancies of more than 3,000 staff. That process in itself could cost up to £200,000 per employee because it targets some of highest-paid employees in investment banking, a large part of which is being shut down. Another man who could also receive a sizeable payout is its American finance director Bruce Van Saun, who last year received a bonus of £1.35m as part of a total package of £2.3m. That does not include additional payouts through his share-based long-term incentive scheme. He too has yet to give any indication that he plans to forgo this year's award despite effectively being No 3 in the bank's hierarchy after Sir Philip and Mr Hester. The overall bonus pool had to be agreed with the Government, which holds an 82 per cent stake in the bank following the bailout. The £400m for investment bankers is the lowest since the bank was effectively nationalised in 2008, and less than half last year's payout to them of £950m. A spokesman for the bank declined to comment on the figure. However, he said: "Ten thousand of our most senior employees will receive no salary increase this year, including the executive team." RBS sources were also at pains to point out that Mr Hourican's £5m would be a maximum figure based on a long- term incentive plan that comes to an end in April. Final decisions on payments from it had yet to be made by the bank's remuneration committee. Ministers have been keen to damp down the public anger over bonuses amid sour relations with the City of London. But campaigners remain furious at the addiction to huge bonuses at a time when less fortunate workers have been suffering an unprecedented squeeze on incomes. The TUC general secretary Brendan Barber said: "Ordinary families are struggling to make ends meet, so it's perhaps not surprising that with the taxpayer the majority shareholder in the bank, public opinion is so against the continuing payment of huge bonuses at RBS. Stephen Hester may have handed back his bonus, but other senior executives at the bank are set to pocket large payouts from a bonus pot of millions." The Robin Hood Tax campaign, a coalition of 115 UK organisations including Oxfam, Barnado's and Friends of the Earth that wants a tax on financial transactions to be levied to alleviate poverty, was similarly furious. David Hillman, the campaign's spokesman, said: "It is incredible that while the rest of us suffer, a loss-making bank bailed out by the taxpayer is allowed to pay out hundreds of millions in bonuses. The British public is getting a raw deal from RBS." However, across the City there was a different view. Analysts argue that if RBS was not able to hold on to its staff it would not be able to pay back the taxpayer's investment. The City commentator David Buik, from BGC Partners, said: "If the taxpayer wants repayment of its £45 bn, it will need to employ quality people. That costs money and a competitive bonus structure."

The Royal Bank of Scotland's chief executive and chairman may both have given up their bonuses but the state-owned bank will today unveil plans to lavish up to £785m on its workforce

The Royal Bank of Scotland's chief executive and chairman may both have given up their bonuses but the state-owned bank will today unv...

Banks forced to hand back £1.9BILLION to customers

Banks have been forced to hand back £1.9billion to customers who were wrongly sold Payment Protection Insurance as part of a 'loan protection racket'. However, consumer groups have accused the finance giants of dragging their feet on refunds which, eventually, could top £8billion. The Financial Ombudsman Service is receiving a staggering 1,000 complaints a day about the mis-selling of PPI. Consumers have a right to take a claim for a refund to the watchdog where they feel they have been unfairly fobbed off by their bank. In total, the ombudsman service has received over a third of a million PPI complaints, with the majority related to policies sold by banks alongside credit cards and loans. The watchdog upholds around three out of four cases in the consumer’s favour, with the average pay-out running at £2,750. The failure to offer speedy refunds has allowed a raft of hard-sell claims management firms, who are looking to cash in on the scandal, to flourish. These firms are spending millions of pounds in advertising to offer to pursue refunds. This involves bombarding the nation with TV advertising and recorded message telephone calls to both landline and mobile phones.

Banks forced to hand back £1.9BILLION to customers

Banks have been forced to hand back £1.9billion to customers who were wrongly sold Payment Protection Insurance as part of a 'loan pro...

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