From Bloomberg (link)
Chen Jiulin, former head of China Aviation Oil (Singapore) Corp., was sentenced to four years and three months in prison for his role in a $550 million trading scandal that drove China’s biggest jet-fuel trader to the brink of bankruptcy.
Chen, 44, was also fined $335,000 ($207,000). He pleaded guilty to six charges including making a false statement, failing to disclose the loss and conspiring to cheat adviser Deutsche Bank AG. China Aviation Oil’s former finance head, Peter Lim, last month was handed two years in prison, while three Beijing-based directors were fined a total of S$700,000.
The derivatives trading loss, Singapore’s biggest since Nick Leeson bankrupted Barings Plc more than a decade ago, heightened concern about investments in companies controlled by China and prompted the city to review trading and disclosure rules. Leeson, who cost Barings $1.4 billion, spent 3 1/2 years in a Singapore prison.
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