The Hong Kong Securities and Futures Commission has opened as case against HKMEx for using US dollar-dominated gold futures in 2011, which is seen as an attempt to ‘steal’ commodity deals from other trading floors.The SFC statement on May 21st says “the suspected irregularities are serious ones”, and HKMEx surrendered its trading license earlier in the month.According to some sources, Cheung borrowed large sums of money from the Hong Kong business and hasn’t yet paid back his loans, an accusation which he denies.Cheung stepped down from his official obligations on Tuesday, after the Securities and Futures Commission (SFC), in partner with local police, raided to the HKMex office and seized several electronic records as evidence of false documentation in trading securities.Following the seizure, police arrested three men that aren’t current or former employees of HKMEx, according to Cheung. Police arrested another unidentified man by the surname ‘Zhu’ on Wednesday, on suspicion he possessed instruments used to falsify documents.Cheung, 54, has chaired the HKMEx Executive Council since it was founded in 2006, and hasn’t been accused of any crime, and says he will fully cooperate with the investigation.Cheung said he is the HKMEx’s largest shareholder.The Russian Oligarch DanceThe board of Rusal nominated and approved Cheung as an independent director at Rusal in 2012 and he was elected Chairman after billionaire Vicktor Vekselberg resigned in March.According to the company’s website, Mr. Cheung remains on the Board of Directors of Rusal.Vekselberg quit on March 12 2013 as chairman of Rusal, citing the company’s deep crisis brought on by rival oligarch Oleg Deripaska. Other members accused Vekselberg of ‘jumping ship’ because for one year prior to his resignation, he had disengaged from company activities- he didn’t even attend board meetings.Barry Cheung of the Hong Kong Mercantile Exchange was nominated and approved by the board 4 days after he quit.Sual Partners, headed by Victor Vekselberg, owns 15.8 per cent of Rusal and proposed a resolution that Cheung be replaced as head.The shareholders meeting of Rusal will be held on June 14, when the board is due to re-elect seven directors whose term expires.Cheung, a former McKinsey and Co. employee received his MBA from Harvard Business School. … Read More
Just My Opinion: NY mayor defends ‘Stop-and-frisk’ policy
http://www.youtube.com/v/T91cSlExCKo?version=3&f=videos&app=youtube_gdata This article: Just My Opinion: NY mayor defends ‘Stop-and-frisk’ policy
Moscow surpasses London as billionaire epicenter
Research firm WealthInsight’s report has ranked the top 20 cities where billionaires reside. The 2012 date puts New York on top with 70, and Moscow a close second with 64. London, Hong Kong, Beijing, Mumbai, Istanbul, Shanghai, Paris, and Los Angeles filled the remaining top ten spots.In 2011 and 2012 Forbes magazine crowned Moscow the leading metropolis of billionaire inhabitants. Rank City Number of billionaires 1 New York (Manhattan) 70 2 Moscow 64 3 London 54 4 Hong Kong 40 5 Beijing 29 6 Mumbai 26 7 Istambul 24 8 Shanghai 23 9 Paris 22 10 Los Angeles 19 11 Shenzhen 19 12 Chicago 15 13 Singapore 13 14 Tokyo 12 15 Guangzhou 12 16 San Francisco 11 17 Dallas 11 18 Dubai 11 19 Houston 10 20 Sao Paulo 10 The figures conflict with the latest poll from the Chinese Hurun Research Institute which reported 76 billionaires resided in Moscow. In terms of multimillionaire hot spots, individuals with a net value of at least $30 million and under $1 billion, Moscow misses the top twenty. London is top of the list as the city with the most multimillionaires (4,224) but Tokyo and Singapore follow in second and third place respectively.Moscow is only home to 101,000 millionaires in 20th place, compared with the leader Tokyo (461,000), followed by New York, which is home to 389,000 millionaires, and London, home to 281,000.The wealthiest Muscovite is mining tycoon and Arsenal football club co-owner, Alisher Usmanov, whose fortune is estimated at $19 billion.Today the assets of the top 200 Russian businessmen are estimated at $488.3 billion, accounting for about 85 percent of the mega-wealthy.Plenty of wealth resides in Moscow, but a lot of Russian billionaires don’t reside in their homeland. Roman Abramovich, the famed Chelsea football club owner, who has a fortune of $10.2 billion, currently lives in London.Former national Sergey Brin, founder and CEO of Google, who emigrated to the US at age six, and claims American citizenship. Brin’s bank account far exceeds all his former compatriots, at $22.8 billion.A country rich in oil, energy, and precious metals, Russia’s wealth is highly concentrated in the capital city. In 2011, 22.1 percent of the GDP came from Moscow, and 27.1 percent from the Moscow region, according to RosStat, the official government statistic bureau. According to the World Bank, Russia’s GDP is $1.86 trillion.Moscow has an official population close to 12 million, according to the Federal State Statistics Service.The number is likely much larger due to the recent influx of undocumented migrant workers.After the collapse of the Soviet Union, state capital found its ways into the hands of a very few powerful oligarchs, and the ‘new money’ consolidated in Moscow.A majority of Russia’s state-owned conglomerates have headquarters in Moscow – Sberbank, VTB, Rosneft, Gazprom, Lukoil, and Roscom all operate from the undisputed financial hub.Moscow is a European hub for international finance institutions- Barclays, HSBC, Credit Suisse, Merrill Lynch, Ernst and Young, KPMG, McKinsey & Co., Renaissance Bank, Boston Consulting Group, all have main offices.Yandex, Russia’s version of Google, which dominates the Russian search engine market, is located in Moscow. … Read More
Presidential Human Rights Council backs proposed amnesty for 2012 rioters
“We call upon you to support the draft statement on granting amnesty to all suspects within the so called Bolotnaya Square case,” reads the address from the council members to the Lower House MPs published on the council’s web-site.The HR activists go on to claim that the prosecutors’ theory of a premeditated mass riot does not appear credible to those who attended Bolotnaya Square on May 6 2012, and that the Bolotnaya protesters hold that the clashes must be blamed on law enforcers.The council members then say that the continuation of investigations and court cases would only prevent the possible ‘settlement in the society’ and aggravate the supposed stand-off between the authorities and the “peaceful civil opposition”. Continuation could lead to more radical protests and undermine the citizen’s trust to the courts and the state system in general.The suggestion of an amnesty for all the suspects was first voiced at the end of April by two Communist Party MPs – Anatoly Lokot and Boris Kashin. They suggested the move to mark the 20th anniversary of the Constitution of the Russian Federation (that will be marked on December 12) and promised to formally submit the proposal in mid-May, after the holiday period.The two communists said that the amnesty would become a signal to society that the state is ready for a dialogue.Billionaire Mikhail Prokhorov who is heading the pro-business party Civil Platform also supported the call for an amnesty saying that this would be the most reasonable step in the current situation.The riots on Bolotnaya Square took place on May 6 last year during a major protest rally against alleged elections violations.Authorities started about two dozen criminal cases against alleged rioters, one of which has ended in a conviction and a 4 and a half year sentence.Investigators also started a separate case into the suspected preparations for the riots claiming that several leftist activists, including one of the street opposition’s leaders Sergey Udaltsov plotted and prepared the unrest and financed their activities from money provided by Georgian spin doctor Givi Targamadze. Targamadze was also charged in absentia as part of the case but hopes for a trial are slim as Georgia and Russia currently have neither diplomatic relations nor an extradition agreement.One of the suspected plotters – Konstantin Lebedev – was convicted on April 25 and sentenced to two and a half years in a prison colony. … Read More
Skolkovo vice president suspended over graft case
According to investigators, the suspended executive, Aleksey Beltyukov broke the law when he paid MP Ilya Ponomaryov $750,000 for 10 lectures and one research paper. Law enforcers suspect the price was inflated and some of the lectures were not even delivered, and thus the whole scheme falls under definition of graft.On Tuesday the RIA-Novosti news agency reported that Beltyukov was suspended from his post in late April and he has submitted a voluntary resignation claiming that it was too difficult to continue his work during the probe.Ilya Ponomaryov told reporters on Tuesday that he was going to attend an interrogation by Russia’s top law enforcement agency – the Investigative Committee. The MP said the questioning would concern the graft case and added that he was sure he could answer all questions.The scandal over the Skolkovo lectures enfolded in mid-April. Investigators raided the technology hub initiated by Russian MP Dmitry Medvedev (who was Russian President when Skolkovo started) and questioned its billionaire director Viktor Vekselberg. Initially it was reported the operation was connected with another case of suspected embezzlement, but after a search the investigators decided to concentrate on Ponomaryov’s services and fees.The Investigative Committee suspected that Beltyukov tried to cover up an embezzlement by preparing a contract under which Ponomaryov had to present 10 lectures at $30,000 each and prepare a research paper for a fee of $450,000. After an initial investigation the agency released a report saying that they managed to verify only two of Ponomaryov’s lectures, of which one lasted 12 minutes and the other 18 minutes. They also added that they found out that Ponomaryov had not attended at least one lecture he was paid for.Ilya Ponomaryov now enjoys parliamentary immunity but can be stripped of it by a Lower House vote. The crime he is suspected of can be qualified as large scale embezzlement which is punishable by up to 10 years in prison. At the moment the parliamentarian enjoys witness’s status.In several interviews the MP admitted that he had received money from Skolkovo, but the contract was genuine and all his actions were legal. He also said that the case against him was politically-motivated and added that it would be sad if the whole Skolkovo project perished because of the anti-corruption steps.On April 26 the Skolkovo Foundation filed its own lawsuit against Ponomaryov. The head of the foundation ViktorVekselberg emphasized that it was impossible to foresee that a respected politician would forge the reports about the services he was paid for. In early May Deputy Prime Minister Vyacheslav Surkov backed the Skolkovo project and executives in his lecture at the London School of Economics. Surkov said that this project was one of the cleanest in Russia. He noted that the fund’s director Viktor Vekselberg was among Russia’s richest people and it was difficult to imagine that such man would be stealing .The Deputy PM also chided the Investigative Committee over excessive drive and exaggerations in their official statements. “The energy with which the Investigative Committee is publishing its proposals make common people think that actual crimes have been committed. But this is nothing but the agency’s vigor. I suggest that they prove someone guilty and we see if they are capable to prove anything,” Surkov noted.These statements almost immediately drew a reaction from the Investigative Committee’s press secretary Vladimir Markin. In a newspaper article published on Tuesday he wrote that it was very common in Russia that the managers suspected of theft and graft claim that their processes are politically motivated and called upon the public not to pay attention to these “woeful songs”.Markin did not directly name Surkov, but blasted his behavior as unethical, asking if it was possible for a British cabinet minister to retain his seat after publicly criticizing Scotland Yard while on a foreign visit.Surkov refused to comment on Markin’s article, only calling the spokesman “an obsessive writer”. … Read More
Furious Bloomberg claims NYPD is ‘under attack’ over stop-and-frisk
Stop-and-frisk was enacted in 2002, but has drawn public ire in recent months after a federal judge ruled in January that the practice of searching pedestrians without probable cause is unconstitutional.The NYPD has also been the subject of a civil lawsuit in federal court meant to determine whether patrol officers target minorities and are required to meet monthly arrest quotas. Current and former officers have testified in the affirmative to both counts.The scrutiny has apparently incensed Mayor Bloomberg, who spent almost an hour Tuesday morning assailing proponents of a bill proposed by mayoral candidate Christine Quinn that would appoint an inspector general to oversee the NYPD. Bloomberg argued the legislation is an example of “putting ideology and election-year politics in front of public safety.”“Hard to believe, but the NYPD is under attack,” Bloomberg said during the speech on the second floor of police headquarters in downtown Manhattan. “Probably because this is an election year. The attacks most often come from people who play no constructive role in keeping our city safe, but rather view their jobs as pointing fingers from the steps of City Hall.”Bloomberg’s third mayoral term comes to an end this year, but the 71-year-old billionaire is going out swinging. He’s spent months denouncing candidates who have criticized his stance on major issues, although Quinn – a former underling and City Council speaker – largely avoided his scorn before turning face on the administration’s stance on stop-and-frisk.“Some of them scream that they know better than you how to run the department,” he continued. “Some have even sued the NYPD and demanded a federal monitor over NYPD operations. They’ve also drafted politically driven legislation that is a reaction to two NYPD practices: Stop, Question and Frisk; and counter-terrorism intelligence gathering.”“Make no mistake, this is a dangerous piece of legislation and anyone who supports it is courting disaster,” Bloomberg went on. “If you end street stops looking for guns, there will be more guns on the streets, and more people will be killed. It’s that simple.” Also drawing the mayor’s contempt was the American Civil Liberties Union, which has been a Bloomberg target dating back to his initial election; and The New York Times, which has published a string of editorials scolding the stop-and-frisk policies advanced by the mayor and Police Commissioner Ray Kelly.Ironically, Bloomberg levied the same critique against the Times that the NYPD is so often charged with. He accused Times editors of selecting their coverage based on race, a reference to the paper’s recent decision to ignore the shooting death of Alphonza Bryant, a black teen living in the Bronx.“Four days after Alphonza Bryant’s murder went unreported by the Times, the paper published another editorial attacking stop-question-and-frisk,” he said Tuesday. “Do you think if a white 17-year-old prep student from Manhattan was murdered, the Times would have ignored it? I think not.”Danielle Rhoades Ha, a spokeswoman for the newspaper, told Politico Bloomberg’s assertion was “absurd.”“Mayor Bloomberg is trying to deflect criticism of the city’s stop-and-frisk practice by accusing The New York Times of bias,” Ha said. “Among those critical of the practice is The New york Times’ editorial board, which is separate from the news side of the newspaper. The Times aggressively covers violence in the city’s neighborhoods, and to select one murder as evidence to the contrary is disingenuous. His claim of racial bias is absurd.” … Read More
Oligarch shuffle: Russian billionaire may pick up rival’s debt
Already a Rusal shareholder, Onexim holds 17% of the company and is closely ‘monitoring the opportunity’ to buy debt, Onexim CEO Dmitry Razumov told Bloomberg. If Oxemim isn’t able to buy debt, they will consider selling out. Onexim sold their 37.78% share in Polyus, Russia’s largest gold producer, for $3.6 billion in February. Since the sale, they have been closely eying new investment opportunities, and the latest may be buying debt in Rusal, a company famous for oligarch tiffs and turbulent relations.Prokhorov and fellow billionaire and stakeholder Viktor Vekselberg have clashed with Rusal CEO Oleg Deripaska over his decision keep a 25% share in Norlisk Nickel, a company whose value has dropped with falling precious metal prices and increased production costs. Last year Norlisk’s debt reached $10.8 billion.“We, as a minority shareholder, have limited influence over the management and the main owner’s decisions,” Razumov told Bloomberg in an interview.As precious metals fall, Prokhorov’s company has had to evolve its strategy to adapt to the changing markets.“We decided that our investment portfolio should be lighter, liquid and more flexible,” Ramzumov said.“We want assets that we can sell quickly to invest funds in other opportunities.” Pleasing shareholders is also at the top of Onexim’s priorities, so if the Rusal debt purchase fails, they may consider selling the stake altogether.If such a deal is brokered, it “will only allow Rusal to service its debt, but not to reduce it,” Razumov said, adding he wasn’t 100% certain the arrangement would go forward.The future of OneximOnexim, a private investment fund with over $25 billion in assets, has a wide breadth of investment holdings, both in Russia and worldwide.On April 3, Prokhorov’s company bought out the Russian division of Renaissance Capital, making it the sole owner of RenCap, according Onexim’s website. Onexim is also hoping to develop its commodity holdings with investment in Intergeo, a Siberian copper and nickel mining company.“It’s one of our priorities,” Razumov said, adding the public offering won’t happen until at least May, as the company waits for market conditions to improve.Onexim placed the proceeds from selling Polyus in Russian state banks, among the safest options currently, Razumov said. Only state banks are able to offer “the proper yield-risk ratio,” he said.Oligarch showdownThe feud began long ago when Prokhorov and Vekselberg were at odds with Deripaska over their Norilsk investment portfolio holdings. When Onexim traded 25% of their Norilsk shares for Rusal shares in 2008 for $5 billion, it instigated conflict between the shareholders at Norilsk.Vekselberg quit on March 12 as chairman of Rusal, citing the company’s deep crisis brought on by rival oligarch Oleg Deripaska. Other members accused Vekselberg of ‘jumping ship’ because for one year prior to his resignation, he had disengaged from company activities- he didn’t even attend board meetings.Vekselberg is listed by Forbes magazine as Russia’s eighth richest man with $12.4 billion fortune.Barry Cheung of the Hong Kong Mercantile Exchange was nominated and approved by the board 4 days after he quit.”I regret to say at this time that Rusal is in a deep crisis caused by the actions of the management,” Vekselberg said when he resigned, Reuters reports.Mikhail Prokorov is Russia’s tenth richest businessman, and the world’s sixty-ninth, according to Forbes billionaire index. Prokhorov ran against Vladimir Putin in last year’s presidential race, founding his own political party and receiving 8% of the vote. Prokhorov has a $13 billion fortune, most of which he made in in mining, metals, and energy, and later switched over to technology pre-crisis. Prokhorov bought an 80% share in the New York Nets basketball team, for $200 million in 2010. … Read More
