Tuesday, 29 July 2014

Japanese financiers no different? Fraud at the home of the mafia

29-07-2014 nomura
It seems appropriate somehow that the Japanese financial giant Nomura chose Sicily for what Italian police allege was a 175 million euros fraud. According to police Colonel Francesco Mazzotta, four Nomura employees from back in 2000 to 2006 are under investigation, along with three other people, for using complex financial products to defraud the regional government of Sicily in the years leading up to the financial crisis.
Bloomberg reports that Italy’s financial police have seized bank accounts and credit valued at 98 million euros from Nomura, along with 6 million euros in property, shares and cash belonging to the seven suspects.
The amount represents the profit the bank allegedly made from the trades, police said.
Nomura created three derivatives contracts to restructure Sicily’s debt that wound up costing the region 60 million euros, police said. Sicily also lost 115 million euros on the securitization, or bundling, of health-care debt in 2002 at an “onerous” interest rate, police said.
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