Tag Archives: FRAUD1

FTX founder Bankman-Fried objects to tighter bail, says prosecutors ‘sandbagged’ him

NEW YORK, Jan 28 (Reuters) – Lawyers for Sam Bankman-Fried on Saturday urged a U.S. judge not to ban the indicted FTX cryptocurrency executive from communicating with former colleagues as part of his bail, saying prosecutors “sandbagged” the process to put their client in the “worst possible light.”

The lawyers were responding to a Friday night request by federal prosecutors that Bankman-Fried not be allowed to talk with most employees of FTX or his Alameda Research hedge fund without lawyers present, or use the encrypted messaging apps Signal or Slack and potentially delete messages automatically.

Bankman-Fried, 30, has been free on $250 million bond since pleading not guilty to charges of fraud in the looting of billions of dollars from the now-bankrupt FTX.

Prosecutors said their request was in response to Bankman-Fried’s recent effort to contact a potential witness against him, the general counsel of an FTX affiliate, and was needed to prevent witness tampering and other obstruction of justice.

But in a letter to U.S. District Judge Lewis Kaplan in Manhattan, Bankman-Fried’s lawyers said prosecutors sprung the “overbroad” bail conditions without revealing that both sides had been discussing bail over the last week.

“Rather than wait for any response from the defense, the government sandbagged the process, filing this letter at 6:00 p.m. on Friday evening,” Bankman-Fried’s lawyers wrote. “The government apparently believes that a one-sided presentation – spun to put our client in the worst possible light – is the best way to get the outcome it seeks.”

Bankman-Fried’s lawyers also said their client’s efforts to contact the general counsel and John Ray, installed as FTX’s chief executive during the bankruptcy, were attempts to offer “assistance” and not to interfere.

A spokesman for U.S. Attorney Damian Williams in Manhattan declined to comment.

Bankman-Fried’s lawyers proposed that their client have access to some colleagues, including his therapist, but not be allowed to talk with Caroline Ellison and Zixiao “Gary” Wang, who have pleaded guilty and are cooperating with prosecutors.

They said a Signal ban isn’t necessary because Bankman-Fried is not using the auto-delete feature, and concern he might is “unfounded.”

The lawyers also asked to remove a bail condition preventing Bankman-Fried from accessing FTX, Alameda or cryptocurrency assets, saying there was “no evidence” he was responsible for earlier alleged unauthorized transactions.

In an order on Saturday, Kaplan gave prosecutors until Monday to address Bankman-Fried’s concerns.

“The court expects all counsel to abstain from pejorative characterizations of the actions and motives of their adversaries,” the judge added.

Reporting by Jonathan Stempel in New York; Editing by Andrea Ricci

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Ex-kickboxer Andrew Tate says Romanian prosecutors have no evidence against him

BUCHAREST, Jan 25 (Reuters) – Divisive internet personality Andrew Tate said on Wednesday there was no justice in Romania and that the case file against him in a criminal investigation for alleged human trafficking and rape was empty.

Tate, his brother Tristan and two Romanian female suspects have been in police custody since Dec. 29 pending an ongoing criminal investigation on charges of forming a criminal gang to sexually exploit women, accusations they deny.

On Thursday, a Romanian court extended their detention until Feb. 27. Prosecutors have said the Tate brothers recruited their victims by seducing them and falsely claiming to want a relationship or marriage.

The victims were then taken to properties on the outskirts of the capital Bucharest and through physical violence and mental intimidation were sexually exploited by being forced to produce pornographic content for social media sites that generated large financial gain, prosecutors said.

They also said Andrew Tate, a former professional kickboxer who holds U.S. and British nationality, raped one of the victims in March last year, which he has denied.

“They know we have done nothing wrong,” Tate told reporters as he was brought in for further questioning by anti-organised crime prosecutors, the first comments to the media since his arrest. “This file is completely empty. Of course it’s unjust, there is no justice in Romania unfortunately.”

Andrew Tate and his brother Tristan are escorted by police officers outside the headquarters of the Bucharest Court of Appeal, in Bucharest, Romania, January 10, 2023. Inquam Photos/Octav Ganea via REUTERS

Asked whether he has hurt women, Tate said: “Of course not.”

Earlier this month, Romanian authorities said they had seized goods and money worth 18 million lei ($3.99 million), including luxury cars and properties as a part of the investigation.

“There is no evidence against me,” Tristan Tate told reporters on Wednesday. “The authorities are planning to steal my cars and steal my money. That is why I am in jail.”

Prosecutors have said the seizure was meant to prevent the assets being concealed.

The Tates “are confident in the defence, they are confident in the evidence in their favour, they have given a detailed statement, they have collaborated (with authorities),” their lawyer Eugen Vidineac told reporters after the questioning.

“We believe the defence is starting to take shape.”

Andrew Tate gained mainstream notoriety for misogynistic remarks that got him banned from all major social media platforms, although his Twitter account was reinstated in November after Elon Musk acquired the social media network.

Reporting by Luiza Ilie and Octav Ganea; Editing by Nick Macfie and Daniel Wallis

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Taylor Swift concert fiasco leads to U.S. Senate grilling for Ticketmaster

WASHINGTON, Jan 24 (Reuters) – U.S. senators slammed Live Nation Entertainment’s lack of transparency and inability to block bot purchases of tickets on Tuesday, in a hearing called after a major fiasco involving ticket sales for Taylor Swift’s upcoming concert tour.

Live Nation Entertainment Inc (LYV.N) subsidiary Ticketmaster, which has been unpopular with fans for years, has drawn fresh heat from U.S. lawmakers over how it handled ticket sales last fall for Swift’s “Eras” tour, her first in five years. Experts say Ticketmaster commands more than 70% market share of primary ticket services for major U.S. concert venues.

“We apologize to the fans, we apologize to Ms. Swift, we need to do better and we will do better,” Joe Berchtold, who is president and chief financial officer of Live Nation, told the U.S. Senate Judiciary Committee hearing on Tuesday.

“In hindsight there are several things we could have done better – including staggering the sales over a longer period of time and doing a better job setting fan expectations for getting tickets,” Berchtold said.

Republican Senator Mike Lee said in an opening statement that the Ticketmaster debacle highlighted the importance of considering whether “new legislation or perhaps just better enforcement of existing laws might be needed to protect the American people.”

LACK OF COMPETITION

Senators slammed Berchtold for Live Nation’s fee structure and inability to deal with bots which bulk buy tickets and resell them at inflated prices.

“There isn’t transparency when no one knows who sets the fees,” Democratic Senator Amy Klobuchar said, responding to Berchtold’s claim that Live Nation fees fluctuate based on “ratings.”

Republican Senator Marsha Blackburn called Live Nation’s bot problem “unbelievable,” pointing out that much smaller companies are able to limit bad actors in their systems.

“You ought to be able to get some good advice from people and figure it out,” she said.

“I’m not against big per se, but I am against dumb,” Republican Senator John Kennedy said, referring to Live Nation’s dominance in the ticket sales market. “The way your company handled ticket sales for Ms. Swift was a debacle, and whoever in your company was in charge of that should be fired.

“If you care about the consumer, cut the price! Cut out the bots! Cut out the middle people and if you really care about the consumer, give the consumer a break!”

Jack Groetzinger, cofounder of ticket sales platform SeatGeek, testified that the process of buying tickets is “antiquated and ripe for innovation” and called for the breakup of Live Nation and Ticketmaster, which merged in 2010.

“As long as Live Nation remains both the dominant concert promoter and ticketer of major venues in the U.S., the industry will continue to lack competition and struggle,” he told lawmakers.

Ticketmaster has argued that the bots used by scalpers were behind the Taylor Swift debacle, and Berchtold asked for more help in fighting the bots that buy tickets for resale.

Other witnesses include Jerry Mickelson, president of JAM Productions, who has been among critics of Ticketmaster.

In November, Ticketmaster canceled a planned ticket sale to the general public for Swift’s tour after more than 3.5 billion requests from fans, bots and scalpers overwhelmed its website.

Senator Klobuchar, who heads the Judiciary Committee’s antitrust panel, has said the issues that cropped up in November were not new and potentially stemmed from consolidation in the ticketing industry.

In November, Ticketmaster denied any anticompetitive practices and noted it remained under a consent decree with the Justice Department following its 2010 merger with Live Nation, adding that there was no “evidence of systemic violations of the consent decree.”

A previous Ticketmaster dispute with the Justice Department culminated in a December 2019 settlement extending the consent agreement into 2025.

Reporting by Diane Bartz, Moira Warburton and David Shepardson; editing by Jonathan Oatis

Our Standards: The Thomson Reuters Trust Principles.

Diane Bartz

Thomson Reuters

Focused on U.S. antitrust as well as corporate regulation and legislation, with experience involving covering war in Bosnia, elections in Mexico and Nicaragua, as well as stories from Brazil, Chile, Cuba, El Salvador, Nigeria and Peru.

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Zelenskiy flags shake-up after corruption allegations

  • Zelenskiy says changes coming in government, regions Corruption allegations are most high-profile of war
  • Ex-economy minister praises government response
  • Ruling party boss threatens officials with jail

KYIV, Jan 23 (Reuters) – Ukrainian President Volodymyr Zelenskiy said on Monday that changes would be announced imminently in the government, the regions and in the security forces following allegations of corruption nearly a year into Russia’s invasion.

Zelenskiy, elected by a landslide in 2019 on pledges to change the way government operated, did not identify in his nightly video address the officials to be replaced.

“There are already personnel decisions – some today, some tomorrow – regarding officials of various levels in ministries and other central government structures, as well as in the regions and in the law enforcement system,” Zelenskiy said.

The president said part of the crackdown would involve toughening oversight on travelling abroad for official assignments.

Ukrainian media outlets have reported that a number of cabinet ministers and senior officials could be sacked as Zelenskiy tries to streamline the government.

One of the president’s top allies earlier said corrupt officials would be “actively” jailed, setting out a zero-tolerance approach after the allegations came to light.

HISTORY OF CORRUPTION

Ukraine has a long history of corruption and shaky governance, though there have been few examples since last year’s invasion as Kyiv has sought Western financial and military support to help fight back Russian forces.

Anti-corruption police on Sunday said they had detained the deputy infrastructure minister on suspicion of receiving a $400,000 kickback to facilitate the import of generators into wartime Ukraine last September.

A committee of parliament agreed on Monday to toughen regulations on procurement after allegations in news reports that the defence ministry had overpaid suppliers for soldiers’ food. A draft law was to be introduced on partially making procurement prices public in times of conflict.

Defence Minister Oleksiy Reznikov, quoted by media, told the committee that the reports were based on a “technical error” with no money changing hands.

The National Anti-Corruption Bureau said it was aware of the media report and that it was investigating the possible crime of appropriation of funds or abuse of power with regard to procurement worth over 13 billion hryvnia ($352 million).

David Arakhamia, head of Zelenskiy’s Servant of the People party, said it had been made clear since Russia’s invasion that officials should “focus on the war, help victims, cut bureaucracy and stop dubious business”.

“Many of them got the message. But many of them did not unfortunately. We’re definitely going to be jailing actively this spring. If the humane approach doesn’t work, we’ll do it in line with martial law,” he said.

Timofiy Mylovanov, a former minister for the economy, trade and agriculture, praised the government’s “proactive and very fast” response to the allegations. He said the deputy infrastructure minister had been immediately fired and pointed to society’s “unprecedented” level of attention in the matter.

Ukraine, whose economy shrank by a third last year, is hugely dependent on Western financial aid and donors such as the International Monetary Fund and EU have repeatedly asked for more transparency and better governance.

($1 = 36.9250 hryvnias)

Reporting by Tom Balmforth and Olena Harmash; Editing by Peter Graff and Stephen Coates

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Ukraine pledges sweeping personnel changes as allies jostle over tanks

  • Zelenskiy promises changes amid corruption scandal
  • Poland says it is planning to send Leopard tanks to Ukraine
  • Germany hints at tank export approval as allies apply pressure

KYIV, Jan 24 (Reuters) – Ukrainian President Volodymyr Zelenskiy said personnel changes were being carried out at senior and lower levels, following the most high-profile graft allegations since Russia’s invasion that threaten to dampen Western enthusiasm for the Kyiv government.

Reports of a fresh scandal in Ukraine, which has a long history of shaky governance, come as European countries bicker over giving Kyiv German-made Leopard 2 tanks – the workhorse of armies across Europe that Ukraine says it needs to break through Russian lines and recapture territory.

“There are already personnel decisions – some today, some tomorrow – regarding officials at various levels in ministries and other central government structures, as well as in the regions and in law enforcement,” Zelenskiy said in his nightly video address on Monday.

Zelenskiy, who did not identify the officials to be replaced, said his plans included toughening oversight on travelling abroad for official assignments.

Several Ukrainian media outlets have reported that cabinet ministers and senior officials could be sacked imminently.

On Sunday, anti-corruption police said they had detained the deputy infrastructure minister on suspicion of receiving a $400,000 kickback over the import of generators last September, an allegation the minister denies.

A newspaper investigation accused the Defence Ministry of overpaying suppliers for soldiers’ food. The supplier has said it made a technical mistake and no money had changed hands.

David Arakhamia, head of Zelenskiy’s Servant of the People party, said officials should “focus on the war, help victims, cut bureaucracy and stop dubious business”.

“We’re definitely going to be jailing actively this spring. If the humane approach doesn’t work, we’ll do it in line with martial law,” he said.

‘SPRING WILL BE DECISIVE’

On the battlefront, front lines have been largely frozen in place for two months despite heavy losses on both sides.

Ukraine says Western tanks would give its ground troops the firepower to break Russian defensive lines and resume their advance. But Western allies have been unable to reach an agreement on arming Kyiv with tanks, wary of moves that could cause Moscow to escalate.

Berlin, which must approve Leopard re-exports, has said it is willing to act quickly if there is a consensus among allies.

Polish Prime Minister Mateusz Morawiecki, whose country borders Ukraine, said Warsaw would seek permission to send Leopard tanks to Kyiv and was trying to get others on board.

Germany is not blocking the re-export of Leopard tanks to Ukraine, the European Union’s top diplomat said on Monday.

American lawmakers have pressed their government to export M1 Abrams battle tanks to Ukraine, saying even a symbolic number would help push European allies to do the same.

Britain has said it will supply 14 Challenger 2 tanks. French President Emmanuel Macron said he did not rule out the possibility of sending Leclerc tanks.

Moscow sought to apply its own pressure.

“All countries which take part, directly or indirectly, in pumping weapons into Ukraine and in raising its technological level bear responsibility” for continuing the conflict, Kremlin spokesperson Dmitry Peskov said.

Ukraine and Russia are both believed to be planning spring offensives to break the deadlock in what has become a war of attrition in eastern and southern Ukraine.

“If the major Russian offensive planned for this time fails, it will be the ruin of Russia and Putin,” Vadym Skibitsky, deputy head of Ukraine’s military intelligence, said in an interview with news site Delfi.

One person was killed and two injured in Russian shelling of a residential district of the town of Chasiv Yar on Monday that damaged at least nine high-rise buildings, Pavlo Kyrylenko, governor of Donetsk region, said on Telegram.

“The Russians are deliberately terrorizing and killing the civilian population. And they will pay dearly for this,” he said.

Reuters could not independently verify battlefield reports.

‘ACTING AGAINST THE WEST’

In the 11 months since invading Ukraine, Russia has shifted its rhetoric on the war from an operation to “denazify” and “demilitarise” its neighbour to casting it as defence against an aggressive West. Kyiv and its Western allies call it an unprovoked act of aggression.

On Monday, the new general in charge of Russia’s military operations in Ukraine warned that modern Russia had never seen such “intensity of military hostilities”, forcing it to carry out offensive operations.

“Our country and its armed forces are today acting against the entire collective West,” Chief of the General Staff Valery Gerasimov told the news website Argumenty i Fakty.

Military reforms, announced mid-January, could be adjusted to respond to threats to Russia’s security, which include Sweden and Finland’s aspirations to join NATO and “the use of Ukraine as a tool for waging a hybrid war against our country,” he said.

Ukraine imposed sanctions on 22 Russians associated with the Russian Orthodox Church for what President Zelenskiy said was their support of genocide under the cloak of religion.

Reporting by Reuters bureaus; writing by Costas Pitas and Himani Sarkar; Editing by Stephen Coates

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Ex-FBI official worked for sanctioned Russian oligarch, prosecutors say

NEW YORK, Jan 23 (Reuters) – A former top FBI official was charged on Monday with working for sanctioned Russian oligarch Oleg Deripaska, as U.S. prosecutors ramp up efforts to enforce sanctions on Russian officials and police their alleged enablers.

Charles McGonigal, who led the FBI’s counterintelligence division in New York before retiring in 2018, pleaded not guilty to four criminal counts including sanctions violations and money laundering at a hearing in Manhattan federal court.

He was released on $500,000 bond, following his arrest over the weekend.

Prosecutors said McGonigal, 54, in 2021 received concealed payments from Deripaska, who was sanctioned in 2018, in exchange for investigating a rival oligarch.

McGonigal was also charged with unsuccessfully pushing in 2019 to lift sanctions against Deripaska.

Sanctions “must be enforced equally against all U.S. citizens in order to be successful,” FBI Assistant Director in Charge Michael Driscoll said in a statement. “There are no exceptions for anyone, including a former FBI official.”

Separately on Monday, federal prosecutors in Washington said McGonigal received $225,000 in cash from a former member of Albania’s intelligence service, who had been a source in an investigation into foreign political lobbying that McGonigal was supervising.

McGonigal faces nine counts in that case, including making false statements to conceal from the FBI the nature of his relationship with the person.

“This is obviously a distressing day for Mr McGonigal and his family,” the defendant’s lawyer Seth DuCharme told reporters after the Manhattan hearing. “We’ll review the evidence, we’ll closely scrutinize it, and we have a lot of confidence in Mr McGonigal.”

Deripaska, the founder of Russian aluminum company Rusal (RUAL.MM), was among two dozen Russian oligarchs and government officials blacklisted by Washington in 2018 in reaction to Russia’s alleged meddling in the 2016 U.S. election.

He and the Kremlin have denied any election interference.

Also charged in the Manhattan case was Sergey Shestakov, a former Soviet diplomat who later became an American citizen and Russian language interpreter for U.S. courts and government agencies.

Prosecutors said Shestakov he worked with McGonigal to help Deripaska, and made false statements to investigators.

Shestakov pleaded not guilty on Monday and was released on $200,000 bond.

The enforcement of sanctions are part of U.S. efforts to pressure Moscow to stop its war in Ukraine, which the Kremlin calls a “special military operation.”

Deripaska was charged last September with violating the sanctions against him by arranging to have his children born in the United States.

The following month, British businessman Graham Bonham-Carter was charged with conspiring to violate sanctions by trying to move Deripaska’s artwork out of the United States.

Deripaska is at large, and Bonham-Carter is contesting extradition to the United States.

Reporting by Luc Cohen in New York; Editing by Rosalba O’Brien, Bill Berkrot, Jonathan Oatis and Marguerita Choy

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Luc Cohen

Thomson Reuters

Reports on the New York federal courts. Previously worked as a correspondent in Venezuela and Argentina.

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Feds seized nearly $700 million from FTX founder Bankman-Fried

Jan 20 (Reuters) – Federal prosecutors have seized nearly $700 million in assets from FTX founder Sam Bankman-Fried in January, largely in the form of Robinhood stock, according to a Friday court filing.

Bankman-Fried, who has been accused of stealing billions of dollars from FTX customers to pay debts incurred by his crypto-focused hedge fund, has pleaded not guilty to fraud charges. He is scheduled to face trial in October.

The Department of Justice revealed the seizure of Robinhood shares earlier this month, but it provided a more complete list of seized assets Friday, including cash held at various banks and assets deposited at crypto exchange Binance.

The ownership of the seized Robinhood shares, valued at about $525 million, has been the subject of disputes between Bankman-Fried, FTX, and bankrupt crypto lender BlockFi.

The most recent asset seizure reported by the DOJ took place on Thursday, when prosecutors seized $94.5 million in cash from an account at Silvergate Bank which was associated with FTX Digital Markets, FTX’s subsidiary in the Bahamas. The DOJ seized more than $7 million from other Silvergate accounts associated with Bankman-Fried and FTX.

The DOJ previously seized nearly $50 million from an FTX Digital Markets account at Moonstone Bank, a small bank in Washington state.

DOJ also said that assets in three Binance accounts associated with Bankman-Fried were subject to criminal forfeiture, but did not provide an estimate of the value in those accounts.

Reporting by Dietrich Knauth; Editing by Noeleen Walder and Daniel Wallis

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T-Mobile says investigating data breach involving 37 mln accounts

Jan 20 (Reuters) – T-Mobile (TMUS.O), the No.3 U.S. wireless carrier by subscribers, said on Thursday it was investigating a data breach involving 37 million postpaid and prepaid accounts and that it could incur significant costs related to the incident.

The company, which has more than 110 million subscribers, said it identified malicious activity on Jan. 5 and contained it within a day, adding that no sensitive data such as financial information was compromised.

However, some basic customer data — such as name, billing address, email and phone number — was obtained, and it had begun notifying impacted customers, said T-Mobile.

“Our investigation is still ongoing, but the malicious activity appears to be fully contained at this time, and there is currently no evidence that the bad actor was able to breach or compromise our systems or our network,” the company said.

The U.S. Federal Communications Commission (FCC) has opened an investigation into the data breach, the Wall Street Journal reported on Thursday, citing an FCC spokesperson.

FCC and T-Mobile did not immediately respond to Reuters’ requests for comment on the reported investigation.

“While these cybersecurity breaches may not be systemic in nature, their frequency of occurrence at T-Mobile is an alarming outlier relative to telecom peers,” said Neil Mack, senior analyst for Moody’s Investors Service.

“It could negatively impact customer behavior, cause churn to spike and potentially attract the scrutiny of the FCC and other regulators.”

Last year, T-Mobile agreed to pay $350 million and spend an additional $150 million to upgrade data security to settle litigation over a cyberattack in 2021 that compromised information belonging to an estimated 76.6 million people.

The Bellevue, Washington-based company’s shares fell 2% in after-hours trade.

Reporting by Eva Mathews and Lavanya Ahire in Bengaluru; Editing by Sriraj Kalluvila, Maju Samuel, Rashmi Aich and Savio D’Souza

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Vietnam president quits as Communist Party intensifies graft crackdown

  • President highest-profile casualty of graft crackdown
  • Phuc blamed for conduct of officials under him
  • Hundreds of officials hit by ‘blazing furnace’ campaign
  • Phuc’s downfall widely expected

HANOI, Jan 17 (Reuters) – Vietnam President Nguyen Xuan Phuc has resigned after the ruling Communist Party blamed him for “violations and wrongdoing” by officials under his control, the government said on Tuesday, in a major escalation of the country’s anti-graft campaign.

Phuc, a former prime minister widely credited with accelerating pro-business reforms, held the largely ceremonial post of president since 2021 and is the highest-ranking official targeted by the party’s sweeping corruption crackdown.

Vietnam has no paramount ruler and is officially led by four “pillars”: the party’s secretary, the president, prime minister and speaker of the house.

Phuc, 68, was ultimately responsible for offences committed by many officials, including two deputy prime ministers and three ministers, the government said.

“Fully being aware of his responsibilities before the party and people, he submitted an application to resign from his assigned positions, quit his job and retire,” it said in statement.

Phuc’s office could not immediately be reached for comment and it was not clear if a replacement has been chosen.

Vietnam has been rife with speculation he would be removed following January’s dismissal of two deputy prime ministers who served under him, as the party doubles down on a “blazing furnace” anti-corruption drive led by its powerful long-serving chief, Nguyen Phu Trong.

Last year, 539 party members were prosecuted or “disciplined” for corruption and “deliberate wrongdoings”, including ministers, top officials and diplomats, according to the party, while police investigated 453 corruption cases, up 50% from 2021.

Trong earlier this month said the party was “more determined” and “more effective and methodical” in its approach, and vowed to deliver results.

IMPACT UNCERTAIN

Opinions vary on the impact of the anti-graft drive on investment and policy.

Le Hong Hiep of the Vietnam Studies Programme at the Singapore’s ISEAS-Yusof Ishak Institute said the purge could pave the way for cleaner more capable leaders to rise.

“As long as the leadership reshuffles do not lead to radical policy changes, their impact on the economy will also be limited,” Hiep posted on his Facebook account.

However, Ha Hoang Hop, a senior visiting fellow at the same institute, said Phuc’s demise and uncertainty over the impact of the crackdown could unnerve investors.

“This could lead Vietnam to a time of instability that would worry foreign friends and investors,” he said.

Phuc’s resignation requires approval from the legislature, which sources on Monday said would hold a rare extraordinary meeting this week, adding to expectation that Phuc’s fate had been sealed.

Phuc, who was known in Vietnam for his friendly approach and love for the national soccer team, was once tipped as a future party General Secretary, the state’s most prestigious job.

As prime minister from 2016 to 2021, he oversaw an average 6% annual economic growth for Asia’s burgeoning manufacturing powerhouse and helped further a liberalisation drive that included trade deals with the European Union and Pacific powers.

Despite his downfall, the government on Tuesday praised his achievements, particularly his pandemic response.

“He has made great efforts in leading, directing and administering the COVID-19 epidemic prevention and control, achieving important results,” it said.

Editing by Kanupriya Kapoor and Martin Petty

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Donald Trump’s company to be sentenced for 15-year tax fraud

NEW YORK, Jan 13 (Reuters) – Donald Trump on Friday will learn how the company that bears the former U.S. president’s name will be punished after being found guilty of scheming to defraud tax authorities for 15 years.

A New York state judge will impose the sentence after jurors in Manhattan found two Trump Organization affiliates guilty of 17 criminal charges last month.

The sentencing comes three days after Justice Juan Merchan of the Manhattan criminal court ordered Allen Weisselberg, who worked for Trump’s family for a half-century and was the company’s former chief financial officer, to jail for five months after he testified as the prosecution’s star witness.

Trump’s company faces only a maximum $1.6 million penalty, but has said it plans to appeal. No one else was charged or faces jail time in the case.

Manhattan District Attorney Alvin Bragg’s office, which brought the case, is still conducting a criminal probe into Trump’s business practices.

Bill Black, a professor at the University of Missouri-Kansas City School of Law specializing in white-collar crime, called the expected penalty a “rounding error” that offers “zero deterrence” to others, including Trump.

“This is a farce,” he said. “No one will stop committing these kinds of crimes because of this sentence.”

The case has long been a thorn in the side of the Republican former president, who calls it part of a witch hunt by Democrats who dislike him and his politics.

Trump also faces a $250 million civil lawsuit by state Attorney General Letitia James accusing him and his adult children Donald Trump Jr., Ivanka Trump and Eric Trump of inflating his net worth and the value of his company’s assets to save money on loans and insurance.

Bragg and James are Democrats, as is Bragg’s predecessor Cyrus Vance, who brought the criminal case. Trump is seeking the presidency in 2024, after losing his re-election bid in 2020.

At a four-week trial, prosecutors offered evidence that Trump’s company covered personal expenses such as rent and car leases for executives without reporting them as income, and pretended that Christmas bonuses were non-employee compensation.

Trump himself signed bonus checks, prosecutors said, as well as the lease on Weisselberg’s luxury Manhattan apartment and private school tuition for the CFO’s grandchildren.

“The whole narrative that Donald Trump was blissfully ignorant is just not real,” Assistant District Attorney Joshua Steinglass told jurors in his closing argument.

Weisselberg’s testimony helped convict the company, though he said Trump was not part of the fraud scheme. He also refused to help Bragg in his broader investigation into Trump.

The Trump Organization had put Weisselberg on paid leave until they severed ties this week. His lawyer said the split, announced on Tuesday, was amicable.

Weisselberg, 75, is serving his sentence in New York City’s notorious Rikers Island jail.

State law limits the penalties that Justice Merchan can impose on Trump’s company. A corporation can be fined up to $250,000 for each tax-related count and $10,000 for each non-tax count.

Trump faces several other legal woes, including probes related to the Jan. 6, 2021, attack on the U.S. Capitol, his retention of classified documents after leaving the White House, and efforts to overturn his 2020 election loss in Georgia.

Reporting by Karen Freifeld and Jonathan Stempel; editing by Jonathan Oatis

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