On Thursday, Denmark’s state prosecutor charged the former manager of OW Bunker’s Singapore subsidiary with fraud but the management was cleared off its criminal wrongdoing.
The subsidiary valued at $1 billion, suffered massive loss and filed for bankruptcy in November 2014.
Manager charged for fraud:
The prosecutor has accused the former manager for committing the crime by granting credit well over his mandate of $123 million.
The former head of Dynamic Oil Trading was Lars Moller. His lawyer, Arvid Andersen, could not immediately be reached for comments.
The prosecutor said it had not found any legal grounds for the criminal prosecution of other members of management within the OW Bunker group.
Accused of credit exaggeration:
“In Singapore, this manager of the subsidiary has single-handed committed these credit exaggerations,” state prosecutor for serious economic and international crime, Niels Vejlby Hansen, told Reuters.
“There had been several suspects in the mother company but our investigation shows that this has happened in the subsidiary,” he said.
Partners try to cover losses:
The bankruptcy sent shockwaves across the global shipping industry and left investors and business partners scrambling to cover their losses.
Hansen said claims for damages could be put forward as part of the trial though the judge could reject claims if they became “too complicated” and instead refer the matter to a civil court.
Further claims:
A group of 26 institutional investors, including two of the largest pension funds in Denmark, ATP and PFA, is also waging a legal campaign against the former management of OW Bunker for allegedly misleading them in its 2014 initial public offering.
Rasmus Bessing, COO, PFA asset management said, “I don’t think it weakens our case, if he is sentenced or imprisoned. On the contrary, we think there is a civil responsibility, and that is what we’re pursuing in regard to the board,” said Rasmus Bessing, chief operating officer at PFA Asset Management.
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Source: Reuters
