How to steal billions. Ten of the world's largest banking fraud

The scandal at the French bank Societe Generale, which lost about € 7 billion by the actions of trader Jerome chervil, many media touted as the biggest fraud in history. In our ranking of the largest bank frauds, it is close to the truth.

In tenth place in the world ranking - the largest bank fraud in the history of Vietnam. The scandal broke out in March 1997, when it became aware of the arrest in Ho Chi Minh City businessman named Tang Minh Phung, for failing to pay on the loan of the State Bank of Foreign Trade of Vietnam (Vetkombankom).
Was arrested at the same time his business partner, director of the state company "Epko" Lien Khyu Thein. Companions, or rather associates throughout the 90s were actively engaged in land speculation, using the rapid growth of the real estate market. With the assistance of corrupt bankers Vetkombanka and Industrial and Commercial Bank of Vietnam (Incombank) they received large loans to a network of front companies.
Stagnation in the real estate market turned for fraud fiasco. Show trial Tang Ming Fung and Lien Khyu Tahini, and another 75 defendants in the case in large fraud socialist ownership over traditional socialist countries harsh sentence. Tang Minh Phung, Lien Khyu Thin and four other defendants were sentenced to death, the others - to various terms of imprisonment.
Four of the bombers managed to pardon and replace the sentence to life imprisonment, and Tang Minh Phung Ho Chi Minh City Branch and Deputy Incombank Pham Nhat Hong were shot. The total damage suffered by the two state-owned banks has been assessed in this process is not less than $ 280 million
  In ninth place ranking - a scam in the Bank of China, dating back to 2004, but made public in 2006. Two former branch manager of the State Bank in the city of Kaiping Xu and Xu Chaofan Guodzhun who had taken in 1992-2001 almost half a billion dollars, could hardly expect any other verdict than firing, if they were caught in the homeland.
But namesakes fraud had the sense not only to translate the stolen $ 485 million in the accounts of front companies in Hong Kong and do their washing in Macau casinos, and Las Vegas, but to marry a U.S. citizen. Although both marriages were recognized fictitious trial Xu were both already in the United States. The trial was due to start this year. But in any case, the defendants can not doubt that the verdict would be more humane than the U.S. court verdict possible Chinese.
 In eighth place ranking - John Rusnak, a currency trader at Allfirst Financial, a scandal at the time (in 2002) is the U.S. subsidiary of the second largest bank of Ireland Allied Irish Banks. Like several other traders whose names can also be seen in our ranking, Rusnak initially caused heavy damage to the bank for its operations in currency futures, and then went on fraud, hoping to make good the damage by risky speculation. In 2003, Rusnak was sentenced to seven and a half years in prison.
 Sixth place ranking divide (with $ 1.1 billion), two cases of bank fraud. Thus, in 2006, China has published the results of an audit of the state of the Agricultural Bank of China in 2004. The $ 1.1 billion auditors evaluated only irrevocable damage from 51 fraudulent. To this we may add other financial irregularities - when the deposits ($ 1.8 billion) and loans ($ 3.5 billion). The crime followed a purely Chinese sentences. 64 bank employees were fired and put on trial 21, 1331 was subjected to disciplinary measures.
 As can be seen from the rankings, the Japanese one is quite capable to do something that had created thousands of Chinese - to deliver its fraud damages of $ 1.1 billion True, executive vice president of the American branch of a Japanese bank Daiwa Toshihide Iguchi it took 11 years. Iguchi fraud facilitated by the fact that he not only traded on the stock exchange of public U.S. Treasury bonds, but at the same time in his office responsible for the control of financial transactions.
Then it was like in the case of the Rusnak - loss of inept actions and fraud to cover up violations and compensate for the damage. In 1995, Iguchi confessed to their violations in a letter to the bank's management. The bank tried to hush up the case, which led to him to adverse effects: Daiwa was forbidden to carry out operations in the U.S.. Yes, of course, such fraud can not be compared with thoughts of domestic villains who turned the idea on how to profit from such services as transportation ATM Moscow.
  In fifth position - another rogue trader, Nick Leeson. In the Singapore branch of the British bank Barings, he worked primarily on transactions in futures contracts on stock index Nikkei. The events unfolded on the above-described scenario. Failed speculation, and then fake documentation to cover up violations and new, riskier, more large-scale operations in order to compensate for the damage. Leeson managed to hide losses from 1992 to 1995. The earthquake in the Japanese city of Kobe, the Nikkei has fallen off and led to the loss of Leeson, surpassing the capital of the bank Barings. Singapore trader fled, leaving a note "I` m sorry ", but was arrested and extradited. Singapore court sentenced him to six and a half years in prison, of which he spent four and was free after he was diagnosed with colon cancer.
  The fourth-largest banking fraud in history was recorded in the Dominican Republic. An amount of $ 2.2 billion - and so much lost Banco Intercontinental - not bad by the standards of any country. For the Dominican Republic, it was the equivalent of two thirds of the budget for 2003 - a year when the bank collapsed. Transition failed bank under government control has led to a 30 per cent inflation, currency devaluation, riots.
The investigation showed that, roughly speaking, a bank robbing majority owner of its shares Baets Figueroa and several top managers. At the trial of the perpetrators in the collapse of the bank, not only by allegations of fraud and money laundering and concealment of financial information from regulators (all computers in a specific bank's operating system, through which most of the operations has been hidden from the possible checks). Court decision Baets Figueroa was sentenced to ten years in prison. Sentence his cousin and part-vice-president of the bank Marcos Baetsu Cocco still out, the remaining defendants were acquitted for lack of evidence.
  Third place in the ranking is a scandal in the fourth-largest Austrian bank Bank Fuer Arbeit und Wirtschaft AG, owned by the Austrian Trade Union Federation. The scandal that erupted in 2006 and is still far from over: currently ongoing trial. This case of fraud can be divided into two main stories. First, the bank lost about € 1 billion in foreign exchange transactions, and provided a loan to the former chief executive of U.S. brokerage Refco Inc. immediately prior to the bankruptcy.
In a case involving two former directors of the bank, investment banker Wolfgang Flatley and auditor Robert Reiter. One of the ex-directors, 71-year-old Helmut Elsner, who sought refuge in France, but was granted Austrian justice in original conditions. He was taken home in a special medical plane equipped with medical equipment for cardiac patients, as Elsner tried to challenge the issue in court, referring to the state of health.
  In second place, we finally see Societe Generale and Jerome chervil. The biggest fraud in the banking industry in its history this case can not be considered, however, deserves the title of "bank fraud of the century" as a scam to head our list belongs to the past century.
So, in the first place - the collapse of Bank of Credit and Commerce International in 1991. In the list of charges, sounded to the bank after its collapse, not only banal financial fraud (but on a large scale), but also tax evasion, money laundering, bribery, support of international terrorism, involvement in the arms trade and nuclear technology. The bank's assets at the time of its bankruptcy was estimated at $ 25 billion, but failed to detect about half that amount.