Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Thai court jails banker Rakesh Saxena over 1990s crisis-era fraud

 

Amy Sawitta Lefevre
Friday 08 June 2012 09:54 BST
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

A Thai court jailed an Indian financier for 10 years today for massive embezzlement that helped bankrupt a Thai bank in the mid-1990s and spark a crisis in the financial sector that spread through Asia in 1997.

Rakesh Saxena, 59, was found guilty on five counts of securities fraud between 1992 and 1995, having siphoned off tens of millions of dollars from the now defunct Bangkok Bank of Commerce, where he was employed as an adviser.

The scandal that engulfed Bangkok Bank of Commerce caused a run on bank deposits and led to the bank's collapse, contributing to the devaluation of the baht and the regional crisis. Saxena was arrested in 1996 but was extradited from Canada only in 2009.

The Bangkok South Criminal Court heard how Saxena had set up 60 businesses in Thailand and used them to secure loans from the bank to cover debts and running costs, but instead channelled the money into personal accounts, mostly in Switzerland.

"The defendant clearly demonstrated his intention to take funds from the damaged party to invest for his own personal use, depositing the funds into several overseas accounts," the judge said in reading the verdict.

Estimates of the money he stole from the bank vary from $60 million (£38.9 million) to $82 million. The court did not give a total.

Saxena, wearing orange prison fatigues and in a wheelchair, appeared frail and confused as the sentence was passed. He was also ordered to pay 1.13 billion baht (£23.2 million) in damages and a 1 million baht fine.

AP

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in