Criminal charges against banking ‘cartels’ show Australia is getting tough on competition law

Barbora Jedlickova, The University of Queensland

A two-year probe by Australia’s consumer watchdog has resulted in criminal charges against ANZ, Citigroup and Deutsche Bank, as well as six of their senior executives, over alleged “cartel-like” behaviour.

The case, brought by the Commonwealth Director of Public Prosecutions (CDPP) after an investigation by the Australian Competition and Consumer Commission (ACCC), is the second prosecution of its kind to be brought in Australia since competition laws were tightened almost a decade ago.

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Read more:
Cartel case shows not all corporate misbehaviour goes unpunished

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The banks and six investment bankers are charged with cartel conduct related to the sale of A$2.5 billion worth of unsold ANZ shares to investors in August 2015. The ACCC alleges that senior executives from the three banks colluded in the way they dealt with these shares.

The exact details of the alleged criminal conduct will only become clear at a Sydney court hearing on July 3, 2018.

What is cartel behaviour?

Cartels are forms of anti-competitive conduct where cartel participants decide to stop competing and start colluding. Australian civil law has banned cartels for decades. But the practice only became a criminal offence in 2010. Only its serious forms are subject to criminal law; civil law still governs the rest.

Cartels can take different forms. In the most common instance, participants collude by setting their prices. Other forms include: output restrictions; dividing markets among cartel participants on mutually agreed terms; and bid-rigging, in which a commercial contract is decided in advance but other operators put in sham bids to give the appearance of competition.

There is one primary reason why businesses or executives would stop competing and start colluding: profit. In short, cartel participants cheat to get more money, creating higher prices and lower output in the process. This disadvantages consumers, the economy and society at large.

But proving criminal collusion in a court is harder than it might seem.

Beyond reasonable doubt

Although we need to wait for the case to unfold to find out more, what we can tell at this stage is that the ACCC and the CDPP perceive the alleged conduct as serious enough for it to constitute a criminal case. Criminal cases are harder to prove than civil cases. Cartel collusion must be proved beyond reasonable doubt, and the evidence has to show that the individuals involved knew (or believed) that they were colluding.

What these charges also show is that the ACCC and the CDPP are prepared to go after the most powerful corporations and their executives for alleged cartel-like conduct. This is an enormously important step for deterrence, because criminal charges are naturally more attention-grabbing than civil lawsuits.

Charging high-ranking bank executives will potentially make the deterrent more effective still, because high-ranking executives set the cultural tone for their organisations.

Research has shown that significant prison time – or the threat of it – for individuals is a more effective deterrent than civil penalties; especially if the penalties are not high enough, as was argued in the recent OECD report on corporate penalties for cartels in Australia. The report showed that the penalties applied in Australia were low in comparison with competition law regimes in the European Union and the United States.

Just the beginning?

This is the second Australian criminal case of cartel conduct – the first involved a Japanese company shipping cars to Australia. We can reasonably expect more of these kinds of charges in the future, given that the laws are only eight years old and investigations of this type typically take years to reach fruition. (The alleged cartel conduct in the latest case took place in August 2015, almost three years ago.)

There are differences in investigation procedures between criminal and civil cases, to ensure that collected pieces of evidence are admissible in a criminal proceeding. It is ultimately the CDPP’s (and not the ACCC’s) decision whether or not to prosecute.

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Read more:
Cartels caught ripping off Australian consumers should be hit with bigger fines

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The final step is for criminal proceedings to be prosecuted. The first cartel criminal case, which concerned the shipping industry, can be perceived as successful, with two global shipping companies pleading guilty.

It is still early days for Australia in terms of tracking down and punishing examples of cartel behaviour via criminal prosecutions. But the latest developments suggest that Australia is prepared to follow the example of the world leader in successful cartel-related criminal prosecutions: the United States.

The US criminal regime is one of the oldest in the world, having existed since 1890. The US boom of cartel-related criminal cases began in the late 1990s with the lysine cartel and the vitamin cartel and with the first foreign national being sentenced to imprisonment in July 1999. One of the first criminal cartel investigations inspired the production of the 2009 movie The Informant!.

The numbers further illustrate the success of the US criminal prosecutions. For instance, 27 corporations and 82 individuals were charged in the fiscal year 2011. Australia has a long way to go before it can match those numbers.

Barbora Jedlickova, Lecturer, School of Law, The University of Queensland

This article was originally published on The Conversation. Read the original article.

Europe: The Islamic Rape Epidemic

The link below is to an article that reports on what it calls the Muslim Rape Epidemic in northern Europe. Certainly from the report there would appear to be a major issue that needs to be addressed. Certainly I do not for a moment want to imply that all Muslims are to be tainted with this criminal behaviour, as it is similar to Islamic terrorism – a minority and not the entirety.

For more visit:
http://www.wnd.com/2012/07/finally-muslim-rape-epidemic-in-spotlight/

Mexico: Latest Persecution News

The link below is to an article that reports on the sickening attack on a church youth group in Mexico.

For more visit:
http://www.christiantelegraph.com/issue16912.html

Latest Persecution News – 11 March 2012

Church Head in Unprecedented Meeting with Turkish MPs

The following article reports on the meeting of the head of the Greek Orthodox Church in Turkey with members of the Turkish government over the future of Christianity in that country.

http://www.compassdirect.org/english/country/turkey/article_1420539.html

 

Pakistani Muslims Employ ‘Blasphemy’ Threat in Land Grab

The following article reports on the threat of blackmail by Muslims in a dispute with Christians in the Punjab, Pakistan.

http://www.compassdirect.org/english/country/pakistan/article_1420922.html

 

Indictment of ‘Masterminds’ of Murders in Turkey Expected

The following article reports on the continuing criminal investigation and trial associated with the murder of Turkish Christians Necati Aydin and Ugur Yuksel and German Christian Tilmann Geske in 2007.

http://www.compassdirect.org/english/country/turkey/article_1421958.html

 

The articles linked to above are by Compass Direct News and  relate to persecution of Christians around the world. Please keep in mind that the definition of ‘Christian’ used by Compass Direct News is inclusive of some that would not be included in a definition of Christian that I would use or would be used by other Reformed Christians. The articles do however present an indication of persecution being faced by Christians around the world.

Persecution News: What was Missed While on My Break – Part 4

The following are articles from Compass Direct News from the period I was on my break:

• Authorities, Islamists in Egypt Stop Church From Re-Opening – 20 May 2011

• Christian Woman in Darfur, Sudan Arrested for Evangelizing – 24 May 2011

• Provincial Officials in Algeria Orders Churches to Close – 25 May 2011

• Algerian Christian Sentenced Beyond Prosecutor’s Request – 30 May 2011

• Police Reluctant to Prosecute Attack on Pakistan Church – 1 June 2011

• Nepal Plans New Criminal Code Forbidding Evangelism – 2 June 2011

• India Briefs: Recent Incidents of Persecution – 7 June 2011

 

Nepal Church Bomber Faked Repentance

Imprisoned chief of Hindu militant group used Christianity to cover up extortion, terror.

KATHMANDU, Nepal, April 4 (CDN) — The chief of a militant Hindu extremist group sought to disguise his extortion and terror activities from behind bars by claiming he had repented of bombing a church in Nepal and showing interest in Christianity, according to investigators.

The revelation emerged when Nepal’s premier investigation agency foiled a plot to explode a series of bombs devised by Ram Prasad Mainali, former chief of the Hindu militant outfit Nepal Defence Army (NDA), in the capital city of Kathmandu. Police on March 4 arrested six cohorts of Mainali carrying powerful “socket bombs” – home-made, hand grenade-type weapons made from plumbing joints – and high-explosive powder, to be used as part of a plan to extort money from industrialists, The Himalayan Times reported.

In an interview last year, Mainali had told Compass that his interaction with Christians inside jail in Kathmandu’s Nakkhu area had led him to repent of his deeds and read the Bible (see “Bomber in Nepal Repents, Admits India Link,” Jan. 4, 2010). Mainali was arrested on Sept. 5, 2009 for exploding a bomb in a Catholic parish in Kathmandu, Our Lady of the Assumption, which killed a teenager and a newly married woman and injured more than a dozen others on May 23 of that year.

Prior to the Compass interview, Mainali had sent a handwritten letter from the prison to a monthly Christian newsmagazine in Nepal, Hamro Ashish (Our Blessing), saying he regretted having attacked Christians.

A local Christian worker who had known Mainali said the church bomber used Christianity to evade police surveillance.

“I was disheartened when I recently learned that Mainali had threatened some pastors with violent attacks, demanding protection money from them,” he told Compass on condition of anonymity.

The source said Mainali threatened him and pastors he knew by phone. He suspected that a fellow prisoner, Jeevan Rai Majhi, previously considered a convert to Christianity, had given the pastors’ phone numbers to Mainali. Majhi, formerly a notorious criminal, had allegedly accepted Christ inside the prison, and jail authorities made him the prison leader. He also led a Bible study group in the prison.

“Some prisoners who attend the Bible study in the Nakkhu Jail told me that Mainali shared the extortion money with Majhi, which aroused jealousy among other prisoners, who reported it to the jail authorities,” the source said.

Around 150 prisoners attend the Nakkhu Gospel Church inside the prison premises, though Majhi is no longer leading it. Both Mainali and Majhi were recently transferred, Mainali to the Dilli-Bazaar Jail and Majhi to the Mid-Nepal Central Jail.

Deputy Inspector General of Police and Central Investigation Bureau (CIB) Director Rajendra Singh Bhandari told The Kathmandu Post that the arrest of Mainali’s men was a “tremendous achievement” that averted “mass casualties” in the capital.

“It seems that Mainali had filled the arrestees’ minds with dreams of earning quick bucks through terror,” the daily quoted another investigation official as saying.

The Christian source said he still hoped for genuine repentance in Mainali and Majhi.

“Mainali and Majhi must have at least some knowledge of the Bible,” he said. “So I am still hopeful that they would reflect on who God is and truly repent of their ways as they spend their time in prison cells incommunicado [prohibited from speaking with any outsider].”

According to The Kathmandu Post, the CIB had been observing Mainali following complaints that he had demanded large sums of money from businessmen and others.

“He had been making phone calls and sending demand letters to them,” the daily reported on March 4.

Compass requested an interview with Mainali at the Dilli-Bazaar Jail, which officials refused.

“We have orders not to allow Mainali to meet anyone,” said one official.

Mainali had earlier told Compass that he formed the NDA with the support of Hindu nationalists in India in 2007 to re-establish the Hindu monarchy, which fell after a decade-long armed struggle by former Maoist guerrillas peaked in 2006, when all political parties joined protests against King Gyanendra.

The NDA is also believed to be responsible for bombing mosques and killing Muslims and Christians, including the Rev. John Prakash Moyalan, a Catholic priest who was principal of the Don Bosco educational institution in eastern Nepal, in June 2008. While Christians in Nepal faced persecution at the hands of the Hindu monarchy until 2006, non-state actors have been attacking them since the country began transitioning to a secular democracy.

“Several incidents of religiously incited violence directed at minority religions and their property have been recorded since the signing of the peace accord [between the interim government and the Maoists in 2006],” a local Non-Governmental Organization, Informal Sector Service Sector (INSEC), noted last year.

“Although moves have been made to promote religious tolerance and a climate of peace and cooperation, this area must continuously be monitored,” stated an INSEC report, “Commitment versus Reality,” which mentioned attacks on Christians by Mainali’s outfit.

Of the roughly 30 million people in Nepal, only .5 percent are Christian, and more than 80 percent are Hindu, according to the 2001 census. The actual number of Christians, however, is believed to be much higher.

Report from Compass Direct News
http://www.compassdirect.org

Light Sentences for Attack on Christians in Indonesia Condemned

Prosecutors’ refusal to file felony charges said to encourage more violence.

JAKARTA, Indonesia, March 10 (CDN) — Human rights and Christian leaders said a West Java court’s light sentence for Islamic extremists who injured a church pastor and an elder will encourage more violence and religious intolerance.

After those involved in the Sept. 12, 2010 clubbing of the Rev. Luspida Simanjuntak and the stabbing of elder Hasian Lumbantoruan Sihombing of the Batak Christian Protestant Church (Huria Kristen Batak Protestan, or HKBP) in Ciketing received sentences of only five to seven months, the Setara Institute for Democracy and Peace released a statement asserting that the judges’ panel was acting under pressure from Muslim extremists.

“The public will think that violence, intolerance, and obstruction of worship are part of their religious worship and duties,” the institute stated regarding the Feb. 24 sentences.

After prosecutors decided to file minor charges citing “insufficient evidence” for assault charges, the judges issued verdicts that have injured people’s sense of justice, and the light sentences set a “rotten” precedent for strengthening the rule of law in Indonesia, according to the institute.

“Specifically, the verdict neither is a deterrent nor does it educate the public that violent acts in the name of religion are serious matters,” according to the Setara statement.

Saor Siagian, attorney for the church, told Compass that the facts of the case had shown that the assailants should have been charged with joint assault under Section 170 of Indonesia’s penal code, which could have resulted in sentences of five to nine years. Instead, prosecutors opted to charge them only with maltreatment under Section 351.

The alleged planner of the attack, Murhali Barda, head of the Bekasi chapter of the Islamic Defenders Front (FPI), received a sentence of only five months and 15 days for “disorderly conduct” (Section 335) even though he should have been prosecuted for incitement and joint assault, Siagian said.

“The trial brought to light facts that pointed toward incitement by Murhali Barda via Facebook, text messages, and orders to the defendants to attack the congregation of HKBP on Sept. 12, 2010 at Ciketing,” said Siagian. “If he had been charged with Section 170 he would have been facing a five-to-nine-year sentence, and Section 160 [incitement] carries a six-year sentence. These are both felonies.”

Judges of the State Court in Bekasi, West Java handed down a seven-month sentence to Adji Ahmad Faisal, who stabbed church elder Sihombing; the prosecutor had asked for sentence of 10 months. Ade Firman, who clubbed Pastor Simanjuntak hard enough to send her to the hospital for treatment, was given a six-month sentence; prosecutors had requested an eight-month sentence. Two under-age defendants were found guilty and turned over to their parents.

Along with Barda of the FPI, eight other defendants received sentences of five months and 15 days: Ismail, Dede Tri Sutrisna, Panca Rano, Khaerul Anwar, Nunu Nurhadi, Roy Karyadi, Kiki Nurdiansyah, Suprianto and one identified only as Ismail; prosecutors had asked for six-month sentences.

During the trial, 100 members of the FPI demonstrated in front of the courthouse, demanding that Barda and the others be immediately released. As each sentence was read out, the demonstrators shouted “Allahu Akbar [God is greater].”

The lawyer for Barda, Shalih Mangara Sitompul, said the verdicts brought about peace between both parties. His client was found guilty of incidents that took place on Aug. 1 and 8, 2010, he said, questioning why the Sept. 12 attack became the basis for criminal prosecution as Barda did not even encounter Pastor Simanjuntak on that date.

Sitompul said he would appeal the verdict.

Pastor Simanjuntak said the light sentences showed that the state was unable to fully enforce the law.

“This country is more afraid of the masses than standing for justice,” she said. “That’s what happened in the state court in Bekasi. With heavy hearts we accept the verdict.”

The stabbing victim, Sihombing, said that he was not surprised by the light sentences.

“The verdicts were not just, but I don’t know what else to do,” he said. “I’ve just got to accept things.”

Indonesia is a country that follows the rule of law, he said, and therefore it is not right to give a light sentence for stabbing.

“Even so, as a Christian and elder of the congregation, I have forgiven the person who attacked me,” he said.

Attorney Siagian said the sentences will fail to act as a deterrent.

“It passively encourages future violence in the name of religion by radical groups against minorities – not only against the HKBP church, but also against citizens in other areas,” he said. “Also, the verdict shows that the judge sides with those who committed violent acts in the name of religion, and it is a threat to pluralism and diversity in Indonesia.”

Report from Compass Direct News

Links between Murders in Turkey and ‘Masterminds’ Expected

Witnesses previously barred will be allowed to testify.

ISTANBUL, December 20 (CDN) — Attorneys prosecuting the murder of three Christians in southeastern Turkey are making progress linking the knifemen who slayed them to the masterminds who put them up to it, an attorney representing the family of one of the victims said Friday (Dec.17).

Two witnesses, Veysel Şahin and Ercan Gelni – whose testimony the court previously blocked – will be allowed to testify about the plans behind the killings in Malatya. The judge changed his previous ruling blocking their testimonies because of new evidence that recently became available.

The court will also protect a witness whose testimony would have possibly put him in danger. The latest court hearing was on Dec. 3.

On April 18, 2007, two Turkish Christians, Necati Aydin and Ugur Yuksel, and German Christian Tilmann Geske, were bound, tortured and then murdered at the office of Zirve Publishing Co., a Christian publishing house in Malatya.

The suspects, Salih Guler, Cuma Ozdemir, Hamit Ceker, and Abuzer Yildirim were arrested while trying to escape the scene of the crime, as was alleged ringleader Emre Gunaydin.

 

Establishing Links

Prosecutors have contended that the killings were related to a larger conspiracy by the military and nationalists to destabilize the government by targeting minorities in Turkish society.

“The people responsible are not just confined to the young men caught at the crime scene,” said Orhan Cengiz, one of the attorneys representing the interests of the victim’s families in the case. “Everybody knows the youngsters have connections [to the nationalists].”

The new decision shows the court’s “willingness” to look into possible links between the killers and the gendarmerie, a special police force in Turkey that deals with internal security issues and is allegedly a key player in the destabilization plot, Cengiz said.

Suzanne Geske, widow of Tilmann Geske, said she wants the Malatya murder trial linked with the trial over the Cage Operation Action Plan, believed to be part of the Ergenekon “deep state” operation to destabilize the government.

“I want the Zirve Publishing House killings to be merged with the case into the Cage Operation Action Plan,” Geske told Turkish newspaper Today’s Zaman. “I do not believe that those young men could have carried out the murders on their own. Some de facto links are evident. There are other influences behind these murders.”

Ergenekon is an alleged “deep state” operation referring to a group of retired generals, politicians and other key figures thought by some to be the true power brokers in Turkey.

The Cage Plan centers on a compact disc found a year ago in the house of a retired naval officer. The plan, to be carried out by 41 naval officers, termed as “operations” the Malatya killings, the 2006 assassination of Catholic priest Andrea Santoro and the 2007 slaying of Hrant Dink, Armenian editor-in-chief of the weekly Agos.

Newspapers have reported that the Cage Plan, aimed at Turkey’s non-Muslim minorities, not only contained a list of names of Protestant Christians who would be targeted, but also named some of their children.

“I believe that there is an ulterior motive behind the killings,” Geske reportedly said. “This may be linked to Ergenekon or another criminal group. I believe that the young men who carried out the murders were directed by criminal elements. I want those criminal elements to be exposed. Otherwise, the lives of those young men will be wasted while the real criminals will go unpunished.”

The next Malatya hearing is scheduled for Jan. 20.

Report from Compass Direct News

Turkmenistan: Protestant pastor’s trial set for Oct. 21, 2010

Protestant pastor Ilmurad Nurliev is due to begin trial in Turkmenistan on the morning of Thursday 21 October, nearly two months after his arrest, Forum 18 News Service has learned.

“The criminal trial in Mary [a south-eastern town in Turkmenistan) is on charges of large-scale swindling, with a penalty of up to five years’ jail. His wife and church members vigorously deny the charges, and insist that the five people named as making accusations are not as the indictment claims church members,” said Felix Corley of Forum 18 News Service.

“Three of them only attended the church a few times, and the remaining two are unknown. Other accusations vigorously denied are that Pastor Nurliev is a drug addict in need of treatment; he is a diabetic and – as she has not been allowed to see him – his wife is very concerned about his health. They also refute an allegation that he is unemployed and lives off the earnings of others, as he worked – until his arrest – as a barber.”

Maya Nurlieva, wife of the accused, told Forum 18, “Up to 20 church members will try to attend – all are ready to speak up to defend my husband.”

She has asked the Organisation for Security and Co-operation in Europe (OSCE) Centre in Ashgabad to send independent monitors to the trial. The Church has stopped meeting for worship after the arrest.

Report from the Christian Telegraph

Chinese religious freedom activist awarded Nobel Peace Prize

A Chinese human rights dissident and democracy advocate was awarded this year’s Nobel Peace Prize on Friday, reports Peter J. Smith, LifeSiteNews.com.

Liu Xiaobo is the architect of a pro-democracy and human rights manifesto called Charter 08, which called for basic freedoms such as freedom of religion, assembly, protection of private property, and the guarantee of rights outlined under the U.N.’s Declaration of Universal Human Rights.

Authorities arrested Liu two days before the Charter’s December 8, 2008 release and charged him with "inciting the subversion of state power." After declaring him guilty, a Chinese court sentenced Liu on Christmas Day 2009 to 11 years in prison.

The Nobel committee in particular cited Liu’s pacifism in challenging communist China’s human rights abuses and calling for democratic reforms.

Liu was nominated in part by eight U.S. lawmakers who praised his work and suffering for human rights in China.

On behalf of himself and seven other U.S. Congressman, Rep. Chris Smith (R-N.J.) recommended that the Nobel Peace Prize Committee recognize not only Liu, but jointly award the prize to two other human rights activists, Chen Guangcheng and Gao Zhisheng, who have been persecuted specifically for fighting China’s brutal policy of forced abortion and sterilizations under the “one-child” policy.

Chen is a blind self-taught lawyer, who took the burden upon himself to defend local Chinese peasant women from forced sterilization and their children from forced abortion by local government authorities.

Gao, a Beijing attorney committed to defending human rights in China, was one of Chen’s lawyers. On February 4, 2009, Gao went missing under suspicious circumstances.

Geng He, Gao’s wife, told the Associated Press that she has not spoken to her husband since April and fears for his safety.

The Chinese Foreign Ministry has blasted the Nobel committee’s selection of Liu, calling the award a “blasphemy” and Liu a “criminal.”

"The Nobel Peace Prize is meant to award individuals who promote international harmony and friendship, peace and disarmament. Liu Xiaobo is a criminal who has been sentenced by Chinese judicial departments for violating Chinese law,” the ministry said on its website. “Awarding the peace to Liu runs completely counter to the principle of the award and is also a blasphemy to the Peace Prize."

The AP reports that news of Liu’s Nobel award has been blacked out in China. It added that Liu Xia, his wife, is guarded in her Beijing apartment by police, who have forbidden her from meeting with reporters.

Liu’s wife, who is able to communicate by telephone and electronic media, told CNN that she intends to visit him in prison soon to inform him of the prize, and encourage him. She hopes to be able to visit Norway to collect the award on his behalf.

Last year’s Nobel Peace Prize recipient was President Barack Obama, who was nominated shortly after his presidential inauguration. Obama praised Liu for his sacrifice in a statement and called upon Chinese authorities to release him from prison.

“By granting the prize to Mr. Liu, the Nobel Committee has chosen someone who has been an eloquent and courageous spokesman for the advance of universal values through peaceful and non-violent means, including his support for democracy, human rights, and the rule of law,” said Obama.

Report from the Christian Telegraph