Fishing skippers fined £720,000

 

Seventeen skippers behind one of Scotland's biggest fishing scams have been fined a total of £720,000. The group admitted making illegal landings of mackerel and herring worth £47.5 million between January 1 2002 and March 19 2005. The "black fish" scam, which broke sea fishing laws, was carried out at fish processing factory Shetland Catch in Lerwick, Shetland. Judge Lord Turnbull said the scam is "an episode of shame" for the pelagic fishing industry. He said it was a "cynical and sophisticated" operation which had the "connivance of a number of different interested parties". Hamish Slater, 53, and Alexander Masson, 66, both from Fraserburgh, were fined a respective £80,000 and £50,000, while Alexander Wiseman, 60, from Banff, was also fined £50,000. Another 13 men from Shetland were fined for their role in the scam. Robert Polson, 48, was fined £70,000; John Irvine, 68, was fined £80,000; William Williamson, 65, was fined £45,000; Laurence Irvine, 66, was fined £80,000; and David Hutchison, 66, was fined £40,000, as was 56-year-old Thomas Eunson. Both Allister Irvine, 63, and Gary Williamson, 52, were fined £35,000; and George Henry, 60, was fined £12,000. John Stewart, 57, was ordered to pay £15,000, while George Anderson, 56, must pay £12,000. Colin Leask, 39, and Allen Anderson, 55, were each fined £3,000 A £70,000 fine was imposed on Victor Buchini, 51, from Poulton-le-Fylde in Lancashire. The company Alexander Buchan was fined £240,000 for helping the vessel masters land the undeclared fish. The pelagic fishermen, who committed the offences to evade the annual EU fishing quota, had already been ordered to hand over almost £3 million in confiscation orders at a previous court hearing. The convictions came as the result of a seven-year investigation, Operation Trawler, after the Scottish Fisheries Protection Agency (SFPA), now Marine Scotland, became suspicious about widespread illegal landing of fish within the pelagic fleet. Pelagic fish are those which swim near the water's surface. Auditors KPMG reviewed Shetland Catch and found that between January 1 2002 and March 28 2004, the company's earnings were not supported by its declared landings. The company premises were searched on September 27 2005 and officials found that scales used to weigh fish coming into the factory had been manipulated to provide false weights. Management were able to input fake wastage figures into a computer in the main factory, accessible to inspectors from the SFPA, which would be deducted from the actual weight shown on the screen. The proper weight was displayed on screens in the engineer's room and in a loft area, both of which were off-limits to SFPA officials. The computer in the loft area was where the weight manipulation took place. It could be accessed remotely by two members of staff, a fish buyer and the then assisting managing director, using a username and password, allowing them to program it to provide false weights. Lord Turnbull said the proceedings brought "embarrassment and shame" to the skippers and their families. He said: "All of the accused who appear today have spent their working lives as productive and hard-working members of our community. Barring other regulatory infringements, not a single one has ever come into any conflict with the law. "It was not surprising therefore to hear of the well-respected positions within their communities which many held and of the embarrassment and shame which these proceedings have brought to them personally and to their families." The judge said the fishing industry "makes a crucial contribution" to the well-being of many communities and to the economy of the country as a whole. He added: "There would of course be no fishing industry were it not for the willingness of fishermen to go to sea. It is correct to acknowledge that in doing so,fishermen require to cope with challenging circumstances of isolation from family members and often with dangerous and frightening weather conditions, the likes of which will be wholly unfamiliar to others with more conventional working environments. "Over the history of the fishing industry and even in recent times in Scotland, tragedy has often visited the families of those who spend their working lives at sea." The judge also noted that each master involved "made no attempt" to disguise their true income from the fish and paid income tax on both the declared and undeclared landings. But he said the men had all participated in "a deliberate and calculated determination to evade the quota levels for fishing available to each vessel" for "purely financial" reasons. He said: "The system through which this was achieved was both cynical and sophisticated and involved the connivance of a number of different interested parties, some of whom have benefited but have not been prosecuted. "The extent to which landings of fish were deliberately under-declared was at times truly staggering and in the case of some of the accused concerned, took place continuously over a three-year period. "What I found to be noteworthy was that no understandable explanation was provided on behalf of any the vessel masters as to why this practice was commenced or continued with. "No one for example appears to have engaged in this exercise on account of struggling to cope financially with the costs of continued fishing within the quota levels allocated. "Indeed, in contrast to some within the fishing industry, those engaged in fishing with the pelagic fleet appear to have been able to make very substantial sums over many years, providing very comfortable livings for themselves and their families. "In short then, and as was conceded by at least some of those who appeared before me, the motivation for the sustained furnishing of false information was purely financial. Those who were already making a good living saw this as a way in which more income could be generated. "No doubt the fact that so many were involved lent a veneer of acceptability to the conduct but there is another side to that as well: the fact that so many were prepared to participate in deliberate lies and falsehood means that the desire for financial benefit was able to overshadow the instincts of fairness, truthfulness and responsibility which will have influenced every other aspect of the lives of those concerned and which values they would expect to see others, including their own family members, abide by. "The result is an episode of shame for much of the whole pelagic fishing industry. "I have however accepted in each case that these proceedings have been responded to responsibly and that those concerned regret their involvement and the embarrassment which has been brought to them personally and to their families." The men had previously been subjected to a reduced quota of fish to "balance out" the environmental effect of years of overfishing. But the judge insisted that this was not a punishment but an "exercise in conservation". He said: "I do not accept that the accused in this case have lost out or have been made worse off as a consequence of these arrangements. I accept as accurate the observation that looking back with hindsight had they never over-fished at all then they would have achieved a greater income over the extended period than they in fact have. "That is due to the massive increase in the prices obtained for the type of fish with which I am concerned in the period since 2002. That however is no more than an irony of the situation. It does not reflect any actual loss to those concerned. In fact, as a consequence of the increased value of the fish, those involved have still been able to generate very substantial incomes, despite being restricted to catching a smaller quantity. "If the current prices remain stable then when the quota deduction arrangements have been exhausted, they will be in a position to increase that income even further." He also referred to "activities of foreign fishing vessels" in exceeding fishing quotas. The judge said: "If there is an imbalance in the approach of the relevant authorities within the European Union, that is a matter for the relevant ministers to raise with their counterparts. "If vessels belonging to states outwith the European Union are thought to enjoy some inappropriate benefit or are not thought to be complying with their responsibilities concerning stock conservation, that is a matter to be addressed at governmental or international level. "I am dealing with the contravention of a law of this country which was introduced to ensure compliance with the international obligation which the United Kingdom had entered into. "I am entitled to treat that contravention as a serious matter regardless of how it might be thought that similar conduct would be or has been responded to elsewhere." Three more fishermen pleaded guilty today in a separate case but which was part of the same investigation. James Smith, 54, from Fraserburgh, John Smith, 36, from Peterhead and Stephen Bellamy, 59, from Fraserburgh all admitted landing undeclared fish at Fresh Catch in Peterhead and at Shetland Catch in Lerwick. Sentencing was deferred to May 18. An inspection in November 2005 at the Alexander Buchan firm detected an unofficial weigh belt fitted with "load cells" to the conveyor belt system at the point where fish entered the factory. The cells are used to detect the weight of fish passing over the belt. A deflector plate had been used on the unofficial weigh belt, allowing the fish to drop off part of the way along the official scales. As the fish did not travel over the full area, a lower weight was achieved on the counter. This method is said to have allowed up to 70% of a total landing to go unrecorded. Alexander Buchan, which is no longer trading, has already been ordered to pay £165,000 in a confiscation order. A third fish processing factory, Fresh Catch, also admitted helping vessel masters land undeclared fish between October 20 2002 and September 2 2005 at its premises in Kirk Square near Peterhead. Skippers Ernest Simpson, 64, from Fraserburgh, Allan Simpson, 42, from Fraserburgh, and Oswald McRonald, 63, from Banff, pleaded guilty at the High Court in Glasgow today to landing undeclared fish at the factory. Their sentences were also deferred until May 18. Fresh Catch was audited by KPMG during the same period as Shetland Catch and it too was found to have earnings unsupported by official landing figures. At the factory, fish entered via a delivery pipe which went up and over the building. However, a search of the premises in September 2005 uncovered a purpose-built pipe, leading underground, was also connected. This second pipe bypassed the official weigh scale. Knife valves were used to divert the fish when they came to a T-junction, allowing fish to be sent to another part of the factory and was never weighed or officially accounted for. In 2005 the two valves become remote controlled and the direction the fish took at the junction depended on which one was open or closed. Fresh Catch only became significantly operational at around the time the scam began. Cephas Ralph, head of compliance at Marine Scotland, said the divert pipe "certainly served no other purpose" and that "it wasn't put there by accident". All three factories were prosecuted out of Operation Trawler which started in 2005. However, nothing suggested any of the plants were linked. At the time of the undeclared landings, Shetland Catch was the largest pelagic fish processing operator in Scotland and one of the largest in Europe. It was able to process and freeze up to 1,000 tonnes of fish a day. EU regulations state that when a vessel reaches its quota, it has the option to either stop fishing or to buy some of another vessel's quota which has not yet been reached. Any vessel which exceeds its quota faces disciplinary action. When the investigation started 26 vessels were in the pelagic fleet, with eight pelagic fish processing factories. More than half (15) of those boats have been prosecuted. Mr Ralph said the investigation had an immediate effect on the entire industry and that Marine Scotland is now satisfied that legislation is in place to ensure a similar scam does not happen again. He said: "Since 2005 we detected a change which spilled out beyond the pelagic industry. It is more important to the vessels to have a good reputation. "It is fair to say we are satisfied that we have inspection procedures, legislation, a mindset in place in the industry that means if such activity was to recommence, it would be quickly detected and dealt with. "We have not had anything similar since these cases and all our intelligence suggests that no similar activities are taking place." Afterwards Lindsey Miller, head of the serious and organised crime division of the Crown Office, said: "Organised crime takes many forms. These individuals may not have been involved in drug dealing or prostitution but let us make no mistake that they were involved in significant and serious organised criminality." She added: "The legislation is there to protect the marine environment for the good of all and to safeguard the future of the fishing industry. These men disregarded it for their own financial gain and, in a clear example of successful working between the law enforcement agencies involved, have now been brought to justice and made to pay for their crimes." The police investigation was led by Detective Superintendent Gordon Gibson of Grampian Police who said the scale of the crime is of "a level rarely seen before". The men involved "amassed huge sums of money through their own greed and today this caught up with them in a court of law", he added. Meanwhile, Cephas Ralph said: "Today's successful court activity is an outcome that reflects the professionalism, dedication and commitment shown by all of the Marine Scotland staff who have been involved in this inquiry. "It has not been an easy task but they have worked tirelessly to help secure the convictions obtained in these important cases." Scottish Environment Secretary Richard Lochhead paid tribute to the police and Marine Scotland for their efforts in "a long and vastly complicated inquiry". He said: "There is no doubt that these illegal activities are a stark and shameful reminder of the culture that existed in some sectors of the fishing industry in past years. But they do not reflect the much-improved culture we see today. "The offences date back up to a decade ago and thankfully there has been seismic change in the attitude and behaviour of the fishing fleet, which can only be good thing in securing a viable future for the industry in Scotland." He also said: "There have been significant advances in recent years in how fish landings are monitored and controlled, including comprehensive audits and certified weighing systems." Dr Mireille Thom, senior marine policy officer at WWF Scotland, said ignoring quotas "isn't a victim-less offence" because "such landings not only undermine the conservation of fish stocks and the fortune of the fleets that fish them, they also distort competition by depressing fish prices. In short, they threaten the public good for the benefit of a few".

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Police uncover 'serious and organised' criminality in £63m scam to breach European fishing quotas

An inquiry into the UK's largest fishing scandal has uncovered "serious and organised" criminality by Scottish trawlermen and fish processors in an elaborate scam to illegally sell nearly £63m of undeclared fish.

Three large fish factories and 27 skippers have pleaded guilty to sophisticated and lucrative schemes to breach EU fishing quotas, in what one senior police officer described as "industrial level" deception.

They went to extraordinary lengths to conceal their illegally caught fish, installing underground pipelines, secret weighing machines and extra conveyor belts and computers to allow them to land 170,000 tonnes above their EU quota of mackerel and herring between 2002 and 2005.

The extent of the "black landings" scandal emerged as 17 skippers and one of the three factories were given fines totalling nearly £1m at the high court in Glasgow on Friday, after admitting repeated breaches of the Sea Fishing (Enforcement of Community Control Measures) (Scotland) Order 2000. Another six skippers pleaded guilty at the same hearing to landing undeclared fish worth nearly £7m at Lerwick, in the Shetlands, and Peterhead, Aberdeenshire.

Four skippers pleaded guilty in January and a further four in the ring, who can't be named for legal reasons, are still to be prosecuted.

Judge Lord Turnbull, told the 17 skippers sentenced on Friday they were guilty of a "cynical and sophisticated" operation, which brought embarrassment and shameon them and their families. "The motivation was purely financial," he said. "Those who were already making a good living saw this as a way more income could be generated and were prepared to participate in deliberate lies and falsehoods."

Once the illegally caught fish had been sneaked past Government inspectors, it was put on sale in the Lerwick and Peterhead markets, where it was sold to wholesalers and fishmongers as if it had been legally landed, in defiance of strict EU regulations designed to protectEurope's fish stocks from over-fishing.

The Guardian can reveal that the illegally landed fish was sold with the knowledge of the government-funded industry marketing authority Seafish, which took a £2.58 levy for every tonne of over-quota mackerel and herring. That earned it £434,000 in fees before the Scottish Fisheries Protection Agency, now part of Marine Scotland, raided two factories in September 2005.

The headquarters of Seafish in Edinburgh were raided by police and documents seized in 2008, but five months later prosecutors decided not to take any further action. It is thought the Crown Office, the Scottish prosecution body, believed there was no evidence that could lead to the agency being accused of involvement in the scam.

With a series of court cases stretching back to 2010, the scandal has implicated more than half the Scottish mackerel and herring fleet active at that time. It is understood that the true value of the illegal landings linked to the factories involved is closer to £100m, but prosecutors decided to pursue just £63m of landings.

How one Peterhead factory sidestepped the rules. Source: Guardian graphics

Prosecutors have also confiscated £3.1m from 17 skippers who landed catches in Lerwick, and against two of the three firms so far convicted, under proceedings of crime legislation introduced to tackle serious criminal gangs and drugs lords. The largest confiscation order, £425,9000, was against Hamish Slater, the skipper of the trawler Enterprise from Fraserburgh, Aberdeenshire, who admitted landing £3,980,000 worth of undeclared fish. A number of skippers landed fish worth more than £2m.

At Shetland Catch in Lerwick, one of Europe's largest fish processors, the company installed a duplicate conveyor belt when its new factory was built, fitting a secret weight-reading device in the loft and a computer in an engineer's workshop "a considerable distance" from the factory floor.

In its processing plant at Peterhead, north of Aberdeen, Fresh Catch installed an underground pipe to divert fish to secret weighing devices, which used remotely operated pneumatic valves. It built a secret storage room, and operated the clandestine machinery from a hut known to workers as the Wendy House, disguised with fake "Danger: high voltage" signs on its door.

A second factory in the town, Alexander Buchan, which has since closed, fitted a secret scale and conveyor belt, which allowed up to 70% of a boat's catch to go undeclared. It printed a guidance manual showing its staff how to handle undeclared landings, and its staff misled trading standards officers about its purpose.

Detective Superintendent Gordon Gibson, of Grampian police, the senior investigating officer in Operation Trawler, said: "Make no bones about it: it was serious, it was organised and it was criminal. The element of preparation involved was significant, given the methods and means that all these individuals went to.

"Was I surprised? Absolutely. I was surprised at the levels they had gone to disguise their criminal conduct."

An industry source admitted: "This wasn't casual or by accident. It was organised, it was systematic, it was deception. No one disagrees with that."

In a further penalty, which is thought to have cost the convicted skippers millions, the European commission cut the quotas soon after the scandal was reported to Brussels by the UK government in 2005, calling it a "quota payback".

Although none of the trawlermen have been banned from fishing, their quotas were cut by more than 116,000 tonnes of mackerel and nearly 47,000 tonnes of herring over a seven-year period. That payback will end next year.

One source with detailed knowledge of the case said this had damaging consequences for skippers and crews involved, as the market value of mackerel and herring since 2005 had been as much as double the price 10 years ago.

The convictions follow a complex, 10-year investigation involving forensic accountants from KPMG, who analysed the paperwork for thousands of landings, a core team of 25 detectives and support staff from Grampian and Northern police, four British sea fishery officers with Marine Scotland, the Home Office Holmes police computer system, money laundering experts with the Scottish Crime and Drug Enforcement Agency, and specialist prosecutors at the Crown Office.

Operation Trawler has brought to an end a practice which was once endemic in the British fishing industry, but has been made extremely difficult by hi-tech monitoring and tracking of every registered trawler at sea, and much tighter controls on landings at processing firms.

The skippers and firms involved have refused to discuss their convictions; Shetland Catch is still facing confiscation proceedings. But sources with detailed knowledge of the scandal have admitted the practice was widespread within the pelagic fishing industry. Lawyers for one of the convicted men, George Anderson, 55, from Whalsay, Shetland, claimed this year that he evaded the controls because he believed that discarding under-sized fish was "repugnant".

"Black landings" are still common practice across the EU, and prosecutions still take place. In Lerwick and Peterhead, some insist that the undeclared landings, which helped many of the skippers and their crews enjoy comparatively luxurious lifestyles, were well-known within the industry and among regulators.

Asked about its knowledge of the illegal landings, Seafish told the Guardian it was legally required to take the levy, and insisted it had tipped off the authorities to the over-quota landings. However, one source said that the issue was discussed in board meetings, "but the Seafish line was that we weren't a fishery protection agency, our job was to take a levy on every tonne landed."

He added: "They were totally aware they were getting a levy on quota and over-quota fish."

The source denied it was serious and organised crime: the skippers involved paid income tax and business taxes alongside the Seafish levy on all their illegal landings, largely because the over-quota fish was sold in the fish markets as if it were legally declared. Fraud charges were dropped by prosecutors at an early stage, he said.

But he added: "There is nobody defending this. It was morally wrong; it was ecologically wrong and sustainably wrong. There is no excuse.

"A lot of the skippers are saying, 'What we did wasn't right; it was wrong. We really want to draw a line under this and move forward.'"

He said the scandal had the effect of transforming Scotland's pelagic fishing industry into one of the most sustainable in the world: after the raids, the mackerel and herring fleet introduced very strict monitoring and quota management. Since 2008, its fisheries have won a prized Marine Stewardship Council eco-label, and are now the largest in Europe with MSC certification.

But the "black landings" scandal is coming back to haunt the industry. It is expected to lose its MSC accreditation later this year after a bitter dispute with the Faroe Islands and Iceland: both countries have claimed much larger mackerel quotas than is sustainable for the north-east Atlantic stocks, in breach of MSC rules. The Faroese in particular believe the over-quota prosecutions puts the Scottish industry's credibility in severe doubt.

"It's not a proud moment for what is a very proud industry," one senior figure conceded.

Richard Lochhead, the Scottish agriculture secretary, said the convicted were guilty of appalling behaviour. "These illegal activities are a stark and shameful reminder of the culture that existed in some sectors of the fishing industry in past years," he said.

"Thankfully, there has been seismic change in the attitude and behaviour of the fishing fleet, which can only be good thing in securing a viable future for the industry."

Dr Mireille Thom, a senior marine policy officer for the conservation group WWF Scotland, said: "Deliberately ignoring quota rules by landing 'black fish' isn't a victimless offence. Such landings not only undermine the conservation of fish stocks and the fortune of the fleets that fish them, they also distort competition by depressing fish prices. In short, they threaten the public good for the benefit of a few."

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Estonian gangsters netted a quarter of a million pounds worth of designer watches from a jewellers in Newcastle city centre.

Members of an Eastern European gang who flew around the continent for armed robbery day trips were today jailed for a £250,000 raid on a UK jewellers.

In a daring smash and grab attack lasting just 31 seconds, three Estonian gangsters netted a quarter of a million pounds worth of designer watches from a jewellers in Newcastle city centre.

Convicted murderer Marek Viidemann and his accomplice Sander Sarik smashed display cabinets with hammers, while Raido Ragga held staff at gunpoint to stop them raising the alarm.

Daring: The Estonian budget-airline bandits pictured on security camera during their raid on Berry's jewellers in Newcastle city centre

The trio were part of a wider gang targeting jewellers around Europe, whose members were bought flights by crime bosses in Estonia and ordered to carry out the robberies.

Gangsters who owed money to organised crime were recruited to carry out the robberies on day trips to their destinations around the UK and elsewhere.

They would fly back to eastern Europe the next day while the stolen goods would be shipped separately.

 

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Jailing Viidemann for 10 years, Judge Brian Forster, at Newcastle Crown Court, told him: 'You were part of an international crime gang.

'You were willing to cause terror and fear and your purpose was to get as much as you could as quickly as you could and then leave the country.

'This was a daring and terrifying robbery and was carried out without regard to those who work in the shop.

'The courts will protect the citizens of Newcastle from anyone who thinks they can come and prey upon them.'

Fast: In just over 30 seconds, the gang swiped a quarter of a million pound worth of watches from the jewellers, as terrified staff were held at gunpoint

Viidemann, Sarik and Ragga struck at Berry’s jewellers, on Grey Street, Newcastle, at around 10am on August 20, 2008.

Convicted killer: Marek Viidemann, 35, was jailed for 10 years at Newcastle Crown Court for his part in the raid

Ragga went in brandishing a handgun while Viidemann and Sarik used hammers to get to the valuables.

Mark Simpson, prosecuting, said: 'The gunman pointed the handgun at staff and told them to get down.

'The others smashed the display cabinets and took 31 watches and the best makes were targeted.'

After just 31 seconds in the store they were gone, removing clothing and gloves as they left the scene.

Police recovered the clothes that had been left behind and found Viidemann’s DNA on them. Some of the stolen watches were later found on a coach in Dover.

Viidemann, 35, fled the country and ended up back in Estonia. He was finally detained on a European arrest warrant in his home city of Tallinn, the Estonian capital, last October.

Ragga, 26, and Sarik, 22, went on to carry out robberies at other Berry’s stores in Chester and Windsor. They were both jailed for 11 years at earlier hearings elsewhere.

Too late: Police outside the high-class jewellers after the robbery

The court heard Viidemann had a conviction in his homeland for aggravated murder for gain and robbery, for which he was jailed for 10 years in 1998.

In that offence he and four others beat a man to death to steal from him.

Judge Forster asked how he had got into this country, but prosecutors did not know. The Border Agency will be informed of his latest conviction.

Andrew Rutter, defending Viidemann, said: 'His involvement in this robbery came about because he had fallen on hard times in Estonia.

'It was not his scheme but he accepts he lent himself to it.'

Members of the organised crime gang have struck across Europe and five other robbers have previously been jailed for a total of more than 55 years.

The ring was linked to at least 150 armed robberies across the UK and Europe.

Jewellers were targeted in places including Leeds, Manchester, the West Midlands, London, Cheshire and Newcastle, while they also carried out raids in Germany, Sweden, Italy and Finland.

Detectives from Monaco even flew to Britain to quiz a member of the gang over a $75,000 raid on a Monte Carlo jewellers.

Police believed the gang stole watches worth more than £1million in total, few of which were ever recovered.

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One in seven Cambridge students 'has sold drugs to help pay their way through university'

 

One in seven Cambridge students is  dealing drugs to help pay their way through university, according to a survey. It found many claim that they have been forced to sell illegal substances to friends to make ends meet as they study. And it revealed nearly two-thirds admitted taking drugs, with cannabis the most  popular substance.

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ENVELOPES full of cash, drug habits funded by EU grants and police taking payments to legalise prostitutes – you name it, it has happened in Spain.

 

 Add to those a snail-paced justice system and, a law society in Malaga that fails to scrutinize bent lawyers, and things start to look distinctly cloudy. Consider too that last week Spain’s top anti-corruption lawyer, Baltasar Garzon, was suspended from his post for illegally tapping the phones of lawyers, and most will come to the same conclusion. “Yes, corruption is certainly endemic in Spain,” says Gwilym Rhys-Jones, an Estepona-based financial expert. “Sadly there is a tradition of it and it became institutionalised since the late 1980s as nobody was dealing with it from the top down.” There is certainly nowhere better to highlight the problem than here on the Costa del Sol, where in Marbella for over two decades you could only get anything done if you were prepared to pay for it. Under the current Malaya corruption trial, centred around Marbella Town Hall, which has been going for over a year. Over a hundred councillors, mayors, businessmen and civil servants are currently on trial for taking backhanders totalling up to 2.4 billion euros. And sadly, the same state of affairs was taking place at hundreds of town halls around the country, with a central government apparently prepared to turn a blind eye. It led to hotels and golf courses being built in national parks, developments installed in river flood plains and hundreds of thousands of illegal – and unsellable – homes around the country. It comes as no surprise then that Transparency International has listed Spain as more corrupt than Uruguay, Chile and Qatar, and almost on a par with of Botswana – quite a feat for the fourth richest nation in the European Union. And while some might like to point the finger at the right or the left, the range of cases shows that bending the rules for personal gain goes right across the spectrum. The Conservative PP party has often been in the spotlight – most recently thanks to the Gurtel case, in Valencia – but the PSOE socialist party, particularly with the ERE pension scandal in Andalucia, certainly takes some beating. Even the royal family may have dipped its toes in the murky waters, with King Juan Carlos’ son-in-law about to stand trial for a misuse of public funds and embezzlement. So where did it all begin? Franco regarded it as the ‘necessary lubrication for the system’, according to historian Stanley Payne. While central government appears to be largely free of endemic corruption, in the regions it is quite a different story. In Andalucia, for example, UGT trade union leader Manuel Pastrana believes as many as 75 per cent of the region’s town halls are corrupt. This is partly down to the fact that much of Spain’s corruption is linked to illegal planning, which is said to be more profitable than drug dealing – mainly because tourism is the biggest earner on the Costa del Sol. It’s a simple tale, and sadly all too common. Developers purchase non-urban, rural land for knock-down prices, then pay corrupt town hall mayors to reclassify the land as available to develop. This leaves the developers to build whatever they like – and it is arrangements like this that explain the illegal 411-bedroom Algarrobico hotel in Almeria’s Cabo de Gata natural park – which will thankfully be demolished any day now. The question is, why are so many mayors and councillors tempted to the dark side, considering the possible environmental and criminal consequences? Aside from describing Spain as having the ‘slowest justice system in the known world’, investigator Rhys-Jones argues that it is human nature to be tempted by money once it’s dangled in front of you. “When people see a massive amount of money, they can’t help but steal it. It’s human nature,” he says, using the unscrupulous former Marbella mayor Jesus Gil as his example. Jesus Gil was described as the bad apple that spoilt Marbella’s bunch “Gil was a crook, but he started out with good intentions. Marbella was a mess in the 1980s. Property wasn’t selling. It was a dump filled with drugs and hookers. So Gil started a political party, the GAL, to try and sort it out.” But this apparent do-gooder turned resident evil, with many describing Gil – who was convicted in 2002 – as being the bad apple that spoiled Marbella’s bunch. Either way his legacy was a disaster and has led to the following three mayors – as well as his main cohort, planning boss Juan Antonio Roca, who became the svengali of the operation – all facing prison. Much of the corruption comes down to backgrounds and a lack of education, believes Marbella-based lawyer Antonio Flores. “A lot of mayors have previously had rural-based jobs, without the ability to make any money,” he explains. “The moment they have responsibility, the temptation to make money becomes too great. After four years in power, they’ll often have to go back to their tractors,” he says. A classic example of a rags-to-riches mayor is Julian Munoz, also heavily implicated in the Malaya case, who worked as a waiter before running Marbella Town Hall in 2002. Roca, too, had been on the dole before going on to pilfer 30 million euros. Planning boss Juan Antonio Roca, the main man in the Malaya case Flores compares town hall councillors with more prominent politicians in central government who are less reliant on get-rich-quick methods: “It’s not so difficult to get another job when you’re in a higher political position,” he says. The good news is that most commentators agree that corruption in Spain is on its way out. “The Malaya case was where the mentality changed,” estimates Flores. “It was a turning point for corruption and the Marbella run by thugs completely collapsed when they were all arrested. “As Spain becomes more civilised, we are slowly getting rid of corruption,” he continues. “But it has definitely not gone completely,” argues Rhys Jones. “That will take quite a few more decades.” As for shamed Judge Garzon, opinion remains firmly divided on whether he too was a man who let power corrupt him… or whether he has been silenced by a country whose corruption will be harder to iron out than some may hope. Big cases Malaya Planning chief Juan Antonio Roca is at the heart of this 2.4 billion euro scandal in Marbella. The unelected Roca operated a cash-for-permissions scheme, which saw over 18,000 homes built illegally. Gurtel Businessman Francisco Correa gave money to PP bosses in Valencia in return for lucrative contracts with the regional government. ERE The Junta is being investigated in a 647m euro retirement scandal, where posts were created in non-existent companies in order to defraud public funds. Ballena Blanca One of the largest money laundering cases in Europe, with 21 people accused of investing proceeds from drug trafficking and prostitution in property via over a thousand companies.

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EU clampdown on unregulated financial advisers in Spain

 

The European Commission is to consider setting up an ombudsman to help expat victims reclaim against unregistered financial firms. It comes after a local pressure group, that represents over 1,000 victims, sent a dossier of information to Brussels. The Costa del Sol Action Group demanded action against the advisers who, it claims, have lost their clients over €120 million (£102 million). “It is good news as something has to be done about this bunch of rogues,” said group founder David Klein. “The current Spanish regulatory system is totally inadequate and ineffective. Dealing with the authorities is a constant game of ping-pong. Anyone can come to Spain and be a financial adviser; they could have been selling fish before they came here for all anyone knows." This situation could soon be coming to an end, after the European Commission confirmed it was to begin "a preliminary investigation of the problem". Foreign Office plans evacuation of expats 18 Dec 2011 It has asked for more information and the action group has called on all victims to write to the European Parliament outlining their experience. “This problem is causing untold stress and heartache in the expatriate community and it cannot be allowed to continue,” explained Klein. The European Commission is to study how investors would be able to make an official complaint against Independent Financial Advisers (IFAs). At present, there is no effective means for victims to make a complaint against product providers who work with unregistered IFAs. The group was also highly critical of the local media for its willingness to accept adverts from unregulated financial firms in a bid to maximise advertising revenue. To highlight the problem, the group included testimonials by members who were allegedly defrauded by one specialist investment brokerage, which it claims is "not regulated or registered". It said the company was able to trade, "collecting unsuspecting clients who are soon relieved of their money". One Costa del Sol-based financial adviser, Richard Alexander, said he was pleased with the EU’s response. “Bring on the review,” he said. “I have seen too many sad stories of people being turned over, badly advised or grossly over-charged by unregulated independent financial advisors in Spain. "It is entirely possible to provide professional, quality advice without the client losing out.”

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Poor men and lonely wealthy women

I see so many lonely women out here in the world today. Of course, there are lonely guys as well. But, in my opinion men react and respond differently to their problems. We almost never actually admit that we are alone, except when our self-esteem is compromised. We just go with the flow. But for women, it is a totally different story. “I am so alone,” was what she would say. I hear this all the time from the opposite sex. Why is this so in the modern-day world? Are we men not doing our jobs?   This brings me to the recent lonely end of soul-siren Whitney Houston and UK Amy Winehouse in 2011 respectively, whose public battles with drugs and alcohol often overshadowed their music success. May their musical souls rest in peace! These are glaring examples of lonely women. It is an open secret that Whitney had been a ‘druggy’ for years, which had become more pronounced after her tumultuous marriage to singer Bobby Brown, whom she divorced before her death. Rumours had it that Amy was killed by lack of love, not a drug addiction. I think this is probably true. Another example is that of Lady Gaga, who recently admitted in an interview, “Yes I’m lonely, but I’m married to my loneliness.” It is quite interesting to know so much about her. She has said loneliness is the only thing she loves the most. Nevertheless, I wish her good luck! Now, you may wonder what the situation is Namibia?  One of the most well-known examples of this ‘loneliness phenomenon’ is the infamous middle finger gesture employed by a well-known personality in Namibia’s showbiz last year.    Was that a sign of loneliness?  Well, without risking my poor miserable life I’ll leave that to the reader to figure out. Today, with the advent of equal opportunities and interventions, our ladies in the ‘Land of the Brave’ have made great strides in business, politics, TIPEEG, BEE, Namdeb, highly skilled professions and the list goes on, which makes them wealthy but ‘lonely.’ You will agree with me that successful women are multiplying in Namibia, but sadly, success has been unsettling for some as they are struggling to keep their ‘unemployed’ boyfriends or husbands, who feel that they can’t compromise on their self-esteem and would leave relationships in which they can’t cope with the rich lifestyle of their girlfriends or women – and therefore rendering many women lonely. I know many of them. Rich women have difficulties managing fulfilling relationships and therefore end up being lonely. My advice to these lonely Eves is simple; do not pride yourself in intimidation, aggression and power. No man will accept to be controlled by a wife just because he is poor. Instead, a rich wife must remain strong but be humble and respect her husband to make him stronger. No matter how much wealth a woman can attain, she will still long for a person she can share her life with; not to mention her wealth with. Although money can be friendly, rich women still need someone who will be there for them and just simply love them. We do not want a Whitney or Amy Winehouse situation to play off in our country or do we?. Until then, Eewa!

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MP Eric Joyce charged with assault

MP Eric Joyce has been charged with three counts of common assault after a disturbance at a House of Commons bar. The MP for Falkirk, who has been suspended by the Parliamentary Labour Party, was arrested on Wednesday evening after police were called. Mr Joyce, 51, of Bo'ness, near Falkirk, has been bailed and will appear at West London Magistrates' Court on 7 March. The allegations relate to Conservative MP for Pudsey, Stuart Andrew, a second Tory MP and a Labour whip. Mr Andrew had been in the bar on Wednesday following a Commons event organised by his Conservative colleague MP Andrew Percy, for the Speaker of the Canadian Parliament. Having spent nearly 24 hours in custody, Mr Joyce was seen being driven away from the rear of Belgravia police station, in central London, late on Thursday after being charged. Warning to MPs The BBC understands officers involved in the investigation returned to the Commons on Thursday evening to interview eyewitnesses. The allegations relate to a disturbance in the Strangers Bar, which is reserved for MPs and their guests. Mr Bercow told MPs after Mr Joyce was arrested: "I take this matter very seriously, as do the House authorities. "I would ask that no further reference should be made to these reports in the Chamber." Mr Joyce, a former Army major, was elected in a by-election in December 2000 and has served as a parliamentary private secretary (PPS) to a number of government ministers since 2003. He was PPS to the then defence secretary Bob Ainsworth until 2009, and prior to that had been a parliamentary aide to John Hutton, Mike O'Brien and Margaret Hodge.

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teenagers barricade themselves in ski chalet in France

Two Norfolk teenagers are among a group of people who have barricaded themselves into a luxury ski chalet in France because they say they have been unfairly dismissed from their jobs without any pay, Angus Briggs, from Newmarket Road, in Norwich, and Paddy Bartram, from East Tuddenham, had thought they had landed the perfect gap-year jobs when they were employed by Skithe3v to work as chalet hosts at the company’s resort in the Three Valleys area of France. But after working for just two weeks they said they received an email saying their services were no longer required and that they needed to leave the site by the following day. They were also told they would not be receiving any pay. A number of other staff members were also suddenly dismissed, and together they have barricaded themselves in Skithe3v’s Chalet Georgina, just outside Les Menuires, in protest. They have dubbed themselves the Les Menuires 7 and say they will not move until they receive the wages they are owed. Speaking from the chalet, 19-year-old Angus said: “We came out here a couple of weeks ago and we thought we would be doing the chalet hosting job until the end of the season. “As chalet hosts we had been hosting the guests, preparing some meals, and cleaning, and we had done this for two weeks. “But on Monday we were sent an email saying we were being let go, and others were too. “We are both owed about £200 each. “We are quite frustrated - when you do a job you expect to be paid.” He said they would not vacate the chalet until they are paid. “We are making a very peaceful protest,” he added. “We are maintaining the chalet and keeping it tidy and in perfect order. All we are asking is that we get the money we are owed - we will leave the chalet in immaculate condition.” Eighteen-year-old Paddy added: “I was really pleased to get this job and looking forward to it for ages. “I had wanted to do a ski season for several years and it seemed like the perfect job. “But they worked us far more than our working hours and it turns out they were just trying to exploit us,” Angus and Paddy said since Les Menuires 7 started their protest they had received support from people living nearby and also online through Twitter and Facebook. A woman who lives in the Les Menuires area said: “Everybody is talking about what is going at the chalet. It is huge news over here. There is a lot of support for them.” When the Evening News contacted Skithe3v, which has a base in Hanover Road, London, a spokesman said he was unable to comment because the situation was in the hands of the company’s legal team.

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MEP arrested on suspicion of European parliament fraud conspiracy

MEP has been arrested on suspicion of conspiracy to defraud the European parliament. West Midlands MEP Nikki Sinclaire, 43, was arrested along with three of her staff on Wednesday, according to another MEP for the West Midlands, Mike Nattrass of Ukip. West Midlands police confirmed a 43-year-old woman was arrested at a police station in Birmingham along with three other people on suspicion of conspiracy to defraud the European parliament. Two women aged 55 and 39 and a 19-year-old man were arrested at addresses in Solihull, Worcester and Birmingham and were taken to a police station for questioning on Wednesday. Searches were carried out at the addresses of the four people by officers investigating an allegation made in 2010 regarding allowances and expenses, a police spokeswoman said. All four were later released on police bail, she added. On her Twitter account, a spokesman for Sinclaire said the MEP attended the police station in Birmingham voluntarily and co-operated fully with the police. "This is particularly frustrating to Ms Sinclaire who is eager to clear her name and has nothing to hide," said another tweet. The MEP "disputes all allegations put towards her or her staff" the tweets said. Sinclaire and her office would continue to "fully co-operate with the police on this matter". In a statement, Ukip said Sinclaire, who formerly represented the party in the seat, ceased to be an MEP for the party in 2010. "It would be inappropriate for the party to make any comment during the process of an ongoing police inquiry," Ukip's statement said.

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Oscars warn Baron Cohen against red carpet stunt

 

Oscars organizers have warned flamboyant British actor-comedian Sacha Baron Cohen not to try to pull a stunt at this weekend's Academy Awards show, but said he is not banned from attending. The Hollywood Reporter cited sources as saying the star has told Paramount, the studio behind his latest movie "The Dictator," that he plans to turn up on the Oscars red carpet in full bearded, uniformed character Sunday. Reports suggested that the Academy of Motion Picture Arts and Sciences had banned the "Ali G," "Borat" and "Bruno" star altogether, but a spokeswoman denied this Thursday. "The Academy would love to have Sacha at the show. We've let him know how we feel about using the red carpet for a movie stunt and we're waiting to hear from him," she told AFP. Baron Cohen, who is in Martin Scorsese's 11-times Oscar-nominated movie "Hugo," has a history of colorful stunts: in 2006 he turned up at the Toronto film festival in a cart pulled by a "peasant woman" to promote Borat. At the 2009 MTV Movie Awards, he descended from the ceiling on a harness dressed as an angel, eventually crashing into Eminem's lap, his buttocks in the rapper's face. Eminem voiced outrage, although it later emerged that the two men had organized the stunt in advance. In "The Dictator," due out in May in the United States, Baron Cohen plays the lead role in "the heroic story of a dictator who risks his life to ensure that democracy would never come to the country he so lovingly oppressed." A representative for Baron Cohen did not immediately reply to a request for comment on the story.

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Murdoch slashes price for new Sunday tabloid

 

Rupert Murdoch on Thursday fired the opening shot in his battle to reclaim Britain's Sunday newspaper market by announcing his newly launched publication would be half the price of his previous title. The 80-year-old tycoon took to microblogging website Twitter to reveal: "Regular Sunday price for The Sun only 50p -- and Saturday's Sun going down to 50p too! Great news for readers and the economy." Murdoch's News of the World -- the Sunday tabloid which shut seven months ago over the phone-hacking scandal -- cost one pound ($1.57, 1.18 euros), the same cover price as rivals the Sunday Mirror and The People. The 50 percent price cut announced for The Sun on Sunday, which will hit the stands this weekend, signals the Australian-born businessman's hunger to once again own the top-selling Sunday newspaper. The News of the World dominated the country's Sunday market with sales averaging 2.67 million when Murdoch took the decision to close it in July last year. Publisher News International said the US-based mogul would be in London to oversee the launch this Sunday and confirmed that the editor of the weekday paper, Dominic Mohan, would also edit the Sun on Sunday. Murdoch flew in to Britain last week to announce the creation of the new paper and to promise demoralised staff he would stand by them despite the arrest of senior Sun journalists over bribery allegations.

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Labour suspends MP Eric Joyce after Commons 'assault'

 

Labour MP Eric Joyce has been suspended from the party after he was arrested over allegations of an assault in a House of Commons bar. Police were called after reports of a disturbance on Wednesday night. Mr Joyce, 51, remains MP for Falkirk but cannot take the Labour whip until the police investigation ends. Speaker John Bercow has said he takes the matter "very seriously". The Conservative MP for Pudsey Stuart Andrew has alleged he was assaulted. The BBC understands officers involved in the investigation returned to the Commons on Thursday evening. The disturbance is believed to have happened in the Strangers Bar, which is reserved for MPs and their guests. Mr Andrew was in the bar following a Commons event organised by his Conservative colleague Andrew Percy, for the Speaker of the Canadian Parliament. 'Extremely serious' A Scotland Yard spokesman said: "We were called at approximately 10.50pm last night to reports of a disturbance at a bar within the House of Commons. "A man aged in his 50s was arrested by officers on suspicion of assault. He remains in custody in a central London police station. Inquiries are continuing." A Labour Party spokesman said: "This is an extremely serious incident. We have suspended Eric Joyce pending the results of the police investigation." In the Commons, Speaker John Bercow said: "Members will be aware of reports of a serious incident in the House last night. I have been informed by the Serjeant at Arms that the honourable member for Falkirk has been detained in police custody. "The matter is being investigated. I take this matter very seriously, as do the House authorities." Mr Joyce was elected in a by-election in December 2000 and has served as a parliamentary private secretary (PPS) to a number of government ministers since 2003. He was PPS to the then defence secretary Bob Ainsworth until 2009, and prior to that had been a parliamentary aide to John Hutton, Mike O'Brien and Margaret Hodge.

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Indonesia moves foreigners out of riot-hit prison

 

Indonesia started moving foreign inmates, women and children out of an overcrowded prison on Bali island Thursday after two days of rioting, officials said, as troops backed by water canons and armored vehicles surrounded the tense facility. Schapelle Corby and several other Australians serving time for drug trafficking balked at the transfer because of the difficulty adjusting to a new place, said Bambang Krisbanu, a security official at the justice ministry. He said evacuations would be voluntary, but other officials later said the evacuations would apply to all those selected — about 60 foreigners, 120 women and 13 children. The violence that erupted late Tuesday at the Kerobokan jail — which houses more than 1,000 drug traffickers, sex offenders and other violent criminals — was triggered by the stabbing of an inmate during a brawl a week ago. The prisoners blamed lax security for allowing a knife into the prison. By Wednesday night, the inmates had chased away all 13 guards and seized full control of the compound, said Beny Arjanto, the local police chief. Some climbed to the top of the watch tower and started throwing rocks and a Molotov cocktail at more than 500 soldiers and police stationed outside. Others tried to break down the front gates. Troops responded by firing tear gas and shots in the air. Others stormed the facility, but they were forced back out 10 minutes later, said Arjanto. A few inmates have been injured, he said, but none of them seriously. The decision to relocate foreigners, women and children to another prison was made as it became clear Thursday that tensions were not going to ease anytime soon. "We want to evacuate them immediately for their own safety," said Col. Wing Handoko, a military spokesman. "We need to make sure they aren't used by other prisoners to get international attention or as bargaining chips for their demands. "We don't want them to be taken hostage." Though he would not say exactly where they would go, another police officer told The Associated Press they were heading for Klungkung, a jail about 40 miles (70 kilometers) away. He spoke on condition of anonymity because he was not allowed to speak to the media. The Kerobokan prison about 20 minutes from Bali's international airport was built for around 300 prisoners but houses more than three times that. Of the 60 or so foreigners, 12 are Australians and one is American, said Anang Khuzairi, a prison official. The most famous is Corby, a former beauty school student serving a 20-year sentence for smuggling 9 pounds (4.2 kilograms) of marijuana into Bali. Her case garnered intense interest in Australia, where many people believe she was innocent. Krisbanu said she and the other Australian inmates insisted they did not want to be moved. However, minister justice Amir Syamsuddin who is in Bali overseeing the operation, has requested evacuation of all foreigners, women and children, Handoko said. He added that so far 31 inmates, 14 of them foreigners have been moved by Thursday evening. "Most of the foreigners rejected, but we forced them due to the minister's request," Handoko said. No further information was available on the 13 inmates who are younger than 18.

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Labour MP Eric Joyce suspended after 'head-butting' Tory Stuart Andrew in House of Commons bar

 

The 51-year-old remains MP for Falkirk but cannot take the Labour whip in the Commons until the conclusion of the police investigation. 'This is an extremely serious incident,' a Labour party spokesperson said. 'We have suspended Eric Joyce pending the results of the police investigation.' Mr Joyce is said to have been arrested after the incident involving Tory MP Stuart Andrew at the Strangers bar, which is reserved for MPs and their guests, in the House of Commons before 11pm yesterday. 'We were called at approximately 10.50pm last night to reports of a disturbance at a bar within the House of Commons,' a statement from the Metropolitan police said. 'A man aged in his 50s was arrested by officers on suspicion of assault. He remains in custody in a central London police station. Inquiries are continuing.' Reports said Mr Andrew, the 40-year-old Tory MP for Pudsey, intended to press charges against Mr Joyce over the incident. An eyewitness who did not wish to be named told the website PoliticsHome that Mr Joyce 'just started lashing out at people' after complaining the bar was 'full of Tories'. Speaking in the Commons after news of Mr Joyce's arrest, Speaker John Bercow said: 'Members will be aware of reports of a serious incident in the House last night. I have been informed by the Serjeant at Arms that the honourable member for Falkirk has been detained in police custody. 'The matter is being investigated. I take this matter very seriously, as do the House authorities. I would ask that no further reference should be made to these reports in the chamber today.' Mr Joyce, MP for Falkirk since December 2000, served in the Army Education Corps before pursuing a career in politics. In 2009 he quit as parliamentary private secretary to defence secretary Bob Ainsworth due to concerns of the war in Afghanistan. A year later he resigned as shadow secretary of state for Northern Ireland for pleading guilty to failing to provide a breath test. Labour MP Paul Farrelly was involved in a brawl in an unrelated incident at another Commons bar in 2010. The MP for Newcastle-under-Lyme 'wrested' a man to the floor in 'self-defence after an altercation at a karaoke party in parliament's Sports and Social Club.

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Foreign and female inmates to be evacuated from Bali's Kerobokan prison

 

FOREIGN inmates including the 12 Australians held at Bali's notorious Kerobokan jail are set to be moved later today amid fears they could be targeted in ongoing unrest at the prison. Prison guards and police have again been forced to retreat to the streets outside the jail following a second night of unrest in the wake of a rampage by inmates on Tuesday night during which sections of the jail were destroyed by fire. About 400 armed police and soldiers remain stationed outside the jail amid a tense stand-off with prisoners. Indonesian Justice and Human Rights Minister Amir Syamsuddin has also been dispatched from Jakarta and is expected to visit the jail later today. The ongoing tension has prompted authorities to prepare for a mass evacuation of the jail, which has been without electricity since the riot broke out at about 11pm local time (2am AEDT) on Tuesday.  Riots continue in Kerobokan prison Buses have been moved to Kerobokan to prepare for the evacuation, which could take place at about 1pm. It's understood that the 60 foreign prisoners will be taken to a detention facility at Klungkung, a drive of about two hours from Kerobokan. Kerobokan governor Bowo Nariwono has confirmed the plan but said details were still being worked out. ''There's a plan to make them safe,'' Mr Nariwono said. The overcrowded jail houses more than 1000 male and female inmates, including the Gold Coast's Schapelle Corby and members of the so-called Bali Nine drug trafficking group. One of the Australian prisoners, Graeme Michael Pollock, was due to be sentenced today in relation to drugs charges. His hearing has now been postponed. The evacuation plan emerged as authorities voiced concerns for the safety of the foreigners inside the jail after a second night of unrest. Provincial military command spokesman Wing Handoko told AFP that authorities were still working out the details of the evacuation. ''We don't want to take chances, just in case the foreigners become a target of the prisoners' anger,'' he said. Authorities were forced out of the prison again last night after having initially wrested control of the jail back from prisoners earlier in the day. ''The prisoners took over the prison again, which forced security personnel to fire warning shots into the air,'' Mr Handoko said. Prisoners responded to the warning shots by throwing flaming missiles onto the street outside the jail. It is understood that they have demanded that the three prisoners shot in the leg with rubber bullets and removed from the jail yesterday be returned. The prison has been sealed off with about 400 armed police and soldiers, equipped with water cannons, stationed outside. Prisoners began rioting on Tuesday night after days of simmering tensions following the stabbing on Sunday of one prisoner by three inmates from a rival drug gang. Police were called in at about 4pm on Sunday to quell a mob of prisoners that had attacked those believed to be responsible for the stabbing.

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Confusion surrounds Australian prisoners held in Bali riot jail

 

Confusion surrounds Australian prisoners held in Bali riot jail Scott Rush, is escorted by two policemen after being moved out from Kerobokan prison in Denpasar.  BALI nine drug mule Scott Rush was evacuated from the fire-damaged Kerobokan prison late yesterday after a day of confusion and posturing. Prison authorities in Bali backed down from a threat to forcibly move 1015 prisoners from the jail in urban Denpasar, and by late last night had moved a small fraction of that. The fate of the other 11 Australians housed in the prison is unknown, as police were gearing up to move more people out. Last night, drug smugglers Schapelle Corby and the rest of the Bali nine were still inside.

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Fraud: Organised crime - Bogus claims gangs cast a wider net

 

According to the Insurance Fraud Bureau, the cost of organised fraud to the industry is approximately £200m per year. While this is only a small portion of the estimated £1.6bn total cost of fraud, it is of particular concern because it is typically carried out by organised gangs, often using the money to fund serious illegal activity, such as people trafficking, arms dealing and terrorism. Although there are isolated examples of fraud rings operating in arson and disability claims, the vast majority of organised fraud involves motor insurance. It is an unfortunate truth that the criminal gangs instigating this type of fraud are rarely identified by insurers or the police, as they operate ‘behind the scenes’ — persuading others to make personal injury claims on the back of accidents that are either staged or entirely fabricated. Historically, those targeted by gangs to take part in fraud have largely followed a well-defined profile, predominantly males in the 25 to 44 age bracket, living in more deprived postcodes. These individuals also tend to have a history of suspect claims or minor criminality. There is mounting evidence, however, that this is changing, as the gangs behind the scams cast their net wider in search of the ideal claimant. This is borne out by analysis of the thousands of fraud ring cases investigated by Keoghs. Case analysis Analysis of cases handled over the past 12 months shows the number of fraudsters within the 18 to 25 age bracket has increased by 10%, compared with the previous year. Meanwhile, the proportion of fraudsters in the 26 to 30 bracket has fallen by 0.5%. This trend is also starting to be recognised across the industry; in a survey of Keoghs' insurer clients compiled in September, 83% of those noticing a change in the average age of fraud claimants said they had seen a marked decrease in their age. Another trend, more difficult to quantify, but suggested by anecdotal evidence, is that organised fraud is becoming a more middle-class pursuit, with the two groups increasingly involved being students and young professionals. The link between youth unemployment and youth crime rates is well established. In 2004, economist Steven Levitt analysed a wide range of data into the relationship and found that, controlling for other factors, almost every study showed a relationship between non-violent crime and the rate of unemployment. Levitt’s estimate was that a 1% increase in unemployment would cause a 1% increase in crime. In 2005, a study by the government’s Social Exclusion Unit found that nearly two-thirds of young offenders were unemployed at the time of arrest compared to 46% of those aged over 25. The latest figures from the Office of National Statistics reveal that youth unemployment is at a 20-year high, with more than one in five — 22.3% of 16 to 24-year-olds — out of work. More than two fifths of those out of work have been unemployed for more than six months. As a result, many are anticipating a sharp increase in the level of crime committed by young people and this appears to be borne out in the increase seen in organised fraud. Strain on finances There is also a suggestion that issues such as a rise in tuition fees for higher education and lack of availability of affordable housing is putting such a strain on young people in jobs and full-time education that many are now willing to take the risk of committing fraud to survive. In many cases, this is a last resort unlikely to be taken under normal economic circumstances, but which is now being used as an opportunity by the criminal gangs who recruit fraudsters. To make significant amounts of money from fraud, the criminals need to recruit willing volunteers to file bogus claims in exchange for a share of the pay-out. The most common scenario — that used by Mohammed Patel, the fraudster jailed in 2009 for causing 93 crashes — is for a fraudster to use a contact’s car, with their permission, to stage a collision on the road, following which the owner of the car can make a large claim for personal injuries. However, as insurers’ risk and fraud managers have increasingly grown wise to this and subjected claims from the most commonly affected postcodes to increased scrutiny, the gangs have shifted their recruitment strategies. There have been a number of cases of active recruitment of fraudsters in universities – with those taking part often studying for high-earning professions such as law or medicine, and coming from stable, middle-class backgrounds. In one case currently under investigation, the ringleader at the centre of the scam was a student who had crashed the cars of a number of fellow students in order for them to benefit from the pay-outs. So, what can insurers do to stop these practices? Rapid shifts In the face of such rapid shifts in the demographics of those involved in fraud rings — and the state of the economy driving people to turn to desperate measures and commit fraud for the first time — it is clear that concentrating on those with a history of suspect claims will not prove an effective deterrent. What is needed are all-encompassing fraud detection tools and techniques, based on a joined-up approach to sharing detailed information both internally in organisations and between insurers. Ideally, as soon as a potential fraud ring is uncovered, investigators should be able to cross-reference the details of the claims involved with all other relevant cases across the industry as a whole in order to identify and investigate any links. Investment in analytical techniques and technology, coupled with an open approach to sharing data on suspected fraud rings, is essential if the industry is to stand any chance of identifying and bringing to justice those at the heart of the problem.

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Forces open fire on Kerobokan jail, which houses Schapelle Corby and the Bali Nine

 

INMATES at an Indonesian prison in Bali, which holds 12 Australians, have taken over the jail again after a second night of riots. Some 400 heavily armed police and military forces were gathered outside the overcrowded Kerobokan prison, which holds 1,000 inmates, including 12 Australians convicted of drug smuggling. "The prisoners took over the prison again, which forced security personnel to fire warning shots into the air," provincial military command spokesman Wing Handoko told AFP. "The rioters wanted their friends being treated in the hospital to be taken back because they were afraid they would be mistreated by security forces," he added. An AFP reporter heard three minutes of continuous gunfire, but it was not clear if there were any casualties. A flaming torch made of rags wrapped around a pole was flung from inside the prison and landed near a television vehicle, but was extinguished before the fire could spread.  Riots continue in Kerobokan prison The prison was without light because electricity, cut off during Tuesday's rioting, still had not been restored by authorities. "There are 51 foreign prisoners from 17 countries at the prison. We will give them special security if the situation warrants," Handoko said before the shooting. It was not clear whether the most recent riot was close to the wing where Australian or other foreign prisoners are housed. Shouting and the rattling of the prison's inner gates were heard before police opened fire, but after the shooting silence and darkness descended upon the jail with inmates and security forces in a tense stand-off. Heavily armed forces had stormed the prison early Wednesday to regain control after inmates took over the prison during a night of arson and stone-throwing. All 12 Australian prisoners at Kerobokan, including two on death row and six serving life sentences, were safe after that trouble, Australia's foreign ministry said after Indonesian police had regained control of the facility. Some 100 heavily armed police and military had stormed the jail on the holiday island at around dawn on Wednesday, firing volleys of rubber bullets. Officials said they intervened after attempts to negotiate with the rioting prisoners had failed, and after some inmates managed to get hold of firearms. Three inmates had been injured in the legs, and a police officer was lightly hurt, police said. Among the Australians at the jail are convicted drug trafficker Schapelle Corby and a group known as the "Bali Nine", who were caught attempting to smuggle drugs from Bali. Up to 1,000 armed security forces backed by armoured vehicles and water cannon were stationed Wednesday morning outside the jail, which is in a suburban area of Bali seven kilometres from the tourism hub of Kuta beach. But police said the situation had returned to normal by late afternoon, and that only about 30 armed personnel had remained outside. Police and local reports said Tuesday's trouble began when one inmate stabbed another prisoner on Sunday, touching off reprisals that erupted into a full-blown riot. Prisoners began trashing cells and throwing stones at the guards who were forced to abandon the jail - built for just 300 inmates but now housing more than three times that many prisoners, both male and female. Police said the inmates were in charge for more than seven hours - from around 11pm Tuesday until 6.45am the following morning. Prison staff said the jail's registration office, including the files of prisoners, was destroyed in a blaze. After the rioting Tuesday, Michael Chan whose brother Andrew Chan is one of the Bali Nine, said he was worried about his brother given that during a previous riot "things got pretty bad, and they were in lockdown for a couple of days". Corby's family said she was well, with the women's wing of the prison untouched by the violence. There have been a number of riots at the jail in recent years, including one triggered by a police drug raid in June. It is one of Indonesia's most notorious prisons, with a combustible mix of inmates including convicted murderers, sex offenders and others guilty of violent crimes.

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Sweden's Chicago grapples with deadly wave of shootings

A wave of execution-style shootings and a police station bombing in Sweden's third largest city have sparked fears that gangster violence is taking hold in a Nordic country widely seen as one of the world's safest places. Only minutes into the new year, a 15-year-old was found with gunshots to his chest and one to his head outside an apartment block in one of Malmo's poorest and most troubled districts, where firefighters have occasionally sought police protection. Eight killings have occurred across the city since a 36-year-old with links to organised crime was gunned down in a parking lot in May last year. The latest victim, a 48-year-old man, was found shot in a car at the end of January. None of the murders have been solved, and now some newspapers are calling Malmo "Sweden's Chicago". "Why don't police have better control?" national daily Svenska Dagbladet asked in an opinion piece, suggesting Malmo look to New York which slashed its crime rates in recent decades. For their part, police refuse to reach the conclusion that the bomb at the police station and the killings were definitely linked, which would gangland violence is out of control. "We believe it's linked to the prevalence of weapons. It is big. But I can't say why we have a larger share here than in Stockholm," Hans Nordin, Deputy Chief Commissioner of Police in the Skane region of southern Sweden, told Reuters. With a population of just 300,000, Malmo is one of Sweden's roughest cities, long a base for smugglers because of its proximity to Denmark, with which it has been connected by a bridge since July 2000. Roughly 40 percent of Malmo's population are first- or second-generation immigrants and one in three is unemployed, compared with a national rate under nine percent. Among young immigrants, the rate is nearly 40 percent. Formerly a prosperous industrial town, much of the old industry has declined and jobs have vanished. Gangs took root here decades ago, starting with motorcycle groups and increasingly dominated by immigrants, at first thanks to an influx in the 1990s of refugees of Balkan wars and then, over the past 20 years, immigrants from the Middle East, Africa and eastern Europe. SHAKING SWEDEN Along with the July 2011 killings of 77 people in Norway by right-wing fanatic Anders Breivik, the city's problems have helped to shatter the cherished image of Sweden as a refuge of safety and peace, sparking a national media debate, soul-searching throughout Sweden and street protests. Dozens of police reinforcements sent in this year are still in the city. "I'm thinking of leaving Malmo because it is getting more and more dangerous," said Henrik Hammar, 28, who stocks shelves at a grocery store and was awakened when a small bomb exploded at the police station in his neighbourhood at the end of January, close to where the latest victim was found. "When it comes to shooting, we are used to that in Malmo. But not bombs," Hammar said outside the police station with a shattered window and a hole torn in its brick wall. The bombing happened in Fosie district, a centre of the violence. The wave of killings since May is not the first to shake Malmo. Peter Mangs was arrested in 2010 on suspicion of three murders and 13 attempted murders over a seven-year period, a string of shootings on Malmo's streets targeting immigrants. Luciano Astudillo, a Chilean-born former MP who was moved by the New Year's Day shooting to launch a campaign to say "Enough is enough," compared the crime wave to the violence that plagues Mexican border towns. "We have the same problem here as in the north of Mexico though on a smaller scale," he said, pointing to the drug and weapons smuggling that pass through Malmo from Denmark on their way to the rest of Scandinavia. "So it is logical for the gangs to gather here and fight each other," he said. Astudillo said he hopes the protests he has helped lead, including a street demonstration by more than 6,000 people on January 6, will make politicians notice what is happening. "I don't think murders will become more and more frequent in the near future, but there is nothing that indicates things will improve a bit longer-term," said Tobias Barkman, a crime reporter at regional daily Sydsvenska Dagbladet. "Society has fallen behind - with regards to the police and to the social situation. It's hard to see any rays of hope."

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Violent gangs are deeply entrenched in Spanish Town, just west of Kingston, and in some residential sections of the northwestern parish of St. James, which includes the resort city of Montego Bay.

 

 Fighting between the gangs for control of drug trafficking and extortion rackets has long been blamed for the majority of Jamaica’s homicides. Police Commissioner Owen Ellington said at a news conference with Bunting that much of the security forces’ resources are now focused on trying to contain 42 active gang conflicts. Ellington told reporters that the Shower Posse gang, which was controlled by convicted drug kingpin Christopher “Dudus” Coke from his slum stronghold of Tivoli Gardens, has been significantly hobbled since his capture in June 2010 but remains an active gang in West Kingston. Bunting said Prime Minister Portia Simpson Miller’s nearly two-month-old government intends to fast-track anti-gang legislation and is crafting a new security policy meant to reduce crime to “First World levels” by 2017, when he hopes to have a maximum of just 321 killings. A U.N. study on the Caribbean released earlier this month said Jamaica has had the world’s third-highest murder rate over the past decade, with about 60 murders per 100,000 inhabitants. Jamaica loses some $529 million a year due to crime, according to the report. Last year, Jamaica had 1,125 slayings, a roughly 22 percent drop from the 1,442 killings in 2010. A record 1,683 people were killed in 2009. Bunting said a major goal is to target gang kingpins and facilitators for organized criminal networks, not the people lower down the chain. Many of those arrested in previous years have been underlings who had little connection to gang leadership. Such workers are easily replaced. “We don’t always want to be chasing out the symptoms, we want to get to the infection,” he told reporters at the prime minister’s offices. Bunting intends to create a task force to identify and arrest crime facilitators, such as accountants, real estate brokers, lawyers and corrupt public officials. He also hopes to give courts greater power to seize their assets. He also said Jamaican society must undergo “mental reconditioning” to encourage more people to report crimes. Those who live in Jamaica’s slums are deeply distrustful of the police and authorities, and an anti-informant culture is widespread.

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Bolivian minibus gang murdered up to 69 people on their way to work

 

Police in Bolivia are blaming a gang for a spate of early morning murders in Bolivia where people have been strangled on minibuses while heading into work. Up to 69 people have been killed and dozens more were left for dead in El Alto, a working class city of one million people on an arid plateau above Bolivia's capital, La Paz. "This kind of assault came about because people, by necessity, take whatever transport they can get," said Felix Rocha, chief of Bolivia's police. Gang members would ride the buses posing as passengers, police said. After their victims had boarded, they were strangled with a rope or scarf and stripped of valuables that often amounted to little more than a mobile phone and the clothes on their backs. A 64-year-old man who said he survived an attack by the gang, recounted leaving his house at 4am on 5 February on his way to the bank where he collects his monthly pension. He said he boarded what he thought was a public transit minibus and as usual, his 25-cent fare was collected by "a cholita," or indigenous woman. "They had me sit in the front and suddenly I felt a scarf tightening around my neck. I fought back but they hit me in the ribs and face and I fell unconscious," said the man, who asked to be identified only by first name, Macario, because he fears for his safety. "I woke up later in a dumpster," Macario added. Gone was his mobile phone and the equivalent of £35 in the local currency. Police last week announced the arrest of eight alleged members of the gang, ranging in age from 30 to 45 and including a woman, Yuli Gutierrez Jimenez. Rocha said police seized four 14-seat minibuses used by the gang. Most of the killings occurred between 4am and 6am, when public transport is relatively scarce and only 400 police are on duty in the entire city, which is mostly unpaved and where many neighbourhoods lack running water and electricity. The gang is believed to have killed 69 people whose bodies have been found over the past 13 months, said Rocha, though prosecutor Santos Valencia said investigators are still trying to determine if the group was responsible for all those deaths. More than 70 people told police they had survived attacks after recognising gang members in local media reports, Rocha said. Other such gangs are known to exist, but the minibus gang seems to have been the best organised and most methodical, he added. Its alleged leader, Julio Edwin Valdez, 33, was arrested last week. Also captured was Galo Mamani, the bus's driver. Prosecutors said the two face murder charges but offered few other details. Valencia told reporters that police found wallets and the clothes of victims in the homes of those detained. Authorities did not say how they tracked down the alleged criminals. Rocha said police were investigating whether the group was also involved in the recent murders of several taxi drivers whose vehicles were stolen after the drivers were strangled.

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Gangster Domenyk Noonan set to be told: You’re staying in jail

 

Probation chiefs are set to oppose gangster Domenyk Noonan’s latest bid for freedom, we have learned. The 47-year-old is currently behind bars in Strangeways awaiting a parole hearing. He was arrested amid the August disorder in Manchester last year and recalled to prison – even though an investigation into whether he was a riot ringleader was dropped. Now we can reveal the Probation Service will recommend Noonan, originally from Moston, remains behind bars at the hearing later this month. They will present a report to the parole board into the risks he poses if released. It is understood the report will include a reference to a new documentary – called A Very British Gangster II – which was released earlier this month. The film is the work of investigative journalist Donal MacIntyre, who spent weeks filming Noonan before his arrest in August. The Probation Service is believed to be concerned the film may glorify Noonan’s past, despite his claims he has found God and is a changed man. The film is a sequel to the A Very British Gangster, which featured Noonan and his brother Dessie – later murdered by a drugs dealer. The original caused fury inside Greater Manchester Police, which failed in a court bid to ban it. Mr MacIntyre insists the follow-up focuses on fatherhood rather than Noonan himself. He strenuously denied it glorified crime, adding: "It’s an important, serious film. "I come from a journalistic and documentary perspective. It reports the world as we see it. We don’t give value judgements." Noonan, speaking from Strangeways, said: "I want to let people know I’ve changed my life around. I haven’t been in any trouble yet I’m still in prison." Noonan, who changed his name to Lattlay-Fottfoy, was locked up in 2005 after a gun was found in his car. He was released on licence in 2010 but has been recalled to prison on a number of occasions. In August he was arrested on conspiracy to commit violent disorder. The case was dropped but he remains behind bars under the terms of his early release licence, which expires in 2014. A spokesman for Greater Manchester Probation Trust said: "If an offender is determined not to change their behaviour then they will be recalled to custody should they breach the terms of their licence."

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