Banking: two plead not guilty to defrauding HSBC of euro10 million
Malaysians Mohd Khairuddin Abu Bakar, 53, and Gazali Rashid, 50, have been charged in Kuala Lumpur that they tricked a vice president of HSBC in the USA into granting a loan of 10 million euros.
It is alleged that the pair met banker Stephen Ferrera into believing that a company, Malaysian Sea Best Sdn Bhd ("private limited") (MSB) had agreed to supply their company, Majuikan Sdn Bhd, with fish and that, in order to secure the supply, Majuikan had agreed to guarantee MSB's loan.
The bank advanced euro10 million which was paid into the MSB's account.
But the guarantee documents, prosecutors say, were fraudulent and the company had no knowledge or the proposal and would not have approved it. Rashid was a director of Majuikan and Abu Bakar was a senior manager.
Both have been bailed to appear at a later date and required to surrender their passports.
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