Citic arm raided by cops over big losses

Source: Agencies | April 5, 2009, Sunday |

Print Edition

CONGLOMERATE Citic Pacific, the Hong Kong arm of a Beijing investment company, said its offices were raided by police on Friday in connection with bad currency bets that may have cost it billions of dollars.

Hong Kong police executed a search warrant at the company's offices to obtain information about currency contracts and company announcements from July 2007 to March 2009, the company said.

The investigation was related to allegations of false statements made by the company's directors and conspiracy to defraud, it said.

Hong Kong broadcaster TVB showed film of what appeared to be government officers carrying away documents from Citic Pacific's office building.

Citic Pacific stunned investors last year when it revealed multibillion-dollar losses from leveraged foreign currency contracts, causing it to seek a US$1.5 billion bailout from its Beijing-based affiliate Citic Group.

Citic Pacific shares were suspended in Friday trade.

Economy

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Citic arm raided by cops over big losses

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