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Petrochemical stocks in Iran fall after arrest of key trader

Oil&Gas Materials 24 February 2013 16:02 (UTC +04:00)

Azerbaijan, Baku, Feb.24 / Trend F.Mehdi/

Prices of petrochemical stocks in Iran fell after some media reported yesterday that one of the key traders of petrochemical products in Iran had been arrested for massive financial corruption, the Fars News Agency reported.

Fars reported today that Hossein Daqiqi, the managing director of the social security organization of military forces, was fired, seemingly in relation to the new fraud case.

The organization had been one of the major shareholders in petrochemical companies, according to the report.

The scale of the new corruption is estimated to be even larger than the recent $2.6 billion bank fraud case, so that just one of the cases in the petrochemical financial corruption is worth €420 million.

The mentioned has dominated Iran's petrochemical exports for a decade and has worked in Iran's Petrochemical Commercial Company for a couple of years.

Earlier, Iran's Judiciary Spokesman Gholam-Hossein Mohseni-Ejei said that four people who involved in $2.6 billion bank fraud case were sentenced to death, MEHR reported on Sunday.

According to him, other main culprits in the fraud case have been sentenced to life, as well as imprisonment for 10 years and pecuniary punishment.

In December 2012, Mohseni-Ejei said that the case has about 200 defendants, 40 of whom stood trial in the first phase, during which four individuals convicted of involvement in the case were sentenced to death, two convicts received life imprisonment, and a number of other convicts were sentenced to 25 years or less in prison.

In addition, a number of the convicts were ordered to pay fines and return the assets acquired through the fraud.

The embezzlement case started in 2007 by Amir Mansour Arya Investment Company, and progressed in 2010 after some Iranian major banks, including Bank Saderat and Bank Melli, issued loans for the company.

Iranian officials say that the case involved the use of fraudulent documents to obtain a loan for this investment company, one of the country's top financial institutions.

The company used them to purchase assets such as state-owned companies.

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