Former commodity-trader admits to arrogance and greed after embezzling $830,000

A former commodity-trader admitted to arrogance and greed at a hearing in Zug’s criminal court earlier this week where he faced charges of embezzling $830,000 from his former employer.

The court heard how, between the years of 2008 and 2012, from a Zug base, he sold metals such as manganese ore mined in South Africa on behalf of a company which had Russian connections. With each sale, he increased the price, between $10 and $20 dollars per tonne, syphoning off funds for himself. Bearing in mind he was negotiating deals relating to as many as 150,000 tonnes, this all added up. In all, he stole $830,000, which he deposited in a bank in Liechtenstein.

When he was asked by a judge why the company he worked for had not noticed the missing funds, he said there had always been a certain margin when it came to prices, so they did not notice any discrepancies. As to the purchasers of the ores sold, they never noticed anything, either, additional commission payments being nothing abnormal in the trade.

He confessed in court he realised the money he embezzled did not really belong to him and admitted committing the crimes for a number of reasons. Firstly, because the opportunity was there. No-one was looking over his shoulder; no-one monitored carefully what he was doing.

“Quite honestly, it was greed, too,” he admitted, and recognised how arrogant he had been, having previously worked for a well-known commodity-trading company, always flying first or business class.

As to what he had done with the funds he had embezzled, he said it was all still there. Unlike other criminals, he had not used it to finance a glamorous lifestyle, he said he had earned enough anyway. He kept it in his account should he decide to set up his own business someday.

According to Swiss law he could face a prison sentence of up to five years, and/or a fine. As to previous charges he faced with regard to money laundering, these had become invalid after falling under the statute of limitation.

Verdict is awaited.