Former Deutsche Bank Salesman Shigeru Echigo Admits Bribery Charges

A former Deutsche Bank employee has admitted to bribery charges in Tokyo.Reuters

Shigeru Echigo, a former Deutsche Bank salesman, has admitted to bribery charges in Tokyo, but stated that he was only following his bosses' instructions.

Echigo, 37, was accused of bribing a pension fund executive so that he would continue purchasing investment products.

Over the course of 15 meetings, Echigo spent roughly 900,000 yen (£5,217, €6,353, $8,776) entertaining Yutaka Tsurisawa, a former Mitsui & Co. employee, but he told the court that this is common practice among brokerages.

Echigo used financial enticements to keep Tsurisawa spending money with the bank.

Last month, Tsurisawa, was convicted in the same Tokyo court for accepting the bribes from Echigo. He was given an 18 month suspended prison sentence and ordered to repay the majority of the 900,000 yen.

Echigo has said that he did not act alone, arguing that the unit in Japan was full of colleagues acting in a similar manner, and that he was only following instructions.

"My actions as a salesman were part of systematic conduct based on the instructions and consent of my bosses at Deutsche Securities," Echigo told the courtroom.

The financial incentives used by Echigo were deemed to be illegal in Japan as they are considered public funds and authorities are urging brokerages to use better judgement when entertaining clients.

"This case has sent a strong message that banks and brokerages must be more careful when they entertain clients," said Mamoru Nagano, a professor of economics and international finance at Seikei University in Tokyo told Bloomberg Businessweek.

"Authorities globally have been tightening up oversight of the banking industry since the financial crisis to make sure that transactions comply with the law."

Echigo could face jail time of up to three years, or be hit with a maximum fine of 2.5m yen. The next hearing will take place on June 17.

Japanese authorities have been casting a keen eye over the investment fund sector since AIJ Investment Advisors president Kazuhiko Asakawa and three others were arrested on fraud charges amounting to $1.4bn.

Asakawa was accused of defrauding the country's two corporate pension funds, one in the country's capital Tokyo and the other in the northern Japanese city of Nagano. AIJ hid the losses for nearly a decade.

Minmetals Profits Down 94% As China Rare Earth Industry Suffers from Price War

Rare earthsReuters

China's rare earth sector is being hurt by low prices, as the country lost in a key lawsuit at the World Trade Organization (WTO) against the US, Europe and Japan.

Earlier, China Minmetals Rare Earth Co. Ltd, reported a steep decline in profits for the quarter ended in March 2014. The company's profits declined 94.1% to 1.6m yuan ($261,341, €189,229, £155,551), as its revenues fell 98.5% to 3.3m yuan.

In 2013, the company reported a 20.5% decline in net profits and a 57.6% drop in revenues. In addition to the weak profits, the company suffered from overproduction during the year, as its rare earth stockpiles also surged by 167.8%.

"The grim outlook of the global economy and sluggish domestic demands hammered rare earth prices and weighed on mining companies," Xinhua quoted the company as saying in a statement.

Rare earths are a group of 17 elements in the periodic table valued for their magnetic and conductive abilities. They are used in high-tech products such as rockets, electric cars and smartphone touch screens.

China produces more than 90% of the world's rare earths, and the industry is dominated by three giants – Inner Mongolia Baotou Iron & Steel (Group) Co, China Minmetals Corporation and the Aluminum Corporation of China.

China earlier imposed strict rare earth export quotas in 2010, citing problems of environmental damage and illegal mining. Prices for the 17 elements have already been rising to sky-high levels amid worries about China's monopoly in the sector.

In a lawsuit against import restrictions, the WTO ruled in favour of the US, Europe and Japan. China is preparing to appeal against the ruling.

After companies such as US-based Molycorp and Australia's Lynas Corp boosted their production, prices of most rare earth elements have declined by about 70% or more due to excessive supply.

The WTO ruling and the price war between the companies are expected to bring down prices further.

"If the recent WTO ruling leads to a softening of China's rare earth industry policy measures, the nation's only tangible defence becomes competing head-to-head on price with emerging global producers," Reuters quoted Ryan Castilloux, founding director at Adamas Intelligence in Sudbury, Ontario.

"If we start seeing new mines being constructed outside of China and demand does not grow to absorb this new production, then China may see its REE (rare earth element) industry, at least the upstream end of it, under threat, leading it to undercut competitors on price."

Global Cyber Spying Incidents Triple in 2013

Reports of espionage hacking increased significantly in 2013, with a growing proportion of attacks attributed to Eastern European governments.

A comprehensive study on global cybersecurity has revealed that hacking for the purposes of spying grew significantly in 2013, partly as a result of increased cyber-espionage from eastern Europe.

The Data Breach Investigations Report, an annual security study by US telecoms firm Verizon, detailed more than 63,000 confirmed security incidents reported by 50 major organisations.

Almost half of all spying intrusions were blamed on east Asian nations including China, but one of the key findings of the report was that hackers operating in eastern Europe accounted for a growing proportion of espionage-related security breaches.

"The percentage of incidents attributed to east Asia is much less predominant in this year's dataset," the report stated. "The 2013 dataset shows much more activity attributed to Eastern European actors, Russian-speaking ones in particular."

Russian-speaking nations accounted for 21% of spying incidents. The majority of them were attributed to "state-sponsored actors".

Government acts of electronic spying, however, did not account for all espionage attacks in 2013. The report revealed that 11% of such breaches came from organised criminals.

"The most noticeable shifts in the 2013 dataset were an increase in insider espionage targeting internal data and trade secrets, and a broader range of tactics," the report stated.

Reported incidents triple

The total number of cyber-espionage incidents reported in 2013 was 511, three-times more than the previous year.

A portion of the increase is believed to have come from the addition of new data sources and increased visibility from Verizon's partners in the investigation, which include Intel and security firm Kaspersky.

However, even with the new data sources, the report's authors were "surprised" to see such a significant growth of incidents.

"We knew it was pervasive, but it's a little disconcerting when it triples last year's already much-increased number."

Japan Revamps GPIF - World's Largest Pension Fund

Government Pension Investment Fund (GPIF) Chairman Takahiro Mitani gestures during an interview with Reuters.Reuters

Japan has revamped its Government Pension Investment Fund (GPIF) - the largest pension fund in the world - allowing it to invest more in riskier assets and reducing its long reliance on low-yielding government bonds.

Japan's GPIF boasts assets under management of $1.26tn (£750bn, €912bn).

The government has reshuffled the GPIF Investment Committee and reduced the number of members to eight from 10 as part of the restructuring. Two members retained their seats, while a former member was brought back to the panel.

The new committee is entrusted with the responsibility of allocating the fund's investments over the coming months.

Health Minister Norihisa Tamura, who appoints the GPIF Investment Committee members, said the new investment advisors will take into account the country's economic development while deciding on investment options and effectively manage risks.

The new panel reflects a balance of academics and economists. It includes Sadayuki Horie, senior researcher at Nomura Research Institute; Isao Sugaya of the JTUC Research Institute for Advancement of Living Standards, a think tank of Japan's top labour federation; and Yasuhiro Yonezawa, a professor of Waseda University's graduate school of finance.

Other members are: Junko Shimizu, a professor of international finance at Gakushuin University in Tokyo; Yoko Takeda, chief economist at Mitsubishi Research Institute Inc; Setsuya Sato, a professor in the English communications department at Toyo University; Hiromichi Oono, a board member at Ajinomoto Co. and Kimikazu Noumi, president and chief executive officer at Innovation Network Corporation of Japan.

The reform in the pension fund was part of Prime Minister Shinzo Abe's strategy for the Japanese economy. It is part of his "third arrow" of reforms.

He is of the view that mobilising the huge asset base of the pension fund would help move Japan out of deflation, which has lasted for more than a decade.

Analysts have been suggesting pumping the fund's money into property, commodity futures and other non-traditional areas. The GPIF, which employs less than 80 people, is run almost on autopilot and has invested largely in government bonds issued by Japan's finance ministry.

The fund had earlier cut its target holding for local government bonds to 60% from 67% while the proportion of foreign and local shares was raised to 12% each, from 9% and 11% respectively. It would also invest 11% of its funds in foreign bonds and 5% in short-term assets.

The shift toward higher-yielding assets comes as the manager tries to give more returns to fund retirements in the world's oldest population. The fund returned 3.3% in the three quarters though December. While Japanese bonds returned 1.48% and local stocks gave a 1.63% profit, foreign bonds and stocks returned 10.3%.

British Dive Expert Tony Gilchrist Shot Dead 'by Drunk Employee' in Philippines

Tony Gilchrist died after being shot on the Philippine island of Malapascua(Facebook)

A British man who opened a scuba diving shop in the Philippines has been shot dead by a "disgruntled employee".

Tony Gilchrist, 35, of Staines in Surrey, was shot four times in the chest and twice in the head by his own security guard after he had sacked him for turning up to work drunk for the second time, according to reports.

The man – named locally as 42-year-old Melchor Alciso Jr – was arrested on suspicion of murder. The alleged incident occurred at the scuba diving shop Fish Buddies on the island of Malapascua.

Described as a "gentle giant" by his family, 6ft 8in Gilchrist moved to the Philippines two years ago. He is said to have raised £10,000 for the Philippines relief effort following the devastating typhoon which struck the nation in November.

His family said Gilchrist considered the Philippines home "and somewhat of a paradise".

Tony Gilchrist moved to the Philippians after falling in love with the country while travelling(Facebook)

They added: "This is a hard time for our family and for you, his closest friends. It's important to remember that Tone was genuinely the happiest he's ever been and lived his life as a loving, generous, kind, thoughtful person, with no malice in his heart.

"Both his brothers James and Stephen are now in the Philippines to arrange all the necessary to bring Tony home and see to it that justice is fully served upon the perpetrator of this tragic event."

The local mayor Augusto Corro described the shooting as an isolated incident.

"It is unfortunate that this incident happened at a time when the island was brim-filled with tourists, being a Holy Week.

"My thoughts and prayers are with the victim and his family."

A Foreign Office spokesperson said: "We are providing consular assistance to the family at this difficult time."

Hot Shots Photos of the Day: Dope Pope, Kate's Fly, Peaches Funeral

Someone holds a phone with a cover depicting a marijuana leaf as Pope Francis greets the faithful during his Easter Mass in St Peter's Square at the VaticanGetty

US President Barack Obama acts out the line "gnashed their terrible teeth" from the book "Where the Wild Things Are" during the 136th annual Easter Egg Roll on the South Lawn of the White House in Washington DCReuters

US President Barack Obama kisses first lady Michelle Obama next to the Easter Bunny during the 136th annual Easter Egg Roll at the White HouseReuters

Kate Middleton is escorted by Archbishop of Sydney Glenn Davies following an Easter Sunday service at St. Andrews Cathedral in SydneyReuters

Kate Middleton talks to junior surf lifesavers during a visit to Sydney's Manly beachReuters

Prince George holds a toy bilby during a visit to Taronga Zoo in SydneyReuters

A fly lands on Kate Middleton's nose as she speaks to a young girl during a visit to the National Indigenous Training Academy at Yulara in the Northern Territory of AustraliaReuters

Cosplay enthusiasts practice for Hinode, a festival celebrating Japanese pop culture, in MoscowReuters

2013 Boston Marathon survivors Celeste Corcoran and her daughter Sydney finish the 2014 race with Celeste's sister Carmen AcabboReuters

Meb Keflezighi of the US reacts after winning the men's division of the Boston Marathon, becoming the first American man to win the race in three decadesReuters

Kelvin Villaroel holds up his son Isaac for a photo in front of a blooming cherry tree in Central Park, New YorkReuters

People gather under cherry trees in full bloom in Central Park, New YorkReuters

People gather to observe the Perimetral overpass after its partial demolition as part of Rio's Porto Maravilha (Marvellous Port) urbanisation projectReuters

Spanish matador Manuel Escribano is tackled by a bull at The Maestranza bullring in the Andalusian capital of SevilleReuters

A hearse carrying the coffin of Peaches Geldof, painted with a picture of her family, arrives for her funeral service at the St Mary Magdalene and St Lawrence church in Davington, KentReuters

A pro-Russian armed man escorts Ukrainian journalist Irma Krat after a news conference in Slaviansk. Pro-Russian separatists detained the journalist, accusing her of "war crimes" during the "Euromaidan" protests that toppled the Moscow-backed presidentReuters

North Korean leader Kim Jong-un poses for a picture with senior military staff and other members of the Korean People's Army in PyongyangReuters

Rescue workers carry the bodies of passengers who were on the Sewol ferry, which sank in the sea off Jindo, South KoreaReuters

Venezuela Protests: Violence Breaks Out Again in Caracas

Violence has erupted between police and masked anti-government protesters in Caracas, Venezuela.

Effigies of President Nicolas Maduro burned on the streets of the capital. Protesters threw petrol bombs at police, who responded with tear gas and water cannons.

More than 40 people – on both sides of the conflict – have been killed in violent protests since February.

An anti-government protester fires a home-made mortar towards policeReuters

Fireworks explode around members of the national policeAFP

A member of the national police fires tear gas towards anti-government protestersReuters

Police operate a water cannon shooting jets of water towards a barricadeReuters

An anti-government protester wearing a Guy Fawkes mask is surrounded by flames from Molotov cocktails thrown at a water cannonReuters

Protester Isabel Loaiza lies on the ground after being hit by an SUV during an anti-government protest in El Cafetal in CaracasReuters

People stand near an SUV that hit anti-government protester Isabel LoaizaReuters

A policeman stands next to the injured driver of an SUV involved in a hit-and-run accident. The vehicle was stopped by protesters who beat the driver up. The driver was subsequently arrested by policeReuters

An anti-government protester, wearing a mask in the colours of the Venezuelan flag, stands at a barricade in CaracasReuters

An anti-government protester, wearing a baseball glove, displays a "Resistance" tattooReuters

An anti-government protester stands near graffiti during riots in CaracasReuters

Anti-government protesters jump on a Banco de Venezuela sign after pulling it downAFP

Police detain an anti-government protesterReuters

Anti-government protesters burn an effigy depicting Venezuela's President Nicolas MaduroReuters

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MtGox CEO Mark Karpeles Was Never Dishonest: Mother

MtGox CEO Mark Karpeles.Reuters

Mark Karpeles, CEO of bankrupt bitcoin exchange MtGox, is a poor communicator who allows others to take advantage of him, but he was never dishonest, according to his mother.

Anne Karpeles, who is French born but lives in Switzerland, revealed details about her son's childhood and student life in an interview to Reuters.

Japan-based MtGox, which at one point hosted 80% of the world's bitcoin trade, collapsed after reporting that 850,000 bitcoins were stolen in what it claims was the result of a two-year-long cyber attack. The company filed for bankruptcy protection in Japan on 28 February and subsequently in the US.

The exchange was recently placed into provisional administration after it filed for liquidating its assets following its failure to restructure its business under the country's bankruptcy protection scheme.

"Difficult, never. Too conciliatory for a few things. Someone who is extremely nice and who has a tendency to let himself get taken for a ride by others. People who took advantage of him, who asked him to do their homework," Anne said in the interview.

Despite being a terrible student, he was admitted to Mensa, a global society of those with a high IQ.

"He was a terrible student. Terrible. Most subjects didn't interest him. He took a Mensa test, passed it and was admitted into Mensa ... during his teenage years. Prodigies understand things straight away, but you don't learn without repetition, without exercises. But that he didn't understand," she said.

Being a poor student, Karpeles was moved from school to school, and his mother introduced him to music, cookery, sewing and also computing, which he "loved."

Later, he became an expert in PHP, a computer programming language and moved to Japan, "the doorway to his dream," in 2009.

"(Mark's) communication at a personal level is catastrophic. It's always been difficult to get him to speak. We tried to get him to be more extrovert," Anne said speaking about Mark's personality.

"There have been psychological profiles of Mark ... when he was admitted to Mensa. Prodigy, that was clear. Sometimes his problems communicating were recognised and other times not, depending on the profiler."

Nevertheless, she noted that she was shocked by the fraud accusations against him and insisted that he was never dishonest.

"That would shock me though because I've never seen him do anything dishonest. He has sometimes trusted in people who were dishonest," she said.

MtGox's Mark Karpeles Was Indifferent to Bitcoin Exchange's Commercial Success

MtGox's CEO and majority owner Mark Karpeles.Reuters

Mark Karpeles, CEO of MtGox, personally controlled all key operations of the failed bitcoin exchange even when its business grew exponentially on the back of skyrocketing bitcoin prices.

Reuters citing former staff and associates of MtGox reported that French-born Karpeles was indifferent to the exchange's commercial success.

MtGox became the world's largest exchange for bitcoin, handling business worth $3bn (£1.8bn, €2.2bn) in 2013, as the price of bitcoin rose above $1,000. As bitcoin gained popularity, MtGox's user base rose to 50,000 from just 3,000 within three months.

Karpeles also increased the number of employees at the firm to keep up with increasing customer support queries, and eventually rented office space in central Tokyo with 30 employees.

When the company was hit by a security breach, Karpeles retreated to build a more secure trading platform but left the exchange offline.

"He wasn't ever focused on Mt. Gox like he should have been," Roger Ver, a bitcoin enthusiast who volunteered to help Karpeles, said.

Karpeles had a tight grip on all of the company's affairs and was the only person with access to the exchange's bank accounts and bitcoin holdings. He also refused to share passwords with other employees.

"Karpeles had no particular interest in the libertarian philosophy that drove many bitcoin adopters," Reuters writes. He was interested in the technology as a "nice experiment."

When MtGox boomed, he did not entertain prospective investors who approached him with proposals, according to former employees. He refused to show them the accounts of the company.

While MtGox's rivals were developing sophisticated trading platforms, Karpeles diverted his attention from the exchange to buy an unrelated software company called Shade 3D. In addition, he began to work on launching a 'Bitcoin Cafe' – which would accept the digital currency as payment - on the ground floor of the office, according to records and former staff.