* US judge in Los Angeles orders Chan Ming Fon held
* Chan paid $10 mln for role in fraud-US authorities
* Accused of helping 100s of mlns of dollars disappear
By Ronald Grover and Erin Geiger Smith
Los Angeles Dec 21 A former Singapore banker
accused of helping "liquidate" hundreds of millions of dollars
in an accounting fraud at Japan's Olympus Corp was
ordered to face charges in New York after he was arrested in Los
Angeles on Thursday.
Chan Ming Fon, a one-time bank vice president, was ordered
held without bail by U.S. District Judge Patrick J. Walsh and
transported to New York.
Chan, who resides in Singapore and is a citizen of Taiwan,
is the latest executive and first from outside Japan to be
indicted in the $1.7 billion accounting cover-up at the camera
and medical equipment maker.
"My client is looking forward to going to New York to
address the charges as quickly as possible," said his attorney,
David Grable, in the Los Angeles office of Quinn Emanuel
Urquhart & Sullivan.
Chan is charged with one count of conspiracy to commit wire
fraud, which carries a maximum penalty of 20 years.
"The defendant had a direct role in the secret liquidation
of hundreds of millions of dollars of Olympus investments. He
then waged a six-year campaign to conceal that misdeed by lying,
certifying to auditors that the investments still existed years
after liquidation," said FBI Assistant Director-in-Charge George
The decade-long accounting fraud at Olympus, a 93-year-old
maker of medical equipment, was exposed last October by
then-Chief Executive Michael Woodford, who was fired after he
questioned dubious deals that were later found to have been used
to hide losses.
Three former Olympus executives - Chairman Tsuyoshi
Kikukawa, Executive Vice President Hisashi Mori and auditor
Hideo Yamada - pleaded guilty in September to charges that they
inflated the company's net worth in financial statements for
five fiscal years to March 2011.
Chan was paid $10 million by Olympus or entities controlled
by Olympus for his role in the fraud, court papers said.
In 2005, he established an entity in the Cayman Islands
called SG Bond Plus Fund. Until about 2010, Chan submitted false
and misleading documents to Olympus' outside auditor regarding
hundreds of millions of dollars' worth of assets purportedly
maintained by Chan at SG Bond for the benefit of Olympus, the
Chan had actually transferred the assets to a British Virgin
Island-based entity controlled by Olympus, the complaint said.
Chan was interviewed by the Federal Bureau of Investigation
on Monday and Tuesday.
An investigative panel report, commissioned by Olympus last
year, mentioned a banker referred only by his last name, Chan,
as an outside collaborator who first met Olympus executives
Yamada and Mori in 1998. At the time "Chan" was working at
Commerzbank in Singapore but resigned in 2000. After leaving
Societe Generale in 2004, the report said, Chan formed his own
company where he continued to work for former Olympus
Olympus declined to comment.