PATHFINDER DIALOGUE ON COMBATING CORRUPTION AND ILLICIT TRADE IN ASIA

FROM:  U.S. STATE DEPARTMENT 

Partners on Combating Corruption and Illicit Trade in Asia

Media Note

Washington, DC

September 27, 2013

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At the APEC Pathfinder Dialogue in Bangkok, Thailand from September 23-25, U.S. Senior Official for APEC Dr. Robert Wang addressed one of the largest gatherings to date in Asia focused on corruption and illicit trade, where he urged greater transparency, good governance, and strong anti-corruption measures to further economic growth, trade, and investment. Deputy Chief of Mission of the U.S. Embassy in Bangkok Patrick Murphy, Thailand’s National Anti-Corruption Commissioner Professor Pakdee Pothisiri, and Attorney General of the Union of Myanmar Dr. Tun Shin also provided opening remarks. Participants included over 175 anti-corruption investigators, law enforcement officials, and policymakers from over 20 APEC, ASEAN, and Pacific Islands Forum (PIF) economies, as well as representatives from international organizations, civil society organizations, and the private sector.
According to the World Economic Forum, illicit trade may account for an estimated 15-20 percent of global trade annually, and over the past several years, APEC leaders have recognized that corruption fuels and facilitates illicit trade flows. The Pathfinder Dialogue focused on the links between corruption and three types of illicit trade: trafficking in persons (TIP), wildlife trafficking/environmental crime, and money laundering.

Participants discussed global and regional transnational crime trends, as well as lessons learned from case studies. Participants also examined strategies to dismantle illicit networks that engage in human trafficking, wildlife trafficking/environmental crime, and money laundering. In addition, the Dialogue emphasized the need for partnerships to combat corruption and illicit trade, including through the sharing of information and best practices, as well as the development of mechanisms for strengthening cooperation between anti-corruption and law enforcement authorities.

The Dialogue was organized by the U.S. Department of State’s Bureau of International Narcotics and Law Enforcement Affairs and the American Bar Association, in partnership with the National Anti-Corruption Commission of Thailand and with support from the UN Office on Drugs and Crime (UNODC) and the Organization for Economic Co-operation and Development (OECD). The event was held under the auspices of the APEC Anti-Corruption & Transparency Working Group’s (ACT) vision to combat corruption and illicit trade in the Asia-Pacific region.

Outcomes of the Dialogue will include support for the development of draft Principles to Prevent and Combat TIP-related Corruption and a one-week marine investigative training with ASEAN regional wildlife enforcement network and PIF partners with implementation through FREELAND Foundation planned for early 2014. A Chair’s Summary of the outcomes of the Pathfinder Dialogue will be available at www.pathfinderconference.com/summary.

TRADER IN THAILAND HAS ASSETS FROZEN BY SEC FOR INSIDER TRADING IN SMITHFIELD FOODS

FROM: U.S. SECURTIES AND EXCHANGE COMMISSION
06/06/2013 10:45 AM EDT
SEC Freezes Assets of Thailand-Based Trader for Insider Trading Ahead of Smithfield Foods Acquisition Announcement

Washington, D.C., June 6, 2013 — The Securities and Exchange Commission today announced an emergency court order to freeze the assets of a trader in Bangkok, Thailand, who made more than $3 million in profits by trading in advance of last week's announcement that Smithfield Foods agreed to a multi-billion dollar acquisition by China-based Shuanghui International Holdings.

The SEC alleges that Badin Rungruangnavarat purchased thousands of out-of-the-money Smithfield call options and single-stock futures contracts from May 21 to May 28 in an account at Interactive Brokers LLC. Rungruangnavarat allegedly made these purchases based on material, nonpublic information about the potential acquisition, and among his possible sources is a Facebook friend who is an associate director at an investment bank to a different company that was exploring an acquisition of Smithfield. After profiting from his timely and aggressive trading, Rungruangnavarat sought to withdraw more than $3 million from his account on June 3.

"The speed in which we were able to bring this emergency action exemplifies the talent, tenacity, and commitment that the SEC staff brings to bear every day to keep our markets fair and investors safe," said Andrew Ceresney, Co-Director of the SEC's Division of Enforcement.

Merri Jo Gillette, Director of the SEC's Chicago Regional Office, added, "As alleged in our complaint, not only did the defendant trade out of the money Smithfield call options, he further pumped up his profits by purchasing single-stock futures, thereby reaping a total unrealized return on his investment of 3,400 percent in the span of eight days. We will act quickly and decisively to uncover and take action against insider trading no matter where the trader resides or what types of securities are used to profit from nonpublic information."

According to the SEC's complaint filed under seal yesterday in U.S. District Court for the Northern District of Illinois, Smithfield publicly announced on May 29 that Shuanghui agreed to acquire the company for $4.7 billion, which would represent the largest-ever acquisition of a U.S. company by a Chinese buyer. Smithfield, which is headquartered in Smithfield, Va., is the world's largest pork producer and processor. Following the announcement, Smithfield stock opened nearly 25 percent higher than the previous day's closing price.

The SEC obtained the emergency court order late yesterday on an ex parte basis. The order freezes the proceeds of Rungruangnavarat's securities purchases, grants expedited discovery, and prohibits Rungruangnavarat from destroying evidence.

The SEC's complaint alleges that Rungruangnavarat violated Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. In addition to the emergency relief, the SEC is seeking disgorgement of ill-gotten gains with prejudgment interest, a financial penalty, and a permanent injunction.

The SEC's expedited investigation, which is continuing, was conducted jointly by staff in the Enforcement Division's Market Abuse Unit and the Chicago Regional Office, including Kathryn A. Pyszka, Frank D. Goldman, R. Kevin Barrett, Benjamin J. Hanauer and Steven C. Seeger. The Market Abuse Unit is headed by Chief Daniel M. Hawke, and the Chicago office leadership in this matter are Regional Director Merri Jo Gillette and Associate Regional Director Timothy Warren. The SEC acknowledges the assistance of the Options Regulatory Surveillance Authority (ORSA).

U.S. SECRETARY OF DEFENSE PANETTA ON ASIA-PACIFIC SHIFT

FROM:  AMERICAN FORCES PRESS SERVICES

Panetta Describes U.S. Shift in Asia-Pacific

By Jim Garamone

SINGAPORE, June 1, 2012 - The United States is a Pacific power and will remain engaged in the region, Defense Secretary Leon E. Panetta said during a speech delivered at the 11th Annual Shangri-La Dialogue here.

Panetta explained what America's enduring shift toward the Asia-Pacific means to the region. The speech took place June 2 here. Singapore time is 12 hours ahead of the U.S. East Coast.

The shift has long been forecast. After the fall of the Soviet Union, there were those in the U.S. government who urged a re-focusing of U.S. strategy toward the Pacific. China and India are two of the fastest-growing economies on Earth and the nations of Southeast Asia also grew behind the shield of U.S. presence in the region.

The United States also has deep, lasting alliances with nations in the region including Japan, South Korea, the Philippines, Thailand, Australia and New Zealand.

This progress and shift, however, were interrupted by the attacks of 9-11 and American attention shifted to combating the terrorist menace.

But now the war in Iraq is over and U.S. troop levels are drawing down in Afghanistan. Last year, President Barack Obama approved a strategy shifting toward Asia. The United States has thousands of miles of Pacific coastline and is an integral part of the region.

"We take on this role not as a distant power, but as part of the Pacific family of nations, Panetta said at the conference. "Our goal is to work closely with all the nations of this region to confront common challenges and promote peace, prosperity and security."

Defense policy in the region calls for the U.S. military to expand military-to-military relationships well beyond the traditional treaty allies.

China is, of course, the major player in the region. China has grown to the second-largest economy in the world and is investing in modernizing its military. Panetta wants good relations with China and will travel there later this year to expand those contacts.

The secretary stressed that the U.S. shift toward the region in no way is aimed at China. "Our effort to renew and intensify our involvement in Asia is fully compatible with the development and growth of China," Panetta said. "Indeed, increased U.S. involvement in this region will benefit China as it advances our shared security and prosperity."

The United States is working with many nations in the region to promote regional security. There are threats in the area. Terrorism, piracy, narco-trafficking, human trafficking are just a few of the problems. There are disputes over territory and the United States would like to see all these problems addressed peacefully by all nations.

Panetta praised the Association of Southeast Asian Nations for its "rules-based" regional security architecture. The secretary also said he looks forward to working with defense ministers from around the region.

Discussions and dialogue can help calm the waters in the South China Sea, where several countries in the region have claims in the area. "The U.S. position is clear and consistent. We call for restraint and diplomatic resolution; we oppose provocation, coercion or the use of force," Panetta said. The United States does not take sides on the disputes, the secretary said, and America has made this position clear to all in the region.

The U.S. military will shift its stance as the global situation shifts, the secretary said. Marine ground and aviation units have begun rotational deployments to Australia. The United States and the Philippines are looking at a similar arrangement.

American littoral combat ships will be berthing in Singapore and the number of Navy assets deployed will shift, too. "By 2020, the Navy will reposture its forces from today's roughly 50/50 split between the Atlantic and Pacific to about a 60/40 split between those oceans -- including six aircraft carriers, a majority of our cruisers, destroyers, littoral combat ships and submarines," Panetta said.

The United States will also shift resources to combat new threats of cyberwar and anti-access technologies.

The shift will continue, Panetta said, as leaders from both parties recognize the importance of the region.

"The United States has long been deeply involved in the Asia-Pacific," Panetta said. "Through times of war and peace, under Democratic and Republican leaders, through rancor and comity in Washington, through surplus and debt. We were here then, we are here now and we will be here for the future."