The suspended chief executive of China's main State-linked jet fuel supplier and four other company officials were charged yesterday with insider trading, making false statements and other crimes linked to risky oil trades that pushed the company to the brink of bankruptcy last year.

Chen Jiulin, 44, was charged with a total of 15 counts, including forgery, insider trading and failure to disclose losses of China Aviation Oil (Singapore) Corp.

Each of the 10 charges of making false statements carries a maximum sentence of seven years in jail and a fine of 250,000 Singapore dollars (US$150,000).

Chen, once hailed as a rising star in the Singaporean business establishment, stood solemnly as the charges were read out and remained silent during proceedings. The courthouse was packed. His bail was set at 2 million Singapore dollars (US$1.2 million) and he is to reappear in a Singaporean district court on June 17. He did not post bail.

Also charged in the case were three other company directors and the head of finance at China Aviation Oil, Peter Lim Tiong Sun. The Chinese directors - Li Yongji, Gu Yanfei and Jia Changbin, president of parent China Aviation Oil Holding Co - had applied to leave Singapore. Gu managed company affairs after Chen's suspension.

Singapore authorities began a criminal investigation of Chen and China Aviation Oil last year after the company shocked markets by revealing it had lost more than US$500 million gambling on the future price of oil. It began losing money in the first quarter of 2004 and sought court protection from creditors in December after crude futures hit then-record prices.

Prosecutors allege Chen lied on several occasions to cover mounting losses. They said Chen released "misleading" information and "did not care" whether the company's half-year financial report was true or false.

Source: China Daily