Trader jailed for covering up losses

A former bank trader has been jailed for four years and two months for hiding up to £19.5 million (HK$239.1 million) in investment losses after her efforts to portray her crimes as mild in comparison with those of Nick Leeson and other rogue traders cut no ice with the judge.

Shirlina Tsang Pui-yu, 42, earlier pleaded guilty to one count of fraud. She inflated profits and diminished losses at the Royal Bank of Scotland between mid-2010 and October 14, 2011, so as to cover up the shortfall in her bond transactions.

Judge Garry Tallentire said it was an "extremely serious offence" as the bank suffered huge damage. "Your act has prevented the bank from having full knowledge of the loss," he said in the District Court yesterday.

In pleading for leniency, Tsang's lawyer had cited a number of rogue traders - including Leeson of Britain, Japanese-American Toshihide Iguchi and Frenchman Jerome Kerviel - as references for the judge. All had caused their employers massive investment losses.

In the most serious case, Leeson's unauthorised trading in the Singapore office of Barings investment bank led to losses of £827 million in 1994 and brought down the 233-year-old institution.

Leeson was jailed for 6-1/2 years. Iguchi and Kerviel were jailed for four and three years, respectively.