French judges filed preliminary insider trading charges yesterday against Noel Forgeard, a former co-chief executive of Airbus parent EADS, his lawyer said.
Forgeard is at the center of one of France’s largest alleged insider trading probes, involving one of Europe’s biggest industrial players.
Investigators are looking into the sale of millions of dollars worth of EADS shares by top executives and shareholders before a June 2006 announcement of delays for the A380 superjumbo that drove EADS shares down 26 percent in one day.
The investigating judges ordered Forgeard freed after two days in the custody of financial police pending further investigation, his lawyer Jean-Alain Michel said.
Forgeard, who has denied wrongdoing, told judges Xaviere Simeoni and Cecile Pendaries during questioning “that he had not committed insider trading” and that to his knowledge neither had any other EADS executives, his lawyer said.
Preliminary charges under French law mean the investigating judges have strong reason to suspect involvement in a crime and give them more time to investigate. Judges decide later whether or not there is enough evidence for a trial.
These charges do not mean “an element of guilt,” Michel said.
Forgeard was placed in police detention on Wednesday, but spent the night in hospital because of slight respiratory problems.
His lawyer said he had found the experience of being held in a sparse police cell “overwhelming.”
“When you are someone like Mr Forgeard, who has had an exceptional industrial career, it’s very difficult to find yourself in detention ... but he has courage and he survived the shock. He has good morale,” Michel said.
“I am convinced we will succeed in demonstrating that he didn’t commit insider trading. We have very good evidence to prove that,” the lawyer added.
The charges against Forgeard were a new embarrassment for EADS as it emerges from a rocky couple of years plagued by trouble with the A380 and management turmoil. Airbus is also now suffering the fallout of difficulty in the global airline industry linked to soaring fuel prices.
The judges’ probe into alleged insider trading at EADS was opened in late 2006.
Last month, French financial market regulator AMF initiated insider trading sanctions procedures against Forgeard and 16 of his former colleagues, many of whom continue to work for EADS. The Amsterdam-based company is run by a joint French-German management team.
EADS CEO Louis Gallois said in a letter to employees last month that his “confidence in EADS managers is total.”
Forgeard was named co-CEO of EADS with Thomas Enders, now head of Airbus, in 2005. Between November 2005 and March 2006, Forgeard, his family members and other EADS executives exercised millions of dollars in stock options.
The delays to the A380 were announced in June 2006, and Forgeard resigned weeks later.
In a newspaper interview last month, Forgeard was quoted as saying he is “innocent,” but acknowledged that “in hindsight, it would have been better if I hadn’t” sold the shares when he did.
SECURITY: As China is ‘reshaping’ Hong Kong’s population, Taiwan must raise the eligibility threshold for applications from Hong Kongers, Chiu Chui-cheng said When Hong Kong and Macau citizens apply for residency in Taiwan, it would be under a new category that includes a “national security observation period,” Mainland Affairs Council (MAC) Minister Chiu Chui-cheng (邱垂正) said yesterday. President William Lai (賴清德) on March 13 announced 17 strategies to counter China’s aggression toward Taiwan, including incorporating national security considerations into the review process for residency applications from Hong Kong and Macau citizens. The situation in Hong Kong is constantly changing, Chiu said to media yesterday on the sidelines of the Taipei Technology Run hosted by the Taipei Neihu Technology Park Development Association. With
CARROT AND STICK: While unrelenting in its military threats, China attracted nearly 40,000 Taiwanese to over 400 business events last year Nearly 40,000 Taiwanese last year joined industry events in China, such as conferences and trade fairs, supported by the Chinese government, a study showed yesterday, as Beijing ramps up a charm offensive toward Taipei alongside military pressure. China has long taken a carrot-and-stick approach to Taiwan, threatening it with the prospect of military action while reaching out to those it believes are amenable to Beijing’s point of view. Taiwanese security officials are wary of what they see as Beijing’s influence campaigns to sway public opinion after Taipei and Beijing gradually resumed travel links halted by the COVID-19 pandemic, but the scale of
TRADE: A mandatory declaration of origin for manufactured goods bound for the US is to take effect on May 7 to block China from exploiting Taiwan’s trade channels All products manufactured in Taiwan and exported to the US must include a signed declaration of origin starting on May 7, the Bureau of Foreign Trade announced yesterday. US President Donald Trump on April 2 imposed a 32 percent tariff on imports from Taiwan, but one week later announced a 90-day pause on its implementation. However, a universal 10 percent tariff was immediately applied to most imports from around the world. On April 12, the Trump administration further exempted computers, smartphones and semiconductors from the new tariffs. In response, President William Lai’s (賴清德) administration has introduced a series of countermeasures to support affected
Pope Francis is be laid to rest on Saturday after lying in state for three days in St Peter’s Basilica, where the faithful are expected to flock to pay their respects to history’s first Latin American pontiff. The cardinals met yesterday in the Vatican’s synod hall to chart the next steps before a conclave begins to choose Francis’ successor, as condolences poured in from around the world. According to current norms, the conclave must begin between May 5 and 10. The cardinals set the funeral for Saturday at 10am in St Peter’s Square, to be celebrated by the dean of the College
RSS