Case Illegal Trade of Mercury Core Business 2 CEOs : Mr. B. and K. - - PowerPoint PPT Presentation

Case „Illegal Trade of Mercury“

Core Business

• 2 CEO‘s: Mr. B. and K. merged their business
• Treatment of contaminated items & recycling
• Extraction of Hg from contaminated soil, batteries

and from light bulbs for recycling

• Creation of an „environmental friendly“

treatment of mercury to neutralise (stabilise) into low hazardous waste „vermilion“

• EU- wide delivieries of mercury to GER for

neutralisation/deposition

• Problems:

Vulnerable extraction process, High investments, Hg- Mixer (with sulfur) too small/slowly

Rotating Tube Furnance

(EC) No 1102/2008 on the banning of mercury exports and the safe storage of metallic mercury

• The export from the Union of mercury and of several

mercury compounds is prohibited (since March 2011)

• Mercury that is no longer used in the Union in the chlor-

alkali industry or that is gained from the cleaning of natural gas or from non-ferrous mining and smelting operations or that is extracted from cinnabar ore qualifies as waste to

be disposed of in accordance with the law of the Union on

waste…

• Mercury as waste can be temporarily or permanently

stored in underground and/or above-ground storage

facilities, in accordance, inter alia, with the requirements set out in Directive 1999/31/EC on the landfill of waste, as amended by Council Directive 2011/97/EU.

• Metal Trader T. established contacts to Suiss

Businessmen B. and F.

• B. also run a Rotating Tube Furnance to

extract Hg and was able to trade Hg from Switzerland

• F. proposed a „Suiss Business Model“

including the use of front „dummy“ companies and accounts on Cayman island

• Illegal exports of Hg to B. in Switzerland and

Hg- trade from Switzerland through B. and F.

Suisse Business Model

• 1,000 tons of Hg exported to Switzerland
• Hg sold to other Metall Traders worldwide
• Profit ~ 40 M € in app. 3 ys (2011-2014)
• Involving the employees
• Storage of Hg on the companies name in

Netherlands, Greece and Singapour

• EU Com advised GER to repatriate Hg

Scope of the criminal activities

• Both CEO‘s arrested at an airport und taken

into custody

• Seizures of more than 20 M Euros & real

estate

• Insolvency of the company
• Trial against the CEO‘s led to 3,9 & 3,6 ys

imprisonment for the CEO‘s and 3 ys for the metal trader T.

• Suiss metal trader B. faces seperate charges
• Suiss business model holder F. passed away

Criminal procedure/trial

• Repatriation and neutralisation of Hg from NL

& Greece – back to the successor company

• Singapour ongoing, Problems:
• Hg trade from Singapour legal
• Storage company wanted reimbursement

and impunity

• Banks & Liquidator wanted ownership of Hg
• Amount of Hg in Singapour all from DELA?
• Who is responsible for the repatriation?
• Who should be informed and involved?

Environmental admin. measures

• Criminal investigations and prosecution

conducted by specialised dept. for economic and organised crime

• Full confessions of the charged CEO‘s
• Meeting with involved parties
• Negotioations with the storage owner in

Singapour through insolvency lawyer

• Cooperation with the environmental

administration in Singapour

• Compensation of 1,3 M € for repatration of Hg

Success factors