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Non-Tech : Auric Goldfinger's Short List -- Ignore unavailable to you. Want to Upgrade?

To: scion who wrote (19118)	1/16/2009 7:42:51 PM
From: scion	Read Replies (2) \| Respond to of 19428

Satyam Probe Could Ensnare Others JANUARY 17, 2009 By ERIC BELLMAN and JACKIE RANGE online.wsj.com The fraud investigation at India's Satyam Computer Services Ltd. could spread to hundreds of companies connected to the company's jailed founder, B. Ramalinga Raju, prosecutors said Friday. Investigators also have approached several banks to determine whether Satyam account statements were forged to show inflated cash balances, according to people familiar with the situation. Satyam bank documents from India's largest private bank, ICICI Bank Ltd., had been forged, according to a person familiar with the matter. A Satyam spokeswoman said the company had no comment. At Mr. Raju's bail hearing, prosecutors said police wanted to keep Mr. Raju in custody to continue to interrogate him and more fully understand how he had cooked Satyam's books for more than five years, including the creation of a fictitious bank balance of more than $1 billion. "The many intricacies involved in this giant white-collar crime will not come to light" if Mr. Raju doesn't remain in custody, assistant prosecutor Ajay Kumar told a judge. To complete the investigation, he added, "more than 250 companies need to be dug into." A lawyer representing Mr. Raju denied the fraud was as broad as the prosecutor contended. "There is no truth and no basis for these allegations" that money might have been stolen and hundreds of companies could be involved, the lawyer, S. Bharat Kumar, said after the hearing. The prosecutor, Ajay Kumar, said police are looking into whether money was diverted to other companies connected to the Raju family, including two companies run by Mr. Raju's sons, Maytas Infra Ltd. and Maytas Properties Ltd. Mr. Kumar said the investigation also has to look into the records of the banks and other financial companies that Mr. Raju used. "So many bank accounts have been opened. We need to seize the accounts and understand where the money went," the prosecutor said. The hearing was in Hyderabad, the southern city where the computer software and outsourcing company is based. Mr. Raju's bail plea was heard along with that of his brother, B. Rama Raju, Satyam's former managing director, and Srinivas Vadlamani, the company's former chief financial officer. All three have all been charged with forgery, cheating and fraud. Lawyers for the three said they should be allowed bail as they have been cooperating and have nothing else to say. Prakash Reddy, a lawyer for B. Ramalinga Raju, argued there is no chance his client could tamper with evidence because all of his offices and his home have been searched. The court postponed any decision on bail until Monday and a decision on police custody until Saturday. A petition by market regulator Securities and Exchange Board of India, seeking court permission to speak to Ramalinga Raju while he is in judicial custody, will also be heard Monday. One of Satyam's biggest investors has sold most of its shares. U.S.-based financial advisory firm Lazard Asset Management LLC said in a statement Friday to the Bombay Stock Exchange it sold 35.74 million shares Thursday, which represent about 5.3 % of the company's stock. —John Satish Kumar contributed to this article. Write to Eric Bellman at eric.bellman@wsj.com and Jackie Range at jackie.range@wsj.com online.wsj.com