The managing director of a Malaysian timber company is to face trial for his alleged participation in a letter of credit (L/C) fraud.

Ibrahim Salleh faces tough penalties if he is found guilty, but his counsel claims that the matter is already being settled in the civil courts.

Fake documents

Ibrahim Salleh is accused of participating in an L/C fraud that duped US$1.2 million from Bangkok Bank Public Company Ltd via Maybank Bhd.

He allegedly duped bank officials into believing that fake documents relating to the L/C were genuine. The prosecution argues that Salleh knew the documents were false.

Civil case

Counsel for the accused contends that the complainant has already initiated a civil suit against Salleh and that payments have been made to the bank.

The judge has set bail conditions and Salleh's trial date is set for 13 December 2006.

Punishment

If Salleh is found guilty, he could face a 10-year jail term, a whipping and a fine.

The alleged offence took place in April of this year.

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