(reopens FGN 17)

During his term as CEO, Bhandari was responsible for ensuring the continued supply of raw black coral for the company. Bhandari said he knew that GEM's Taiwanese suppliers of black coral could not obtain legitimate certificates to import the coral but instead the suppliers labelled the coral shipments as "plastic" in order to fool customs authorities in Hong Kong and the US. Black corals are considered important habitat for the deep sea marine environment and are protected by the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). Each of the species of black coral is subject to strict trade regulations. The coral can be polished to a high sheen, worked into artistic sculptures and used in inlaid jewelry.