Aussie couple guilty on Lao gem charges

VIENTIANE, Laos -- An Australian couple accused of stealing sapphires worth $6.2 million have each been sentenced to seven years jail by a Lao court.

Kerry and Kay Danes were found guilty Thursday on charges of embezzlement, tax evasion and destroying records.

In addition to the prison sentences, the couple were each fined more than $68,000 and ordered to pay around $500,000 in compensation for the missing gemstones.

The couple, who had been held for six months before being charged, are appealing the decision.

The Danes' lawyer, Ted Tzovaras, said the court's decision is wrong and against all the evidence presented.

Australia's Foreign Minister Alexander Downer Friday described the decision as "disturbing and disappointing" and urged the Danes' lawyer to launch an appeal quickly.

"We're dissatisfied with the whole of this process and the way it's been handled," he told the Australian Broadcasting Corporation.

"We very much hope that the Lao Government will take into account the impact this will have on Laos international reputation, particularly the reputation that Laos has in terms of investors and business activity.

"I think it would be very much in everybody's interests if this could be resolved satisfactorily as soon as possible."

The Australian government has invested considerable effort in securing the Danes' release, including sending a top-ranking diplomat John McCarthy -- now Australian ambassador to Japan -- to negoitiate on their behalf.

Australia is a major aid donor to impoverished Laos.