SFO charges Derivatek accomplice
The Serious Fraud Office has charged an accomplice to options trader Gregory Alan Arnott in its investigation of the $2.5 million Derivatek New Zealand fraud case.
Mark James Whelan is alleged to have helped Mr Arnott, who was charged by the SFO last week for using some $2.5 million received from investors in his company Derivatek NZ for other purposes.
The company traded options on the ASX on behalf of New Zealand clients.
The SFO alleges Mr Whelan, 40, helped to enlist investors to put their money with Mr Arnott and Derivatek, through his company Global Futures Trading Limited (Global Futures).
Mr Whelan faces three charges laid under the Crimes Act of theft by person in a special relationship and seven charges of making a false statement by promoter.
The SFO alleges the pair used investors’ funds to fund a portion of an advance fee for a $US20 million loan and for personal use.
In order to conceal this activity, Mr Whelan is alleged to have then issued false statements to these investors.
Mr Arnott faces five charges under the Crimes Act of theft by a person in a special relationship and making a false statement by a promoter.
He is scheduled to appear in the Auckland District Court on November 13.
Mr Arnott may be better remembered for his role in highly speculative and "unorthodox" trades carried out by broking house DF Mainland Securities a decade ago.