BUSINESSDESK: The Serious Fraud Office has charged options trader Greg Arnott for using some $2.5 million of investor funds for other purposes and expects to charge another person soon.
The charges come after the white-collar crime investigator completed its probe into Derivatek New Zealand, which traded options on the ASX on behalf of New Zealand clients.
Mr Arnott faces five charges under the Crimes Act of theft by a person in a special relationship and making a false statement by promoter.
The SFO alleges he used investor funds for personal use, paying a portion of an advance fee on a $US20 million loan and repaying funds owed to other investors.
"This is a growing problem and highlights the importance of looking beyond personal connections and carefully assessing the risk of investments," acting chief executive Simon McArley says.
"There is considerable danger in basing investment decisions on the recommendation of a relative, friend or acquaintance rather than careful investment analysis."
The SFO began its investigation into Derivatek after an earlier probe into another Arnott company, Australian Securities (NZ).
Mr Arnott is scheduled to appear in the Auckland District Court on November 13.
This article is tagged with the following keywords. Find out more about MyNBR Tags
- Trump’s close financial & political ties with Russia will ultimately hurt him, security expert says
- TradeGecko 'doing millions in revenue' as ex-Kiwi startup builds customers from Singapore
- NZ’s responsible investment funds increase to almost $80b
- Readers let their freak flags fly in pot reform poll result
- Bank loan books hit fresh high of $228b but margins squeezed
Most listened to
- Responsible Investment Association Australasia CEO Simon O’Connor on why responsible investment is here to stay
- Security expert Paul Buchanan on why Trump's glee over the Russian DNC hack could backfire
- Forty years of punitive drug prohibition has failed ‘by any measure’, says Ross Bell – so let’s decriminalise the lot
- With MediaWorks reportedly closing in on a CEO candidate, NBR’s Nick Grant opines on what the role requires
- Infometrics economist Mieke Welvaert gives her take on this morning's merchandise trade data