SFO charges options trader Greg Arnott with $2.5m fraud

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 My Tags

Comment & Question

Commenter icon key: Subscriber Verified

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7740 -0.0003 -0.04%
AUD 0.9511 0.0005 0.05%
EUR 0.6324 -0.0002 -0.03%
GBP 0.4954 0.0001 0.02%
HKD 6.0039 0.0001 0.00%
JPY 92.5100 -0.0050 -0.01%

Commods

Commodity Price Change Time
Gold Index 1195.4 -2.890 2014-12-19T00:
Oil Brent 61.4 1.580 2014-12-19T00:
Oil Nymex 57.1 2.910 2014-12-19T00:
Silver Index 16.0 0.096 2014-12-19T00:

Indices

Symbol Open High Last %
NZX 50 5518.5 5545.0 5539.3 -0.21%
NASDAQ 4752.6 4782.1 4748.4 0.36%
DAX 9901.3 9901.3 9811.1 -0.25%
DJI 17778.0 17874.0 17778.2 0.15%
FTSE 6466.0 6566.9 6466.0 1.23%
HKSE 23158.3 23189.6 22832.2 1.25%
NI225 17511.0 17621.4 17210.0 2.39%