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.

Got a question about this story? Leave it in Comments & Questions below.

This article is tagged with the following keywords. Find out more about MyNBR Tags

Comments & Questions

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


Sym Price Change
USD 0.7164 -0.0001 -0.01%
AUD 0.9362 -0.0006 -0.06%
EUR 0.6558 -0.0022 -0.33%
GBP 0.5861 -0.0022 -0.37%
HKD 5.5549 -0.0018 -0.03%
JPY 74.8710 0.2490 0.33%


Commodity Price Change Time
Gold Index 1273.4 11.040 2016-10-25T00:
Oil Brent 50.7 -1.730 2016-10-25T00:
Oil Nymex 49.9 -0.650 2016-10-25T00:
Silver Index 17.8 0.210 2016-10-25T00:


Symbol Open High Last %
NZX 50 7002.9 7013.6 7002.9 -1.52%
NASDAQ 5256.4 5280.9 5283.4 -0.30%
DAX 10726.2 10737.8 10757.3 -0.44%
DJI 18103.8 18236.0 18169.3 0.32%
FTSE 7017.6 7017.6 7017.6 -0.85%
HKSE 23396.1 23464.0 23565.1 -1.02%
NI225 17329.0 17391.8 17365.2 0.15%
ASX 5442.8 5442.8 5442.8 -1.52%