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BFCSA investigates fraud involving lenders, spruikers and financial planners worldwide.  Full Doc, Low Doc, No Doc loans, Lines of Credit and Buffer loans appear to be normal profit making financial products, however, these loans are set to implode within seven years.  For the past two decades, Ms Brailey, President of BFCSA (Inc), has been a tireless campaigner, championing the cause of older and low income people around the Globe who have fallen victim to banking and finance scams.  She has found that people of all ages are being targeted by Bankers offering faulty lending products. BFCSA warn that anyone who has signed up for one of these financial products, is in grave danger of losing their home.

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BFCSA: Two arrested for insider trading - NAB and ABS involved

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Two arrested for insider trading

Former Natinonal Australia Bank staffer Lukas Kamay was in court in Melbourne on Friday over insider trading, corruption and laundering charges. Photo: Wayne Taylor

Georgia Wilkins

An Australian Bureau of Statistics staffer and a National Australia Bank employee have been arrested on insider trading and corruption charges over allegations they made $7 million by trading on market-sensitive information on the Australian dollar.

The Australian Federal Police said a 24-year-old ABS man, Christopher Russell Hill, allegedly gave his 26-year-old friend at NAB, associate director Lukas Kamay, market-sensitive information before it was released publicly by the ABS.

They allege his friend then took the information to trade on the foreign exchange derivatives market using labour force, retail and trade figures – which had yet to be publicly released – to predict fluctuations in the Australian dollar.

The activity generated about $7 million in profits between August last year and this month, AFP acting assistant commissioner Ian McCartney said.

Of the $7 million, $6.5 million went into investment accounts, $500,000 was spent on a residential property and $15,000 on a car.

Mr Hill, of Belconnen in the ACT, was allegedly offered between $50,000 and $60,000 by Mr Kamay to provide the confidential information.

All of the alleged proceeds of crime have been seized by police, who executed eight warrants in Canberra and Melbourne on Friday.

Mr Kamay, of Clifton Hill, Victoria, briefly appeared in Melbourne Magistrates Court on Friday afternoon facing seven charges, including insider trading and bribery.

The Monash University graduate was granted bail with sureties of $200,000 and $300,000 and barred from trading on any Australian financial market.

Mr Kamay will face the same court in August.

The bank said in a statement that no NAB money or NAB customer money was involved in the case and no bank computer systems had been involved in the trading.

Mr Hill, who will appear in ACT Magistrates Court on Saturday, has been suspended from the agency and faces insider trading, corruption and abuse of public office charges.

ABS said in a statement he was a relatively junior officer with “trusted access to a number of economic collections”.

No other ABS staff were involved and no personal or business information was released.

The agency described the action as “an appalling breach of trust”.

It’s about the intergrity of the market, says ASIC

The charges against the now sacked NAB employee are insider trading, corruption of a public official and money laundering.

The charges against the ABS employee are insider trading and receiving a corrupt benefit.

The federal police said the pair knew each other from university. They said the NAB employee at NAB did not use the bank’s funds or systems. NAB said the charges did not relate to the former employee’s work.

“No NAB money or no NAB customer money is involved. No NAB systems have been involved in any trading and no other NAB employee is involved,’’ the bank said in a statement.

Chief executive Cameron Clyne added: “While I can’t talk about the details of the charges, I can say that the activity alleged by authorities is unlawful and completely unacceptable to NAB and our core values of doing the right thing by our customers, our shareholders and our staff.”

“NAB has a strict code of conduct that all employees must adhere to as part of their employment and if NAB is aware that any employee has acted contrary to its code of conduct, we will take appropriate action.”

Australian Securities and Investments Commission would not say how it became aware of the suspicious trades, as part of a general policy not to reveal such details.

ASIC head of market enforcement Chris Savundra said the trading involved online margin foreign exchange derivatives.

Mr Savundra said the case was important because the movement of the dollar affected all Australians.

“The integrity of this market is of fundamental importance to all Australians,” he said.

Mr Savundra said the agency used surveillance, intelligence, complaints, tip-offs and misconduct reports to discover such activity.

The two men are expected to appear in court in Melbourne and Canberra on Friday.

The AFP will allege that the ABS employee utilised sensitive information to ‘‘predict fluctuations in the Australian dollar’’.

The information was market sensitive because it had not yet been released by the ABS.

ABS data is strictly monitored and issued to the market at exactly 11.30am on any given day.

The data is market sensitive as it gives the latest snapshot of the economy and is used to inform market participants who are making daily trades.

ASIC said movements in the Australian dollar “directly or indirectly” affected the whole economy and reflected the serious nature of the allegations.

“The integrity of this market is a fundamental importance to all Australians,’’ Mr Savundra said.

with AAP

http://www.afr.com/p/national/two_arrested_for_insider_trading_lWl8w59iAJblq3K6Ux0SQN

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Comment

Now we know what the AFP have been doing.

It would be wonderful if we could get them as interested in investigating and prosecuting documented lending fraud.

Somehow it just hasn't registered with ASIC or investors: dirty loans equal dirty investments. Having a toxic investment is at least as bad for the integrity of financial markets and the impact is wider than just investment: it hits the socioeconomic health of Australian communities and the agricultural, building, manufacturing and real estate industries plus small businesses right across Australia.By comparison a $7m insider trading rort involving two men pales into insignificance.

We live in hope that one day police and politicians will join the dots and work out what's making Australians sick: toxic lending, mortgage stress and the distress of legal abuse and bankster bullying.

 

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Comments

  • doyla66
    doyla66 Sunday, 11 May 2014

    Duped

    It's the culture that runs amok in the banking system, how can we rip people off ? Whilst there are decent people working within this industry there are certainly a great number of them who would be willing enough to rob, defraud and mislead people. This culture spreads like a cancer from the CEO's and executives and that's how they advance their position within their organisation - find cunning and devious ways to screw their customers.
    As I said it's the culture and every bank and lender has it and through personal experience I know RAMS has it in their organisation, willing to defraud their customers by fraudulently adding false information ( financial and employment ) on loan application forms and without the borrowers knowledge or consent. This is how they climb the corporate ladder and each time most likely getting a big pat on the back for their trickery.

  • doyla66
    doyla66 Monday, 12 May 2014

    "Is completely unacceptable to Nab and the core values of doing the right thing by our customers, etc." Huh, I find that portion of Mr. Clyne's statement nearly enough to make me choke and insulting to all customers of the Nab. It really is inconceivable to think that this guy acted without anyone within the Nab organisation knowing anything about it. Nab simply deny any corruptness within their ranks. . It was their favourite saying throughout the my FOS case and the supreme court case. 'WE deny your allegations" It is so simple to lie, and lose and shred documents which may implicate them.

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Guest Wednesday, 18 September 2019