The Serious Fraud Office (SFO) has laid charges against Mark James Whelan, a 40 year-old unemployed man, in relation to an investigation of the options trading company Derivatek New Zealand Limited (Derivatek).
Earlier, the SFO had laid charges against Gregory Alan Arnott, an options trader, who traded through Derivatek on behalf of New Zealand clients on the Australian Stock Exchange (ASX).
Mark James Whelan is an associate of Mr Arnott.
SFO had alleged that he assisted in enlisting investors to invest funds with Mr Arnott and Derivatek, through his company Global Futures Trading Limited (Global Futures).
Mr Whelan is facing charges under the Crimes Act of theft by a person in a special relationship (3x) and false statement by promoter (7x).
As with Mr Arnott, the SFO alleged that Mr Whelan used investors’ funds to finance a portion of an advance fee for a US$20 million loan and for personal use.
The SFO also alleged that to conceal this activity, Mr Whelan issued false statements to these investors.
The Auckland District Court remanded Mr Whelan to appear on November 22.
Mr Whelan is also facing SFO charges laid in September 2011 relating to fraud involving Motor Trade Finances Limited.
SFO commenced investigation into Derivatek based on the information obtained during an earlier probe into the activities of the Australian Securities (NZ) Ltd (ASL), another options trading company operated by Mr Arnott.
He had reportedly set up and operated ASL, Derivatek and Derivatives Management Limited, through which he traded.
He is the sole director and shareholder of these companies.
Mr Whelan incorporated Global Futures in November 2006.
He and a number of business associates used the company to personally invest with Mr Arnott.
From mid-2007, Mr Whelan used Global Futures to obtain high net worth individuals to invest funds, which were then to be traded by Mr Arnott through Derivatek.
Individual Global Futures investors received monthly statements from Mr Whelan reporting the value and profit or loss on their individual investment.
Source: Serious Fraud Office
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