Local Govt | National News Video | Parliament Headlines | Politics Headlines | Search

 

Pair sentenced for theft and false statements

Pair sentenced for theft and false statements


Gregory Alan Arnott (51) and Mark James Whelan (41) have been sentenced in the Auckland District Court today following charges laid by the Serious Fraud Office (SFO).

Mr Arnott entered guilty pleas in June to offences under the Crimes Act, comprising five charges of theft by person in a special relationship and five charges of making a false statement. He was sentenced today to six years’ imprisonment.

At trial in July, Mr Whelan faced 10 Crimes Act charges comprising three of theft by person in a special relationship and seven of making a false statement. He pleaded guilty after giving evidence at his trial and was sentenced today to two years’ imprisonment. His sentence is to be served cumulatively with a prior sentence of four years and four months’ imprisonment which Mr Whelan received in May 2013. This earlier sentence was in relation to fraudulently obtaining loans totalling $4.9 million in a previous SFO prosecution.

The SFO’s charges against the pair related to their involvement with Derivatek New Zealand Limited (Derivatek) and Global Futures Trading Limited (Global Futures).

Mr Arnott was director of Derivatek and traded in options on behalf of New Zealand clients on the Australian Stock Exchange. Between April 2008 and May 2012, he used $2.5 million received from investors for purposes other than options trading, including repaying other investors and funding a portion of an advance fee in a failed endeavour to obtain a US$20 million loan. In order to conceal the fraud Mr Arnott issued false statements to his investors which indicated that their investments were generating healthy profits, when in reality all invested funds had been lost by February 2009.

Mr Whelan incorporated Global Futures in November 2006. Mr Whelan used Global Futures to obtain funds from high net worth individuals to be traded through Derivatek. Between July 2008 and February 2010 Mr Whelan used approximately $1.2 million of investors’ funds to pay for a variety of personal expenses and to fund part of the advance fee for the US$20 million loan. To conceal this activity, Mr Whelan issued false statements to the investors.

SFO Acting-Director, Nick Paterson said, “This was a case where investment was largely based on a trusted relationship with the defendants. It is a reminder that investment decisions should not be based on this factor alone and independent advice should always be taken.”

ENDS


© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The
America’s Cup

The fact New Zealand now reigns supreme once again in the most sophisticated contest in the world’s most elite sport – yacht racing – can’t help but reflect the trajectory the country has been on since the 1980s...

Elite sport used to feel more like a collective, shared experience. It was our team, composed of people who lived and worked like us. Now, not so much. More>>

 

PM's Press Conference: Red Socks And Secret Tapes

Prime Minister Bill English began his post-cabinet press conference by explaining how well the National Party's annual conference went. He also mentioned today's announcement of changes to the EQC disaster insurance legislation and wished Emirates Team New Zealand well in the America's Cup. More>>

Max Rashbrooke: On How To Make Government More Open

International surveys, while often complimentary, have also pinpointed major weaknesses: political donations are badly regulated, for instance, and appointments to government boards frequently go to those with strong political connections. More>>

In Court: Hamilton Student's Lawsuit Over Climate Change Policy

A law student from Hamilton is preparing to challenge the Government in the High Court on Monday over what she says is a “failure” to properly address climate change. More>>

ALSO:

Gordon Campbell: On The Fallout From The Barclay Tape

This is hardly a case of cleaning out your desk and being turfed out onto the pavement. As others have pointed out, the disgraced Clutha-Southland MP will remain on the public payroll for three months until the election, and for three months afterwards. More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election
 
 
 
  • PublicAddress
  • Pundit
  • Kiwiblog