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 Another Reason To Loathe HR Departments (And On The Teachers Strike)

This morning’s news item about Police emergency call centre staff turning up for work while they’re sick – because they’re afraid their sick leave statistics will be used against them, and their jobs put in jeopardy – is not an isolated case...

Obviously, sick people shouldn’t be being treated by doctors and nurses who are themselves sick and potentially infectious. Similarly, Police emergency calls also need to be fielded by people who’re feeling alert, and on top of their game. More>>

 
 

MPs' Computers To Be Searched: Inquiry Into Leak On Simon Bridges' Expenses

An inquiry has been launched to find out who leaked the National Party's expenses to the media... Parliament's speaker, Trevor Mallard, said a Queen's Counsel would lead the inquiry with the help of an employment lawyer and also someone with forensic IT skills. More>>

ALSO:

Teachers Strike: Nationwide Rallies And Marches

Teachers and principals voted for a full day strike to be held on 15 August to send a strong message to the Government that the current collective agreement offers from the Ministry of Education would not fix the crisis in teaching. More>>

ALSO:

Wellington.Scoop: City Council Ends Its Support For Jackson’s Movie Museum

The Wellington City Council and the Movie Museum Limited have today announced a mutually-agreed parting of the ways for a joint project between the Council’s Convention Centre and TMML’s Movie Museum... Both parties remain optimistic for the future of their respective projects. More>>

Pay Equity: Historic Settlement For Education Support Workers

The New Zealand Educational Institute (NZEI) and the Ministry of Education today signed Terms of Settlement to address a pay equity claim for 329 support workers who work with very young children in early childhood and primary schools. More>>

ALSO:

Gordon Campbell: On The Stereotypes About Jacinda Ardern

Routinely, female politicians get depicted as either show ponies or battle axes, with little room for anything else in between. .. More>>

Weekend Interviews: "Discriminatory And Racist" Aussie Deportations

The former president of Australia’s Human Rights Commission Gillian Triggs says deportations have risen dramatically in Australia since 2014 when ministers and ministerial delegates were given the power to cancel visas - and half of those being deported are New Zealanders. "These are massive numbers, actually escalating dramatically."... More>>

ALSO:

Legal Challenge: Prisoner Has 9 Boxes Of Documents Seized

Human rights organisation People Against Prisons Aotearoa says a prisoner they advocate for has had 9 boxes of legal documents seized from him just days before his case against the Department of Corrections was to be heard. More>>

Single-Use Plastic Bags: Govt To Phase Them Out

Single-use plastic shopping bags will be phased out over the next year, Prime Minister Jacinda Ardern and Associate Environment Minister Eugenie Sage announced today. More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages