Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Forex trader charged over alleged thefts, cover-up

Forex trader charged over alleged thefts, cover-up

Jan 23 (BusinessDesk) - An Auckland foreign exchange trader is facing 15 charges of theft, dishonesty and false statements ina case involving the alleged misappropriation of $837,046 for personal use and mis-statement of clients' financial positions by some $4 million.

The circumstances of the charges, lodged by the Serious Fraud Office in the Auckland District Court, bear similarities to the Financial Markets Authority swoop late last year on Ross Asset Management, now in liquidation, which allegedly held customers at bay by claiming fictitious earnings from funds invested on their behalf.

The latest charges are against 42 year-old Rene Alan Chalmers, a principal of Chalmers Cameron Investments Ltd (CCIL), which traded from 2007 until being placed in liquidation last May, owing investors approximately US$5 million.

The charges of theft by a person in special relationship, dishonestly taking or using document and false statement by a promoter relate to foreign exchange trading on behalf of clients, and to three property purchases occurring in 2011 and 2012.

Chalmers began receiving money from family members and friends through CCIL for the purpose of forex trading in 2007, the SFO said in a statement, and lived in the United Arab Emirates from 2007 to 2011.

From 2009, he started accepting funds from colleagues and acquaintances.

"Although investors believed they were giving Mr Chalmers their money for the express purpose of forex trading, Mr Chalmers was using investor funds contrary to the agreement(s) under which they were accepted and reporting false gains to investors via monthly or quarterly investor statements," the SFO alleges.

“This case continues the current string of investment advisor and broker cases coming to our attention," said acting chief executive for the SFO, Simon McArley. "Those receiving money from others for investment need to be continually conscious of the need to use that money only for the purpose it was given to them and to be truthful when reporting to clients on the position of their investments.”

Chalmers has been remanded on bail and will reappear on Feb 13.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Welcome Home: Record High Migration Stokes 41-Year High Population Growth

New Zealand annual net migration hit a new high in October as more people arrived from than departed for Australia for the first time in more than 20 years. More>>


Citizens' Advice Bureau: Report Shows Desperate Housing Situation Throughout NZ

CAB's in-depth analysis of over 2000 client enquiries about emergency accommodation shows vulnerable families, pregnant women and children living in cars and garages, even after seeking assistance from the Ministry of Social Development and Housing New Zealand. More>>


Speaking For The Bees: Greens Call For Neonicotinoid Pesticide Ban

The National Government should ban the use of controversial pesticides called neonicotinoids after evidence has revealed that even at low doses they cause harm to bee populations, the Green Party said today. More>>


Science Awards: NZAS Celebrate NZ Scientific Achievements

The Marsden Medal is awarded for a lifetime of outstanding service to the cause or profession of science, in recognition of service rendered to the cause or profession of science in the widest connotation of the phrase. This year’s medal is awarded to Dr Mike Andrews. More>>


Court Rules: Affco 'Unlawfully' Locked Out Meat Workers

The note says the full court found for the plaintiffs, "that is that the defendant locked out the second plaintiffs unlawfully and that it breached s 32 of the Act by acting otherwise than in good faith towards the plaintiffs while collective bargaining was still going on." More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news