NAB rogue traders jailed
Two of the traders at the centre of the National Australia Bank’s (NAB) foreign exchange scandal have been imprisoned by the County Court of Australia.
David Bullen was sentenced to 44 months jail with a minimum imprisonment period of 30 months in relation to 18 charges relating to his involvement in the episode, brought against him by the Australian Securities and Investments Commission (ASIC).
Vincent Ficarra received a jail sentence of 28 months, with a minimum term to be served of 15 months, relating to 13 charges arising from the scandal.
The court found Bullen and Ficarra had entered into illegal and fictitious foreign currency trades between October 2003 and January 2004 to inflate profits and hide losses made on the Foreign Currency Options desk during that time, and also gained financial advantage as a result of these actions.
In addition, Bullen was found to have influenced other dealers to process deceptive and fictitious foreign currency spot trades during that time.
The bank is thought to have lost $160 million as a result of the men’s actions.
ASIC chair Jeffery Lucy said: “This outcome demonstrates the serious consequences for company officers who breach their duties.”
Two other former NAB foreign exchange traders were charged along with Bullen and Ficarra in December 2004.
In June 2005, Luke Duffy was sentenced to 29 months jail after pleading guilty to offences that breached section 184 of the Corporations Act.
Gianni Gray was sentenced to 16 months imprisonment in March 2006 after he also pleaded guilty to the same offences.
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