THE Australian Federal Police (AFP) and the Australian Securities and Investments Commission (ASIC) have announced they’ve made two arrests, one of them a Canberra based public servant, in relation to foreign exchange manipulations.
The two men have been arrested for offences relating to insider trading, corruption and abuse of public office.
The sum of $7 million is involved.
The scam involved a 24 year old Canberran at the Bureau of Statistics getting embargoed statistical data to his 26 year old Melbourne based friend who worked for the National Australia Bank.
The NAB has issued a statement distancing itself from the crime.
“NAB has terminated the employment of a 26-year-old Melbourne employee who was arrested and charged as a result of an investigation by Australian Federal Police and ASIC.
“NAB can confirm the charges do not relate to the former employee’s work at NAB. No NAB money or no NAB customer money is involved. No NAB systems have been involved in any trading and no other NAB employee is involved.”
The ABS has issued a statement claiming the alleged perpetrator acted alone:
“The arrested staff member, a relatively junior officer with trusted access to a number of economic collections both pre- and post-publication, is alleged to have disclosed sensitive statistics that were under embargo. The officer has been suspended.
“No other ABS staff are suspected of involvement. There is no evidence that the unauthorised disclosure included details about an individual person or business.”
A review into procedures is underway.
The AFP’s media release is also available:
“This trading activity, occurring between August 2013 and May 2014, has resulted in profits of approximately $7 million dollars. This has been restrained by the AFP led Criminal Assets Confiscation Taskforce under Commonwealth proceeds of crime legislation.
“Earlier today, the AFP and ASIC executed eight search warrants in Melbourne and Canberra, arresting the 26-year-old Clifton Hill man and the 24-year-old Belconnen man.
“The 26-year-old Clifton Hill man has been charged with a range of offences relating to the use of inside information from ABS to unlawfully profit through the trading of foreign exchange derivatives and corrupting a public official.
“The 24-year-old Belconnen man has been charged with offences relating to insider trading, receiving a corrupt benefit, release of sensitive information, and abuse of public office.”