Russell Andrew Johnson appeared in the Supreme Court of Victoria yesterday, pleading guilty to criminal charges brought by the Australian Securities and Investments Commission (ASIC) following an investigation into the former broker’s market activity and that of its former trading platform provider Saxo Bank A/S.
Mr Johnson, who was sole director of the firm, pleaded guilty to three charges of false accounting, one charge of submitting a false document to ASIC, two charges of theft and one charge of obtaining a financial advantage by deception.
The ASIC investigation found that Mr Johnson had used various Sonray clients’ trading accounts to “create numerous unfunded deposits for which no physical cash was involved” – in a bid either to obtain funds for personal use or to hedge the trading book against margin calls, according to a statement from the regulator.
"ASIC expects directors to act honestly and with integrity, and always in the interests of the company,” said ASIC commissioner Greg Tanzer.
“We take very seriously conduct to the contrary, and the charges that Mr Johnson has pleaded guilty to today reflect that.
“The integrity of the market is one of ASIC's key priorities, and investors have a fundamental right to expect that their money will be handled honestly and appropriately. Where this does not occur, ASIC will not hesitate to take action to protect the interests of the clients."
In 2010, Sonray entered voluntary administration, and subsequently liquidation, while the firm’s former chief executive officer Scott Murray was sentenced to five years’ jail in October 2011, having been found guilty of charges including false accounting involving fictitious deposits, theft, obtaining financial advantage by deception and misleading an auditor concerning a capital injection.
In February 2012, additional licence conditions were placed on the AFSL of Saxo Capital Markets for its role in the affair.
Mr Johnson was granted bail will appear at the Supreme Court on 11 November 2013 for a sentencing hearing.
