ASIC investigation results in jailing
Former Victorian stockbroker Michael Kwong was sentenced to three years imprisonment after it was found he was involved in $375,000 in illegal transfers.
The 36 year old pleaded guilty in August 2007 to six charges associated with dishonestly using his position as an employee of stockbroking firm Smith Barney Citigroup Australia and using false identification to open cash dealer accounts.
Following an investigation by the Australian Securities and Investments Commission (ASIC), it was found that between March 2002 and March 2003 Kwong transferred positive and negative exchange traded option positions from non-associated client accounts that he had control of.
The transfers resulted in the non-associated client accounts losing approximately $405,000 while associated accounts made a gain of $375,000.
It was also found that in March 2002 Kwong opened a cash management trust in a false name with Macquarie Investment Management, and made a copy of a Victorian driver’s licence in a false name.
Kwong will be released after serving 15 months provided he gives security of $1,500 and on the condition that he is of good behaviour for two years. Kwong further received six months jail wholly suspended for two years in relation to the offence of making a false document.
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