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ASIC Bans Former Sydney Trader Due to Fictitious Trading

The Australian Securities and Investments Commission (ASIC) has banned Jeremy Nambiar from providing financial services for eight years after an ASIC investigation found he created a series of fictitious trading entries and had created a false document to conceal a loss of more than $1 million in AUD/USD spot FX.

Nambiar was employed at Westpac Institutional Bank between 2008 and 2010 to trade on a range of financial products, including FX and cross-currency swaps on behalf of Westpac. “ASIC’s investigation found that during his time at the bank Nambiar entered more than 100 fictitious trading entries including off-market trades that created the false appearance of profit,” says Australia’s corporate, markets and financial services regulator in a statement in its website. It found that some fictitious trading entries were created to hide FX losses.

As a result of Nambiar’s conduct, approximately $17.6 million was written off the income statement of Westpac’s financial statements for the period ended 31 March 2011.

Nambiar did not personally benefit from the trades, according to ASIC. In addition, the trades were internal to Westpac and no customers were affected.

When Nambiar started work at Nomura Australia as an associate in its fixed income division in 2010, he continued his fraudulent behaviour and in 2011 created a false email purporting to be from an external broker containing broker quotes. It was found that the email was likely to mislead Nomura staff.

Commissioner Greg Tanzer says: “ASIC will continue to protect the public and maintain investor and consumer confidence by taking action against people in the industry who disregard their obligations.”

Nambiar has the right of appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision.

Both Westpac and Nomura assisted ASIC in its investigation.

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