CEO of failed stockbroker Sonray admits fraud, theft
THE chief executive of failed stockbroker Sonray, Scott Murray, was in custody yesterday after pleading guilty to 10 fraud and theft charges over the collapse of the broker whose failure last year left clients out of pocket by almost $47 million.
THE chief executive of failed stockbroker Sonray, Scott Murray, was in custody yesterday after pleading guilty to 10 fraud and theft charges over the collapse of the broker whose failure last year left clients out of pocket by almost $47 million.Prosecutor Greg Lyon, SC, told the Supreme Court that Murray, 33, of Werribee, should be jailed for up to four-and-a-half years, reflecting a discount for co-operation with authorities of the "highest calibre".Dr Lyon said that in addition to giving "full and frank" admissions to the Australian Securities and Investments Commission and a "very early" indication he would plead guilty, Murray had promised to give evidence against his brother-in-law, Sonray founder Russell Johnson."Mr Johnson has yet to be charged, although that is imminent," Dr Lyon told the court.The court heard that while some proceeds from the fraud were lost through trading, Murray himself pocketed tens of thousands and loaned $400,000 to recruitment company Swann Global, run by his father, John. John Murray repaid the money in October.In pleading guilty yesterday, Murray admitted to making $6.85 million in unfunded deposits - fake deposits not backed by real money - into Johnson's Sonray account in the first half of 2009.Murray also made false transactions in accounts belonging to two school friends, Carey Anderson and James Adronis, as he tried to keep Sonray from falling into margin call with its bank, Saxo.Saxo Bank financed and processed client transactions for Sonray's main product, contracts for difference over stocks and foreign exchange.Murray's counsel, Robert Richter, QC, told the court Saxo was aware of the "hedging" transactions, which occurred in 2008 and 2009."He [Murray] has uncovered emails from Saxo Bank that show they knew about the hedging and they were concerned about it," Mr Richter said.Mr Richter said mediation between Saxo Bank and Sonray's liquidators, Ferrier Hodgson, was still under way but he expected the bank would make "significant contributions" towards a pool of money for victims of the collapse.Victims could expect 30? in the dollar but there was the possibility of a "far higher recovery", he said.Calling for Murray to serve a sentence of two years, Mr Richter painted a portrait of his client as a man who could not say no to Johnson, "his mentor and elder brother-in-law but also his boss in every way that it mattered".Mr Richter said his client raised the "black hole" in client funds with Johnson, who told him "I will fix it".