Sonray chief in guilty plea
Russell Andrew Johnson, 41, on Wednesday pleaded guilty to theft, fraud, false accounting, and submitting a false document to the corporate watchdog, the Australian Securities and Investments Commission.
Victorian Supreme Court judge Cameron Macaulay also lifted a suppression order that banned the publication of Johnson's guilty plea in May to a further three charges. The Toorak resident faces a maximum of 10 years' jail for each of the state offences of false accounting, theft and deception and a term of five years' imprisonment for submitting a false document to ASIC.
Sonray chief executive and Johnson's brother-in-law, Scott Murray, is serving a five-year jail term after pleading guilty in 2011 to fraud and theft offences. Sonray specialised in contracts for difference, or bets on the movement of stock prices. It collapsed in June 2010 with a shortfall to its 3500 clients of $46.7 million.
The charges relate to Johnson using client funds for personal use and to guard against margin calls from the company's financier Saxo. Johnson also told auditors a $5.2 million equity injection came from "a network of family and friends" rather than client accounts.
Johnson was granted bail and will appear at the Supreme Court on November 11 for a sentence hearing.
Frequently Asked Questions about this Article…
Sonray Capital Markets, a broker that specialised in contracts for difference (CFDs), collapsed in June 2010. The collapse left about 3,500 clients with a collective shortfall of $46.7 million. Subsequent investigations found misconduct by senior figures at the firm, and criminal charges were brought against those involved.
Russell Andrew Johnson, the founder and sole director of Sonray Capital Markets, pleaded guilty to seven charges including theft, fraud, false accounting and submitting a false document to the corporate regulator (ASIC). He originally faced 24 charges and is a Toorak resident aged 41.
According to the reporting, Johnson faces maximum penalties of up to 10 years' jail for each state offence such as false accounting, theft and deception, and up to five years' imprisonment for submitting a false document to ASIC. He has been granted bail and is due to appear at the Supreme Court on November 11 for a sentencing hearing.
Scott Murray, Sonray’s chief executive and Russell Johnson’s brother‑in‑law, previously pleaded guilty in 2011 to fraud and theft offences and is serving a five‑year jail term in relation to those convictions.
The charges allege Johnson used client funds for personal use and to protect the firm from margin calls by its financier, Saxo. He also told auditors that a $5.2 million equity injection came from "a network of family and friends" rather than from client accounts, according to the report.
Yes. Victorian Supreme Court Judge Cameron Macaulay lifted a suppression order that had previously banned publication of Johnson’s guilty plea in May to a further three charges, allowing wider reporting of those pleas.
One of the charges Johnson pleaded guilty to was submitting a false document to the Australian Securities and Investments Commission (ASIC). The article notes ASIC as the corporate watchdog to which the false document was submitted.
When Sonray collapsed in June 2010, about 3,500 clients were affected and the reported shortfall was $46.7 million.
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