Second ex-NAB trader sentenced to jail

AAP General News (Australia)
04-06-2006
Second ex-NAB trader sentenced to jail

By Jeff Turnbull

MELBOURNE, April 6 AAP - A second former National Australia Bank (NAB) foreign exchange
options dealer was handed a jail term today for his part in a $329 million unauthorised
trading scandal that rocked the bank two years ago.

Gianni Gray was sentenced to 16 months jail and was ordered to serve eight months,
before being released on good behaviour.

Gray had pleaded guilty to three charges of dishonestly using his position to gain
advantages for himself and others.

Victorian County Court Justice Geoff Chettle said Gray was involved in fictitious profits
totalling $178.56 million between September 2003 and January 2004.

Gray, 36, will join behind bars his former head of the trading desk, Luke Duffy, who
is serving a minimum 16 months on similar charges.

Two other traders, David Bullen and Vince Ficarra, have pleaded not guilty to falsely
inflating trading profit results and will go to trial on April 19.

Justice Chettle told Gray, of Port Melbourne, that he committed "a calculated and sophisticated
fraud" but had shown genuine remorse, had pleaded guilty and would give evidence later
this month against his two former colleagues.

He said Gray, who had been based in London, and the other traders, had hidden and camouflaged
the true trading position of the desk so as to avoid management scrutiny.

"You did it to protect your well paid job and falsely claim to the bank that you had
met your budget," Justice Chettle said.

Gray, who stood with his head bowed as the sentence was read out, had repaid a Stg36,000
($A80,000) bonus he received from NAB.

Justice Chettle said Gray had co-operated with the investigating authorities, including
the Australian Federal Police, the Australian Securities and Investments Commission (ASIC),
auditors PricewaterhouseCoopers and NAB.

"You made a statement in March to co-operate and give assistance when Mr Bullen and
Mr Ficarra come to trial," the judge said.

"You said Luke Duffy had proven to be a good team leader but as history shows he was
one of the worst risk managers ever."

He said Gray's plea of guilty and true remorse entitled him to a substantial reduction
in sentencing and he had excellent prospects of rehabilitation.

He said Gray was not the architect of the criminal scheme and was the least culpable.

Justice Chettle said if Gray, who has been working as a pizza maker and painter at
the Williamstown navy docks, had not co-operated he would have imposed a 26 month sentence
with a minimum 15 months to be served.

ASIC said the case demonstrated that employees who hold positions of trust and responsibility
will be held accountable for dishonest conduct, especially where both the employer and
shareholders are deceived.

The foreign exchange trading scandal, which cost NAB $326 million, triggered a clean-out
of the bank's management from the board level down.

AAP jxt/klm/sd

KEYWORD: NAB TRADER NIGHTLEAD (PIX AVAILABLE)

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