Australia jails currency trader 3 years for fraud

The cost of currency trading misconduct for Krishan Rasaratnam is 4 years of proceedings and 3 years and 3 months jailtime

Legislative proceedings in Australia can be quite a lengthy process these days. Especially when the matter is related to FX trading fraudsters. It took more than two years to the Australian judicial system to pronounce its judgment on this rather clear case. After a series of court hearings, the guilty plea by Krishan Rasaratnam was officially awarded a sentence.

The former currency trader’s misconduct will cost him 3 years and 3 months in prison. A mild outcome when considering that the maximum sentence for similar misconduct is 10 years. Mr Rasaratnam pleaded guilty on six charges – one count on using a false instrument and five counts on dishonest conduct related to financial services provision.

He served as a director at the Strategic Alternative Investments Pty LTD (SAI) whose Australian Financial Services license was revoked on December 1st 2006 by the ASIC. The company used to provide product advice and dealt with derivative and foreign exchange contract transactions.

In the period between January 2006 and February 2008 the director of the formerly licensed company continued to accept funds as investments, claiming that SAI carried a low risk and high return (as if there is such a thing). Mr Rasaratnam proceeded to divert the funds to his personal trading account and realized losses of more than AU$12 million.

Back in September 2009 he was arrested and charged and his first court hearing was in October 2011. So in full it has been 4 years since the conduct was discovered and 2 since the admission of wrongdoing… Australian bureaucracy seems to be flashing a red alert!

For the full press release visit ASIC’s website.

For more on the global Forex industry see the LeapRate-Dow Jones Forex Industry Report.

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