Bullion trader was coke addict

redwing · 13th Jan, 2013

An Auckland-based gold-bullion firm, whose collapse is likely to cost investors $2.5 million, hired a cocaine-addicted chief trader who has been arrested more than a dozen times and, in 2000, was charged by the FBI after a probe of mafia-run financial firms in New York.

continues

"Although counsel concedes that lying to someone, promising them the moon in the form of high-yield returns in order to part them from their money, and then keeping their money is criminal, offensive and wrong, it should be not considered `sophisticated'.

"Rather, unfortunately and regrettably, it is an all too common occurrence," the lawyer argued.

Aaron Sice · 13th Jan, 2013

his addiction to drugs has nothing to do with the fact that a single trader can bring down a system.

focussing on the reasons, not the inherent problem is a problem in itself.

willair · 14th Jan, 2013

Nothing like impartial and unemotional advice,the more anyone reads into this the more you would find that any standalone trader would outrade all that stand before them..

hobo-jo · 14th Jan, 2013

Reminds me of:

It's probably not uncommon for City traders to wonder how they burnt so much cash during a drunken night on the town.

But Steve Perkins was left with a bigger black hole in his memory than most when his employer rang one morning to ask what he'd done with $520m of the oil trading firm's money.

It was 7.45am on June 30 last year when the senior, longstanding broker for PVM Oil Futures was contacted by an admin clerk querying why he'd bought 7m barrels of crude in the middle of the night.

The 34-year old broker at first claimed he had spent the night trading alongside a client. But the story began to fall apart when he refused to put the customer in touch with his desk for official approval of the trades.

By 10am it emerged that Mr Perkins had single-handedly moved the global price of oil to an eight-month high during a "drunken blackout". Prices leapt by more than $1.50 a barrel in under half an hour at around 2am – the kind of sharp swing caused by events of geo-political significance. Ten times the usual volume of futures contracts changed hands in just one hour.

http://www.telegraph.co.uk/finance/...en-stupor-and-moved-the-global-oil-price.html

Ausprop · 14th Jan, 2013

"An Auckland-based gold-bullion firm, whose collapse is likely to cost investors $2.5 million"

that's a pretty small amount for any sort of collapse

redwing · 15th Jan, 2013

Hi Hobo

Remind's me of Jordan Belfort, apparently that movie is out this year.

A compelling story of greed and fraud

aussierogue · 15th Jan, 2013

Hate to burst any bubbles here but having worked for a wall st type broking firm (one of the largest) i reckon 15-20 pct of managers and traders have substance abuse problems. My old managing director snorted coke and had 5 k per month ice habit. He also made 400k per year before bonus's but it all blew up and he was destitute for a year or two after the first gfc.

Oh and i have met jordan belfort (socially) in Noosa about 3 years ago..not a bad guy...just addicitve personality.

RPI · 15th Jan, 2013

What about the Qld law firm owner, that a year or so after he pocketed his 20million plus shares from being bought out, was done for one of the biggest meth imports in Australia. I would personally think that $20m in cash was enough not to be doing risky stuff, but maybe risky personality. Don't know the reason behind it. Was just working in the firm that bought him out when it blew up and the PR department went into overdrive.

Blacky · 17th Jan, 2013

aussierogue said:
Hate to burst any bubbles here but having worked for a wall st type broking firm (one of the largest) i reckon 15-20 pct of managers and traders have substance abuse problems.

Lets not restrict this issue to traders. I know many senior white collar workers with abuse problems. This ranges from bankers, lawyers, accountants, auditors and of coarse brokers.
For many (especially overseas) a night on the coke is more common than a night drinking. Thinking about it logically it makes sense. A couple of beers then move onto coke. Stay out till all hours and wake up in the morning without the hangover.
I recon do a drug test of all the white collar workers in the UK and on any given thursday or Friday morning you would be upwards of 30% who test positive.

Alcohol is a low socio-economic drug of choice, either that or you are Australian

Blacky