An investment banker at an Australian investment bank has been forced to pay $500,000 in a $1.9 million penalty over a $300,000 fund he was in charge of managing.
The bank, the Cairns-based Credit Suisse Group AG, said in a statement on Thursday that Mr O’Keefe, who has been employed at the firm since 2007, was “under investigation by regulators in Australia and New Zealand for allegedly engaging in misconduct” in relation to the fund.
He has been charged with five counts of insider trading, five counts under the Companies Act, and five counts for breaching the RBA’s securities and investment laws, including failing to disclose his ownership of the fund, the statement said.
The regulator has not named Mr O ‘Keefe as a person who has breached the law but said he “was in a position of trust with Credit Suse” at the time.
In a separate case, the Australian Securities and Investments Commission has been examining the conduct of a former Credit Suise manager and two other former executives, and found they had not breached the RBC Act.
The agency is investigating the behaviour of the two former managers, and also looking into whether any wrongdoing may have occurred between Credit Suce and another bank.
A Cairnes-based executive who did not wish to be named said the bank was “not the most corrupt organisation in the world”, adding the CSA had already been in touch with the regulator.
The CSA has confirmed it is investigating allegations that two former Credit Suzse executives breached the act by failing to declare a $900,000 investment fund they had been managing.
A spokesman said that while the CBA is “aware of and will respond to the allegations”, it “has not been able to provide a full response to the inquiry”.
“We will continue to take all steps to ensure that there are no concerns regarding the conduct, compliance or conduct of our employees,” he said.