Sonray director jailed following $46 million collapse

Former sole director of Sonray Capital Markets Pty Ltd (Sonray), Mr Russell Andrew Johnson, has been sentenced to six-and-a-half years in jail.

Today’s sentence, handed down in the Victorian Supreme Court, comes as a result of ASIC’s investigation into the company, which collapsed in 2010 owing more than $46 million. Subsequently, Mr Johnson was charged with multiple offences, including false accounting, theft and deception and conspiracy to steal.

Mr Johnson is the second person to be jailed following the collapse of Sonray. In October 2011, former CEO, Mr Scott Kenneth Murray, was sentenced to five years jail with a non-parole period of two years and six months for 10 charges brought by ASIC.

Mr Johnson will serve a minimum of three-and-a-half years before he is eligible for parole.

In sentencing Mr Johnson, Justice Macaulay said that the conduct engaged in was a serious example of the crimes charged, and that they had been committed with ‘a sophisticated degree of orchestration and planning’.

Chairman Greg Medcraft said, ‘The collapse of Sonray, which held millions of dollars in funds for several thousand clients, was in part due to the complete disregard of the law by senior members of the company.

‘Today’s sentence reinforces ASIC’s commitment to ensuring that company officers act at all times in the interests of a company. Where they fail to do so, the consequences will be significant.’

The matter was prosecuted by the Commonwealth Director of Public Prosecutions.

Background

Sonray was established in 2003 and held an Australian financial services licence. It was one of the first brokers in Australia that provided advice on contracts for difference.

On 22 June 2010, John Lindholm and George Georges of Ferrier Hodgson were appointed voluntary administrators and on 27 October 2010 Sonray was placed into liquidation. According to Ferrier Hodgson, Sonray had (as at 22 June 2010) a shortfall of $46.7 million.

In February 2012, following an ASIC investigation focusing on the risk management practices of Saxo Bank A/S, the former provider of the trading platform utilised by Sonray, additional licence conditions were applied to the AFS licence of Saxo Capital Markets (Australia) Pty Ltd.