Former bank executive pleads guilty over scandal

MELBOURNE - The former head of National Australia Bank's (NAB) foreign currency options desk today pleaded guilty to charges related to the bank's alleged $A360 ($NZ392.79) million unauthorised trading scandal.

Luke Edward Duffy, 35, and three other former NAB traders face charges stemming from alleged unauthorised trading at Australia's biggest bank between December 2003 and January 2004.

Duffy, of Albert Park in Melbourne, today pleaded guilty to three counts of dishonestly using his position as an employee of a corporation with intent to gain personal advantage.

The charges involved Duffy misrepresenting the performance of the trading desk, resulting in performance bonus payments for himself and the three co-accused.

He was also accused of entering several false foreign exchange options to the value of more than $A145 ($NZ158.21) million.

Crown prosecutor Terry Forrest, QC, told the court Duffy and the co-accused hid the true losses of the trading desk to avoid scrutiny by management.

He said this ensured any threats to their well-paid jobs stemming from their poor performance would be minimised.

By camouflaging the true state of their activities, they falsely claimed they had achieved their set budgets of $A37 million profit for the year ending September 30, 2003, Mr Forrest said.

This ensured Duffy received his bonus of almost $A200,000 in addition to his annual salary of a similar amount.

The three co-accused also received bonuses as a result of the deception, Mr Forrest said.

One of the co-accused is expected to stand trial in the Victorian County Court while the other two will face a pre-trial committal hearing.

Duffy's pre-sentence hearing before Judge Geoff Chettle continues.

- AAP