Sydney trader at Deutsche Bank sentenced over misconduct
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Sydney trader at Deutsche Bank sentenced over misconduct

A former Sydney trader at Deutsche Bank has been spared jail time after he created false entries in the bank's internal records which inflated his profits by millions of dollars and masked his trading losses.

Andrew David Donaldson, 51, faced the NSW District Court on Monday after pleading guilty to a charge of using his position dishonestly to gain an advantage between mid-2013 and mid-2014.

Judge Garry Neilson convicted him and sentenced him to 18 months' imprisonment but ordered he be released under a recognisance order requiring a $10,000 security and two years of good behaviour.

The court heard Donaldson, a foreign exchange spot trader at Deutsche, created a number of false internal entries which in 2013 inflated his profits by almost 10 million euros.

His profit and loss account showed a profit of 21.3 million euros when his true profit was just over 11.5 million euros.

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Donaldson's entries also masked losses but he said - and the judge accepted - that his expected profits would have been realised by the last quarter of 2014.

However, the bank by that point had uncovered his misconduct and sacked him.

According to the statement of facts, Donaldson's actions would enable him to potentially meet his revenue budget, be eligible for larger bonuses and use his false profit-and-loss figures to promote himself to other prospective employers.

"In short, the offender entered false entries ... which indicated to the bank that he was actually earning ... more than he was supposed to, thereby increasing the amount of salary and bonus which he might earn in the future," Judge Neilson said.

However, when the judge looked at the advantage Donaldson gained, he said he looked at an "illusory concept".

"There is no evidence which in any way might quantify the advantage which the offender obtained - rather the evidence is all of significant disadvantage that the offender suffered," he said.

Judge Neilson said Donaldson's misconduct had been "the cause of ruin to him, his finances and his family".

He noted the false entries were reversible and Donaldson's crime hadn't caused a loss to the bank, its customers or shareholders.

AAP

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