Two arrested in Australia over insider trading scam

SYDNEY, May 9 (AFP): Australian police on Friday arrested two men accused of making millions through insider trading, alleging one who worked at the Australian Bureau of Statistics fed sensitive information to a banker for use in foreign exchange trades.

Australian Federal Police said a 24-year-old government statistics worker in Canberra and a Melbourne man, 26, were picked up after suspicious trading in forex derivatives was detected.

"It will be alleged in court that the 26-year-old man was obtaining this market-sensitive information before its official release by the ABS," police said in a statement.

He was allegedly using the data to predict movements in the Australian dollar and entering into foreign exchange derivative products to profit from those fluctuations, police said.

The investigation by police and the Australian Securities and Investments Commission alleges that trades between August 2013 and this month produced profits of Aus$7 million (US$6.6 million).

The men, who police said knew each other from university, have not been named.

The 26-year-old worked for the National Australia Bank but police said he did not use the bank's funds or systems in the alleged transactions.

"He was operating of his own accord," Australian Federal Police acting assistant commissioner Ian McCartney said.

NAB confirmed the charges did not relate to the man's work at the bank, adding that he has since been fired.