The senior trader originally identified as responsible for the collapse of financial services company, Sonray Capital Markets, has won a reprieve of sorts.
One of the administrators investigating the company's collapse says the trader is probably not to blame.
Around 4,000 investors have been told that they are unlikely to get more than a third of their money back after $77 million in funds were frozen late last month.
When administrators Ferrior Hodgson were called in to sift through the financial wreckage of Sonray a fortnight ago, a rogue trader was quickly blamed for a yawning $46 million hole in the accounts.
But after interviewing the employee said to be at the centre of the scandal, Ferrier Hodgson partner George Georges, told the Australian newspaper none of the trader's alleged losses could be substantiated.
Ferrier Hodgson were not available to speak to the ABC, but the company has confirmed those comments.
The ABC also understands that unauthorised trades were made with client's money and subsequent attempts to make-up shortfalls in positions came unstuck during the global financial crisis.
A counter party such as a bank is also thought to be involved, and it is claimed the company was seriously undercapitalised.
'Not up to scratch'
Either way, experts say there were serious deficiencies in the way Sonray was managed and operated.
Professor Ian Ramsay, director of corporate law the University of Melbourne, says a preliminary report released during an at times heated creditors meeting a week ago, highlighted a number of problems with the company's management.
"What we're looking at here is a company operating in a complex area but with systems that just weren't up to scratch," he said.
"Account record keeping deficiencies were evident. There were actually a minimum number of employees of Sonray.
"You actually had knowledge of events leading up to the collapse and even with knowledge of the accounting systems, the company had no financial controller, no bank reconciliations were performed".
When Sonray was formed seven years ago it was one of the first companies offering complex financial products such as contracts for difference or CFDs.
A CFD is essentially an agreement that enables you to buy or sell a share in the future. By the time of its collapse Sonray had expanded to futures and options, as well as foreign exchange trading.
But its rapid growth, the highly technical nature of its business, and a culture within company may have combined to render internal controls ineffective.
"One can have a fantastic control environment set up with reporting and tracking and things like that," Professor Ramsey said.
"But if it's not respected and the results of it aren't clearly looked at and questions asked then it's not really going to do you that much good at the end of the day, trying to pick up on somebody that wants to get around the system," he said.
Lessons learnt
Executive director of Oakvale Capital, Paul Travers, says the lessons in proper risk management of firms trading in markets have been learnt the hard way through Nick Leeson's bankrupting of Barings Bank, and the National Australia Bank's rouge trading scandal which cost it $360 million back in 2004.
He cites better separation of trading and supervisory roles, proper rigorous analysis of profit and loss numbers, vigilant risk management and a culture where responsibility can be taken for mistakes without excessive punitive consequences as examples of good market practice.
"So if somebody has done something and it wasn't purposefully done, they've made a mistake - encourage those people to come forward very quickly and the mistake gets resolved and that won't create somebody's problem," he said
Sonray's former CEO, Scott Murray, today gave an undertaking in the Federal Court he would not leave Australia after an application by corporate watchdog ASIC.
He has also agreed to provide ASIC with a statement of his assets and liabilities.
Sonray's sole director Russell Johnson has already handed over his passport.
