Investigation
Not surprisingly, this big win immediately raised suspicions at the exchange and the following day (the 3rd) the Australian Securities Commission (ASC) began an investigation. On 4 October 1996 the ASC got a court order freezing the account. The options were still sold per Booth's instructions, for a total $2,039,710, but that amount was held in the account.
In November 1996 Booth faxed instructions to Staehli directing the firm to pay monies under the direction of the ASC so the investors he had bought from wouldn't suffer losses. Maybe Hannes realized he was in trouble and hoped to extricate himself. In any case such payments were in fact made, with the writers of the options compensated.
The ASC investigated many people from Macquarie, TNT and KPN who might have been Booth, using good old-fashioned perseverance. They also used NetMap software developed by NetMap Analytics. NetMap was designed to look at large data sets for unusual links between people or groups in their communications or financial dealings, to identify possible wrongdoing. After a three week run it proposed several people, of whom Hannes was one.
On 17 January 1997 a search warrant was executed at Hannes home and documents, his computer, an anorak, a black bag and glasses were seized. The anorak and bag were similar to ones in bank security tapes from when Booth obtained bank cheques.
In a voluntary police/ASC interview that day Hannes asserted the options had been bought without his authority, by a person he did not wish to name but with whom he had formed an investment syndicate. This person would be known as Mr X.
Read more about this topic: Simon Hannes