### Comment:
It was a balance sheet account that wasn’t part of the trading reporting, I.e he could cover losses in the trading account by making entries to the balance sheet and anyone looking at trading performance wouldn’t be aware.  
  
 In theory should be impossible these days but think it was a relatively small office and he had some involvement in both trading and operations  so was able to make the entries. Normally the two functions are completely segregated.

### REPLY:
Yeah, this was the big thing.  Small office, no segregation of duties.  He both traded and recorded the trades late at night through the accounting system, so could hide the bad stuff.  Had it been a normal situation his first bad trade would have been flagged and nipped in the bud immediately with minimal problems.

### END.