1.  By creating phony option trades in the opposite direction of his losing currency bets, he made it appear inside Allfirst that he had hedged his losses.

2.  These phony option trades were always in the opposite direction of his losing spot currency bets, so it appeared inside Allfirst that he had offset his losses.

3.  Buckley said he had asked the FBI to help track down the missing trader, who could have been working in collusion with others in a phony options scam.

4.  Middle managers had confronted the trader by telephone last weekend when the magnitude of the phony options deals was discovered after several weeks of investigation.

5.  When losses mounted from bad bets on currency movements, he allegedly tried to hide the losses with phony options contracts normally used to hedge risk.