entitlement forms, page-18

When he bought shares and they were registered in his name on the registration date, he is entitled to the options, doesn't matter who the FPOs bought them of, unless it was a private sale and arranged with him prior to the sale and he got some discount or something.
Just take the matter up with ASIC
It's like buying BHP and not getting a dividend, because you bought shares that someone else shorted. That's just nonsense.