This article is from the source 'nytimes' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.nytimes.com/2016/07/21/business/dealbook/hsbc-foreign-exchange-investigation-currency.html
The article has changed 6 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| HSBC Bankers Said to Be Facing Charges in $3.4 Billion Currency Case | HSBC Bankers Said to Be Facing Charges in $3.4 Billion Currency Case |
| (about 1 hour later) | |
| Federal prosecutors are expected to charge two HSBC bankers with fraud in connection with a $3.4 billion foreign exchange transaction in 2011. | |
| Mark Johnson, the global head of HSBC’s foreign exchange cash trading desk, and Stuart Scott, the former head of the bank’s Europe desk, will be charged with wire fraud conspiracy related to the currency transaction, which involved exchanging dollars for British pounds for an oil and gas company, said a person with direct knowledge of the matter who spoke on the condition of anonymity. | Mark Johnson, the global head of HSBC’s foreign exchange cash trading desk, and Stuart Scott, the former head of the bank’s Europe desk, will be charged with wire fraud conspiracy related to the currency transaction, which involved exchanging dollars for British pounds for an oil and gas company, said a person with direct knowledge of the matter who spoke on the condition of anonymity. |
| Mr. Johnson, who is a British citizen, was arrested by federal agents Tuesday night at Kennedy International Airport as he was boarding a flight to London, this person said. Mr. Johnson is expected to appear before a federal court in Brooklyn Wednesday afternoon. | Mr. Johnson, who is a British citizen, was arrested by federal agents Tuesday night at Kennedy International Airport as he was boarding a flight to London, this person said. Mr. Johnson is expected to appear before a federal court in Brooklyn Wednesday afternoon. |
| Federal prosecutors are expected to assert that Mr. Johnson and Mr. Scott used the information about their client’s currency transaction to trade ahead, pocketing a $3 million profit for the bank. The bank also made $5 million in fees from the transaction. The client is not named, but it is an oil and gas company that needed to undertake the currency exchange after the sale of a subsidiary in India. | Federal prosecutors are expected to assert that Mr. Johnson and Mr. Scott used the information about their client’s currency transaction to trade ahead, pocketing a $3 million profit for the bank. The bank also made $5 million in fees from the transaction. The client is not named, but it is an oil and gas company that needed to undertake the currency exchange after the sale of a subsidiary in India. |
| A spokesman for HSBC declined to comment. | |
| Federal prosecutors in Brooklyn and at the Justice Department in Washington will be bringing the charges. | Federal prosecutors in Brooklyn and at the Justice Department in Washington will be bringing the charges. |