HSBC accused of ‘blatant and indefensible’ forex fraud by ex-client
London-based HSBC currency traders will regularly front-run
client orders to make additional profits as part of a “blatant and
undefendable” scam, lawyer of currency manager ECU Group. Claimed in the London
High Court.
The investment management company’s ECU submitted a closing
submission at the end of Tuesday. 7 week trial He is suing HSBC over a currency
transaction that took place over 15 years ago. The trial is the latest article
in a global currency trading scandal that began nearly a decade ago, fined
London-listed banks more than $ 600 million.
The ECU Group claims that HSBC’s Forex traders have misused
confidential information about their transactions and used them for their own
benefit between 2004 and 2006, identifying 52 transactions during that period.
I am. The ECU was a client of HSBC at the time of the transaction. HSBC has
denied all cheating.
ECU adviser Richard Risak QC said he had “evidence of a
smoke-breathing gun” that HSBC currency traders tried to profit from client
orders, and HSBC head Stuart. Pointed out a chat between Scott at the Bloomberg
Terminal. Paul Michelko, who has been responsible for cash FX in Europe and FX
in the Americas since January 2010. In exchange, Scott told his counterparts
that his team was always making money from so-called stop-loss orders. Front running.
“HSBC’s London trading desk boasts that clients can place
their orders ahead of schedule, regardless of their sophistication or the care
they take when monitoring their orders,” Lisak told the court.
Lissax also tried to hide their actions after HSBC traded
with U.S. authorities in January 2018 and another senior bank staff member
Scott and Mark Johnson fraudulently traded ahead of customers in 2011. He said
he admitted that he had done so. Johnson was found guilty by a US fraud jury in
2017, and Scott was successfully accused. Fought a delivery request From the
United States.
Lissak added that none of the traders involved had testified
in the trial, depriving the ECU of the opportunity to ask questions. “This is a
blatant and inexcusable scam tolerated by one of HSBC’s finest forex traders at
the time,” Lisack added.
HSBC lawyers argue that ECUs should make these claims
sooner. HSBC’s representative Kenneth MacLean QC, in his closing argument in
writing, is based on an “unnatural and misunderstood legal framework” rather
than an entire ECU proceeding in a reasonable time frame. Insisted.
“The HSBC Parties did not commit the alleged misconduct,”
McLean wrote. “The proceedings filed by the ECU of widespread systematic
misconduct by HSBC parties have always been ambitious.[and there was a]There
are no proceedings properly filed to that effect. ”
He added that the ECU proceedings were not supported by
court evidence as bank traders took “fully legitimate” steps in processing
these orders to give clients the best results. I did.
The ECU also states that the bank trader is using
information about the client’s transactions to make personal transactions for
his own benefit and that he is overcharging the order without disclosing it to
the ECU. Insists.
HSBC lawyers will make closing arguments on Wednesday.
Comments
Post a Comment