Former HSBC Executive Found Guilty of Fraud in $3.5 Billion Currency Trade
A U.S. jury on Monday found former HSBC executive Mark Johnson guilty of defrauding Cairn Energy (CRNZF, +0.00%) in a $3.5 billion currency trade in 2011.
U.S. prosecutors have said that Mark Johnson, formerly head of HSBC’s global foreign exchange cash trading desk, schemed to ramp up the price of British pounds before executing a trade for Cairn, making millions for HSBC at Cairn’s expense.
“They’ve convicted an innocent man,” John Wing, a lawyer for Johnson, told reporters as he left the courtroom in Brooklyn federal court, where Johnson was on trial for nearly four weeks.
Johnson, a 51-year-old British citizen, was the first banker to be tried in the United States as a result of worldwide investigations into the multi-trillion-dollar per day currency market.
The probes have led to about $10 billion in fines against several banks and the firing of dozens of traders.
According to court filings, Cairn hired HSBC in 2011 to convert $3.5 billion into British pounds sterling in connection with the sale of an Indian subsidiary.
Prosecutors said that Johnson and another former HSBC executive who is also facing charges, Stuart Scott, devised a scheme to drive up the price of pounds by executing a series of trades before carrying out the trade for Cairn.
Source: FORTUNE – Former HSBC Executive Mark Johnson Found Guilty of Fraud in $3.5 Billion Currency Trade
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