A former HSBC banker has been found guilty by a US jury of defrauding a UK-headquartered energy firm in a US$3.5 billion currency trade.
Mark Johnson, who was HSBC’s head of global cash foreign exchange trading, was found guilty on nine counts, in a Brooklyn, New York, courtroom.
Johnson, 51, was accused of exploiting confidential information from Cairn Energy in 2011 to “front run” the oil and gas firm in the currency markets, thus making a profit for the bank at the expense of its client.
Jurors heard a tape of Johnson saying “Oh, f*cking Christmas” on learning of Cairn’s decision to proceed with the trade.
The verdict on Monday, October 23, followed a month-long trial.
“This sends a signal to traders and banks that this type of behavior is absolutely inappropriate and will be pursued by the government,” said Michael Weinstein, a former Justice Department attorney, quoted by Bloomberg.
Full Content: Bloomberg