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         2 HSBC Executives Charged With Wire Fraud Over Currency Trade

   by VOA News

   U.S. authorities have charged two HSBC executives in connection with a
   scheme to defraud clients in a multi-billion-dollar currency
   transaction.

   Mark Johnson, the head of global foreign exchange cash trading at HSBC
   Bank, and Stuart Scott, the bank's former head of cash trading in
   Europe, were charged with conspiracy to commit wire fraud, according to
   a Justice Department release.

   Johnson, a British citizen and U.S. resident, was arrested Tuesday
   night at New York's John F. Kennedy International Airport. He was
   expected to be arraigned Wednesday. Scott, who is also British, has not
   been arrested.

   "These individuals are accused of defrauding clients by misusing
   confidential information to manipulate currency prices for the benefit
   of the bank and themselves," said Paul Abbate, from the Federal Bureau
   of Investigation, which partnered with the Federal Deposit Insurance
   Corporation (FDIC) in investigating the case.

   Authorities allege that in 2011, Johnson and Scott misused information
   provided by a client about a future currency transaction, and made
   earlier trades that caused the client's "$3.5 billion foreign exchange
   transaction to be executed in a manner that was designed to increase
   the price of the pound sterling, to the benefit of HSBC and at the
   client's expense."

   According to the Justice Department complaint, HSBC netted $8 million
   in fees and profits from the transaction.
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   [1]http://www.voanews.com/content/two-hsbc-executives-charged-wire-frau
   d-currency-trade/3427435.html

References

   1. http://www.voanews.com/content/two-hsbc-executives-charged-wire-fraud-currency-trade/3427435.html