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US: HSBC trader Mark Johnson convicted of fraud for front-running

By  |  October 23, 2017

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

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