DOJ changes tactics shortly before start of FX Cartel trial

Maria Nikolova

The US Government no longer seeks to introduce evidence of import commerce at trial.

Several days before the scheduled start of the trial of Richard Usher, Rohan Ramchandani, and Christopher Ashton, the former Forex traders also known as “FX Cartel” or “FX Mafia”, the United States Department of Justice (DOJ) has changed its tactics.

According to a Letter, sent by the Government to the Honorable Richard Berman of the New York Southern District Court on Wednesday, October 3, 2018, the Government plans to withdraw a part of its theory from trial.

Let’s recall that, under the Indictment, from at least as early as December 2007 and continuing at least through January 2013, the defendants and their co-conspirators, participated in a combination and conspiracy to suppress and eliminate competition for the purchase and sale of EUR/USD in the United States and elsewhere by fixing, stabilizing, maintaining, increasing, and decreasing the price of, and rigging bids and offers for, EUR/USD in the FX Spot Market. The combination and conspiracy engaged in by Defendants and their co-conspirators unreasonably restrained interstate and U.S. import trade and commerce in violation of Section 1 of the Sherman Act.

The Letter from the Government states that it no longer seeks to introduce evidence of import commerce at trial. The Government notes that it could prove at trial, that the defendants’ conduct involved and affected import commerce. However, the Government believes such proof is unnecessary to meet its burden and this change will help streamline facts and arguments in the upcoming trial.

The Government’s decision has no impact on the scope of the charged crime, the Letter stresses.

In response to the Government’s Letter, the defendants stated that the “eleventh-hour change raises significant Fifth Amendment concerns”. They said the Government’s abandonment of the import commerce theory may have caused a constructive amendment of the Indictment.

The case is captioned USA v. Usher et al (1:17-cr-00019).

Read this next

Opinion

The FX Algo Wheel, is it wheels up and ready to take flight?

by David Catterick, Sales Director, BidFX Australia

Retail FX

eToro users now can trade underlying Italian stocks

Israeli social trading and multi-asset brokerage company eToro has expanded its service offering and trading products by incorporating new markets, namely Italian stocks listed at underlying exchanges.

Digital Assets

BlackRock bets on crypto bank Silvergate despite drastic fall

BlackRock, the world’s largest asset manager, has increased its stake in Silvergate Bank, a crypto-friendly lender that counts major crypto exchanges like Coinbase and Kraken as clients.

Opinion

A viewpoint from Anatoly Crachilov, CEO and Founding Partner at Nickel Digital, on SEC regulation of the digital asset sector

The SEC’s latest episode comes across as more of a PR performance rather than an act of investor protection.

Digital Assets

Tether denies receiving any loans from Celsius, the opposite is true

World’s largest stablecoin issuer, Tether dismissed reports suggesting that it received a $2 billion loan from the bankrupt cryptocurrency lender Celsius.

Institutional FX

Cboe FX volume makes strong rebound in January

Cboe’s institutional spot FX platform today announced its trading volume for the month ending January 2023, which marks a mild rebound after a steep fall in December.

Uncategorized

XS.com appoints Exness alumni Mohamad Ibrahim as CEO

XS.com, the multi-regulated financial services provider, has appointed Mohamad Ibrahim as the group’s newest chief executive officer (CEO).

Technology

B2Broker Integrates Match-Trader Solution to Expands Its White Label Liquidity Offering

A global provider of technology and liquidity for the FX and cryptocurrency markets, B2Broker recently announced the extension of its white label liquidity offering by merging with Match-Trader.

Digital Assets

UK launches open consultation to regulate crypto exchanges, custody, and lending

The government’s proposed measures have been informed by recent market events – including the failure of FTX – which reinforce the case for effective regulation and sector engagement.

<