Evidence row between “FX Cartel” and US Govt deepens

Maria Nikolova

The US Government has to make its own, direct request for information to the authorities of Korea and Brazil about evidence that may be crucial in an FX manipulation case, three former Forex traders argue.

Less than a week after the United States Government said it could not and would not provide documents requested by three former FX traders – Richard Usher, Rohan Ramchandani, and Christopher Ashton, the defendants have once again insisted that the US authorities must make an extra effort to obtain evidence from foreign regulators.

Let’s recall that the defendants, also known as the FX Cartel or the FX Mafia, had asked the Judge to help them access statements made by the chief US Government witness to the UK Serious Fraud Office (SFO), Australia Competition & Consumer Commission (ACCC), and Korea Fair Trade Commission (KFTC). The United States Government had produced to the defendants the statement that the witness made to the Australian Competition & Consumer Commission (ACCC).

However, the ex-traders said they were aware of at least three additional statements – specifically, statements made to the competition authorities in Korea and Brazil, and a statement to the Federal Reserve Bank (FRB) in the United States. These statements are material to preparing the defense, yet the Government has declined to produce them.

In a Letter to Judge Richard M. Berman of the New York Southern District Court, filed today and seen by FinanceFeeds, the defendants argue that the US Government must make an extra effort to obtain the evidence from the foreign authorities and the FRB.

In its essence, the Letter says that the Government has to ask the regulators of Brazil and Korea for any statements made by its cooperating witness. According to the defendants, the US Government has not made its own, direct request to these authorities. Such a request would carry far more weight.

The witness whose testimony is sought is said to have provided detailed description of his past trading activities to Korean and Brazilian authorities. After hearing his testimony, these regulators decided not to prosecute him. That is why, his testimony is seen as crucial in the case and the defendants seek the information with such perseverance.

Usher, former Head of G11 FX Trading-UK at an affiliate of Royal Bank of Scotland plc, as well as former Managing Director at an affiliate of JPMorgan Chase & Co., Ramchandani, former Managing Director and head of G10 FX spot trading at an affiliate of Citicorp, and Ashton, former Head of Spot FX at an affiliate of Barclays PLC, are alleged to have conspired to manipulate the FX market by “coordinating their bidding, offering, and trading” at “certain times.”

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

Read this next

Metaverse Gaming NFT

DCentral Miami brings together all of Web3, NFT, DeFi, Metaverse

The world’s biggest Web3 meeting entitled DCENTRAL Miami is set to take place November 28-29, featuring a lineup of some of the biggest and most influential names in the blockchain space.

Digital Assets

Crypto ban expands across UK banks as Starling joins ‎crackdown

UK digital bank Starling has banned ‎all customer payments related to cryptocurrencies, another blow for the crypto traders ‎who recently saw a sizable number of banks deciding not to ‎finance the wobbly asset class.‎

Interviews

Markets Direct at FIA EXPO 2022: Traders know what they want from brokers

The FIA Expo 2022, one of the most prestigious events within the global derivatives trading industry, took place in Chicago on 14 & 15 November.

Interviews

FIA Expo 2022: TNS addresses public cloud limitations with hybrid infrastructure

November is the month of the FIA Expo, one of the largest futures and options conferences in the world, bringing together regulators, exchanges, software vendors, and brokers in one place: the Sheraton Grand Chicago Riverwalk. 

Retail FX

Italy’s regulator blacks out Finance CapitalFX, MFCapitalFX

Italy’s Commissione Nazionale per le Società e la Borsa (CONSOB) has shut down new websites in an ongoing clampdown against firms it accuses of illegally promoting investment products in the country.

Retail FX

Suspected leader of Honk Kong ramp-and-dump scam appears in court

A leader of a sophisticated ramp-and-dump scheme made his first court appearance in a Hong Kong court today, charged with market manipulation and various criminal offences. The case stems from an earlier joint operation of Hong Kong’s financial watchdog, the Securities and Futures Commission (SFC), and the local police. 

Institutional FX

Cboe’s James Arrante discusses growing demand for fixed income, FX algo

We caught up with James Arrante, senior director of FX & US treasuries product and business management at Cboe Global Markets, to uncover emerging trends in the FX and fixed income markets and learn more about the bourse operator’s recent initiatives.

Retail FX

Eurotrader acquires UK broker Petra Asset Management

Eurotrader Group has formally entered into the UK market with the acquisition of FCA-regulated broker, previously named Petra Asset Management Ltd. The new entity operates under the brand name Eurotrade Capital Ltd.

Inside View, Retail FX

The Game of Chess Continues – OPEC, China and the Oil Market

Over the past decade, the US has been complaining about the amount of power which the BRIC group, and specifically China, has on the global economy. BRIC stands for Brazil, Russia, India and China; these were the world’s fastest growing economies. Only in the past 10 months, the US has turned their attention toward OPEC due to the prices of fuel. Nevertheless, China seems to have a strong influence even over the price of crude oil.

<