FX Cartel demands further evidence from US Government

Maria Nikolova

The former Forex traders want the US Government to produce statements made by the chief witness to the competition authorities in Korea and Brazil, and the US Federal Reserve Bank.

As the parties in a Forex manipulation case are about to participate in a status conference at the New York Southern District Court today, some discovery-related issues have emerged. The defendants – Richard Usher, Rohan Ramchandani, and Christopher Ashton, who stand accused of conspiring to fix prices and rig bids for US Dollars and Euros in the FX spot market, are asking the Court to order the Government to produce extra evidence in this case.

Last year, the parties in the case, captioned USA v. Usher et al (1:17-cr-00019), had an argument about the testimony of the Government’s chief cooperating witness. The issues are back on the agenda now.

Let’s recall that in a Letter, dated November 16, 2017, the defendants, also known as “FX Cartel” or “FX Mafia” asked Honorable Richard M. Berman to compel the US Government to help them access statements by the chief witness to the UK Serious Fraud Office (SFO), Australia Competition & Consumer Commission (ACCC), and Korea Fair Trade Commission (KFTC).

On October 30, 2017, in response to an inquiry by the defendants, the US Government claimed that it did not participate in the interviews involving the foreign regulators, and that it does not possess “any written or recorded memorialization of any statements the Cooperating Witness made to these authorities.” Also, the US Government stated during a further meet-and-confer on Monday, November 13, that it remains unwilling to ask the SFO, ACCC, or the KFTC for the Cooperating Witness’s statements.

On Monday, June 25, 2018, the defendants submitted another Letter, stating that the Government has not produced all statements made by its chief cooperating witness to other regulatory and law enforcement agencies.

The Government has produced to the defendants the statement that the witness made to the Australian Competition & Consumer Commission (ACCC). However, the parties are 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.

According to the defense, these statements are made to regulators that subsequently found no antitrust violations in the same conduct at issue in the present case. Hence, the information may be very important for the defense.

The defendants request that the Court order the Government to produce the statements by August 7, 2018.

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.”

Their trial was recently rescheduled and is set to start on October 1, 2018.

  • Read this next

    Podcasts, Women of the Industry

    FF Podcast delves into the rise of prop trading as Brokeree releases Prop Pulse

    In the latest FinanceFeeds Podcast, Tatiana Pilipenko discusses Prop Pulse, Brokeree Solutions’ platform for prop firms and retail brokers aiming to delve into prop trading. Offering a flat fee structure, Prop Pulse emerges as a scalable solution in an era where successful traders increasingly prefer prop firms over traditional retail brokers.

    Inside View

    Scalping or day trading?

    Among the many popular trading styles with both beginners and experienced traders are scalping, which allows you to extract small portions of profit from each price movement, and day trading, which aims to trade over a single day. In this article, you will learn what scalping and day trading are and their differences and peculiarities. Ultimately, you will learn what to look for to understand which trading style is right for you.

    Crypto Insider

    Unveiling Plasma Next: INTMAX’s Solution to Scale Ethereum with Stateless Layer

     INTMAX has launched Plasma Next on the mainnet α, a groundbreaking Layer 2 zkRollup, revealed by co-founder Leona Hioki at ETH Denver. This innovation offers scalability with constant costs per block, merging Plasma’s scalability goals with zkRollups’ security.

    Fintech

    Nuam selects Vermiculus for clearing system in Chile, Colombia, and Peru

    “We are proud to deliver a system that plays an integral role in the core of this historical merger, empowering one of Latin America’s most crucial markets with VeriClear’s state-of-the-art technology, together with our deep market expertise.”

    Retail FX

    Moomoo launches super app in Malaysia

    “As an investment platform connecting 21 million retail investors globally, we envision collaborating with exchanges, regulatory bodies, and partners in the visible future to become the gateway, connecting Malaysia’s investment products to global capital and investors.”

    Executive Moves

    FXPA elects Joe Hoffman as new Chair in its 10th anniversary

    “The opportunity to serve as Chair of the FXPA is truly an honor, and I am committed to upholding the exceptional work of a FXPA. Given the recent market fluctuations due to global tensions, inflationary pressures, shifts in monetary policy, as well as the outcome of the US election and the risk of recession, brings the potential for more FX volatility in 2024. I am dedicated to expanding the FXPA’s membership and I’m excited about collaborating with all members to echo the unified voice of the FX market.”

    Market News

    Eurozone Fights Stagnation Whilst Stock Indices Rally

    European stock markets are defying economic gloom as they continue to soar to all-time highs, showcasing resilience amidst broader economic challenges.

    Web3

    Lisk Partners with Indonesia’s Communications Ministry to Boost Web3 Startup Ecosystem

    Discover the strategic partnership between Lisk and the Indonesian Ministry of Communications and Informatics, aimed at propelling local Web3 startups to new heights through comprehensive support and education.

    Executive Moves

    Admirals appoints founder Alexander Tsikhilov as CEO

    “Striking the right balance between sourcing new talent and developing and harnessing the strength and capabilities of our current workforce, is key to achieving our vision.”

    <