“FX Cartel” piles pressure on US Govt to produce evidence in Forex manipulation case

Maria Nikolova

Richard Usher, Rohan Ramchandani, and Christopher Ashton want the US Government to make an effort to obtain extra evidence from foreign regulators and the FRB.

Former Forex traders Richard Usher, Rohan Ramchandani, and Christopher Ashton, who stand accused of conspiracy to manipulate the FX market, have stepped up their efforts to obtain evidence they see as crucial for their defense.

On Wednesday, August 22nd, the defendants filed a Letter with the New York Southern District Court, asking the Court to direct the US Government to make an effort to produce evidence that is currently available to several foreign regulators and the Federal Reserve Bank (FRB).

Let’s recall that the ex-traders previously stated they were aware of at least three additional statements made by the Government’s chief co-operating witness (the so-called Witness A) – 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.

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.

In their latest Letter, the three former traders refer to a recent Government declaration which sets out the Government’s reason not to seek the evidence requested by the defendants. But, according to the defendants, this declaration undermines the Government’s claim that it cannot, or should not, obtain Witness A’s statements and submissions to foreign and domestic authorities. The Declaration defines no legal impediment that prevents the Government from requesting Witness A’s statements and submissions to the authorities of Korea and Brazil, and the facts it sets forth concerning the cooperation between the Government and the Federal Reserve Bank (FRB) establish that these agencies conducted a joint investigation.

Accordingly, the defendants request that the Court order the Government to make a good faith effort to obtain Witness A’s statements and submissions to foreign authorities, and to conduct a review of any FRB materials reflecting interviews with Witness A or proffers made on his behalf.

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

Digital Assets

BlackRock digs further into crypto with metaverse ETF

BlackRock, the world’s largest asset manager with almost $10 trillion in AUM, is set to launch a new metaverse ETF to help investors securely monetize on the booming immersive version of the internet.

Digital Assets

Binance wins license in New Zealand as rival Huobi shutters derivatives

Binance, the world’s largest crypto exchange by traded volume, has obtained licenses to operate in New Zealand, even after rival Huobi shutdown derivatives trading last month due to concerns about regulations.

Retail FX

Hong Kong busts perpetrators of ‘ramp and dump’ scam

Hong Kong’s financial watchdog, the Securities and Futures Commission (SFC), has charged thirteen suspects of market manipulation in a joint operation with the local police.

Institutional FX

TradingView integrates market data from German Tradegate exchange

TradingView announced that it ‎has increased data coverage to allow its users to receive information from ‎and get free access to the intra-day and tick data from Tradegate Exchange.

Retail FX

Spotware Systems introduces Custom Push Notifications for cTrader mobile apps

Spotware Systems, a technology provider for the electronic trading industry, is introducing a new push notification feature to alert mobile users of price swings and market fluctuations through their cTrader app.

Market News

The Week Ahead: 30 September from David Madden, Market Analyst at Equiti Group

Sterling dominated the headlines last week, as there were concerns the UK government might struggle to service its debt.

Inside View

How does the quality of signal providers affect your business?

A must-have onboarding process for brokers with investment services like PAMM, MAM, or copy trading


DBS deploys Nasdaq Trade Surveillance

“The confidence that markets and our clients have in DBS as a safe and trusted banking group is anchored on our ability to detect and respond to anomalous activity, which in turn calls for a robust surveillance and prevention infrastructure.”

Industry News

SEC charges Justin Costello and David Ferraro for securities fraud and posing as billionaire veteran

The Securities and Exchange Commission charged Cannabis executive Justin Costello and David Ferraro, an associate of Costello’s, for promoting the stock of several microcap companies on social media without disclosing their own simultaneous stock sales as market prices rose.