Mark Johnson, the former head of global FX cash trading at HSBC, has been found guilty of eight counts of wire fraud and one conspiracy charge by a US court.
The jurors in the Eastern District Court of New York announced the decision on Monday.
They found Johnson guilty of defrauding Cairn Energy by using information provided in confidence to HSBC to about a $3.5 billion transaction to front-run the order and generate trading profits.
Johnson was arrested at JFK airport in New York in connection with this case in June 2016, as Profit & Loss reported at the time.
Profit & Loss managing editor, Colin Lambert, has been opining on the Johnson case as it has been developing over recent weeks, warning that not enough care has been taken by the FX industry regarding how people communicate, and that the case has illustrated some naïve assumptions about how FX liquidity operates.