Tag: fraud

fraud

Hedge Fund Manager Fined for Mis-Valuing Swaps

The Commodity Futures Trading Commission (CFTC) has issued an Order filing and settling charges against Swapnil Rege, a former portfolio manager for Connecticut-based hedge fund Marinus Capital registered with the CFTC as a commodity pool operator (CPO), for fraudulently mismarking swap valuations to artificially inflate the profits of his employer’s trading book in order to obtain […]

FCA Report Finds £27m Lost to Crypto, Forex Scams

The UK’s Financial Conduct Authority (FCA), in conjunction with Action Fraud, has issued a report showing that last fiscal year £27 million was lost to crypto and forex investment scams. The report from the FCA and Action Fraud, a national reporting centre for fraud and cyber crime, found that the number of scams reported nearly […]

CabbageTech Uprooted by CFTC

The US Commodity Futures Trading Commission (CFTC) has successfully brought an action against a fraudster in relation to cryptocurrencies.
Following a four day bench trial, a New York federal court entered final judgment ordering Patrick McDonnell and his company, CabbageTech, Corp (also known as Coin Drop Markets or CDM), to pay over $1.1 million in civil monetary penalties and restitution in connection with a lawsuit brought by the CFTC alleging fraud in connection with virtual currencies, including Bitcoin and Litecoin.

Judge Issues $2.2m Fine for FX Fraud Scheme

On Tuesday, a US judge issued a $2.2 million fine against Alcibiades Cifuentes and Jennifer Cifuentes for running a fraudulent FX trading scam.

Judge Esther Salas of the US District Court in New Jersey has entered an order of default judgment and permanent injunction against the Cifuentes’, both of West New York, New Jersey, and their corporate entity, Cifuentes Fund Management.

The order, entered on April 20, 2018, finds that from at least April 2013 through March 2015, the defendants devised a sham commodity pool trading in off-exchange FX contracts.

US Court Sentences FX Trader to Two Years

Mark Johnson, the former head of global FX cash trading at HSBC in London, has been sentenced to two years in prison following his conviction for eight counts of wire fraud and one conspiracy charge by a US court in October last year. Johnson was also fined $300,000.

Profit & Loss has reported extensively on the case, and just pulling out a few of the headlines provides a fairly decent timeline for how the case has developed since Johnson was arrested in New York almost two years ago.

Former HSBC Exec Found Guilty in FX Fraud Case

Mark Johnson, the 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. 

Fraud with a Difference: Trade with Your Mum

A US District Court Judge has found that an employer effectively stole $300,000 from her employer by trading non-competitively on CME against an account held by her mother.
In deciding an action brought by the US Commodity Futures Trading Commission (CFTC), Judge Sara Ellis fined Yumen Li and Kering Capital – a firm established by her mother, $1.2 million, including a restitution of the $300,000.
The CFTC charged Li and Kering with fraud, fictitious sales, and non-competitive transactions in connection with a series of transactions engineered by Li on CME’s electronic trading platform.

State Street to Pay $530m to Settle FX Fraud Allegations

It was announced today that State Street expects to pay a total of $530 million to resolve FX fraud allegations levelled against the bank. The US Department of Justice (DoJ) issued a statement today saying that State Street has agreed to pay a total of at least $382.4 million to settle allegations that it deceived […]