Mark Johnson, the head of global FX cash trading at HSBC and
Stuart Scott, former head of FX cash trading for EMEA at HSBC, have been officially
charged by the US Justice Department with conspiring to defraud HSBC clients by
The US Federal Reserve has moved to ban Mark Johnson, global head of spot FX trading at HSBC, and Stuart Scott, the bank’s former head spot trader for EMEA.
According to court documents, the Fed argues that both mens’ continued service or participation in the conduct of the affairs of any relevant depository institution posed, poses, or may pose a threat to the interests of depositors of such institution, or threatened, threatens, or may threaten to impair public confidence in such institution.
The US is to file for the extradition of HSBC’s former senior FX trader Stuart Scott from the UK to face charges under its broad wire fraud laws.
According to a report first published by Reuters the US Department of Justice has filed a letter in a in Federal court in New York, stating the US’ intention to initiate formal proceedings to seek Scott's extradition after learning he did not wish to come to the United States voluntarily to face the charges.
Stuart Scott, formerly head of FX trading EMEA at HSBC, has been arrested in London and appeared in court to face extradition to the US over allegations of front running and insider trading relating to the bank’s handling of a large order for one of its customers.
Last year, Mark Johnson, global head of FX trading at the bank was arrested in New York over the same allegations and also faces charges of front running.
Scott was arrested following a formal extradition request by the US Department of Justice (DoJ) and was bailed following the court hearing.
Just a few days after his former manager Mark Johnson was found guilty of wire fraud by a New York jury, HSBC’s former head of European FX trading, Stuart Scott, has failed in his efforts to block his extradition to the US to face similar charges.
Scott was charged by the US Justice Department, along with Johnson, of conspiring to defraud Cairn Energy with regard to a large sterling buy order for the firm in December 2011. Scott continues to deny he did anything wrong.
HSBC’s former head of FX trading for Europe, Stuart Scott, has won his appeal against the decision to extradite him to the US to face trial over allegations that he took part in front running trading relating to an order for Cairn Energy.
Scott’s former boss, Mark Johnson, was convicted of charges related to the Cairn Energy deal in a US court last year and sentenced to two years in jail earlier this year, however he is appealing the decision and won a bail application in June.