London foreign exchange trader sues Citigroup above &#039malicious&#039 foreign exchange prosecution – Reuters

LONDON (Reuters) – A London-primarily based previous Citigroup (C.N) trader is suing the U.S. bank for more than $112 million, alleging it designed materially bogus and malicious statements to U.S. prosecutors that led to his trial in New York on overseas exchange-rigging costs.

FILE Photo: A Citibank branch is observed in Santa Monica, California, U.S. March 19, 2018. REUTERS/Lucy Nicholson/File Photo

Rohan Ramchandani, the previous European head of Citigroup’s foreign exchange location market place investing desk, alleges in a lawsuit submitted on Wednesday that Citigroup designed bogus and “gravely derogatory” assertions against him to govt investigators and the media after firing him in 2014 with out cause.

“Ultimately, Citi very literally fabricated an antitrust scenario for the United States Office of Justice against Ramchandani primarily based on knowingly bogus allegations that he engaged in market place ‘manipulation’ and ‘collusion’,” read the grievance submitted in the federal court docket in Manhattan.

A spokeswoman for Citigroup in London said the bank rejected the allegations and would battle the scenario.

“Mr. Ramchandani’s claims of malicious prosecution are with out advantage and we will contest them vigorously,” she said.

A New York jury last 12 months cleared Ramchandani, alongside two other London-primarily based forex traders, of scheming to rig benchmark exchange charges in the $5.three trillion-per-day overseas exchange marketplaces after just several hours of deliberation.

The verdict was a blow for U.S. authorities, which alongside Britain’s Economical Perform Authority (FCA) had fined some of the world’s most strong banking institutions — which include Citigroup — a overall of around $ten billion above the overseas exchange scandal.

The United kingdom Severe Fraud Business office (SFO) abandoned its very own legal investigation into forex rigging allegations in 2016, saying it lacked ample evidence for a prosperous prosecution.

Ramchandani alleges that a Citigroup lawyer, who is not named in the filings but who he said had “full knowledge” of the info, had regarded that he had not engaged in intentional wrongful perform or violated any law or regulation.

He also alleges his supervisor at Citigroup, an experienced foreign exchange location market place trader tasked with reviewing and evaluating Ramchandani’s communications, had volunteered that Ramchandani had not engaged in “collusion or value fixing” and there was “nothing criminal” in his intent or actions.

Citigroup only pleaded guilty in Could 2015 to conspiring to manipulate currencies in get to pin the blame on Ramchandani and to limit the regulatory repercussions for their senior administrators and officers, the previous trader alleged.

Ramchandani alleged that although he had been acquitted, Citigroup’s perform had cost him tens of tens of millions of pounds, broken his popularity and finished his prosperous and well-paid out specialist career.

He is demanding a trial by jury.

Reporting by Kirstin Ridley and C Nivedita Editing by Alexandra Hudson

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