London foreign exchange trader sues Citigroup over &#039malicious&#039 foreign exchange prosecution – WNWN-FM

Wednesday, Oct 02, 2019 12:23 p.m. EDT

By Kirstin Ridley

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

Rohan Ramchandani, the previous European head of Citigroup’s foreign exchange location market investing desk, alleges in a lawsuit submitted on Wednesday that Citigroup designed bogus and “gravely derogatory” assertions from him to federal government investigators and the media after firing him in 2014 without the need of cause.

“In the end, Citi quite literally fabricated an antitrust scenario for the United States Office of Justice from Ramchandani based on knowingly bogus allegations that he engaged in market ‘manipulation’ and ‘collusion’,” browse the grievance submitted in the federal court in Manhattan.

A spokeswoman for Citigroup in London explained the bank rejected the allegations and would struggle the scenario.

“Mr. Ramchandani’s promises of destructive prosecution are without the need of advantage and we will contest them vigorously,” she explained.

A New York jury past 12 months cleared Ramchandani, along with two other London-based currency traders, of scheming to rig benchmark exchange fees in the $5.three trillion-for every-day overseas exchange markets after just hrs of deliberation.

The verdict was a blow for U.S. authorities, which along with Britain’s Money Conduct Authority (FCA) experienced fined some of the world’s most powerful financial institutions — together with Citigroup — a total of about $10 billion over the overseas exchange scandal.

The Uk Serious Fraud Workplace (SFO) abandoned its own felony investigation into currency rigging allegations in 2016, indicating it lacked adequate evidence for a prosperous prosecution.

Ramchandani alleges that a Citigroup attorney, who is not named in the filings but who he explained experienced “complete understanding” of the points, experienced recognized that he experienced not engaged in intentional wrongful perform or violated any law or regulation.

He also alleges his manager at Citigroup, an experienced foreign exchange location market trader tasked with examining and evaluating Ramchandani’s communications, experienced volunteered that Ramchandani experienced not engaged in “collusion or selling price fixing” and there was “very little felony” in his intent or actions.

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

Ramchandani alleged that although he experienced been acquitted, Citigroup’s perform experienced cost him tens of thousands and thousands of pounds, damaged his track record and finished his prosperous and very well-paid out professional job.

He is demanding a trial by jury.

(Reporting by Kirstin Ridley and C Nivedita Modifying by Alexandra Hudson)

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