London forex trading trader sues Citigroup above &#039malicious&#039 forex trading prosecution – Reuters

LONDON (Reuters) – A London-based former Citigroup (C.N) trader is suing the U.S. financial institution for additional than $112 million, alleging it built materially bogus and destructive statements to U.S. prosecutors that led to his trial in New York on foreign trade-rigging charges.

FILE Picture: A Citibank department is witnessed in Santa Monica, California, U.S. March 19, 2018. REUTERS/Lucy Nicholson/File Picture

Rohan Ramchandani, the former European head of Citigroup’s forex trading place sector buying and selling desk, alleges in a lawsuit filed on Wednesday that Citigroup built bogus and “gravely derogatory” assertions in opposition to him to govt investigators and the media right after firing him in 2014 devoid of cause.

“Ultimately, Citi quite basically fabricated an antitrust situation for the United States Department of Justice in opposition to Ramchandani based upon knowingly bogus allegations that he engaged in sector ‘manipulation’ and ‘collusion’,” go through the criticism filed in the federal court docket in Manhattan.

A spokeswoman for Citigroup in London reported the financial institution rejected the allegations and would fight the situation.

“Mr. Ramchandani’s promises of destructive prosecution are devoid of merit and we will contest them vigorously,” she reported.

A New York jury past calendar year cleared Ramchandani, along with two other London-based forex traders, of scheming to rig benchmark trade prices in the $five.3 trillion-per-working day foreign trade marketplaces right after just hrs of deliberation.

The verdict was a blow for U.S. authorities, which along with Britain’s Fiscal Conduct Authority (FCA) had fined some of the world’s most powerful banking institutions — including Citigroup — a whole of all over $10 billion above the foreign trade scandal.

The British isles Serious Fraud Place of work (SFO) abandoned its possess prison investigation into forex rigging allegations in 2016, expressing it lacked enough evidence for a successful prosecution.

Ramchandani alleges that a Citigroup law firm, who is not named in the filings but who he reported had “full knowledge” of the details, had acknowledged that he had not engaged in intentional wrongful carry out or violated any law or regulation.

He also alleges his manager at Citigroup, an seasoned forex trading place sector trader tasked with reviewing and analyzing 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 responsible in May possibly 2015 to conspiring to manipulate currencies in buy to pin the blame on Ramchandani and to limit the regulatory implications for their senior administrators and officers, the former trader alleged.

Ramchandani alleged that despite the fact that he had been acquitted, Citigroup’s carry out had charge him tens of tens of millions of pounds, ruined his popularity and ended his successful and very well-paid out skilled occupation.

He is demanding a trial by jury.

Reporting by Kirstin Ridley and C Nivedita Enhancing by Alexandra Hudson

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