London forex trading trader sues Citigroup over 'malicious' forex trading prosecution – KDAL Information
Wednesday, Oct 02, 2019 eleven:23 a.m. CDT
By Kirstin Ridley
LONDON (Reuters) – A London-based mostly former Citigroup trader is suing the U.S. financial institution for far more than $112 million, alleging it designed materially fake and destructive statements to U.S. prosecutors that led to his trial in New York on overseas trade-rigging charges.
Rohan Ramchandani, the former European head of Citigroup’s forex trading spot industry buying and selling desk, alleges in a lawsuit filed on Wednesday that Citigroup designed fake and “gravely derogatory” assertions towards him to govt investigators and the media right after firing him in 2014 without bring about.
“Eventually, Citi fairly literally fabricated an antitrust situation for the United States Section of Justice towards Ramchandani based mostly upon knowingly fake allegations that he engaged in industry ‘manipulation’ and ‘collusion’,” study the complaint filed in the federal court in Manhattan.
A spokeswoman for Citigroup in London mentioned the financial institution rejected the allegations and would battle the situation.
“Mr. Ramchandani’s statements of destructive prosecution are without benefit and we will contest them vigorously,” she mentioned.
A New York jury final 12 months cleared Ramchandani, along with two other London-based mostly forex traders, of scheming to rig benchmark trade fees in the $five.3 trillion-per-day overseas trade marketplaces right after just hrs of deliberation.
The verdict was a blow for U.S. authorities, which along with Britain’s Money Conduct Authority (FCA) had fined some of the world’s most powerful banking companies — which includes Citigroup — a complete of close to $ten billion over the overseas trade scandal.
The British isles Really serious Fraud Workplace (SFO) abandoned its individual legal investigation into forex rigging allegations in 2016, stating 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 mentioned had “entire awareness” of the info, had recognized that he had not engaged in intentional wrongful perform or violated any legislation or regulation.
He also alleges his supervisor at Citigroup, an expert forex trading spot industry trader tasked with examining and assessing Ramchandani’s communications, had volunteered that Ramchandani had not engaged in “collusion or rate correcting” and there was “practically nothing legal” in his intent or actions.
Citigroup only pleaded responsible in May 2015 to conspiring to manipulate currencies in purchase to pin the blame on Ramchandani and to limit the regulatory effects for their senior administrators and officers, the former trader alleged.
Ramchandani alleged that even though he had been acquitted, Citigroup’s perform had price tag him tens of tens of millions of dollars, weakened his standing and ended his successful and effectively-compensated experienced vocation.
He is demanding a trial by jury.
(Reporting by Kirstin Ridley and C Nivedita Editing by Alexandra Hudson)
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