Four criminal actions against individuals involved in the financial services industry were resolved in New York last week through, in one case, a jury verdict, and in the other cases, plea agreements.
Anthony Allen and Anthony Conti, residents of England, were found guilty by a jury in New York of manipulating the London InterBank Offered Rates for US dollar and Yen benchmark interest rates at various times from mid-2005 through 2011. Both individuals were previously traders for Cooperatieve Centrale Raiffeisen-Boerenleenbank B.A. (Rabobank).
In October 2013, Rabobank itself entered into a deferred prosecution agreement with the US Department of Justice and agreed to pay sanctions of US $325 million as well as also settled civil charges with the Commodity Futures Trading Commission and the UK Financial Conduct Authority for violations related to its LIBOR submissions. The CFTC had charged that Rabobank, “through the acts of certain traders and managers located throughout the world, engaged in hundreds of manipulative acts that undermined the integrity of LIBOR and Euribor.” (Click here for additional details of the CFTC and FCA actions in the article, “CFTC and FCA Fine Rabobank over LIBOR” in the November 4, 2013 edition of Bridging the Week.)
Mr. Allen, in addition to being a trader for Rabobank, was also its global head of liquidity and finance and the manager of the bank’s money market desk in London. Sentencing is scheduled for March 10, 2016.
Separately, as expected, Rohit Bansal, a former employee of Goldman, Sachs & Co and the New York Federal Reserve Bank, and Jason Gross, a former employee of the New York Fed only, pled guilty to charges related to the unauthorized use of non-public confidential information by Mr. Bansal while employed by Goldman which he obtained from Mr. Gross. (Click here for details regarding this matter in the article, “Investment Bank Group Fined US $50 Million by NY State Agency for Actions of Malfeasant Employee” in the November 1, 2015 edition of Bridging the Week.) Mr. Bansal and Mr. Gross are scheduled to be sentenced in early March 2016.
Finally, Michael Oppenheim, a former employee of J.P. Morgan Securities LLC, pled guilty to embezzlement and securities fraud in connection with his theft of US $22 million from investors over a seven-year period. According to the US Attorneys Office in Manhattan, Mr. Oppenheim told his clients he would invest their money in low-risk municipal bonds and sent them fake account statements while using their funds for his personal purposes. Mr. Oppenheim is scheduled to be sentenced on February 15, 2016.