Last week we wrote about how some former HSBC FX traders, led by Mark Johnson, orchestrated a carefully crafted plan to front-run a massive buy order for British Pounds using the code phrase “my watch is off.”
Now, courtesy of court filings in a British case to extradite one of the participants, Stuart Scott, we learn exactly how much each HSBC trader made for his trading book in the illicit scheme that netted a total of $8 million in profits. Per Bloomberg:
“The defendant personally obtained over $500,000 profit,” the U. S. Justice Department, represented by British lawyer Mark Summers, said in written arguments prepared for the hearing. “The offenses of which he is accused are highly serious. They involve a systematic and organized conspiracy to defraud, committed in breach of trust.”
Scott was charged, along with his ex-boss Mark Johnson, by the Justice Department in July 2016 with using insider knowledge to front-run a $3.5 billion currency deal by Cairn Energy Plc that made the bank $8 million. Johnson is on trial in New York and a jury there could begin deliberations this week.
This post was published at Zero Hedge on Oct 16, 2017.