Several Barclays foreign exchange traders have been charged with fraud by the U.S. Department of Justice. The traders based in New York have been formally charged with attempt to defraud a client. Three traders in total had been accused as of last Thursday.
Barclays Trader Fraud
Prosecutors began coming after three Barclays traders recently, seeking more than $10 billion in fines. One worker, Robert Bogucki, has been accused of manipulating foreign exchange options back in 2011. The scheme Bogucki allegedly ran is referred to as “front-running.” The New York native pleaded not guilty earlier this week. Barclays then told reporters that the company is cooperating with the ongoing investigation.
Even though Bogucki is based in New York, the rest of his case will be heard in San Jose – where the charges were first filed. Although some of the details are unknown, it appears the trader abused information he received prior to Barclays’ acquisition of a large British-based company. Bogucki allegedly saved some of the investment for his own pocket. He can only hope not to follow in the footsteps of former HSBC executive Mark Johnson. Johnson was found guilty back in October of defrauding a company, worth more than $3.5 billion in investments.
Wells Fargo Scandal
Unfortunately, this news of possible fraud stemming from traders at Barclays is just the latest in a string of charges. Less than two months ago the U.S. Attorney’s Office in California began looking into illegal activity at Wells Fargo. The investigation took place after a questionable trade was executed for a client. The infraction has really impacted Wells Fargo’s international relationships and trade policies. And as a result, the banking company was forced to fire four of its top forex traders. It was yet another hit for Fargo as it continued to rebuild its image after the bank’s massive fraudulent accounts scandal.