HSBC to Pay $101.5 Million to End U.S. Currency-Rigging Probe
The release noted that, the acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation (FDIC) and Special Agent in Charge Timothy R. Slater of the FBI Washington Field Office’s Criminal Division made the announcement.
Acting Assistant Attorney General Cronan, said, “HSBC’s admissions in connection with this resolution confirm that the company misused confidential client information for its own profit on more than one occasion.
Special Agent in Charge Slater said, “HSBC defrauded two bank clients in a front-running scheme that enabled them to acquire millions of dollars to benefit their institution and harm their clients.
Pursuant to its agreement with the Justice Department, HSBC agreed to pay a criminal penalty of $63.1 million.
The Department reached this resolution based on a number of factors, including the approximately $46.4 million that HSBC gained from the offense; the bank’s remedial measures to date, including dedicating significant resources to improving its systems and controls and terminating the employment of employees involved in wrongdoing; and the bank’s commitment to continuing to enhance its compliance program and internal controls. HSBC did not receive credit for voluntarily disclosing the misconduct.
In connection with the government’s investigation, Mark Johnson was charged on Aug. 16, 2016 with one count of conspiracy to commit wire fraud as well as 10 counts of wire fraud stemming from the Cairn Energy transaction.
The investigation was conducted by the FDIC’s Office of Inspector General and the FBI’s Washington Field Office.