Federal agents surprised an HSBC Holdings Plc executive as he prepared to fly out of New York’s Kennedy airport late Tuesday, arresting him for alleged fraud involving currency trading, according to three people familiar with the matter. The arrest marks an escalation of the Justice Department’s three-year investigation into foreign-exchange rigging at global banks.
Mark Johnson, HSBC’s global head of foreign exchange cash trading in London, is also the first individual to be charged in the long-running probe. He is due to appear before a judge in federal court in Brooklyn Wednesday morning, said the people, who asked not to be named because the case hasn’t been made public. Johnson, who works between London and New York, is being charged with conspiracy to commit wire fraud involving front-running client orders, according to the complaint.
Stuart Scott, HSBC’s head of foreign-exchange cash trading for Europe, was also accused in the complaint…
View original post 353 more words