(Bloomberg) -- A former Citigroup Inc. dealer who says the financial institution made him a “scapegoat” in a U.S. investigation of overseas trade w
(Bloomberg) — A former Citigroup Inc. dealer who says the financial institution made him a “scapegoat” in a U.S. investigation of overseas trade worth fixing can transfer forward with a $112 million lawsuit towards his ex-employer.
Rohan Ramchandani, who was acquitted by a federal jury in 2018, sued the financial institution in 2019 claiming it leaked false details about him to the press and lied to regulators investigating the alleged worth fixing. U.S. District Choose Victor Marrero on Thursday rejected Citigroup’s request to dismiss the case, ruling that Ramchandani had raised a believable declare for aid.
The ruling is one other authorized setback for Citigroup, which final month misplaced a lawsuit it filed to recoup tons of of hundreds of thousands of {dollars} it mistakenly despatched to a bunch of hedge funds in August. The financial institution is interesting that call, which was broadly watched throughout Wall Road. Citi can also be within the midst of upgrading its methods and applied sciences after the Workplace of the Comptroller of the Forex and the Federal Reserve cited deficiencies in each areas final yr.
Learn Extra: Citi Loses Bid to Recoup Huge Mistake in Shock Ruling
“Mr. Ramchandani’s claims of malicious prosecution are with out advantage and we’ll contest them vigorously,” Danielle Romero-Apsilos, a spokeswoman for the financial institution, mentioned in an emailed assertion.
‘The Cartel’
In 2018 a federal jury in New York rejected the U.S. case that Ramchandani, Richard Usher, a former JPMorgan Chase & Co. overseas trade dealer, and Chris Ashton, the ex-head of spot FX buying and selling at Barclays Plc, rigged the overseas trade market from 2007 to 2013 by coordinating trades and manipulating costs. Jurors discovered the three males, dubbed “the Cartel,” not responsible of conspiring by on-line chatrooms to govern the $5.1-trillion-a-day market.
Learn Extra: Citigroup Framed Me, Acquitted Foreign exchange Dealer Claims in Swimsuit
Citigroup, JPMorgan Chase, Barclays and Royal Financial institution of Scotland Group Plc pleaded responsible to forex manipulation in 2015 as a part of a $5.eight billion settlement with the U.S.
Ramchandani alleges that Citigroup selected to plead responsible to a fabricated crime the financial institution pinned on him, to keep away from penalties together with the lack of licenses. He claims the federal government primarily based its prosecution on the false info.
“By efficiently grounding its plea solely upon Ramchandani’s nonexistent crimes, Citi restricted scrutiny of, and potential costs towards, its personal senior managers and officers,” he mentioned within the lawsuit.
The case is Ramchandani v. Citigroup Inc., 19-cv-09124, U.S. District Court docket, Southern District of New York (Manhattan).
Learn Extra: Ex-Citi Dealer Renews Dismissal Lawsuit After Acquittal in U.S.
(Updates with particulars and context beginning in third paragraph.)
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