What Happened with the Forex Trader?
A Forex trader who used to work with Citi was terminated over allegations that he was colluding with others to tweak the Forex market. The Forex trader filed a lawsuit against the bank for wrongful termination without cause, in order to pacify regulators after they were fined billion of dollars.
Rohan Ramchandani, also known as the Forex Trader, was the former European supervisor of the Forex trading desk at Citi Bank. The FX trader filed a lawsuit on October 2nd at the federal court in Manhattan; he is accusing Citigroup with manufacturing an antitrust case for the United States regulatory agency based on “knowingly false allegations that he engaged in market manipulation and collusion,” according to the complaint of the FX trader.
Seeking $112 million, Ramchandani is the Forex trader to file a lawsuit against the lender following the outcome of the manipulation of the FX market scandal that led to banks losing billions of dollars in fines. At least five other FX traders sued Citigroup while nearly 30 Forex traders at different have been let go, suspended, or put on leave since the financial scandal occurred.
“Employers should not be allowed to throw innocent employees under the bus, nor to play judge, jury and executioner, in an attempt to limit their corporate liability,” Mr Ramchandani reported in a statement on the matter.
After a long trial, a United States dropped the criminal charges last year against Ramchandani and two other British FX traders that were accused of colluding to rig the Forex market, two years after the men were found innocent by a UK court.
According to allegations, the three traders established a chat group under the bane “the Cartel.” The group’s alleged purpose was to manipulate prices of the exchange rates and align trading of US dollars. The decision comes after the UK-based Forex traders asked the court to dismiss their case; they stated that they did nothing wrong and their banks were not always in direct competition. Lawyers of three former Forex traders also insisted on the jury to make their clients innocent of all charges. They rejected the evidence offered by the opposing counsel and the testimony of another trader against them.
The indictments against the trio came after US authorities were condemned for not prosecuting any Forex traders since the rigging scandal occurred in 2013, although they did fine multi-billion dollars against major banks.