DOJ Charges Another Two Ex-Rabobank Traders Over Libor Manipulation

The U.S. Department of Justice has indicted another two ex-Rabobank (RABO) traders over their alleged involvement in a London interbank offered rate manipulation scam. The charges widen the Federal Bureau of Investigation’s probe into the Dutch bank to include U.S. dollar Libor, as well as yen libor.

Anthony Allen and Anthony Conti, both from England, are the two ex-Rabobank derivatives traders that have been indicted. The charges accuse them of taking part in a Libor manipulation scam involving derivatives linked to both the yen and U.S. libor benchmark rates to benefit themselves and the bank.

In 2013, Rabobank reached a settlement with the Justice Department and consented to pay a $325 million penalty to resolve allegations related to the bank’s submissions for LIBOR and the Euro Interbank Offered Rate. The government had charged Rabobank with wire fraud for its involvement in manipulating both benchmark interest rates.

Rabobank is one of a number of large financial institutions to admit to misconduct related to the benchmark manipulation criminal probe. Rabobank also settled similar allegations with the Commodity Futures Trading Commission (CFTC) for $475 million, the U.K. Financial Conduct Authority (FCA) for $170 million, and the Openbaar Ministerie in Holland for about $96 million.

Aside from Allen and Conti, four other ex-Rabobank employers were indicted for Libor manipulation, including Tetsuya Motomura and Paul Thompson. Takayuki Yagami and Paul Robson pleaded guilty to one count of conspiracy related to their involvement with the Libor scheme.

Meantime, Bloomberg reports, the European Commission is getting ready to announce penalties related to Libor rate rigging involving the Swiss frank. Sources say that banks that have been settlement negotiations include UBS AG (UBSN), Credit Suisse Group AG (CSGN), JPMorgan Chase & Co. (JMP) and Royal Bank of Scotland Group Plc. (RBS).

Two More Former Rabobank Traders Charged in Libor Probe, The Wall Street Journal, October 16, 2014

Global Banks Said to Get EU Fines Over Swiss Franc Libor, Bloomberg, October 16, 2014

Rabobank Admits Wrongdoing in Libor Investigation, Agrees to Pay $325 Million Criminal Penalty, DOJ, October 29, 2013

More Blog Posts:
LPL Financial Fires Texas Branch Manager Over Selling Away Claims, Settles with Senior Investors in Massachusetts for $541,000 Over Faulty Variable Annuity Switches, Stockbroker Fraud Blog, October 15, 2014

Virginia Files $1.15B Securities Lawsuit Against Citigroup, Credit Suisse, JPMorgan Chase, and Other Big Banks, Institutional Investor Securities Blog, September 27, 2014