Client Login Portal
    • addthis
    • link : Client Login
    • knowledge network
    • Practice Areas
    • Cases
    • About Us
    • News & Events
    • Our People
    • Knowledge Network
    • Contact Us
    Labaton Sucharow
    • addthis
    • link : Client Login
    • knowledge network
    • Practice Areas
    • Cases
    • About Us
    • News & Events
    • Our People
    • Knowledge Network
    • Contact Us
    • Practice Areas
    • Cases
    • About Us
    • News & Events
    • Our People
    • Contact Us
    • Knowledge Network
    • Client Login
    • Search
    • addthis
    • link : Client Login
    • knowledge network
    Labaton Sucharow
    • News & Events
      • Press Room
      • Published
      • Events
    • Digital Library
      • Videos
      • Podcasts
      • Webinars
    • News & Events
      • Press Room
      • Published
      • Events
      • The Liaison
    • Digital Library
      • Videos
      • Podcasts
      • Webinars

    Scott Faces Extradition to U.S.

    FX Week
    July 22, 2016

    Gregory Asciolla comments on wire fraud scandal committed by former bank employees

    The Department of Justice (DOJ) has charged Stuart Scott, the former HSBC employee, and his former supervisor, Mark Johnson, with conspiracy to commit wire fraud, for allegedly front-running a client's $3.5 billion currency trade in 2011, which reaped $8 million in profits for the bank at the client's expense. The two men are the first individuals to be charged in the DOJ’s long-running investigation into banks' manipulation of the $5.3 billion-a-day FX markets. The criminal complaint, unsealed on July 20, adds new damage for HSBC. The bank and 15 others have paid out more than $12 billion in combined penalties in regulatory and civil claims concerning the probe.

    The complaint is already a milestone for the DOJ and the Federal Deposit Insurance Corporation, which is assisting the investigation, as prosecutors have begun to chip away at the logos of these banking institutions to reveal the human faces behind alleged corporate wrongdoing—a key step in the pursuit of holding individuals accountable for unfairly profiting from their customers.

    Lawyers say the U.S. has jurisdiction to pursue Scott and Johnson, because the complaint alleges a portion of the fraud occurred on December 5, 2011, while Johnson was in New York.

    Gregory Asciolla, Co-Chair of Labaton Sucharow's Antitrust and Competition Litigation Practice, said, "Once the UK made antitrust violations a crime, it then made it possible to extradite people from there to here for antitrust crimes affecting the U.S. It appears in this case, however, [that] prosecutors have alleged wire fraud, which is also an extraditable criminal offense."

    "It is not something that happens very quickly, because it is a sensitive issue to extradite citizens from one country to another. It's got all kinds of ramifications, including political ones that go beyond the legal ones. You are forcibly removing a citizen of one sovereign country to potentially be put in custody in another country for crimes committed in another country. This raises significant political, legal and sovereignty issues—all of this is taken into consideration," Asciolla added.

    Useful Links

    • Practice Areas
    • Cases
    • About Us
    • News & Events
    • Our People
    • Knowledge Center

    Our Locations

    footer-list-map_icon New York
    140 Broadway
    New York, NY 10005
    212-907-0700

    footer-list-map_icon Delaware
    222 Delaware Avenue, Suite 1510
    Wilmington, DE 19801
    302-573-2540

    Useful Links

    footer-list-map_icon Washington, D.C.
    1050 Connecticut Avenue, NW, Suite 500
    Washington, D.C. 20036
    212-907-0700

    Stay Connected

    • Facebook
    • Twitter
    • LinkedIn
    Labaton Sucharow
    • Attorney Advertising Disclaimer
    • Privacy Policy
    • Transparency in Coverage Rule
    • labaton.com
    • Labaton Sucharow All Rights Reserved 2023

    Attorney Advertising Disclaimer

    The materials appearing on this website are provided for informational purposes only and do not constitute legal advice. You should not take action based upon this information without consulting legal counsel. This site is not intended to create an attorney-client relationship. The hiring of a lawyer is an important decision that should not be based solely upon any single source of information, including advertising on this website. You may ask us to send you further information about us, and we urge you to review other sources of information about us.