Trader vs Deutsche Bank, the issue price is $ 150 million
2022.11.18 13:49
Trader vs Deutsche Bank, the issue price is $ 150 million
Budrigannews.com – Deutsche Bank AG (NYSE:) has been sued for115,000 by a former trader whose conviction for rigging the Libor rate standard was overturned, saying the bank had framed him to protect the top executive from accusations.
In a complaint filed Thursday in New York, Matthew Connolly accused the bank of “malicious prosecution” for making substantially false statements to the U.S. Department of Justice and instructing employees to perjure themselves in court.
Connolly said the German lender had seen him as the “perfect fall man,” although he had “virtually nothing” with Libor to isolate the executives who directed the Libor operation.
The scapegoat at Deutsche Bank (ETR:) ruined Connolly’s reputation and career, his married father of two, and caused “the destruction of his life,” the complaint states.
The bank said in a statement: “We will actively defend ourselves against these claims.”
Libor stands for the London Interbank Offered Rate.
Before it was phased out in May, it supported hundreds of trillion dollars of financial products, including cards, mortgages and other loans.
A global investigation into the operation of Libor has fined the bank about990 billion, and in 2015 Deutsche Bank was fined22.5 billion.
Before leaving in 2008, Connolly led Deutsche Bank’s pool trading desk in New York.
He and his London・based colleague Gavin Black were charged in 2016 and convicted of Libor rigging in 2018, while Connolly was sentenced to 6 months of home confinement and a $100,000 fine.
But a U.S. appeals court overturned their convictions in May, citing a lack of evidence that they were guilty.
Connolly sued Deutsche Bank four weeks after a New York judge threw out Libor-rigging indictments against former UBS and Citigroup (NYSE:) trader Tom Hayes and another trader.
Prosecutors said that the overturned convictions of Connolly and Black undermined these cases. Hayes had already served more than 5 years in prison in the UK for rigging Libor.
Citigroup is facing another $112 million lawsuit in New York accusing former trader Rohan Ramchandani of scapegoating him in a US criminal investigation into foreign exchange rigging.
The incident was reported by Connolly v.Deutsche Bank AG,U.S.District Court,Southern District of New York,No.22-09811.
