Mark Johnson, a former HSBC Holdings, PLC trader, recently became the first person to be convicted in an international investigation into currency rigging. In late April, a U.S. District Judge in Brooklyn sentenced him to two years in prison for nine counts of wire fraud and conspiracy after rigging a $3.5 billion client order in December 2011.
According to Judge Nicholas Garaufis, who oversaw the case, federal sentencing guidelines indicated Johnson would face a maximum of nine years in prison, but the judge imposed a shorter term after citing Johnson’s family ties and community work, as well as the fact that it is unlikely any financial institution will ever trust him again in a position where he’d handle major transactions.
Whistleblowers play important role in uncovering fraud
The vast majority of these types of fraud cases would never be uncovered were it not for the reports issued by whistleblowers, who become aware of wrongdoing within their organizations and decide to speak up. Federal legislation implemented within the last decade has only encouraged even more whistleblowers to come forward with their knowledge of illicit activity in their workplace, as there are more protections than ever afforded to whistleblowers.
In addition, depending on the type of fraud and the value of the case, whistleblowers who report fraud through the SEC’s Office of the Whistleblower stand to earn some significant awards for producing unique, helpful information about wrongdoing.
If you are aware of wrongdoing occurring in your workplace, meet with a trusted Dallas whistleblower attorney at Kardell Law Group to learn more about your options.
